Another legal move is under way to secure compensation for the victims of Libyan-sponsored terrorism. Ulster Unionist peer Lord Empey has introduced a bill into the House of Lords aimed at unfreezing Libyan assets held in Britain following the overthrow of Muammar Gaddafi.

It was Semtex supplied by the dictator that the IRA used in a range of terror attacks and attempts at compensation have been thrown into disarray because of the precarious nature of governance in Libya.

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Lord Empey said: “The Asset Freezing (Compensation) Bill is designed to allow compensation to be paid to victims of Gaddafi-supplied weapons and explosives from the large-scale assets that have been frozen in the UK.

"There is believed to be in the region of £9.5billion of Gaddafi family assets alone.

“We have not given up on trying to get some level of support for the victims.

"I have been pursuing this issue with HM Government since 2002 and I hope that this bill can right the wrong done by Tony Blair’s failure to secure compensation for victims when other countries succeeded.”

However, Treasury minister Gregory Hinds told the Commons in February that the money is held under rules set by the United Nation and was not available for compensation payments.

He said: “I understand and share the concerns for the victims of the Docklands bombing I’m afraid the legal framework is based on preserving the funds for the Libyan people.”

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