By Lewis Bazley.

The prime minister has offered his backing to victims of IRA terrorism seeking compensation from Libya after earlier outcry at his refusal to push for a pay-out.

Gordon Brown had earlier been criticised after saying he did not consider it "appropriate" to enter talks with Libya over compensation for the victims of IRA bombs.

Campaigners have sought a payout from Colonel Muammar Gaddafi’s regime as it supplied the IRA with the Semtex explosives used for the attacks.

But in a letter to the victims’ lawyer Jason McCue last October, Mr Brown had said the government did not "consider it appropriate to enter into a bilateral discussion with Libya on this matter", and cited the need for continued relations with Libya on matters such as terrorism.

However, speaking after talks with German chancellor Angela Merkel in Berlin, the prime minister said he will provide Foreign Office staff to accompany campaigners to Tripoli as they attempt to negotiate compensation from the Libyan government.

"I desperately care about the impact of all IRA atrocities on the victims, their families and communities," he commented.

"The Libyans have refused to accept a treaty or normal intergovernmental agreement on this issue.

"As a result, our judgement has been that the course more likely to bring results is to support the families and their lawyers in their legal representations to the Libyan authorities.

"We will appoint dedicated officers in the Foreign Office and our Embassy in Tripoli who will accompany the campaign group to meetings with the Libyan government to negotiate compensation, the first of which will be in the next few weeks."

Critics had alleged Mr Brown had not confronted Colonel Gaddafi due to a wish to protect lucrative British oil interest in Libya but the Labour leader maintained his earlier decision had been motivated by a wish to ensure Libya’s continued support in the fight against terrorism.

The campaigners’ lawyer Mr McCue said it was "a great day for victims" as the prime minister had made a "principled decision" that "listened to ordinary folk rather than bureaucrats".

"I am confident that his moral and logistical backing for the British victims of Libyan Semtex will ensure that they now receive justice and compensation, as did the US victims when they received the support of their president," he said.

Mr McCue added that "with our PM’s full support, I cannot see why this matter cannot be concluded swiftly in a matter of weeks and before parliament reconvenes."

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