Coalition made Iraq 'terrorist hotbed'

Iraq has become a breeding ground for a new generation of terrorists because of the handling of the country after the war, a report says today.

The foreign affairs committee of MPs believes the heavy-handed tactics of the US-led coalition forces have turned many Iraqis against them.

The MPs claim the instability in Iraq is one of the reasons why Britain and America are losing the war on terror. They say the danger posed by al Qaeda has been made worse because of the coalition's policies.

"The continued incidence of attacks as well as the risk that Iraq is providing a breeding ground for terrorists of the future suggest that the war against terrorism is far from being won," the report says.

The committee contests claims by Donald Rumsfeld, the US defence secretary-that al Qaeda has been seriously diminished since 9/11. "We conclude that al Qaeda continues to pose a serious threat to the United Kingdom and its interests. Indeed, this threat may have grown more difficult to tackle in the years since 11 September 2001 owing to the fragmentation of groups and individuals associated with al Qaeda," the report says.

It continues: "We further conclude that Iraq is providing a dangerous training ground for terrorists. We further conclude that states such as Iran and Syria are not taking sufficient steps to prevent terrorism."

The MPs are highly critical of the coalition's efforts to restore order and stability to Iraq. They say the " excessive force" used by the Americans has proved "counter-productive".

The MPs say: "Although many parts of Iraq are secure, much of the country continues to be wracked by violence. This has devastating consequences for the Iraqi population and imperils the country's political transition."

The committee says Tony Blair should set out his plans for withdrawing British troops.

The MPs also criticise the Government for failing to reveal whether the UK receives or uses information extracted under torture.