Terror blow for Blunkett

David Blunkett's bid to curb the terrorist threat suffered a major setback as an al Qaeda suspect enjoyed his first day of freedom today following his release on bail.

The Home Secretary blasted the "extraordinary" decision by an appeal panel to free the 35-year-old Algerian known only as G.

He was allowed home after more than two years in Belmarsh topsecurity prison, where he was held without trial under emergency anti-terror laws.

The three-member Special Immigration Appeals Commission panel backed a claim by the suspect's barrister that detention at Belmarsh was damaging his mental health.

Taxpayers now face a huge bill for electronic tagging and surveillance at the man's home in an attempt to ensure that he does not pose a threat to the public.

The detainee, who suffered from polio as a child and walks on crutches, was diagnosed as psychotic during his stay at Belmarsh and is now seen as a suicide risk.

However, he is not judged ill enough to be held at Broadmoor or another secure institution. The Home Office argued, unsuccessfully, that his condition had improved radically since January when a SIAC panel first ruled that he should be granted bail.

G had been locked up since December 2001 under the Anti-Terrorism, Crime and Security Act, speeded through Parliament within weeks of the September 11 terrorist attacks.

He was one of 13 individuals detained under the laws, which have been attacked by civil liberties campaigners, who claim that prolonged detention without trial breaches human rights.

All 13 are foreign nationals who have the right to obtain their freedom by leaving Britain at any time. G fled the harsh Algerian regime and was granted leave to remain in Britain.

Panel chairman Mr Justice Collins ruled that G can be bailed under house arrest conditions, which include electronic tagging, the requirement to check-in five times a day and strict limits on who he is allowed to meet.

A spokesman for Mr Blunkett said after the ruling: "This is an individual whom the court has agreed with the Home Secretary can be believed to be a terrorist, and now just a few months later authorises he should be released on bail."

A special refurbished unit for terrorist suspects has been set up at Wood Hill Prison near Milton Keynes on the recommendation of the Government's independent watchdog of terror legislation, Lord Carlyle. But G chose to stay in Belmarsh instead of moving to Wood Hill.

Gareth Peirce, G's solicitor, said after the hearing: "The Home Secretary has been fighting this to the death. He has tried to stop this man from getting out and getting sane.

"He drove this man to madness. This is not what should happen in a civilised society."

In October, as it rejected G's appeal to be released from detention, the SIAC panel said: "We have no doubt that he has been involved in the production of false documentation, has facilitated young Muslims to travel to Afghanistan to train for jihad and has actively assisted terrorists who have links to al Qaeda."

Mr Justice Collins warned G he would be returned to detention if there were any breach of his bail conditions. He said G's wife, who has put up £500 as surety, has an interest in ensuring he does not become involved in any terrorist activity. The only people he is allowed to associate with are his wife, daughter, solicitor, health professional or any other person approved by the Home Office.