Outraged Irish Americans have hit back at claims that they should be made pay compensation to IRA victims.

A senior minister in the Libyan Government has said that Irish Americans should be brought to court for sending money to the IRA.

European affairs minister Abdulati Alobidi said that any action against Libya by the families of IRA victims should also include Irish Americans.

"It's a pity Reagan didn't get Gadafy the first time," stormed New Yorker and second-generation Irish American Scott Hughes, 42.

"What kind of leadership is there in Libya that they're looking to blame Irish Americans?"

"The blame lies with themselves, they're the people who blew people out of the sky and went on the rampage killing people."

Meanwhile, Alobidi said Libya would not make any settlement with the families of IRA victims.

Alobidi angrily blasted the class-action case which was brought against Libya two years ago.

“To come to blame us?" he said, "send them first to trial.

“Go to the Irish-Americans who were giving them money to even buy arms.

“Why Libya? We will not negotiate with the government. If any citizen, any victim, wants to go to court here or there, we will have to defend ourselves through our lawyers,” he said.

The lawyer representing the families, Jason McCue, said he was confident of winning a deal within weeks.

However, Alobidi hit back saying that Libya would do a counter-suit over the 1986 American attack on leader Muammar Gadafy’s compound, which killed his daughter.

“If there is this issue officially with us [over the IRA attacks], we will also put that raid in which they participated against Libya, against the house of the leader and killing his daughter, on the table.