The British government has published new legislation to allow the so-called "on the run" paramilitary suspects sought for crimes committed before the Belfast Agreement return to the North.
The Northern Ireland Offences Bill applies to 60 suspects including former Sinn Fein MP Owen Carron and Liam Averill - who escaped from the Maze Prison dressed as a woman in December 1997.
British prime minister Mr Blair is expected to face serious opposition to the Bill in the House of Commons and the House of Lords from unionists and Conservative Party MPs
who accuse the British government of planning an amnesty for IRA members.
Legislation is not required in the Republic and the Government is expected to grant "executive pardons" to IRA members wanted in connection with crimes committed in the State before the Belfast Agreement.
A spokeswoman for the Department of Justice said a statement dealing would be released later today
In the House of Commons today, SDLP leader Mark Durkan said there the Bill amounted to "collusion on the past between the state and Sinn Fein".
He asked Mr Blair if he accepted "that victims, including victims of state collusion, will not only be deprived of justice, they will be denied even truth".
But Mr Blair said: "The proposals are part of the continuing process to bring an end to terrorism in Northern Ireland.
"The Good Friday Agreement that you were part of and I was part of provided in respect of prisoners, this deals with the question of the so-called on-the-runs but I have to say I think it is a different situation where the measures we are introducing are actually designed to end terrorism, not further it."
Conservative Party MP Andrew Rosindell said it was a "colossal disgrace" that IRA murderers were likely to be pardoned, whilst troops who served in the province could face potential prosecution.
Earlier Democratic Unionist victims spokesperson Arlene Foster said the legislation was deeply offensive to victims of terrorism.
The Fermanagh and South Tyrone Assembly member also claimed the legislation could be in breach of the European Convention on Human Rights and undermine PSNI Chief Constable Sir Hugh Orde's cold case review of unsolved murders.
Mr Durkan was meeting Northern Ireland Secretary Peter Hain today to voice his concerns.
Ulster Unionists were in Dublin today for talks with the Taoiseach Bertie Ahern.
The Ulster Unionist Party attacked the moves by the governments to deal with "on-the-runs" (OTRs). Party leader Sir Reg Empey said today after talks with Taoiseach Bertie Ahern in Dublin: "We believe it is a major mistake.
"The people released under the Good Friday Agreement were at least through a legal process of a court and jury.
"That is not the case with the on-the-runs. What we're actually doing is making our judicial system stand on its head."
Sir Reg claimed that thousands of people in the UK and Ireland who were victims of OTRs would now never see justice done. "What provisions are being made for them?" he asked. "This whole issue is skewed towards people who have broken the law and caused enormous damage."