John Kinsella, a petty thief serving 16 years for his part in the 1993 Warrington gas works bombing, yesterday failed to have his conviction overturned by the Court of Appeal in Woolich.
Kinsella has served five years of his sentence for stashing Semtex and arms while an active IRA unit carried out the bombing, causing £1 million damage. Kinsella had claimed that he was set up as a dupe by the IRA who told him he was hiding stolen silverware for 24 hours for £200 cash.
Counsel for Kinsella had claimed that great emphasis at his original trial had been put on a set of photographs in a family album, one of which showed his son, John jnr, standing next to a plaque commemorating the death of a young IRA volunteer.
John jnr did not give evidence at his father's trial because he was worried about being held under the Prevention of Terrorism Act.
The former Home Secretary referred the case for appeal after new evidence was submitted, including statements from John jnr and the leader of the IRA unit Pairic MacFhloinn.
Although John jnr gave evidence yesterday, Mac Fhloinn, who is in Portlaoise Prison, reneged on his promise to give evidence for Kinsella because of orders from the IRA leadership.
He had told Kinsella's legal team that an IRA man would never lead police to an arms cache.
Lord Justice Beldam, Mr Justice Dyson and Mr Justice Longmore rejected the convicted terrorist's statement, saying they doubted whether he ever intended to go into the witness box.
While on remand Kinsella had tried to commit suicide after prisoners warned him that the IRA did not easily forgive informants.
Mac Fhloinn was jailed for 35 years and Denis Kinsella for 25 years for the bombing that devastated the gas works.
After the case yesterday John jnr said he was heartbroken.
Kinsella's wife Audrey burst into tears as the three appeal judges announced their decision.