MPs have again launched a stinging attack on the Government following what they described as a “maladroit” review of claims for the asbestos-related disease mesothelioma.

A short inquiry by MPs on the Justice Select Committee found the consultation had not been prepared in a thorough and even-handed manner and it should be undertaken again.

Their report also called on the Ministry of Justice to work with the Department of Health to reduce delays in the production of mesothelioma victims’ medical records and highlighted the excessive average legal cost of £20,000 for every claim.

Middlesbrough Labour MP Andy McDonald, one of the committee members, said: "What is abundantly clear from our investigations is the Government never had any intention of retaining the exemptions they agreed to and which were secured by parliament for the benefit of mesothelioma victims and their families.

“The protective measures that were so hard won from the Government, which meant that victims didn't have to suffer additional legal costs brought about by litigation funding changes introduced by the Legal Aid, Sentencing and Punishment of Offenders Act (LASPO), were simply a sham.”

Mr McDonald accused the Government and the Association of British Insurers of “dodgy deals behind closed doors”.

Last year, MPs from this region condemned a “roll over” to the insurance industry when they criticised weaknesses in the Mesothelioma Bill, legislation designed to compensate victims of mesothelioma who have been unable to trace employers who exposed them to asbestos.

Mesothelioma, a painful and almost always fatal lung disease caused 2,291 deaths in 2011, a higher number of which on average occurred in the North-East. This is thought to be because of the region’s background in heavy industry.

The committee’s chairman, veteran Liberal Democrat MP Sir Alan Beith, who represents Berwick-upon-Tweed, said the Government’s approach had been unsatisfactory on a number of counts.

James Dalton, an assistant director of the Association of British Insurers, said the insurance industry had always been “open and transparent”, adding: “We make no apologies for negotiating with Government a scheme, paid for by insurers, that will compensate an extra 3,000 sufferers over the next ten years, who would otherwise go uncompensated.”

A spokesman for the Ministry of Justice said: “We are considering the best way to get claims settled fairly and quickly."

"We will consider the report’s recommendations and respond in due course."