The case was reviewed by the social work inspection agency

Peter Nelson, 61, spoke out following reports a witness in the case admitted that she lied to police.

He was one of seven men and a woman arrested in a series of dawn raids on the island and in England in 2003. The Crown Office later dropped all charges.

The mother of three children at the centre of the case is reported to have said some claims she made were false.

Mr Nelson said he was aware of the new claims.

He said: "People's lives have been ruined here on the island.

"We have had three years of absolute misery up here even when the case was ended people had that suspicion and frightened to be friendly with you. Hopefully this will bring a conclusion to it all."

Mr Nelson added: "There needs to be a public inquiry of this case."

'Appropriate adult'

Responding to the report the woman lied to police, Northern Constabulary said that its operation at the time had been based on the evidence from three children.

Police said the woman, who they said has learning difficulties, was accompanied by an appropriate adult at all times when she was being interviewed to ensure she understood the questions.

He added: "The participation of an appropriate adult is to protect the interests of vulnerable members of the community.