THE family of murdered Iraq hostage Jason Swindlehurst said yesterday they were "deeply stunned and saddened" by his death.

Mr Swindlehurst, a security guard and father-of-one from Skelmersdale, West Lancashire, was confirmed dead at the weekend, along with fellow hostage Jason Creswell, from Scotland.

Their remains were handed over to the Iraqi authorities in Baghdad late on Friday.

They were among five Britons taken captive in May, 2007, by 40 armed men wearing police uniforms at the Iraqi Finance Ministry in Baghdad.

The three other hostages – IT consultant Peter Moore, from Lincoln, and two guards identified only as Alan, from Scotland, and Alec, from South Wales – remain missing.

Jan Beattie, a friend of Mr Creswell, made a statement on behalf of the families of all five captives.

She said: "We are deeply stunned and saddened by the tragic and upsetting news of the deaths of Jason Creswell and Jason Swindlehurst. We ask those still holding Alec, Alan and Peter to release them and allow them to return home to their families as soon as possible.

"Our grief is profound, but we remain united in our support for each other as a family group and we have been extremely touched by the messages of support we have received over the past 48 hours. We would now ask the media and public to give us, particularly those who have lost loved ones, the privacy we need to come to terms with this extremely shocking news in our own way. Thank you."

Confirmation of the two men's deaths is a particularly bitter blow to the families as there had been fresh hope in recent weeks that the hostages could be freed shortly after the release of a senior Iraqi insurgent at the start of this month.

Former hostage Terry Waite defended the Government’s handling of the case, which yesterday was strongly criticised by Mr Moore’s father, Graeme.

Mr Waite, who was held captive in Beirut for nearly five years, told the BBC: "Hindsight is a wonderful teacher. Initially, the hostage-takers demanded a black-out - they wanted it to be kept totally quiet.

"I suspect they wanted that because they thought that, by adopting that tactic, the Government would do a quick deal.

"Well, that didn’t work, and then they produced video tapes and stepped up the pressure - and that didn’t work either.

"So, I think, on the whole, the Government was right to take that approach."The only point about high (profile) public campaigns is that it works two ways, really.

"On the one hand, the hostage-takers hope that the public will then pressure the Government to give way to the kidnappers’ demands.

"And, of course, the other side of it is that sometimes relatives feel that they are not doing enough, and by engaging in a campaign, at least it gives then the satisfaction that they are doing something."

Mr Waite said the families of the three remaining hostages had reason to keep hoping that their loved ones will be freed safe and well.

He said: "It is a fluid situation, the situation is stabilising in Iraq. The matter is in the hands of the Iraqis - we, that is the British, have to work through third parties.

"There is a good chance, all hope is not lost as yet."Gordon Brown said the bodies would be returned to the families of the dead men "very soon".

He called on the hostage takers to return British and Iraqi prisoners immediately.