Clash looms over public-private plans

Unions fear the reform plans will hit key services

Labour's annual conference looks set for a showdown over controversial government plans to expand the role of the private sector in public services.

The party's ruling national executive committee (NEC) - which meets on Tuesday - is facing calls from unions for the setpiece autumn gathering to be allowed to debate the issue.

If Tony Blair is unable to convince his own party about the wisdom of his proposals, then what chance has he of convincing the public

GMB spokesman

The NEC will also use the meeting to decide on a successor to outgoing Labour Party general secretary Margaret McDonagh.

Prime Minister Tony Blair has put the use of private money at the heart of efforts to reform and improve services including hospitals and schools.

But disquiet has been expressed from all sections of the party - including backbench MPs and grassroots membership - and the conference could see the clash coming to a head whether or not Labour chiefs allow it onto the official agenda.

A spokesman for the GMB union said that privatisation of public services was the number one issue facing the party and was too important to be "spun away."

He added: "We need to have a full and open debate on the floor of the party conference to see if we can throw some light on the government's privatisation proposals.

"If Tony Blair is unable to convince his own party about the wisdom of his proposals, then what chance has he of convincing the public."

Funding cut

Last week the GMB announced it was cutting up to £1m from its contributions to the Labour Party over the next four years in protest at the plans for greater involvement of private companies in public services.

The country's biggest union, Unison, urged the government to "face the facts" over privatisation of public services.

It claims there was growing evidence of failures in the system.

General secretary Dave Prentis said he could not understand the government's "love affair" with the private sector.

"It is time that Tony Blair faced the facts and abandoned his privatisation mission."

'Travesty' warning

Mark Seddon, editor of the left-wing journal Tribune and elected to the NEC this year, said: "Labour members across the country would think it a travesty if this wasn't debated."

Mr Seddon warned that if the annual conference failed to address the issue, "the trade unions would be forced to use other avenues outside the Labour Party".

As well as the GMB move last week, Unison voted at its conference last month to review links with Labour.

Meanwhile, Labour has drawn up a shortlist of five contenders to replace the party's outgoing controversial general secretary Ms McDonagh.

Many in the party will hope for a general secretary with a lower profile than Ms McDonagh's, who eventually became closely identified as a prime mover behind New Labour's alleged "control freakery".