Paddy Ashdown: "Most people welcome this cooperation"

Mr Ashdown has come under fire from some party activists who say he is getting too close to Prime Minister Tony Blair, but in his New Year message, the Liberal Democrat leader insisted his tactics had paid off, delivering long-held party policies.

He said claims that the party would be "marginalised" by Labour's massive majority had been confounded. Mr Ashdown also urged his supporters to have the confidence to use next year's round of elections to extend his party's influence and power.

But he also pledged to continue "harrying" the government over its refusal to set a date for joining the European single currency - the euro - and other issues on which they disagreed.

'Consolidate electoral base'

In particular, Mr Ashdown emphasised that the Liberal Democrats had the opportunity to gain ground in next year's elections to the Scottish and Welsh assemblies - which were among the benefits of their cooperation strategy - as well as in the European parliamentary and English local government elections.

He said: "In the year ahead the task of the Liberal Democrats is to consolidate our electoral base and to extend further our participation and influence in government - in Scotland, in Wales, in Europe and at Westminster."

Mr Ashdown called on his party to "continue to campaign and to grow in strength and influence in the electoral contests of 1999. Our task is to end 1999 stronger - not just a force for reform but a party of power."

Later, Mr Ashdown was warned by a senior figure in his own party not to increase the cooperation with Labour.

Frontbench health spokesman Simon Hughes said Mr Ashdown's recent decision with Tony Blair to extend cooperation into areas beyond constitutional reform, "nearly took the boat over".

Party members wanted more consultation and democracy about future decisions, said Mr Hughes.

Mr Hughes told BBC Radio 4's The World at One: "No leader can stay a leader without the party being behind them and Paddy sometimes does things that test that to the limit.

"At the end of the day, he's got sufficient good will and track record for people by and large to come with him.