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Monday, 14 February, 2000, 13:28 GMT

Downing Street defends 'save Michael' role

Caretaker Assembly First Secretary Rhodri Morgan is facing a crucial week.

His election to the permanent post is now thought to be almost a formality when the Assembly meets on Tuesday. Former First Secretary Alun Michael

But he has already moved to damp down speculation that he is about to agree a formal coalition with the Liberal Democrats to avoid the fate of his predecessor Alun Michael.

Downing Street has defended the Prime Minister's role in attempts last week to save Mr Michael as first secretary.

Tony Blair telephoned the Liberal Democrats leader Charles Kennedy to discuss options for a deal between the parties before Wednesday's vote of confidence.

The Prime Minister's official spokesman said on Monday: "The Prime Minister is leader of the Labour Party and leader of the United Kingdom Government and therefore has a vested interest in making sure these things work properly."

Speculation had been increasing that Rhodri Morgan's minority administration would have to reach some sort of agreement with the opposition.

But Mr Morgan has told BBC Wales that he thinks neither side wants a formal pact although one could be a future option. Liberal Democrats in Wales leader Mike German

Liberal Democrats in Wales leader Mike German

"The issue is what sort of confidence building measures do we need before we trust each other as separate parties to say okay we could have a coalition by the year 2001? It could be an option - we just don't know," he said.

Blaenau Gwent Labour Party and Llew Smith MP have said Mr Morgan should rule out any form of future coalition with any party in the Assembly.

"Our international socialism is totally opposite to the kind of nationalism and bigotry that goes with the Welsh Nationalists," said Mr Smith.

The Liberal Democrats say nothing is on or off the agenda at the moment.

Meanwhile, Liberal Democrat leader in Wales Mike German has confirmed that the Prime Minister appealed to them to save Alun Michael.

He says Tony Blair contacted their leader Charles Kennedy.

'Deliver changes'

The reply from Mr Kennedy was that it was a matter for the people of Wales.

"We will not simply join a Labour administration. Nor will we simply prop up Labour in power," said Mr German.

"But if the Labour Party under Rhodri Morgan want to make the changes which Liberal Democrats believe are vital to the people of Wales, we will work with them to deliver those changes."

"We want greater investment in education, and urgent relief for the rural economy."

Related to this story:
Morgan's promise over EU funds (13 Feb 00 | Wales)
Morgan is new Wales Labour leader (11 Feb 00 | Wales)
Welsh first secretary quits (08 Feb 00 | Wales)
Timeline: Welsh devolution (09 Feb 00 | Wales)
No-confidence motion for Welsh Assembly leader (08 Feb 00 | Wales)
Michael confident on Euro funds (27 Jan 00 | Wales)
Pressure mounts on Michael over European funds (27 Jan 00 | Wales)
Plaid demands answers over 'flawed' funding bid (18 Jan 00 | Wales)

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