Smith gives Gazza credit

Paul Gascoigne has been Everton's inspiration this season

Everton manager Walter Smith speaks exclusively to BBC Sport Online Chief Soccer Writer Phil McNulty about the Merseyside derby, the rebirth of Paul Gascoigne - and his feelings about Nick Barmby's shock £6m move to Liverpool.

Everton manager Walter Smith has been around football and footballers long enough to be safeguarded against the game's element of surprise.

But even the vastly experienced Scot might have raised an eyebrow if he had gazed into the future after the last meeting between Everton and Liverpool in April.

Paul Gascoigne in Everton blue would have been a big enough shock - but the idea of Nick Barmby in Liverpool red would have been almost unthinkable.

Gascoigne was washed up and languishing at Middlesbrough, while Smith had rejuvenated Barmby in such style that he was back in the England squad, and pondering the highest contract offer in Everton history.

And yet in the space of a dramatic week in mid-June, Smith had renewed acquaintances with Gascoigne while accepting a £6m cheque from Liverpool for Barmby.

Nick Barmby - no hard feelings

The pair will be on opposite sides in Sunday's Merseyside derby at Anfield - and Smith can now look back on the events with a level head after a summer of transfer turbulence.

He told BBC Sport Online in an exclusive interview: "Nick's move was just part of life in football these days - especially since the advent of the Bosman ruling.

"He decided against signing a new contract here. He wanted to move to Liverpool and we got good money for the deal.

"This is reality in football now, and there are certainly no hard feelings on our part.

"He played really well for Everton last season and in patches of the season before, so it is fair to say we helped him regain a bit of form and his England place.

"Nick says I helped him, but every manager hopes to help his players - let's hope we don't give him too much help on Sunday.

"Nick made his decision to move, and of course it created a stir because it was to Liverpool, but it was good business for us in the end, and that sort of thing is now a fact of life in football whether anyone likes it or not."

Everton's fans have not exactly forgotten Barmby, but he has been swiftly replaced in their affections by the resurgent Gascoigne.

Gazza in action

Smith was regarded as Gascoigne's mentor at Rangers, but again he prefers to regard his role in his rejuvenation as low key.

He admitted: "I don't think there is any doubt Paul has surprised everyone with the way he has performed this season, and the level to which he has performed.

"In the early part of the season, we expected him to come in and play a few games for us, but his fitness, determination and his approach has been exceptional.

"You never guarantee a player a first team spot - you want to keep their edge - but there is no doubt he deserves to be in the team on merit.

"People talk about me having a special relationship with Paul, but in the end it is down to the player himself - and Paul has done it all himself.

"He has buckled down. He has been self-motivated. He will never consider himself an automatic pick, but even if I was watching the game as a fan and not a manager, I would find it really good to see his enthusiasm and determination."

Duncan Ferguson is still out

Smith believes Gascoigne's determination to end his career on a high after the misery of Middlesbrough has given Everton an unlikely return on their surprise investment.

He said: "I believe this has played a big part in his performances. Paul has had his successes in football. It is at the back of his mind that he doesn't want to be remembered for not doing so well at Middlesbrough.

"Paul is a very proud lad. It showed when he went back to Newcastle on Saturday - and he will certainly relish the Merseyside derby.

"He wants people to remember him as an outstanding footballer, and we have been delighted with him this season."

People talk about me having a special relationship with Paul, but in the end it is down to the player himself - and Paul has done it all himself

  Walter Smith on Gascoigne

Everton's win at Newcastle came as a welcome relief to Smith, whose hopes of a settled side after a hectic summer in the transfer market have been wrecked by an injury crisis.

He said: "You do all these things with an idea of fielding your best side. We haven't even come near it yet.

"We lost Richard Gough, who is a massive influence. We have only had Duncan Ferguson for a fraction of our games, and we have had long term injuries to Alessandro Pistone, Niclas Alexandersson and now Francis Jeffers.

"I also expected our new foreign signings, people like Thomas Gravesen and Alex Nyarko, to take time to settle in.

"The return of Mark Pembridge has helped Nyarko. He is a good steady player, who brings experience and a work ethic to the team.

Alex Nyarko - settling down

"Nyarko maybe needed help, and Mark is the type of player who gives it to him."

Everton's victory at Anfield was one of the high points of last season, and he admitted: "We had to show real resilience after taking an early lead, and I don't think anyone would deny we deserved to win.

"We had to work really hard for the result. We hope to get a similar result on Sunday - but it doesn't take much to work out we will have to work just as hard and be just as resilient to get it.

"The Newcastle result was important, but you mustn't create an atmosphere of crisis where one doesn't exist. We know the league is strange at the moment - one win and you are up, one defeat and you are down."