Blair moving too fast for union and party activists

The British government looks set for a "summer of discontent" from the unions and party activists if it proceeds too quickly …

The British government looks set for a "summer of discontent" from the unions and party activists if it proceeds too quickly with ambitious plans to modernise its policy-making process, according to senior Labour Party figures.

While the past week has seen the Prime Minister, Mr Tony Blair, present his plans for a reform of the Labour Party's ruling body, the National Executive Committee (NEC), a Welsh assembly and Scottish devolution, many in the party have become uneasy with the speed of the reforms.

Chief among their concerns is the "Party into Power" document which will be presented to the NEC by Mr Blair on Wednesday. Leaked excerpts of the document, which was seen by trade union leaders last week, pointed to key changes in the way grassroots members would elect representatives to the NEC. Labour Party traditionalists and several union leaders have charged the leadership with attempting to stifle debate at the annual conference in October. The leader of the train drivers' union Aslef, Mr Lew Adams, led the call for Mr Blair to think again. He warned the party leadership that if unions lost their voice at the annual conference, Aslef would "disenfranchise ourselves from the Labour Party".

However, in an attempt to avoid a grassroots rebellion, a Labour Party spokesman said yesterday the criticisms of the "Party into Power" document were unfounded. Union leaders and party activists, who feared they would not be given the chance to raise difficult policy issues at the annual conference, will be told by the party leadership this week they can submit one topic to the conference which is not on the conference agenda.

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Mindful of the jeering and booing which characterised the stormy party conferences of the Callaghan government in the 1970s, the party leadership is keen to address some of the unions' fears.

However, the leadership rethink has not gone far enough, according to the left-wing Labour MP Mr Ken Livingstone. He said he believed the leadership would still avoid discussing important issues, such as the economy, at the annual conference.

As union leaders grapple with the changes foisted upon them, Mr Blair also faces discontent from senior back-benchers unhappy with the presence of the Liberal Democrat leader, Mr Paddy Ashdown, on a cabinet committee. The former cabinet member Mr Tony Benn, now sitting on the back-benches, described the move as "the beginning of the end of the Labour Party".

Writing in the Observer yesterday, Mr Benn predicted a Lib-Lab pact would eventually lead to the replacement of a centre-left Labour Party with a centre party "operating on a different basis. The new party would be entirely free from ideology . . . while isolating, marginalising and attempting to silence all expressions of independent opinion."

Another warning for the government to avoid political meddling came from the GMB union leader, Mr John Edmonds, last night. He warned the Chancellor, Mr Gordon Brown, that he risked leading the economy into "serious trouble" if interest rates were raised. Mr Edmonds said the strong pound should be "talked down" by politicians by linking it with a weak Euro currency.

Meanwhile, on the issue of devolution for Scotland, the government's plans have been given a boost by the Scottish National Party (SNP), which voted to campaign for a yes vote in the referendum in September. Speaking after the decision was taken, the leader of the SNP, Mr Alex Salmond, said that, although his party would be supporting devolution, he did not believe the proposal placed a "glass ceiling" on moving towards the goal of independence.

However, while admitting the Tories might benefit from copying "the odd" policy or two from the government, the Tory leader, Mr William Hague, repeated his opposition to Scottish devolution and an assembly for Wales. But despite his fears, he said a new Tory government would not overturn the decision of the people.