04 October 2002
The unions have vowed to step up their anti-PFI fight, but conceded that Tony Blair has extended 'an olive branch' and paved the way for 'further dialogue'.
The prime minister used his speech in Blackpool to try to paper over the cracks emerging in the Labour Party after unions inflicted an embarrassing defeat over the PFI in public services.
In a carefully crafted address, Blair made it clear that he was still willing to work closely with the unions and promised some concessions on the two-tier workforce. But he warned that they would not slow his pace or halt the policies of reform.
GMB general secretary John Edmonds, seen slow hand-clapping chief secretary to the Treasury Paul Boateng during the PFI debate, said it was one of the most positive speeches Blair had made since he became prime minister.
TGWU general secretary Bill Morris said: 'I stand ready to meet the prime minister – any time, anywhere – because, in our members' interests, this is an offer we cannot refuse.'
And the head of Unison, Dave Prentis, said the offer was an 'olive branch' and his union would continue to talk to the government.
But union sources said privately that they had no alternative but to step up their campaign against PFI. Several leaders voiced their anger that their unified motion demanding a review of PFI, passed by 67% of the party delegates, was discounted by the government even before the vote.
A promise of ending the two-tier workforce was also made at last year's party conference.
'There was relief after Blair's speech because relations had become unpleasant,' an official said. 'But myths around the PFI are still being peddled, with services and workers still suffering at the taxpayer's expense.'
The official added that the unions are now left with the decision of how to move forward 'but owed it to their members to continue their fight'.
Using the slogan 'we are best at our boldest', Blair said it was time to quicken the pace of change. He said schools needed to move to a system based on equality of opportunity, while the NHS should be true to the principle of need rather than ability to pay. Power, he said, would be put into the hands of patients and parents.
In an obvious signal of his intention to increase the use of the private sector, Blair said his reforms would see an end to the 'monolithic mass production' of public services.
'I don't care who builds them [hospitals]. As long as they're on cost, on budget and helping to deliver a better NHS.' He openly appealed to the unions, stating that there was 'no way the taxpayer can do it all'.
He went on: 'This isn't the betrayal of public services. It's their renewal. I say to the trade unions: work with us on the best way of delivering the service and we will work with you on ending the two-tier workforce.'
He conceded that competition should not mean a cut in wages or employment rights and added that 'demoralised staff don't perform at their best'.
But Blair warned that a continuing row would risk returning to the 'disease of centre-Left government' with dissatisfaction resulting in 'the return of a Right-wing Tory government.'
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