Conference round-up: Monday

German chancellor Gerhard Schroeder warned in-fighting within Europe should cease so it could unite to successfully fight terrorism.

He told the conference that if Europe stopped its "squabbles and jealousies" it could provide the "lion's share" of a global answer to terrorism.

This would need stronger co-operation in security, political, economic and cultural issues and a "rethink" of strategy between the US and Europe.

He said: "We must improve international co-operation in order to trace and dry out the swamps that make the financial resources of terrorism breed."

He said the terror attacks on the US had united the world with "impressive and encouraging" progress in forging a coalition against such "faceless barbarism".

He said Europe refused to be drawn into a "clash of civilisations" by terrorism but would fight it jointly and stand unreservedly by the US.

He said: "That is why it was so important for Great Britain under the leadership of Tony Blair and Labour to join us and our European partners wholeheartedly without competitive squabbling and petty jealousies.

"The European Union is the most successful political project in our varied and often bloodied history. We should offer incentives to states that are ready to join us in the fight against international terrorism.

"Conversely, we should say no to those who are not supporting us in our endeavour."

Mr Schroeder, chairman of the German Social Democrat Party, said Europe must do everything to achieve a breakthrough towards peace in the Middle East.

He raised laughter, including a smile from Tony Blair who accompanied him to the conference stand, when he referred to his country's 5-1 World Cup qualifier defeat by England.

He said: "I have come here to your party conference in a spirit of great solidarity with Great Britain, with great old Labour.

"If times weren't as tough as they were I would have come here and started talking about football."

Mr Blair later paused briefly with Mr Schroeder to answer reporters' questions, saying his colleague's presence demonstrated the strength of feeling "not just in Europe but right around the world behind a coalition to ensure that those who have committed the terrible act of September 11 are brought to justice".

The Prime Minister also paid tribute to Mr Schroeder for German troops taking over the lead role for Nato in Macedonia after the success of the alliance's mission to gather weapons from Albanians.

Mr Blair also insisted Britain's public finances would remain sound despite the international crisis, saying: "We have got a very strong situation on public finances, we have got perhaps the lowest interest rates for 30 to 40 years and we are very confident that the public finances are in proper shape."

Home Secretary David Blunkett disclosed yesterday that he would announce proposals for a wholesale revamp of the asylum system within the next few weeks.

He said the current system was "a mess from beginning to end" and could not be made to work as it should.

Mr Blunkett said his intention was not only to defeat the people-traffickers who make millions of pounds by smuggling illegal immigrants into Britain but also to improve the lives of hundreds of thousands of people working clandestinely in the UK in appalling conditions.

The introduction of identity cards might be one way of extending entitlements such as the minimum wage to these people, he said.

But he stressed no decision had yet been made on ID cards and no measure to introduce them would be included in the Government's initial legislative response to the US terror attacks.

Mr Blunkett said he would give an outline of his plans for the asylum system in a conference speech tomorrow.

He said if cards of some sort were introduced, their purpose would not primarily be to allow police to check identities but to indicate the entitlements to services and benefits of thousands of people who are not fully engaged with society.

He added: "That means several hundred thousand people who are in our country illegally and are being exploited massively, not just by those who traffic them, but by those who employ them on half the minimum wage and threaten them every time they raise the issue, who live in squalor several to a room.

"I am interested in how we legitimise their presence and entitlement to services and benefits and whether it is worth having an entitlement card in those circumstances."

Health Secretary Alan Milburn yesterday defended the Government's plans for greater private-sector involvement in public services in the face of union concerns.

Mr Milburn told the conference: "We aren't proposing that the private sector is a panacea for the problems in the NHS.

"We aren't proposing that NHS hospitals or GP services should be privatised.

"We aren't proposing that the only salvation for the problems of the NHS lie in the public sector."

He accepted there could be anomalies in the star system of grading hospitals, which last week graded the Brighton Healthcare NHS Trust, which runs the Royal Sussex County Hospital and Brighton General Hospital, with no stars, with 12 other trusts in the country.

The conference also highlighted Brighton and Hove City Council's failure to find a suitable contractor for its refuse collection and street cleaning services.

The General Secretary of the GMB union, John Edmunds, used the example of the failure to underline how privatisation of council services was not working.

He said: "In Brighton, the refuse collection service collapsed after three months. Six years of privatisation and they still cannot find a contractor to do the job."

His comments came as city council officials spent the day trying to come to an agreement with contractor Serviceteam.

Beer-loving MPs called for the Government to defeat the "forces of conservatism" and push through legislation to allow 24-hour drinking as quickly as possible.

MP John Grogan, of the parliamentary all-party beer group, spoke out after Tourism Minister Dr Kim Howells told a fringe meeting at the conference he was planning to publish a draft Bill next Spring.

In the city, Minister Nick Raynsford and city council leader Ken Bodfish watched street cleaners from Lewisham give the city a lesson in removing graffiti.

Secretary of State for Education Estelle Morris visited East Brighton College of Media Arts in Wilson Avenue.