Blair rules out resignation

LONDON - Britain's Prime Minister Tony Blair insisted today his authority was not damaged despite suffering a first major parliamentary defeat and said he would not quit.

Asked on Sky Television if he would consider resigning, Blair simply said: "No". He said his determination to serve a full third term in power had not changed.

The House of Commons voted by 322 to 291 against plans to let police hold terrorist suspects for up to 90 days without charge, as about 40 members of Blair's Labour party refused to support him.

Blair vowed to press ahead with other policies that some in his Labour Party do not support.

He said the vast bulk of Labour MPs had supported him over the terrorist detention law.

"I don't think it's a matter of my authority," Blair told BBC Television in a separate interview. "Of course, I would have preferred to have won rather than lost."

However, the defeat provoked intense speculation at Westminster about how long he could remain as Prime Minister.

Even some allies admitted privately that his tenure could be shortened if Labour backbenchers inflict further defeats in the next few months over his other planned reforms on health, education and welfare payments.

Some Cabinet ministers believe the blow to his authority will increase the pressure on him to name a date for his hand-over of power to Gordon Brown, the overwhelming favourite to succeed him.

Mr Brown's allies are growing increasingly frustrated in private at the damage they believe is being done to Mr Brown's inheritance by Mr Blair's reluctance to name the day.

Senior ministers may now swing behind Mr Brown in pressing Mr Blair to outline his departure timetable for the sake of party unity.

"He has got to name a date," said one Brownite MP.

Mr Blair hinted at a possible timetable when he addressed Labour MPs on Monday, saying he needed 18 months to see through his package of reforms.

That could mean stepping down in the spring of 2007, perhaps on his 10th anniversary as Prime Minister in May.

However, some Labour MPs predicted that he might be forced out next year unless he watered down "Thatcherite" policies to inject more market forces into public services.

Mr Blair said: "The country will think that Parliament has behaved in a deeply irresponsible way today." He insisted that terrorist laws were "completely different" to the domestic reforms which were the Government's central programme.

Some ministers believe he may seek to restore his authority by carrying out a wider than necessary Cabinet reshuffle when he shortly fills the vacancy left by the resignation of his ally David Blunkett last week.

But bookmakers cut their odds on the Prime Minister quitting next year and Michael Howard, the Tory leader, called on to him to consider going now.

He said: "Mr Blair's authority has been diminished almost to vanishing point. This vote shows he is no longer able to carry his own party with him. He must now consider his position."

- REUTERS, INDEPENDENT