LABOUR CHARTS ITS NEW COURSE

The full dramatic scale of the Labour Party's victory in last week's British election is still being absorbed as Mr Tony Blair…

The full dramatic scale of the Labour Party's victory in last week's British election is still being absorbed as Mr Tony Blair completes his government appointments and turns his thoughts to legislative priorities for the year to come. His new cabinet is in an extraordinary strong position to implement its domestic programme and to chart a more certain and coherent course internationally as a result of the landslide victory and the pathetic, shattered state of the Conservative opposition.

There are no great surprises in the new cabinet. Mr Blair has remained loyal to his closest political advisers and colleagues and yesterday rewarded his election campaign manager Peter Mandelson with a ministerial portfolio certain to give him a powerful grip over the direction of future policy. Though outside the cabinet, Mr Mandelson will sit on key committees and coordinate the implementation and presentation, of policy.

Mr Blair's cabinet appointments reflect the balance of forces in his party including the strong showing of women candidates with the appointment of five of their number. They include Dr Mo Mowlam, who has immediately imprinted her personality on the process of government in Northern Ireland by her weekend visit there and her first indication of policy preferences. She, together with Mr Blair, has a great opportunity to seize the initiative by laying down the conditions they believe should apply to the peace process. It will be up to all concerned to adapt intelligently to these new circumstances. In the same way, Mr Blair will be able to impose his will on constitutional change in Britain including evolution for Scotland and Wales. The Conservative disarray and the depth of their defeat mean that anticipated opposition and difficulties such as the West Lothian question, will loom much less large.

The credibility of a Conservative and Unionist Party with no MPs in Scotland or Wales could hardly be lower. There will be an opportunity for bold thinking and political experimentation, with far less fear that such decisions could be reversed by the tide of political competition.

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The Liberal Democrats' strong, showing should reinforce this momentum for constitutional change. Their cooperation could help Mr Blair to secure a second pailiamentary term, not to mention a longer term political realignment which, would require a change in the electoral system. It will be fascinating to see how these, factors play out in coming years.

The election result provides the same leeway on European policies, including the InterGovernmental Conference (IGC) and policy towards the single currency. But progress here will depend on decisive leadership and a clear enunciation of British interests and priorities. Labour's main domestic policy agenda, on health and education, is set fair for implementation against the background of a relatively strong economy. Mr Blair told the enthusiastic crowd in Downing Street last Friday that Labour in opposition "could only say, it could not do". Rarely can a party have had a better opportunity to put that right than this new Labour government.