Blair urges party to remain New Labour in New Year

LONDON, Jan 2 (Reuters) Prime Minister Tony Blair today used his tenth New Year message to pledge to ''see through'' Britain's military commitments in Iraq and Afghanistan and work ''tirelessly'' for peace in the West Asia.

But, in what is likely to be his last New Year message as premier, Blair was largely tight-lipped about Britain's foreign battles and chose to focus on domestic issues, urging his Labour party to stick to a progressive agenda.

Blair, who has said he will step down this year -- with Chancellor Gordon Brown widely expected to take over -- appeared to challenge Brown to stick to his New Labour ambition of economic progress combined with social justice.

''We are not the party of the status quo,'' he said in a statement issued by his office. ''We must be restless not complacent.'' The Labour Party, he said, was ''dominating the battle of ideas'' and would continue to do so ''provided it continues to be New Labour''.

''This is the most difficult time for any government,'' said Blair. ''Nine years into power, mid-term in a third term. Labour has never been in this position before.'' Blair, who has won three successive elections since first coming to power in 1997, said good progress had been made in the past 10 years, but also pointed to challenges ahead.

''The NHS still has big changes to make that are difficult and controversial. Too many school children still fail. And as we know all too well, crime and anti-social behaviour top the public's concerns,'' he said.

He called for deeper reforms to improve the National Health Service and schools, and action on pensions and energy policy.

''All of these issues require radical and far-reaching reform of the status quo,'' he said.

Responding to Blair's statement, opposition Conservative spokesman Chris Grayling said the prime minister ''cannot be living on the same planet as the rest of us''.

''We are seeing hospital services cut around the country, rising violent crime, and the government is missing its own targets on education,'' Grayling said.

REUTERS SY VV1516