Jeered: Byers

Stephen Byers has been heckled and jeered by public sector union members over the government's plans to bring the private sector into schools and hospitals.

In his first keynote speech, delivered to the Unison conference in Brighton on Tuesday, he set called for people working in local government and health to give up their "dogma" over state-run services.

He called on trade unions to drop their opposition to the government's private finance plans for schools and hospitals but his pledge that there would be "no wholesale privatisation" was given a rough response by members.

Byers claimed that debate on the issue had been over-simplified.

"You could either be a privatiser, believing that the market will always deliver. That there should be an ever diminishing role for the public sector with a resultant cut in the levels of public spending. Or you could be dogmatically attached to the purity of public ownership. With a rejection of any role to be played by the private sector. The reality is of course far more complex," he said.

"In the real world virtually every public service engages private partners to a greater or lesser extent. What matters is the quality and value of the services on offer," he said. "This government does not subscribe to the 'public sector bad; private sector good' approach. We are not about to embark on the wholesale privatisation of our essential public services."

In a bid to silence opposition to the plans, the new transport, environment and local government supremo argued that the rights of workers will be protected by minimum standards guarantees.

Delegates were warned that the government is determined to deliver its promises and will not be scared of confrontation. His warning comes as Unison union members renewed their criticism of Labour's policy agenda.

"This government will always put the public interest first. In so doing we must be resolute, to ensure that negative forces don't stand in the way of measures to build a better Britain," the minister warned.

Unison members have called on the union to reconsider its links with Labour in light of its plans to "privatise" some elements of core public services.

A Unison spokesman sought to play down the conflict. "Our members are pleased that Labour has won a second term - particularly as the alternative would not have been good news for them. They are now looking for delivery from the government but they have reservations," she said.

But he admitted that the union had real concerns about the private finance initiative.

"The use of the private sector reflects badly on their performance and they have direct experience of what can happen because they have plenty of experience of what happens when outside companies are brought in by central government," she said.