Eyes on the prize: Kennedy

Charles Kennedy has called on Tony Blair to "stop dithering" over the euro.

In his New Year message the leader of the Liberal Democrats said the government would not get a positive result in a euro referendum unless it acted decisively.

"It is high time that the government stopped dithering and abandoned its over-caution. At long last it is the pro-European cause that has the momentum. But we need to build on that towards a resounding positive vote in a referendum. If the government procrastinates further, it will not only lose the momentum. It will also alienate a growing body of pro-Europeans in business and the trade unions who are losing patience with New Labour," he said.

In his message to party activists Kennedy reflected on the tragedy of September 11 and called for more support for the UN.

"These events have emphasised as never before the shortcomings of a narrow nationalist approach and the necessity for internationalism. In the New Year, we Liberal Democrats want to see the role of the UN entrenched. We want to see this new coalition hold together not just to crack down on terrorism but to promote peace, humanitarian aid and economic development so that the underlying causes of terrorism are also addressed."

The general election saw more Liberal Democrat MPs returned to Westminster than ever before - and the defection of a disenchanted Labour MP. Kennedy pledged to build on that success over the coming year.

"A year ago, commentators were belittling our chances. They said that 1997 had been a flash in the pan. They predicted we'd be back down to 30 seats or fewer at the 2001 general election. They were wrong. We made more gains than any other party. And now we are proving that we are the only effective opposition to the Labour government," he said.

"Thousands of others around the country are turning away from the extremism of the Conservative Party and from a Labour government which has not delivered what it promised. But the Liberal Democrats are no mere refugee camp for disaffected supporters of other parties. We are a 'forward base' for a fresh approach to British politics."

He warned that the government's tax policies would only succeed in delivering inequality.

"In the coming year, the Labour government will be putting up taxes to pay for the improvements the health service needs. But they did not tell us this at the general election. And since they've ruled out putting up the fairest tax - income tax - they'll end up putting up taxes in a less fair way."

Kennedy accused his Tory rivals of trying to forget their past in their current attempt to make a fresh start with Iain Duncan Smith.

"The Conservatives meanwhile are thrashing around in their efforts to erase the memory of their record on public services. They're even talking about charging people to see the doctor. Under Iain Duncan Smith, they are proving not only extreme, but extremely ineffective," Kennedy said.

He pointed to other Lib Dem successes and set out his aims and objectives for the coming year.

"In Scotland, where we share power, we have secured the abolition of tuition fees and free personal care for the elderly. In 2002, we shall be pressing the case for both changes in the UK as a whole. We will also continue to campaign against the bloated centralised bureaucracy which does so much to demoralise our nurses, doctors, teachers and police," he said.