TONY Blair has signalled the Government will forge ahead with controversial

proposals which could lead to York District Hospital becoming a "super" NHS Trust.

The Department of Health's plans to create new "foundation" hospitals with

greater financial freedom have been criticised by unions and MPs.

They have also caused splits within the Government - with Chancellor Gordon

Brown privately opposed to the move.

But, in a question session with the Labour Party's youth wing last night, Mr Blair said he backed foundation hospitals.

The Prime Minister said: "If trusts are doing well, they should be given greater freedoms. I think that is an argument we are going to win." York Health Services NHS Trust is in line to become one of the country's first "foundation hospitals" after scoring top marks in the latest Government performance tables.

The hospital has been invited to bid for the special status - which is a cornerstone of Health Secretary Alan Milburn's NHS reforms.

If selected, it would continue to be funded by taxpayers - but would be independent from ministerial control.

One of the most vocal critics of the move has been former Health Secretary

Frank Dobson, who was brought up in York.

Earlier this month, the Evening Press told how Mr Dobson had said the

policy was "third-way theorising" and should be scrapped.

Updated: 10:55 Monday, September 30, 2002