PM revises plan on EU aid and trade link to immigration

The Government sought to reassure critics of its plan to link EU aid and trade agreements with other countries to their record on tackling illegal immigration.

Jack Straw, the Foreign Secretary, told MPs yesterday that EU member states would provide technical and financial assistance to third countries to help them tackle "people trafficking" and to take back nationals refused asylum by EU states. After criticism that Tony Blair's proposal could lead to cuts in aid for poor countries, Mr Straw called the plan "positive conditionality". He said: "If source countries are prepared to take back their nationals, many of whom will have valuable skills and experience, then we are prepared to help."

Foreign Office sources said aid and trade agreements would not be scrapped when problems over asylum arose with third countries. There would be a three-stage process including dialogue with the country, a disputes procedure and a decision to declare agreements null and void.

The assurances were aimed at winning over France, Sweden and Luxembourg, who oppose the Blair plan, before a summit of EU leaders in Seville on Friday, where unanimous agreement will be needed.

The move to offer "lots of carrots as well as sticks" was also designed to head off opposition from Labour MPs and Clare Short, the Secretary of State for International Development. She is said to be happier with the revised proposals outlined yesterday than she was 24 hours earlier.

Mr Blair said he had no doubt the EU would reach agreement in Seville on measures to combat illegal immigration and secure closer EU co-operation on asylum. He was speaking after talks at Downing Street with Jose Maria Aznar, the Prime Minister of Spain, holder of the EU's rotating presidency.

Mr Blair also believes the EU needs to take tough action to halt the rise of far-right parties. A Downing Street spokesman said the Prime Minister "does not believe it is remotely racist to be concerned over these issues.

"If these concerns are not addressed there is scope for racists and extremists to exploit. If the EU can deal with these problems and can be seen to deal with these problems you can go a long way to rebuild some sort of faith in Europe."

He said Britain would still accept genuine asylum-seekers. "People are tolerant. For people in Britain the idea of giving a haven is not a problem. The problem is a system which is open to abuse and is abused."

Kenneth Clarke, a Conservative former home secretary, warned that holding asylum-seekers in centres in rural areas would bring violence and crime to nearby villages. He said some of the 750 asylum-seekers to be housed in a centre in his constituency of Rushcliffe, Nottinghamshire, would "drift" into villages, "getting drunk" and committing vandalism.

* Independent inspectors should make unscheduled checks on immigration detention centres in Britain, a report said yesterday into the fire and riot that forced the closure of the Home Office's flagship unit, Yarl's Wood detention centre near Bedford.

The report condemned the failure of managers to install sprinklers and said they should be fitted at all such institutions.