WITHIN 24 hours of announcing the greatest shake-up in the NHS since its birth, Tony Blair was in the North-East yesterday to mark the building of a long-awaited new hospital.

The Prime Minister officially unveiled the foundation stone of the new £67m Bishop Auckland Hospital.

Addressing a large crowd of hospital workers and VIPs Mr Blair said local people had waited "a very long time" for a new hospital but soon the wait would be over.

"I hope this ceremony today which will be repeated in many places up and down the country in the coming years marks the beginning of a process of the renewal of hope and change in the health service," said Mr Blair.

"We have a real chance of rebuilding the health service in the way we all want."

The Prime Minister heaped praise on the work of NHS staff.

"You are the backbone of that service, and on behalf of the Government I want to thank you all very much," he said.

Before the ceremony, NHS chief executive Neil McKay confirmed that the National Plan was likely to lead to a shift of resources to the more needy North, in recognition of the higher levels of illness.

Bishop Auckland MP Derek Foster said the campaign to replace the town's outdated hospital had taken more than 25 years.

He was proud that it was under a Labour Government that the long-delayed scheme had finally gone ahead.

"To have the PM here the day after he has made the most important statement on the NHS since 1948 is marvellous," added Mr Foster.

Mr Blair also visited the world's biggest power tool plant, Black and Decker, in Spennymoor, yesterday where he met long-serving workers.

The company's president Bob Schwarz flew in from America for a few hours, holding private talks with Mr Blair and senior managers.

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