LABOUR leader Tony Blair has emphasised the importance of the car - and specifically the company car - in society. Blair and shadow secretary of state for transport Andrew Smith both defended the role of the car as part of a wider co-ordinated transport policy.

Speaking at a business and transport conference organised by the Industry Forum, the pair outlined how Labour would address pressing transport problems such as congestion and air pollution. Blair said a Labour Government's policy would seek to address the problems by reducing car use by offering viable alternatives and promoting environmental initiatives such as the use of cleaner fuels.

'I am not interested in demonising the motor car,' said Blair. 'The focus of Government policy needs to be offering people attractive alternatives to using their car. Reducing the environmental impact of fleet will also be a priority. I welcome the advances that have been made in fuel efficiency and a Labour Government will further encourage technological and regulatory progress in this area.'

A Labour Government would also resolve the long-running debate over the August registration plate change - acting on the current consultation process to arrive at a solution at no cost to the Exchequer. Welcoming the announcement, Retail Motor Industry Federation chief executive Christopher Macgowan said Labour's views were 'a constructive and pragmatic step in the right direction'.