New Labour leader Joseph Muscat yesterday said he had big plans for main leadership rival George Abela in the first news conference since he was elected on Friday.

Speaking at the MLP headquarters, Dr Muscat said: "In the coming days I hope to speak to (Dr) Abela about a new project to which I think he will be able to contribute significantly".

Dr Muscat refused to give details, saying that he first wanted to discuss the matter with Dr Abela, but he stressed that it was a project of "high relevance" to the party's reform process.

The new Labour leader secured the post after obtaining 66 per cent of delegates' votes in a run-off with Dr Abela. He replaces Alfred Sant who was at the helm for 16 years.

When contacted, Dr Abela said he would wait to see what Dr Muscat had in mind before making any comment on the issue.

Dr Abela reiterated that he is not interested in a party post, though said he hoped to work closely with the MLP.

Dr Muscat's statement fits in with the reconciliatory tone of his speech on Friday night shortly after the official result was announced, in which he pledged to co-opt to key posts all his rivals for the leadership.

The young MEP faces a tall order as he takes over a party which is plagued by destructive factionalism - made worse by the prolonged two-month leadership contest that has just ended.

Dr Muscat insisted that he had every intention of incorporating the other contenders in the party.

Referring to deputy leader and election contender Michael Falzon, Dr Muscat said that "despite what some might have said", his role in organising the party's electoral office had been crucial in recent years - an obvious reference to the defeat report that was highly critical of the electoral office and of Dr Falzon's decision to ask for a one-hour extension of polling on March 8.

As he did on Friday, Dr Muscat reiterated his invitation to all the Labourites who did not feel comfortable in the party in the past years to return. "This is your home," he insisted.

For the time being Dr Muscat will retain his post as an MEP, until he settles an important report for the European Parliament's financial and economic committee, after which he will take up a seat in parliament. He said yesterday that he had many options, with a number of Labour MPs apparently offering to vacate their seat for his co-option, but he would not name them; even as one of those seen as most likely to step down, Joseph Cuschieri, stood in the background listening to the news conference.

For the time being, the party's outgoing deputy leader for party affairs Charles Mangion will retain his position as opposition leader, after Alfred Sant resigned from the post last Thursday.

When asked yesterday whether Dr Mangion would remain opposition leader until he takes a seat in parliament, Dr Muscat said the issue would be discussed after the MLP elects two new deputy leaders on Thursday. The Labour leader said he had informally discussed this point with the Prime Minister yesterday morning, where it was agreed that Labour would make a series of proposals on this and other parliamentary matters, such as the pairing agreement, after the election for the deputy leaders. Speaking of Labour's relationship with the government, he pledged to lead a constructive opposition that would be prepared to co-operate and come up with consensual positions, especially on matters of national importance such as the future of ST Microelectronics and the Shipyards, but he insisted that Labour would demand respect.

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