THE Communist Party last night admitted it had "no chance of winning" the Newport East seat.

But parliamentary candidate Robert Griffiths said a big Communist vote would send the "clearest message to New Labour that people do not want privatisation".

In the Old Rising Sun pub in Shaftesbury, the Communist Party of Britain called for the steel industry to be returned to public ownership.

Mr Griffiths is battling in the Newport East seat dominated by Llanwern steelworks. The party also wants to nationalise the transport, energy and banking industries. And the Communists strongly oppose Britain joining the euro.

Mr Griffiths, the party's general secretary, told the meeting: "The real battle begins on June 8 to defend health and education against New Labour's plans for privatisation, and to resist the euro.

"Only mass pressure from trades union and community organisations will force the next Labour government to put people's needs before the greed of big business.

"A big Communist vote in Newport East would send the clearest message to new Labour and the spin doctors in London that people don't want privatisation. They want the steel industry, railways and public utilities to be taken back into public ownership."

Mr Griffiths' agent, Carol Virgo, said: "Obviously we have no chance of winning the Newport East seat but there are several reasons why we are standing. "Firstly because the Newport branch is growing. And there are major manufacturing issues here during the past 18 months with Corus. Also Newport's schools, like any others in the land, are under-funded. The town's hospital has problems too."

Mr Griffiths was joined at the meeting by Eugene McCartan, chairman of The Communist Party in Ireland, who urged British people to reject the single currency.

He said the euro had been "an albatross around the neck of the Irish Republic" with the European Central Bank imposing inflationary interest rates on Ireland.