No exemption from gay rights law

Mr Blair's Cabinet was said to be split over the row Blair interview

Downing Street has said there will be no exemption from anti-discrimination laws for Catholic adoption agencies.

But Tony Blair said they would get 21 months to prepare for change, calling this a "sensible compromise".

Adoption agencies had warned they would close ratherthan place children with gay couples, saying that went against theirbeliefs.

The Catholic Church in England and Wales said it was "deeply disappointed" that no exemption had been offered.

'Way through'

The proposed measures are likely to face a vote in Parliament next month before coming into effect on 6 April.

Mr Blair said he believed ministers had found a "waythrough" to prevent discrimination and protect the interests ofchildren, which all "reasonable people" should be able to accept.

"There is no place in our society for discrimination.That's why I support the right of gay couples to apply to adopt likeany other couple.

"And that way there can be no exemptions for faith-basedadoption agencies offering public funded services from regulations thatprevent discrimination."

HAVE YOUR SAY Bringing a child up in a happy, stable, healthy home is the most important issue Meg, York Send us your comments

He added: "It's a difficult situation but I think we have found the right balance and a sensible compromise."

If the plan is approved, religious agencies will have a"statutory duty" to refer gay couples to other agencies until the endof 2008.

The government hopes the extra time will allow expertiseand knowledge to be passed onto the secular sector, rather than beinglost altogether.

Cardinal Cormac Murphy-O'Connor, head of Catholics inEngland and Wales, said: "It is clear from the prime minister'sstatement that he has listened to some of the concerns of the CatholicChurch in regard to its adoption agencies.

"We are, of course, deeply disappointed that noexemption will be granted to our agencies on the grounds of widely heldreligious conviction and conscience."

He added: "We note and welcome, however, thegovernment's expressed desire that the experience and excellent work ofour agencies is not lost, especially for the benefit of needychildren."

'Crucial issues'

Cardinal Murphy-O'Connor also said: "This debate has raised crucial issues for the common good of our society.

"We believe there is an urgent task to reach a newconsensus on how best the public role of religious organisations can besafeguarded and their rights upheld."

Weall know that there is a wide range of potential adoptive parents outthere, including lesbians and gay men who can provide a loving home forchildren Ruth Kelly

The Equality Act, due to come into effect in England,Wales and Scotland in April, outlaws discrimination in the provision ofgoods, facilities and services on the basis of sexual orientation.

Gay groups and some MPs had argued that there could be no exemption on faith grounds.

The row was said to have split the Cabinet.

Communities Secretary Ruth Kelly said government was about "robust debate and finding solutions that meet our principles".

She described the announcement as a "breakthrough" on what had been an "extremely complex issue".

For the Lib Dems, Lorely Burt said a transition period of almost two years seemed "unnecessarily long".

"The wishes of Catholic adoption agencies should not be elevated above the rest of society," she said.

Earlier Conservative leader David Cameron said he would vote for the regulations, if a compromise could not be reached.