The Commission for Health Improvement - CHIMP - has the power to step in if it finds that poor quality care is putting patients' health at risk.

The BBC's Niall DIckson: "In extreme cases ministers will be able to sack the entire board of a failing hospital"

It was set up in the hope of avoiding high-profile scandals - an aim further emphasised following events at Bristol Royal Infirmary.

In that scandal two doctors were banned after the high death rates among babies undergoing heart surgery were revealed.

Tough body, extensive powers

"No Government can eliminate human error, or remove risk," Mr Blair said.

"But we can put in place the right systems, spread the best practice and scrutinise performance in far better ways than we have done in the past.

Tony Blair said CHIMP would look after patients' interests

"Sadly the recent examples of the children who died at Bristol Royal Infirmary after heart operations, and the mistakes in cervical cancer screening have made the new body not just desirable but essential."

The new body will have extensive powers, but its basic duty will be to inspect to hospitals and health authorities to check the performance figures, and examine whether senior staff are doing enough to improve standards through training and education.

"The commission will have a key role in modernising the NHS. For the first time in over 50 years the NHS will be subject to external scrutiny," Health Secretary Alan Milburn said.

"However brilliant our doctors are - and we have some of the finest in the world - we owe it to patients to make sure that quality is upheld in all parts of the country."

Government 'failure'

But the Conservatives said the launch was "yet another smokescreen to hide Labour's failures in the health service".

Shadow health secretary Liam Fox said: "It is appropriate that it is the Prime Minister who has announced this. He is the architect of the mismanagement.

"It is his stubborn insistence on meeting his waiting list target which is causing universal unhappiness in the health service.

"Clinical priorities are being distorted in favour of political priorities.

"The Prime Minister's arrogance alone is resulting in the sickest waiting longer, and minor cases being treated quicker, just to get waiting lists down."

'Challenge ahead'

Peter Homa, the government's former waiting list buster, will head up the commission's work as its director.

"We have an extremely challenging time ahead of us but an opportunity to shape the development of a highly skilled, highly motivated NHS delivering the highest quality, patient-focused services consistently across England and Wales," he said.

However, he said the aim would not be to name and shame, but to improve through highlighting best practice - an idea welcomed by the British Medical Association.

"We expect the main thrust of what the Commission would advise is to try to correct any shortcomings by educational means if at all possible," said Dr Ian Bogle, chairman of the association.

He said he had already met CHIMP's chairwoman, Dame Deirdre Hine, and looked forward to meeting Mr Homa.

Focus

Pippa Gough, director of policy for the Royal College of Nursing, said the concept of CHIMP was welcome, but should be introduced with caution.

"It must provide health professionals with positive support to improve the essentials of patient care such as privacy in treatmetn and appropriate nutrition," she said.