By Ben Davies BBC News Online politics staff

In an interview with BBC News Online, Mr Simpson casts doubt on the received wisdom that Tony Blair was responsible for Labour's electoral success in 1997 arguing that he was simply in the right place at the right time.

And while he mocks the idea that Iain Duncan Smith's Conservatives can win the next election he argues that as disaffected voters and activists switch off, Labour could very well lose it.

Mr Simpson took on his new job in January

Mr Simpson - who became boss of the AEEU branch of Amicus after defeating the prime minister's favourite trade unionist, Sir Ken Jackson - also argues that the Labour leadership are more intent on listening to the CBI than their natural allies.

He pours scorn on complaints of 'too much red tape' and says that the UK is one of the least regularised labour markets in Europe.

But he says he admires some of Mr Blair's qualities.

"Blair presents his case well, he's certainly articulate, I've got a fair amount of admiration for him as an individual.

"I actually think he's probably a little like me. He came at the right time. He came at a time when the Tories were getting so bad literally anybody could have beaten them."

Mr Simpson seems genuinely at a loss as to why, once power had been won, Labour did not return to a more traditional socialist programme.

Short analysis

"What they should have done is try to appeal to the electorate but not really change fundamentally.

"When you get elected you get back to something like your programme and hope that people will see the benefit of that."

Ms Short quit the government earlier this month

In many ways the analysis that Mr Simpson brings to New Labour is not so far apart from the views expressed by Clare Short in her resignation speech.

He talks of a leadership hierarchy that fails to take on board, in any meaningful way, the views of activists.

Labour's modernisation, he argues, has created structures that are undemocratic - the leadership affects to listen to members but then ploughs on regardless with its original intentions.

"They're modernising [Labour] and they are killing it because although it's in power, the question is when does the bubble burst?"

Weight of office?

Mr Simpson has changed in many ways from the man who hit the headlines after unseating his predecessor.

He was by turns amusing, controversial, straight talking.

When we met at his office in Covent Garden he seemed as though the weight of his new job has made him more guarded, perhaps even a little more serious - although he still has a Simpsons ringtone on his mobile.

Gone are the days when he said things like "I don't want to meet Tony Blair".

Indeed the old Derek Simpson might have publicly called for the prime minister's replacement.

Now he uses a sporting analogy comparing voters with fans at a football match, the players become the ministers, the manager is Mr Blair.

Sack the manager?

"What can we do to address this problem [of Labour failing to connect with core supporters].

"How do we train harder, do we buy a new player as some people are saying?"

"Does the country need a new manager - how's about that?" he adds with a smile.

Tony Blair's style has been criticised before

During our conversation he refers to some of the balances he has now to strike. His union represents workers in the NHS fearful for their terms and conditions if their roles are contracted out.

It also represents people working in the construction industry who desperately want PFI schemes to go ahead.

He refers to the entrepreneurial spirit present in countries like Germany where there's a culture of trying to find new business.

Bet on Germany?

He concedes they have higher unemployment at the moment than the UK but says that Britain remains a low wage, low skill economy.

"And if you were a betting man and said 'whose economy would you back long term?' I don't think you'd find many people saying the UK."

He argues that Britain's manufacturing future looks quite bleak when you get down to examining investment in training and government backing.

He also says companies pull out as fast as they move in because in contrast with the rest of Europe, Britain has little employment protection for its workers.

[Labour activists] might be a pain, might be bringing bad news but we can't afford to ignore them Derek Simpson

Mr Simpson says that where Britain is making a product that is considered to be at the top of its game - like the Hawk trainer jet which is manufactured at BAE Systems' plant in Brough, Yorkshire - he does not understand why the government's next purchase of trainer jets is out to tender.

"We've got the best product that there is - it is expensive but it's the best. The tender exercise will take 18 months - I'm told that in 18 months the plant will shut.

"I just don't think that the Germans or the French or the Italians would do that."

Even where orders are placed with British companies there can be a skills shortfall, he says, adding that it's a "massive task to reorientate the thinking".

Laudable Labour?

That goes for attitudes both in Labour's leadership and in the wider public towards the union movement - a hangover of the Thatcher years.

Not that Labour hasn't done some "absolutely laudable" things when it comes the right to union recognition, the minimum wage and so on.

Margaret Thatcher left power in 1990

But he says there is a "battle" between those who hold the old values dear and those who would buddy up with the CBI.

"There's still a very paranoic fear of appearing to be soft on the unions while being soft on the employers doesn't appear to be a problem.

"The Labour Party should have some kind of commission: lets have a look at this, at some of these values.

"One key thing would be to start looking at the party itself - the activists are the people who come back and say what the problems are.

"These people might be a pain, might be bringing bad news, but we can't afford to ignore them."