Mr Morgan has been pondering the cabinet's composition

A bill which would free elite English hospitals from government control cleared its first hurdle in Westminster last week, despite a rebellion by 65 Labour MPs.

But Wales' First Minister Rhodri Morgan on Tuesday ruled out adopting the same approach in Wales.

He said any such move would see Welsh hospitals suffering in the face of a two-tier salary scheme for doctors and nurses.

He was speaking ahead of a state of the nation-style address to outline plans to implement the party's election manifesto promises.

Scores of MPs, fearing creeping privatisation, oppose the creation of foundation hospitals - semi independent from Whitehall with powers to raise their own funds - would lead to a divided NHS.

But Mr Morgan, speaking in the chamber at Cardiff Bay, said: "Having different pay scales for staff could mean some hospitals suffer.

We will continue to expand economic prosperity throughout Wales Rhodri Morgan AM

"They would have their staff finding that foundation trusts elsewhere were magnets because of higher pay for nurses, doctors and other shortage professions.

"We believe it is much better for national pay rates to apply across the board."

Health Minister Jane Hutt has already distanced herself from the UK Government plan, advocating hospital cooperation over competition.

During the Welsh assembly election campaign, Welsh Labour opposed foundation hospitals while Conservatives backed Tony Blair's policy.

As with some sections of education policy, it shows the Cardiff administration is prepared to depart from the UK agenda.

But Rhodri Morgan shifted gear and moved onto his speech to pledge that he would spread prosperity throughout the country.

The first minister campaigned for Labour in the Welsh assembly election by promising free prescriptions, school breakfasts, greater health service and education spending, and public transport cost reductions.

Skate parks were used as an example of regneration

"The election is over," he said. "The issue now is implementing [our policies] for all the people of Wales; we will be serving them regardless of where they live.

"We will continue to expand economic prosperity throughout Wales.

He then went on to say that "the main theme of this new administration will be anti-poverty action".

His new cabinet includes Edwina Hart's appointment to the high-profile new social justice portfolio, which will see her working on community regeneration.

Mr Morgan said Labour will be "getting communities themselves to be part of the problems they face.

"We shall see teenagers working out with community police teams to put the skateboard park or the motorbike scrambling course.

"I've seen it happening in Ystalafera and Tylorstown. I want to see it happening in a large number of areas right across Wales."