DOCTORS at Huddersfield Royal Infirmary are opposing the move towards foundation status.
Their views emerged as Prime Minister Tony Blair suffered defeat over his flagship policy at the Labour Party conference in Bournemouth.
But he will plough on with plans which will put HRI in the first wave of foundation hospitals.
Foundation trusts give hospital managers freedom from Government targets and allow them to borrow money from the private sector.
It is claimed that this will allow hospitals to be more responsive.
But Dr Safa Kaftan, secretary of the British Medical Association's Huddersfield division, said: "Foundation hospitals will create a two-tier system."
Dr Kaftan represents 343 doctors in the Huddersfield area.
He added: "They will threaten core NHS principles of equality and fairness and could undermine the national term and condition of service and agreed pay rates."
He said there would be an inadequate complaints system.
Dr Kaftan said: "It is unclear what responsibilities the board of governors will have and what its relationship will be with the executive board.
"There is a danger that the only people elected as governors will be those active in local interest groups."
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