DAVID Blunkett said that cracking down on bogus refugees was vital to stop the rise of racists and the British National Party.
In his speech to the Labour Party conference, the Home Secretary said a crackdown was the only way to deal properly with genuine claimants, beat the racists and tackle the threat of the BNP.
Aides confirmed he had East Lancashire - especially Burnley, where there are now eight BNP councillors, and Blackburn, which has one - in mind.
Mr Blunkett said he is to open up "a new pathway" for asylum seekers to come to Britain through the United Nations. The move was aimed at benefiting genuine refugees who cannot afford to pay illegal traffickers.
He told delegates that reform of the asylum and immigration system - including the current unwieldy appeals procedure - was vital to stop the racists from flourishing.
The Home Secretary said Britain had always been "welcoming and warm" to genuine refugees fleeing persecution and would remain so.
But in the modern world, the number of economic migrants posing as asylum seekers had grown.
He said the government had to deal with the "fear and uncertainty" being caused by the asylum crisis.
Mr Blunkett said that if those problems could be dealt with, the government was entitled to ask the people of Britain "to join with us in fighting the BNP and racists who want to divide our communities".
He said: "We are not doing this because we are horrible, evil people. I want a balanced approach. The reason I want it is because it is the only way we will get people to warmly welcome those coming into the country, we will reduce fear, insecurity and fear of difference.
"That way we can see off the BNP, we can welcome people into our country who need to be here."
The leader of Burnley BNP, Coun Len Starr, said: "I think David Blunkett is missing the point. The issue of bogus asylum seekers is only one of the concerns that people have.
"I think an awful lot of people are worried about their inherent Britishness, they are being betrayed in many ways. The issue of Europe is a major one that will come to the forefront in the next couple of years.
"Our sovereignty is important to many people and they feel they are being let down."
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