LONDON, April 1: British Prime Minister Gordon Brown is “optimistic” that he can move things forward on the proposed Palestinian state and, according to him, Condoleezza Rice and Tony Blair “are working hard for peace”.

He said he had offered to hold a London conference on the problem but could not confirm if it would take place.

Mr Brown was answering a question during his monthly news conference here on Tuesday if he thought a Palestinian state would be established this year and was he still planning a London conference on the issue.

Claiming that migration had added £6 billion to the British economy and was a “substantial income,” Mr Brown rejected suggestions that an annual limit on the net inflow was needed.

He said the Australian-style points-based system would effectively “restrict the numbers of people who come into this country from outside Europe”.

Most British businesses which had faced labour shortages benefited from being able to recruit more widely for skilled labour, he said.

When asked about staff shortages in curry restaurants because of restrictions on Bangladeshi workers coming into the UK, Mr Brown conceded that curry restaurants were part of a “very important industry” and said he wanted to make it possible for people in Britain to be trained to work in curry restaurants.

In his opening remarks, he promised to do everything to keep the rate of inflation under control so as to maintain the interest rates at acceptable levels.

Mr Brown pointed out that he had frozen petrol duty, as recognition “of the problems that people are facing”.

But pointing out that commodity prices were going up by 60-80 per cent around the world, he said his main aim was to make it possible for the economy to continue to grow.

On Sunday Mr Brown will be in London to welcome the Olympic torch. He said the Dalai Lama is not in favour of the Olympics being stopped. Regarding Tibet, he appealed for restraint on both sides, pointing out that the Dalai Lama accepted that there would not be an independent Tibet.

In answer to a question, Mr Brown said that both Hillary Clinton and Barack Obama would make great presidents, and he had enjoyed meeting John McCain.

He said he had a good relationship with Mr Bush and that he and Mr Bush would be talking about the world economy when they meet.

Mr Brown said it was time for the international institutions like the IMF to be reformed for the 21st century.

Another journalist asked about Mr Brown’s plans to encourage trans-national stability in the financial markets, an issue the prime minister will discuss when he visits the US.

Mr Brown said he expected reforms in this area. He wanted high standards of disclosure and changes to the way credit rating agencies worked.