IT has been a tough year so far for Ruth Kelly.

Tony Blair's decision to move her from the post of Education Secretary to the newly created role of Secretary of State for Local Government and Communities in a Cabinet shake up earlier this year was widely interpreted as demotion.

And the Bolton West MP has since faced criticism that her deep-rooted Catholic beliefs are a barrier to her being able to represent the rights of women and gays.

Local Conservatives even branded her a "Nimby and a hypocrite" over plans to root out "not in my backyard" opposition to housing developments.

Opponents claim the aim is at odds with her record in her own constituency, where she has joined opposition to home-building plans at least seven times since Labour came to power in 1997.

In an exclusive interview, Ms Kelly spoke to Bolton Evening News Political Correspondent, Gareth Tidman, about why she is relishing her new role and why she wants to use it to give power to the people.

Your new role appears to be quite a varied one, taking in different aspects of housing, communities and Local Government. How are you settling in and are you finding it difficult to get to grips with all the different elements of the job?

Ms Kelly: "This is a great job and I am really excited about it. Thinking about what really matters to people their quality of life, how they feel about themselves and their communities I realise that this role offers a tremendous chance to effect things for the better.

"An issue at the top of my agenda will be how different faiths live together in a peaceful, tolerant and prosperous manner.

"It is a very varied role but the elements are overlapping. We have taken over a department of 300 staff so it was quite a task, but I am enjoying it.

"It is a great chance to empower people and address community cohesion. It is a role that suits my talents, my interest in domestic politics and my analytical skills."

The Prime Minister's decision to move you from the post of Education Secretary to the newly created role of Secretary of State for Local Government and Communities was widely regarded as a demotion. Did you see it that way? How do you feel that you did not have the chance to see through your Education reforms?

Ms Kelly: "I do not think that it was a demotion. I think it is a big opportunity to head another major department of state.

"It goes with being in politics. People get shifted to different roles and you could argue these changes are made more frequently than is desirable, but that is the nature of politics."

Are you surprised at the criticism you received after your appointment, particularly with regard to claims that you will not be able to represent women and gays effectively because of your strongly held Catholic beliefs?

"Was I surprised? Yes and no. I don't think it was reasonable but I wasn't 100 per cent surprised. I am committed to the Government's agenda and I am proud of the role I have been given.

"It is absurd to suggest that people of faith cannot hold these roles.

"I think people should look at what I do and look at my record in tackling discrimination and all forms of inequality.

"I am part of a Government that believes in equality."

Dealing first with the housing aspect of your role, what do you see as the biggest challenges ahead?

"We have significantly changing housing needs, including an aging population, people with disabilities and people supporting themselves in the community.

"There is a need for more housing overall. We want to create a situation where young couples will be able to meet their aspirations to own their own home and this is something we are going to have to grapple with.

"There are strong concerns that we are concreting over the countryside and losing the green belt. These are legitimate concerns and something for us to think about.

"But since 1997, we have increased the green belt and built on more brownfield land.

"We have got to make sure that new housing developments are sustainable and meet the genuine housing need, while making sure that developments are appropriate to the area in which they are being built.

"It is a challenge we have got to rise to because if current trends continue, by 2050 only 30 per cent of young couples will own their own homes rather than the 50 per cent we see today."

It has been reported that you want a change in planning law to smooth the way for new developments and that you will get tough with residents who oppose such plans. Are you declaring war on the Nimby?

"We need more housing but at the same time we have to be sensitive to local issues. Homes need to be environmentally sustainable.

"I think people have legitimate fears over developments. They worry that developments are not going to be built in a way that are sensitive to local communities.

"We need developers to build high-quality houses of 21st century design that conserve energy and we need to do it in a way that preserves the green belt, especially in areas such as Bolton West where town's like Westhoughton have seen so much development.

"Policy in this area hasn't changed for the past 15 years. Local authorities have all the powers they need to turn down inappropriate developments, such as those proposed for people's back gardens, and that is something that is not going to change."

Is it possible for you to properly represent your constituents fighting housing schemes while pursuing a development agenda?

"My new role is not a barrier to my role as a constituency MP and I can make representations on their behalf. However, I cannot take decisions regarding development issues in my own constituency and people feel that is a proper way of going about things.

"I will also be able to pass on their concerns and try and influence people in the right places on their behalf.

"I have made genuine representations on behalf of constituents, and if you look at the individual cases, they have all been legitimate issues.

"If a developer comes forward with a development in my constituency, which is not of a high-quality design, then clearly I will oppose that."

Turning to the communities aspect of your role, what do you see as the main challenges facing Britain?

"People of different faiths living alongside one another in peace is one of the key issues facing us. We have got to get people to recognise each others' common humanity.

"We are keen to promote integrated community cohesion and examine why people join extremist groups so that we can tackle extremist behaviour.

"I want to work with the Muslim community to think about how we can promote tolerance so that the Muslim community, which has a faith based on peace, is celebrated for what it is.

"Other issues we are going to look at is the British National Party and the scare mongering that it is responsible for.

"We want to stand up and say we value and respect everyone for who they are and also to provide asylum for those who deserve it.

"In this country, we want genuine Asylum Seekers who have a right to stay here.

"We have to manage tensions in towns and cities. These are fundamental questions as to how we recognise each others' common humanity.

"There are no glib answers and that is what I am going to be looking at over the coming months."

What changes do you have in store for councils?

"I will be producing a Local Government White Paper which will be looking at all sorts of issues involved with Local Government.

"I want to look at the ways that local people can make a difference if a public service isn't delivering and how they can make their voice heard.

"We want to find ways to allow people to change what is happening and make a difference.

"I have talked to delegations from Manchester and Birmingham and will be talking to other towns and cities.

"I want to find new ways of allowing communities to take control of their own facilities.

"We also want to tackle the North-South divide and look at how cities develop economic growth without disadvantaging other regions.

"Manchester has very ambitious plans and is arguing that it should be given more powers and I am interested using the model in London where there is an elected mayor.

"Manchester hasn't asked for that yet but I am considering all the options."