LONDON, Dec 4 (Reuters) - A British minister sharply attacked the United Nations on Thursday, saying the organisation was not fit to lead the world's drive to eradicate poverty.

The criticism is telling because Britain is one of the biggest funders of the United Nations, spending $1 billion a year through the U.N. system, according to the government.

"Reform is urgent. Presently the U.N. is not fit for purpose to lead the world's response to eradicating poverty and tackling the climate crisis," International Development Minister Gareth Thomas told U.N. and government officials in Kenya.

Thomas, speaking at the end of a fact-finding mission to assess the U.N.'s work in Africa, called for reform in areas such as the United Nations' leadership, humanitarian assistance and performance.

His demand that the United Nations meet tough performance targets comes as the U.N. and aid partners voice fears that countries will cut back on aid commitments as the global financial crisis puts their budgets under pressure.

The United Nations asked for a record $7 billion last month to help 30 million people recover from disasters and conflict in the coming year, the largest appeal in its history.

Britain is setting performance targets for the U.N., focusing on health, help for new mothers and their babies and tackling HIV and AIDS, Thomas said, according to a statement released by his department in London.

British targets include 85 percent of births to be attended by skilled health personnel by 2011 and ensuring the World Health Organisation helps all affected countries tackle malaria by 2013.

Thomas visited Lang'ata Women's Prison in Nairobi to see how reforms already made in the way that Britain channels its aid money through the U.N. are helping HIV/AIDS sufferers.

His visit, and a trip earlier this week to Tanzania, convinced him there was a need for more transparency and streamlining in the way the United Nations operated, he said.

Salil Shetty, director of the U.N.'s Millennium Campaign which has set goals to halve extreme poverty and boost life expectancy by 2015, told Reuters in Doha this week many donor countries gave money "to the wrong places for the wrong things."

"It's not going to the poorest countries for meeting the goals. Half of it goes for political interests, for opening up markets and other things," he said.

(Reporting by Adrian Croft; Editing by Michael Roddy)

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