There will be no change in practice for employers and employees generally. But those who do use the regulations will find them clearer and more consistent.

Joint Note on Environmental Issues in Purchasing issued in 1999 by HMT and DETR. Followed properly, there should be no conflict between relevant sustainable development objectives and obtaining value for money. Indeed, there will be synergies between them, for instance in purchasing energy efficient goods that reduce whole life costs.

We are keen that consideration of environmental impacts should be built in right at the start of the procurement process (at the business case and specification stages), when options are being considered, as this approach is likely to have most potential to contribute to sustainable development objectives, as well as being more appropriate under the EC rules. The consideration of whole life costs is important at these early stages, as well as at the award stage.

This revised guidance signals our support for sustainable procurement across government and meets one of the headline recommendations of the Sustainable Procurement Group. Defra and OGC will continue to work closely together with other departments and the Government's central buying agencies OGCbuying.solutions and NHS PASA on minimum standards for commonly purchased products, departmental environmental procurement strategies, ongoing development of sustainable product information and environmental risk assessment for larger procurement projects. These will be progressed

primarily under the procurement section of the Framework for Sustainable Development on the Government Estate.

Our first priority is for environmental procurement to become embedded across the board in Government purchasing, in order to build upon the progress already made in this area. The understanding, by purchasers, of the scope to consider social issues in procurement is less developed, and further discussion of this by the cross-Government Sustainable Procurement Group is planned, leading towards more comprehensive guidance.

Sustainable procurement will not be achieved overnight, but this guidance is a vital first step to put in place the structures to support and encourage all those involved in government procurement in delivering this important commitment. Copies of the Joint Note on Environmental Issues in Purchasing have been placed in the Library and can also be found online at www.ogc.gov.uk/ or http://www.sustainable-development.gov.uk/sdig/improving/contextf.htm

The Government recognises the crucial contribution to the diversity agenda already made by the Commission for Racial Equality, the Disability Rights Commission and the Equal Opportunities Commission and the need for a single body to build on and protect the programmes they have put in place.

Role of the New Body

The working title of the body will be the Commission for Equality and Human Rights. It will promote an inclusive agenda, underlining the importance of equality for all in society as well as working to combat discrimination affecting specific groups. It will promote equal opportunities for all and tackle barriers to participation. It will play a key role in building a new, inclusive sense of British citizenship and identity in which shared values of respect, fair treatment and equal dignity are recognised as underpinning a cohesive, prosperous society. It will promote a culture of respect for human rights, especially in the delivery of public services.

I intend to publish a White Paper next spring making detailed proposals for the body and seeking comments. At this point the Government has reached no conclusions on key issues such as the governance of the body and its internal structure. A range of views on these and other questions were expressed during the consultation, which need further examination and debate with interested stakeholders. I am therefore establishing a task force with members reflecting the interests concerned to provide advice on these issues. This reflects the Government's commitment to an open and transparent process for developing the new body. The task force will include representatives of the existing commissions and the new anti-discrimination strands of sexual orientation, religion and belief, and age. It will also include members with a particular interest in human rights as well as people from Scotland, Wales and other interests.

The responses to the White Paper will inform the preparation of legislation to establish a single body which will be introduced as soon as Parliamentary time allows. Late 2006 would be the earliest that the new body can be established.

There was a strong call in the consultation for the body's arrangements in Scotland and Wales to fit well with devolved legislation, institutions and policies and for its policies to take account of the social, cultural and economic circumstances of Scotland and Wales. The Government will set out proposals for the Commission's Scottish and Welsh arrangements in the White Paper to be published next spring.

Key Priorities for the New Commission

The Government looks forward to the Commission's priorities being defined through continuing consultation and debate. However, the Government believe the following principles should underline its work:

Promoting equality and diversity in the round, fostering understanding of their importance in underpinning a prosperous and cohesive society; promoting a culture of respect for human rights and acceptance of the responsibilities that go with them.

Giving full attention to the specific needs of individual groups who receive legislative protection against discrimination, ensuring the availability of relevant skills and expertise.

Improving support for individuals through better and more accessible provision of services, particularly advice and information.

Working in partnership with business and public sector organisations, meeting the requirement expressed strongly by business and others for a single, accessible source of advice and guidance covering the breadth of legislative obligations as well as advice and support on good practice.

Mainstreaming equality and human rights in the public sector and public service delivery. Key tools will be the promotion and enforcement of the Race Relations Amendment Act statutory duty on public bodies to promote equality of opportunity, the planned disability duty. awareness of the duties under the Human Rights Act and working to encourage good practice in equality and human rights generally.

Developing partnerships with a range of bodies at regional and local level, including statutory, voluntary and business organisations, to deliver local, accessible information and advice to individuals, public sector bodies and businesses.

Bringing a strategic, modern approach to enforcement of equality legislation supported by up to date enforcement tools.

Promoting community cohesion through providing support to local initiatives to promote dialogue and understanding between different communities and groups, where relevant drawing upon the balance between rights and responsibilities contained in the Human Rights Act.

The Government are committed to ensuring that the needs of all groups covered by equality legislation will be met by the new body, as well as supporting our legislation on human rights, and that relevant levels of focus, expertise and influence are all retained.

We will therefore ensure that the single body has robust and transparent means of ensuring that the voices of specific groups are heard and that they have a significant role in steering the policy and approach of the body on matters of concern to their strand. We will also ensure that strand specific work is clearly identified, supported and attracts appropriate priority, visibility and profile within the organisation; and that fit for purpose governance and organisational structures are developed which reflect this approach.

Disabled people and their organisations have raised concerns that a single equality body should meet their particular needs. The Government recognise the distinctive aspects of the disability rights agenda and the concerns above that reflect the relatively recent establishment of the Disability Rights Commission and the fact that there has been relatively little time for the distinctive disability rights legislation to take hold. There is also a demanding programme of disability legislative reform over the next few years requiring sustained and major campaigns of information, advice, publicity and guidance to ensure effective implementation.

Our White Paper will put forward proposals developed in conjunction with key stakeholder interests to deal with these and other related concerns.

Military Costs

The Chancellor has set aside £3 billion for military operations in Iraq. The Ministry of Defence has drawn down £1 billion from this special reserve during the 2003 Spring Supplementary Estimates. From this amount, the cost of preparatory activity in the 2002–03 financial year is currently estimated to have been £700 million. Further information on the total net additional cost of the military operation during the 2002–03 financial year will be found in the Ministry of Defence's Resource Account for 2002–03, which is due to be published around the end of October.

For the current financial year, further sums have been drawn down from the special reserve. These are subject to scrutiny by HM Treasury and Parliament through the normal estimates process.

Reconstruction

Her Majesty's Government plan to spend a total of £544 million on reconstruction in Iraq for the three years from April 2003, including our contribution to EC assistance and our secondment of personnel to the coalition provisional authority.

Other Costs

The Foreign and Commonwealth Office spent £5.62 million on additional security at posts in the Middle East during 2002–03, and expects to: spend a further £1.3 million in this financial year on security costs at posts directly attributable to our action in. Iraq.

The Foreign and Commonwealth Office estimates that it will have spent up to £12.1 million on the British Office in Baghdad and other bilateral representation by the end of this financial year.

The Foreign and Commonwealth Office forecasts a further £1.8 million of Iraq-related costs outside Iraq during this financial year.

Future Costs

Her Majesty's Government have not so far committed any other amounts in connection with the United Kingdom's involvement in Iraq.

It is too early to predict the continuing costs of military deployment, support for the Coalition Provisional Authority and development of bilateral relations with Iraq beyond the end of this financial year.