Blair ending government shake-up

Blair has been a staunch defender of Vaz in the past

LONDON, England -- UK Prime Minister Tony Blair is completing his wide-ranging ministerial shake-up -- with Europe minister Keith Vaz expected to lose his job.

Vaz is facing a second inquiry into his business affairs, which have already been at the centre of a passport scandal that caused Peter Mandelson to resign as Northern Ireland Secretary.

Blair spent the weekend at his country retreat of Chequers completing changes to the government that will begin his historic second term in office.

Vaz has come under increasing pressure over his links with business figures, including Indian tycoons Srichand and Gopichand Hinduja.

In the past, Blair has strongly defended Vaz in the face of alleged irregularities and criticism of his failure to co-operate with an inquiry by the Parliamentary Commissioner for Standards, Elizabeth Filkin.

Vaz, who has been suffering ill health since collapsing during a television interview in March, is currently being treated in hospital for an infection.

With the election out of the way and Vaz facing a second investigation by Ms Filkin, political observers believe his ongoing illness may provide an excuse for Blair to excuse him with dignity.

Elsewhere, transport minister Lord Macdonald is expected to move to the Cabinet Office to head a new "delivery unit", monitoring progress across the government.

There were also reports that Robin Cook, ousted from the Foreign Office in the Cabinet reshuffle on Friday, would continue living in the Foreign Secretary's official London residence.

Cook, who was moved to the relatively low-profile post of Leader of the House of Commons, was widely seen as the principal victim of Blair's Cabinet reshuffle.

As one of the strongest supporters in the Cabinet of joining the single European currency, he has in the past clashed with the more cautious Chancellor Gordon Brown.

However, new Trade and Industry Secretary Patricia Hewitt denied reports that Cook had been moved from the Foreign Office because of his views on the euro.

The new Cabinet spent the weekend demonstrating it was getting down to business with ministers setting out their priorities for change.

Blunkett replaced Jack Straw, who takes over at the Foreign Office

New Home Secretary David Blunkett announced the creation of a standards unit to improve the performance of police forces and encourage the sharing of best practice.

He also signaled a shake-up in the work permit system so that immigrants could help fill Britain's skills shortages under a US-style Green Card scheme.

This would be combined with a crackdown on the "gang masters" behind the miserable trade in humans smuggled into Britain.

"My key priorities will be to tackle crime, particularly violent crime, to fight those trafficking in drugs, people and guns, and to ensure our communities are strengthened and freed from the scourge of drugs," he told the UK Press Association.

Two of the Cabinet's record seven women also laid out their priorities. Estelle Morris, the new Education and Skills Secretary, has the task of carrying out Mr Blair's key pledge to reform secondary schools.

Tessa Jowell, the new Culture Secretary, said she wanted to help people achieve a balance between their working lives and their leisure time.

Her department also has responsibility for the Queen's Golden Jubilee celebrations and she wanted to recapture the spirit of the 1977 Silver Jubilee when there were local events and street parties.