He said the forthcoming white paper on the future role of local government would propose requiring councils to consider the environmental, social and economic well being of their communities.
He also said the Welsh Office is to publish a Welsh transport policy statement which would draw out issues of particular relevance and imprtance to Wales and would set out the strategy for the trunk road network.
He said nurturing a successful business climate was fundamental to any Local Agenda 21 strategy. A damaged environment would 'sooner or later' hold back economic development so it was important for business to take its environmental impacts seriously.
Graham Court, leader of Caerphilly CBC and the Welsh LGA spokesman on the environment, said Welsh local authorities had already made an excellent start on implementing Local Agenda 21.