Business groups are welcoming the creation of a new super ministry which aims to foster the economy and make it easier for firms to deal with the Government.
The Ministry of Economic Development, Ministry of Science and Innovation, the Department of Labour and the Department of Building and Housing will be merged to create the new Ministry of Business, Innovation and Employment.
Prime Minister John Key says the changes will produce a ministry that is more aligned with the commercial sector.
Business New Zealand chief executive, Phil O'Reilly, welcomes the move in principal, but warns structural changes need to be addressed to ensure the new ministry is truly business-focused.
He says the new super ministry needs the right kinds of processes and structures to ensure that joint thinking occurs.
The new Ministry of Business, Innovation and Employment will come into effect from 1 July.