Hundreds of job losses are probable from the merger of four departments announced yesterday, Prime Minister John Key has indicated.
But the jobs of the ministers currently overseeing them are safe, Steven Joyce says.
Mr Key has confirmed plans to merge four Government departments into a single "dedicated, business-facing" ministry under the ultimate oversight of Mr Joyce, a plan public sector union the PSA says is half-baked.
The Ministry of Economic Development and Ministry of Science and Innovation, which are both already overseen by Mr Joyce, are to merge with the Department of Building and Housing and Department of Labour in a new Ministry of Business, Innovation and Employment, effective from July this year.
The Cabinet expects a "due diligence" report on the plan next month which will provide detailed advice on how the merger will be managed.