About 130 jobs could be lost with the creation of an economic "super ministry'' confirmed by the Government today.

Following advice from the State Services Commission, the Government today confirmed that the Ministry of Business, Innovation and Employment would be established on July 1.

The new ministry merges the Ministry of Economic Development and Ministry of Science and Innovation, as well as the Department of Building and Housing and Department of Labour, and will be under the control of Economic Development Minister Stephen Joyce.

Speaking to reporters this morning, Mr Joyce said it was hard to assess the number of jobs that would be cut, although it was likely to be in the realm of 130.


"Until you've done the design of each individual part of the agency you don't actually know how many positions you need, and in what area.''

However, Mr Joyce said the rough indication was that between 50 and 55 people would lose jobs. In addition, 84 vacant positions across the agencies would not be filled.

The Government has said it expects the ministry to deliver savings through the consolidation of corporate services of about $5 million to $6m a year, and of policy capability of about $2m to $5m a year.

Mr Joyce said the costs of setting up the ministry would be absorbed within the departments' current base lines.

He would not go into who might be appointed as chief executive, saying it was a matter for the State Services Commission.