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.

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