More mergers and redundancies are likely in the public sector, as the Government looks to trim its budget.
Prime Minister John Key says there will be a revamp of public services in an effort to find greater efficiencies.
Mr Key says there will be further mergers within the state sector, and more sharing of resources between departments, and he is not ruling out more redundancies.
He says there will be an increased focus on making sure the way people deal with departments is more efficient, which will include greater use of smart phones and the internet.
More wide-ranging changes could also be on the way.
Mr Key says the Government is asking hard questions about what is expected from government services, and how to deliver better value for money.