Prime Minister Scott Morrison has announced a major shake-up of the public service.

Prime Minister Scott Morrison has announced a major shake-up of the public service.Credit:Alex Ellinghausen

Mr Morrison backed Energy and Emissions Reductions Minister Angus Taylor to keep his job through the shake-up. His portfolio has now been moved out of environment and into the new mega industry department.

"The policy performance of Angus Taylor is not under question,"Mr Morrison said.

"The work Angus has done over the last six months to get the big stick legislation through,to ensure the dodgy late payments fees that are charged by energy companies - they're all gone."

The mergers have sparked criticism the government has downgraded it focus on climate change and environmental issues by shifting the portfolios to departments that also manage areas to do with industry.

Greens environment and water spokesperson Sarah Hanson-Young said the new arrangements showed the government should not be trusted to protect the environment.

"Gutting the environment department and merging it with water and agriculture is a terrible outcome for Australia’s environment,"Senator Hanson-Young said.

Department of Communications secretary Mike Mrdak,who lost his job in the overhaul,slammed the move in a message sent to staff today.

In the email Mr Mrdak told staff"all of our functions,responsibilities,staff and programs will transfer into the new department".

"We were not permitted any opportunity to provide advice on the Machinery of Government changes,nor were our views ever sought on any proposals to abolish the department or to changes to our structure and operations,"Mr Mrdak said.

Mr Morrison said he did not expect any impact on departmental budgets,and decisions on jobs would be a matter for department secretaries.

Mr Morrison said the mergers formed part of the government's response to the Thodey review,which would be announced in full next week.

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