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Dr Shane Reti has lost the health portfolio to minister Simeon Brown in one of a series of changes Prime Minister Christopher Luxon has made in his reshuffle, including demoting Melissa Lee and promoting James Meager.

In taking on health, Brown sheds the local government, transport and energy portfolios. Climate Change Minister Simon Watts will pick up local government and energy while Chris Bishop has been given transport.

In a statement, Luxon described health as a “priority area” and acknowledged Reti’s work to “reset the culture and performance of Health NZ”.

“It was critical to establish targets and refresh their leadership – and I am confident the organisation is heading in a much better direction than it was when we entered office,” he said.

“But I have also heard Kiwis’ concerns that they expect to see even more progress, ensuring they can access the care they need, when they need it. To deliver on that expectation, I have decided Simeon Brown will become Minister of Health.

Luxon described Brown as an “outstanding and diligent minister” who had delivered on the Government’s priorities.

“Off the back of that performance, I have decided his skills are best placed to take leadership of our health system going forward.”

Brown would also become the Minister for State Owned Enterprises, taking over from Paul Goldsmith. Reti would take on a new role as Minister for Universities, alongside his other portfolios.

Simeon Brown is the country's new health minister. Photo / Mark Mitchell

In other changes, Luxon has demoted Melissa Lee from his ministerial team, taking her economic development and ethnic communities portfolios off her, with the latter being given to Mark Mitchell, who also picks up sport and recreation.

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Last year, Lee was demoted from Cabinet and stripped of her media portfolio after struggling in her response to financial pressures within the sector.

In his statement, Luxon acknowledged Lee’s contribution in Government and her work engaging with New Zealand’s ethnic communities.

Lee’s economic development portfolio had morphed into economic growth, which has been given to Finance Minister Nicola Willis.

“[Willis'] focus will be on leading the Government’s growth agenda to unleash the potential of our businesses to grow, develop talent and attract investment,” Luxon said.

Prime Minister Christopher Luxon and Finance Minister Nicola Willis at today's announcement of the Cabinet reshuffle. Photo / Mark Mitchell

“That will mean co-ordinating and strengthening efforts that are already under way to deliver economic growth – and taking responsibility for new initiatives designed to promote growth and productivity in the New Zealand economy.”

The public service portfolio shifted from Willis to Judith Collins.

Social Development Minister Louise Upston also gained new roles, taking on Tourism and Hospitality from Matt Doocey, who also lost ACC to Andrew Bayly. Upston would also become Deputy Leader of the House under Bishop.

In changes to ministers outside of Cabinet, Chris Penk would become Small Business and Manufacturing Minister, taking over from Bayly.

Luxon had also promoted justice select committee chairman James Meager, giving the Rangitata MP the new title of Minister for the South Island alongside the youth and hunting and fishing portfolios, as well as an associate transport role.

Finance Minister Nicola Willis at today's reshuffle announcement in Wellington. Photo / Mark Mitchell

Changes predicted

The Herald earlier today reported the health portfolio was expected to be taken from Reti amid ongoing scrutiny of the Government over persistent pressures within the health sector, including a shake-up of Health New Zealand’s governance and the entity’s major deficits.

Transport and Local Government Minister Simeon Brown was tipped as a contender to take on the challenging portfolio.

Reti was expected to remain in Cabinet with different portfolios but slide down the rankings to reflect the loss of health. He was ranked fourth in Cabinet.

In other potential changes, Finance Minister Nicola Willis was expected to be given a wider economic growth portfolio as well as finance as Luxon tries to sharpen the focus on the economy.

Dr Shane Reti lost the health portfolio in the reshuffle. Photo / Mark Mitchell

Her public service portfolio was expected to be given to another minister. It was speculated that could be Judith Collins, Luxon’s most experienced minister, who knows the public sector well. Collins also already has responsibility for the programme to digitise Government.

The reshuffle was of National ministers only and did not impact coalition partners NZ First and Act.

It is Luxon’s first major reshuffle since forming his Government in December 2023.

He has previously only made some small-scale changes when a minister was not performing. Today’s reshuffle did not include significant changes to Cabinet rankings.

Adam Pearse is a political reporter in the NZ Herald Press Gallery team, based at Parliament. He has worked for ��һ�ǿ����� since 2018, covering sport and health for the Northern Advocate in Whangārei before moving to the NZ Herald in Auckland, covering Covid-19 and crime.