The justice portfolio has been transferred to the prime minister from the Ministry of Home Affairs. Owen Bonnici will still remain parliamentary secretary for justice.
The move was announced by Prime Minister Joseph Muscat in a press conference to mark the 100 days of his government.
He also announced that Labour MP Michael Falzon has been appointed Commissioner Against Bureaucracy with a target to cut red tape by 25 per cent.
Dr Muscat said a consultative council for the south will be set up shortly .
The Prime Minister said he felt optimistic that public finances will end the year below the three per cent deficit threshold, despite scepticism that Malta will need two years to do so.
He said that for the first time the Finance Minister was receiving monthly accounts of actual revenue and expenditure against projected figures.
"I came to Castille to be everyone's Prime Minister... injustices have to be addressed but out country has to turn a new page."
Dr Muscat said he was "disgusted" by the bureaucracy he found on taking office. "We are at a stage where a decision taken by the Prime Minister takes days to be implemented and this is not bureaucracy to guarantee accountability but simply a procedure of habit."
Throughout the press conference, Dr Muscat repeatedly referred to the injustices suffered by civil servants under the previous administration and said the government was committed to rectify the situation as quickly as possible.
"I came to Castille to be everyone's Prime Minister... injustices have to be addressed but our country has to turn a new page."
This was an indirect reference to the anger expressed by Labourites at the appointment of Lou Bondi to a national festivities committee. In a facebook post, Labour MEP Joseph Cuschieri had lashed out at the decision saying Labourites wronged by "Mr Bondi's government" were still waiting for justice.
Asked about this, Dr Muscat said he understood the anger of his party's grassroots. "I've been there and done that. Five years ago I had the same criticism when I started opening up the party to former Nationalists."
Dr Muscat noted his government's actions over the past 100 days. The government, he said, was focused on making sure the energy plan to reduce utility bills was on track, no EU funds will be lost and a number of expressions of interest for major projects were issued to bear fruit in the latter part of this legislature.
The press conference was held at the main door of the Auberge de Castille, with reporters sitting on a platform built on the steps. Traffic was diverted away from the roundabout.