More quangos could be cut under plans unveiled next month

In July, he announced the Welsh Development Agency, the education and training body Elwa and the Wales Tourist Board will cease to be by 2006.

Speaking on BBC Wales' Dragon's Eye on Thursday, he defended the "bonfire of the quangos".

He has now said their functions will be carried out more effectively after the reorganisation.

"The issue is whether a one-stop shop can be more effective than a two or three-stop shop," said Mr Morgan.

"I would claim that the principle that businesses want to deal with, and will find it easier to deal through a one-stop shop is absolutely an unavoidable principle."

Rhodri Morgan says the 'quango state' is disappearing

Mr Morgan has been attacked over the way the scrapping of the quangos has been implemented.

Professor Kevin Morgan from Cardiff University, a leading supporter of devolution, told Dragon's Eye that a lack of consultation on the scheme was a mistake.

He said that people were afraid to speak out against the plans.

Mr Morgan has denied this, but has acknowlged that, where there is duplication of what he calls "back office staff", there will be job losses.

More than 1,500 people work for the three quangos that will definitely be scrapped.

Quangos - which stands for quasi-autonomous non-governmental organisations - are semi-independent agencies of the assembly government.

They operate as arm's-length executive bodies responsible to boards appointed by ministers.

Final list

Mr Morgan's initial announcement on the first three quangos to go was greeted with applause in the assembly chamber, and most AMs from all parties welcomed it.

But there has been opposition, including from Labour Clwyd West MP Gareth Thomas criticised the WDA decision as "the wrong bonfire under the wrong quango".

The final list of which other quangos will also be abolished will be published next month.

Reports have suggested that the Arts Council of Wales, the National Museums and Galleries of Wales, the National Library of Wales and the Welsh Books Council could be next in line.