The three quangos are the first in the 'bonfire'

The Welsh Development Agency (WDA), Wales Tourist Board and education body Elwa have been abolished and brought under direct ministerial control.

Two assembly departments have been created as a result of the changes.

The changes come nearly two years after Rhodri Morgan's assembly government announced the radical shake-up.

SUMMARY OF CHANGES: The WDAaand WTB are absorbed by the former Department of Economic Development and Transport, which becomes the Department for Enterprise, Innovation and Network ELWa merges with a renamed Department for Education, Lifelong Learning and Skills

The assembly government later announced three more quangos - the Welsh Language Board, the curriculum and qualifications body ACCAC and Health Professions Wales - would follow the same route.

Andrew Davies, the newly-christened Welsh minister for enterprise, innovation and networks promised there would be continuity of service.

"Business should be reassured that they'll be talking to the same people when the WDA becomes part of the new Department for Enterprise, Innovation and Networks," said Mr Davies, formerly economic development minister

"And over time they'll be getting a better service. We've agreed with business a number of key performance indicators so people can judge how well we're doing."

Questions over quango replacement

Alun Ffred Jones AM, economic development spokesman for Plaid Cymru, said his party had initially accepted the rationale of the mergers but he added: " Everybody in Wales now is dependent on the largesse of the government."

His Conservative counterpart Alun Cairns said the scrapping of the WDA would be a damaging move, adding: "There is now a real danger that bringing the WDA 'in-house' will damage our ability to perform on an increasingly competitive world stage."

The Liberal Democrats supported the idea of the mergers into government but had a problem with the process.

Lib Dem assembly leader Mike German said: "The way Labour has handled it has been shocking. The absence of meaningful consultation and information for staff was a real backward step and greatly damaged staff morale."