Widely respected Health Department secretary Michael Pervan will move to Communities Tasmania in a shakeup of three senior public servant roles.
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Premier Will Hodgman announced the sudden shuffle on Tuesday, which will see Mr Pervan replaced by Justice Department secretary Kathrine Morgan-Wicks.
Ms Morgan-Wicks will be replaced by inaugural Communities Tasmania head Ginna Webster. The changes will take effect from September 2.
In a statement, Mr Hodgman paid tribute to the work and experience of each.
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"The changes allow for these senior public service leaders to apply their considerable skills and experience to different areas of community service delivery," Mr Hodgman said.
He added Mr Pervan's "extensive knowledge" of the community sector would be vital in his new role leading the government's affordable housing plan.
Ms Morgan-Wicks will now be charged with delivering improvements to the health system stemming from the recent access solutions meeting and Auditor-General report.
The shift follows a surprise cabinet reshuffle in late June which saw the Health portfolio passed to Bass MHA Sarah Courtney after sustained pressure on the former minister, Michael Ferguson.
Community and Public Sector Union state secretary Tom Lynch also commended the "widely respected and trusted" Mr Pervan's efforts and wished Ms Morgan-Wicks well in the tough role.
Health policy analyst Martyn Goddard described the move as "nothing other than an undeserved demotion".
"This is a man who has been prepared, repeatedly, to tell the truth to power," Mr Goddard said. "Now, those in power have struck back."
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