Vic premier overhauls cabinet, dumps Ryan

VICTORIAN Deputy Premier Peter Ryan has been dumped from the police portfolio in a cabinet reshuffle with Kim Wells removed as treasurer.

Victorian Deputy Premier Peter Ryan

NEW Victorian Premier Denis Napthine has dramatically recast his cabinet, dumping the police minister and installing a new treasurer two months out from the budget.

Peter Ryan has been ejected from the police portfolio and given the new role of state development minister.

Dr Napthine denies Mr Ryan was stripped of the police ministry due to the political fallout from the plot within his office to dethrone former police chief commissioner Simon Overland.

Opposition Leader Daniel Andrews says the move was a belated recognition Mr Ryan was tainted.

"Peter Ryan knows this for what it is. Finally, finally some recognition that he was not straight with the Victorian people, that he was up to his neck in the undermining of Simon Overland," Mr Andrews said.

Mr Ryan has repeatedly denied any knowledge of the plan to oust Mr Overland.

As state development minister, the deputy premier will be responsible for leveraging economic and job opportunities from major projects such as the Port of Hastings redevelopment and a potential fast train from Melbourne to Brisbane.

Dr Napthine said Mr Ryan had asked for the "big picture" role.

"One of the great attributes of former premier Sir Henry Bolte is that he had the broader vision for the state, the bigger picture for the state," Dr Napthine said.

"That's what Peter Ryan is on about. That's why he's been given this responsibility."

Mr Ryan said he was looking forward to a fresh challenge.

"It's a brand new day," he told reporters.

"I'm delighted."

Kim Wells has been punted from treasury and given the police and emergency services ministry.

As treasurer he oversaw falling spending by consumers, business and government and Victoria claiming the dubious position of having the country's second highest jobless rate.

Michael O'Brien, a former adviser to Howard government federal treasurer Peter Costello, is Victoria's new treasurer.

The former consumer affairs and gaming minister has eight weeks to prepare the May budget.

"There's been already a lot of work gone into the budget for this year and I've been part of that as have other ministers," he said.

"There's still a lot of work to do."

When pressed on whether Mr Wells was a failed treasurer, Dr Napthine said: "Kim has done a good job as treasurer."

Richard Dalla-Riva, who is in India on a trade mission, was one of the biggest losers in the shake-up, being booted from cabinet.

Matthew Guy, considered one of the government's strongest performers and a potential future leader, remains planning minister.