FORMER union boss Martin Pakula is Victoria's new minister for public transport.

Premier John Brumby confirmed the appointment today after a caucus meeting to replace former minister Lynne Kosky.

Mr Pakula, who had been minister for industry and trade, will retain the industrial relations portfolio.

Mr Brumby said Mr Pakula would be a strong voice for commuters using Melbourne's troubled public transport system and would use the system in coming weeks to familiarise himself with the portfolio.

"I think Martin is a great fit for the public transport portfolio, I believe he has performed exceptionally well in the area of industry and trade," Mr Brumby told a press conference.

Secretary for community development Lily D'Ambrosio has been elevated to cabinet to replace Ms Kosky.

She will become minister for community development.

In other changes, Regional and Rural Development Minister Jacinta Allan will pick up the industry and trade portfolio, while Education Minister Bronwyn Pike will add skills and workforce participation to her responsibilities.

A new portfolio has been created to oversee the government's respect agenda, which is aimed at reducing alcohol-fuelled violence and anti-social behaviour.

Planning Minister Justin Madden will add the portfolio to his responsibilities.

Energy and Resources Minister Peter Batchelor has picked up the arts portfolio, formerly held by Ms Kosky.

Ms Kosky quit politics on Monday, citing serious health problems in her family.

She had presided over the difficult public transport portfolio for three years.

The ministers will be sworn into their new roles at a ceremony at Government House at 3pm (AEDT) today.