The controversial power-sharing deal for the Welsh assembly has been announced with two Liberal Democrat members joining the cabinet led by Rhodri Morgan.

The Liberal Democrats were given the economic development and culture and sports portfolios in the Welsh assembly cabinet as part of the party's coalition deal with Labour. Lib Dem leader in the assembly, Michael German, is now the deputy first secretary and has also been given the economic development brief.

The party's pre-16 education spokeswoman Jenny Randerson, takes on the culture and sports portfolio. Pre-16 education secretary Rosemary Butler has been dropped from the Cabinet to be replaced by Jane Davidson. The new local government secretary will be Edwina Hart who takes over from Peter Law.

German apologised to his party for holding the talks in secret but defended his decision saying he had not wanted to make his negotiations public until it was a "done deal" and added that the principle of PR had been at stake. The decision was ratified by a huge margin by the Welsh Liberal Democrats at their autumn party conference this weekend.