Wellington, March 12 NZPA - The proposed merger of the National Library and Archives New Zealand within the Department of Internal Affairs may cause a conflict between the principals of freedom of information and censorship, a national library group says.

The planned merger could also decrease literacy skills in New Zealand, the Library and Information Association of New Zealand Aotearoa (Lianza) said.

"Libraries adhere to the general principle of Freedom of Information whereas the Department of Internal Affairs has a censorship role which could potentially result in a conflict," Lianza said.

The National Library supplemented and furthered the work of other libraries across the country, enabled access to culture, and protected New Zealand's documentary heritage.

A merger could compromise the vision and core services of the National Library, and could ultimately decrease literacy skills in New Zealand, Lianza said.

Any structural changes made would be expected to enhance, rather than detract from, the many services provided by the National Library, Lianza said.

The proposal, on which Cabinet is likely to make a decision next week along with other government agency mergers, was driven by the need to improve efficiency and deliver better services under tighter cost constraints, Prime Minister John Key said this week.