On 10th Sept 1941, Acting Prime Minister Walter Nash announced:
His Majesty's Advisers in New Zealand, after discussion with his Majesty's Government in the United Kingdom and after learning that no objection on their part would be raised, inquired of His Majesty the King during the recent visit of the Prime Minister [Peter Fraser] to Great Britain whether His Majesty would feel disposed to accord to the New Zealand Naval Forces the distinction of the name 'Royal New Zealand Navy' and to approve of the term 'His Majesty's New Zealand Ships' to designate the ships of those Forces.
I am glad to be able to announce that His Majesty has been graciously pleased to give his approval to the proposal. An Order-in-Council to give effect to the proposal will accordingly be laid before his Excellency the Governor-General in Council at an early date, and thereupon the Royal New Zealand Navy will become the official designation of the Naval Forces, and a ship belonging to the Royal New Zealand Navy will be described as 'His Majesty's New Zealand Ship'.
I think we shall all be glad to associate ourselves with the recognition of the war services of our Naval Forces which this honour implies, covering not only the loan personnel trained in the Royal Navy, to whom we owe so much, but also those officers and men who entered the Service as New Zealanders and of whom the Service at the present time predominantly consists.
New Zealand Naval forces ceased to be a division of the Royal Navy on 1st October 1941, when King George VI consented to the formation of the RNZN. The subsequent Order-in-Council was published as The Royal New Zealand Navy Order 1941 and came into force on 1st October 1941. As well as announcing the new titles for the RNZN and RNZNVR, the Order went on to amend the wording of the Naval Defence Act 1913, which remained the founding legislation for New Zealand's naval forces.