The Top Line
This morning, Canada’s new Prime Minister Mark Carney was sworn into office, and appointed his Cabinet. Mr. Carney selected an unusually small roster of 23 Ministers (not including himself), with several of those people holding dual portfolios.
Mr. Carney also used the occasion of his swearing-in to announce that his government will take steps to remove the Federal consumer carbon pricing system – likely through a Cabinet order – later today.
Prime Minister Carney’s slimmed-down Cabinet (the Trudeau administration never had less than 29 Ministers) aims to signal that he intends to run a government with select priorities, focussed on strategic execution and program delivery. Building on that theme, the Prime Minister’s key messaging regarding the Cabinet stressed that his government will focus on delivering “the things that matter most to Canadians” and doing so “faster”. Notably, the vast majority of Ministerial titles now align to specific Federal government departments, with very few Ministers holding ‘junior’ portfolios focused on specific issues within a department’s remit. For example, there are no standalone Ministers for addiction and mental health, regional economic development, sports, and many other topics.
However, there is ample evidence that Mr. Carney intends to trigger an election within 10 days, so this Cabinet will not do much governing. Its members have the inside track on returning to Cabinet should the Liberals win Election 2025, but their focus will be on local re-election, not Ministerial mandates.
Key Appointments
Finance Minister, François-Philippe Champagne: As a former Finance Canada Associate Deputy Minister and a central bank governor in Canada and England, it’s no surprise that Mr. Carney wanted to pick his own Finance Minister. The elevation of Minister Champagne to that key role represents an appeal to Québec – a region where the Liberals must do well in the next election, despite Mr. Carney’s middling French.
The Team for Canada – United States Relations:
Prime Minister Carney chose to keep intact the Ministerial team (Bill Blair, National Defence; Mélanie Joly, Foreign Affairs and International Development; Dominic LeBlanc, International Trade and Intergovernmental Affairs; and David McGuinty, Public Safety and Emergency Preparedness) that has been leading outreach to President Trump and his administration. That shows Mr. Carney’s confidence in that team, and a desire to not destabilize the currently challenging Canada – United States (U.S.) relationship further by introducing new personalities.
Of the aforementioned Ministers, only Dominic LeBlanc (International Trade and Intergovernmental Affairs) got a substantially new portfolio, and he will have a major role in Canada – U.S. relations going forward. Expect Mr. Carney to limit his direct interactions with President Trump until (if) the bilateral relationship improves.
On the topic of American relations, note also the re-naming of the Heritage Canada portfolio to ‘Minister of Canadian Culture and Identity’ (now held by Steven Guilbeault). This is a major clue to how the Carney government will approach that policy area, in light of President Trump’s recent conduct, and could signal an intent to be firm on issues like Canadian content and the Digital Sales Tax.
Environment and Climate Change: Notwithstanding that their policies are similar in many ways, this portfolio is one where Prime Minister Carney has to distance himself from the Trudeau government, given the unpopularity of the Federal carbon tax. Terry Duguid will now oversee the dismantling of that policy, while managing stakeholder relations in this difficult space.
What This Means to You
Today’s Cabinet appointments are effectively the kick-off of the Election 2025 campaign; showcasing the priorities and personalities of ‘Team Carney’ for that contest. Aside from those Ministers involved in Canada – U.S. relations, there is very little likelihood any of these Ministers will get fully briefed on their portfolios, interact substantially with stakeholders, or advance policymaking prior to the coming election.
On that note, Federal polling has narrowed dramatically over the last 45 days, with the Liberals once again politically competitive. Organizations should already have adjusted their government relations strategies and resource allocation to account for that. Nonetheless, there is substantial variance in current polling and public opinion is clearly in flux as it adjusts to the new personalities in Federal politics and the impact of President Trump on voters’ thinking. So, during the coming campaign period, stakeholders must develop customized priorities, strategies, and messaging for any election outcome, ranging from a Conservative majority/minority to a Liberal majority/minority.
Looking further ahead, stakeholders should be prepared for a very busy government relations agenda post-election. No matter who forms government, the appointment of a second Cabinet of 2025, a Throne Speech and session of Parliament, and some form of budget or fiscal update are all likely to occur before Canada Day.
Appendix: The New Cabinet
- Mark Carney, Prime Minister
- Anita Anand, Minister of Innovation, Science and Industry
- Gary Anandasangaree, Minister of Justice and Attorney General of Canada and Minister of Crown-Indigenous Relations and Northern Affairs
- Rachel Bendayan, Minister of Immigration, Refugees and Citizenship
- Bill Blair, Minister of National Defence
- Kody Blois, Minister of Agriculture and Agri-Food and Rural Economic Development
- Élisabeth Brière, Minister of Veterans Affairs and Minister responsible for the Canada Revenue Agency
- François-Philippe Champagne, Minister of Finance
- Terry Duguid, Minister of Environment and Climate Change
- Ali Ehsassi, Minister of Government Transformation, Public Services and Procurement
- Nate Erskine-Smith, Minister of Housing, Infrastructure and Communities
- Chrystia Freeland, Minister of Transport and Internal Trade
- Steven Guilbeault, Minister of Canadian Culture and Identity, Parks Canada and Quebec Lieutenant
- Patty Hajdu, Minister of Indigenous Services
- Mélanie Joly, Minister of Foreign Affairs and International Development
- Arielle Kayabaga, Leader of the Government in the House of Commons and Minister of Democratic Institutions
- Kamal Khera, Minister of Health
- Dominic LeBlanc, Minister of International Trade and Intergovernmental Affairs and President of the King’s Privy Council for Canada
- Steven MacKinnon, Minister of Jobs and Families
- David J. McGuinty, Minister of Public Safety and Emergency Preparedness
- Ginette Petitpas Taylor, President of the Treasury Board
- Joanne Thompson, Minister of Fisheries, Oceans and the Canadian Coast Guard
- Rechie Valdez, Chief Government Whip
- Jonathan Wilkinson, Minister of Energy and Natural Resources
