Prime Minister Justin Trudeau placed greater emphasis on portfolios such as housing and the Treasury Board in an extensive cabinet shuffle, shoring up his economic bench as his government faces attacks over the rising cost of living.
(Bloomberg) — Prime Minister Justin Trudeau placed greater emphasis on portfolios such as housing and the Treasury Board in an extensive cabinet shuffle, shoring up his economic bench as his government faces attacks over the rising cost of living.
Wednesday’s remake is expected to be Trudeau’s last major change to his cabinet before an election sometime in the next two years. His chief rival, Conservative Leader Pierre Poilievre, has blamed government policy for the skyrocketing prices of food and shelter.
While Trudeau left Finance Minister Chrystia Freeland and Industry Minister Francois-Philippe Champagne in their roles, he moved Anita Anand from defense to the Treasury Board, where she will be responsible for government administration and the public service. He also shifted Sean Fraser from immigration to housing and infrastructure.
Trudeau’s Liberal Party is trailing the Conservatives in a number of polls, and voters have given his government poor marks on key economic matters. Among Canadians who believe the housing shortage and the economy are top issues, Poilievre’s party has a double-digit lead, according to Abacus Data.
Speaking to reporters after the shuffle, Trudeau acknowledged that many Canadians are struggling, but insisted his optimistic approach was more effective than Poilievre’s oft-repeated slogan of “everything feels broken.” Inflation has come down to 2.8%, lower than many peer countries, and his government’s “targeted” transfers to low-income Canadians are working, he said.
“We have an incredible economic team,” Trudeau said. “We’re bolstering that economic team with the likes of Jean-Yves Duclos, Sean Fraser, Anita Anand and others that are going to continue to step up and make sure Canadians know that we’ve got their backs.”
Duclos, former head of the economics department at Laval University, moved from health to procurement, where he’ll manage billions of dollars in contracts annually. Trudeau also created a new position of small business minister and placed cabinet rookie Rechie Valdez in the role.
Both Anand and Fraser are seen as effective ministers with strong communication skills, suggesting Trudeau intends to bring a higher profile to two areas where Poilievre has hit him hard. Anand pointed out she was a professor for 25 years with expertise in capital markets and corporate governance, making her “well-placed” to deliver the government’s economic message.
The full title for Fraser — minister of housing, infrastructure and communities — suggests Trudeau intends to increasingly tie federal funding for homebuilding to transit and other infrastructure, a key piece of Poilievre’s housing promises.
Fraser’s experience in immigration will be crucial on the housing file, given that Trudeau’s record-high targets for newcomers have strained the housing supply.
A new report from Toronto-Dominion Bank warned that if Canada adds another 1 million people this year, the gap between housing supply and demand would grow to 500,000 units by 2025.
Marc Miller, who as Crown-Indigenous relations minister quieted some of the loudest criticisms of Trudeau on reconciliation, will take the reins at immigration. He’ll need to deliver the government’s message that immigrants are desperately needed to fill labor shortages, especially in health care and home construction.
Poilievre said Trudeau had fired much of his cabinet, but should have “fired himself.” The prime minister is “just as out-of-touch as ever, doubling down on his inflationary, high-spending and high-taxing ways,” the Tory leader said.
The new defense minister will be Bill Blair, the former Toronto police chief who has most recently served as emergency preparedness minister. Blair inherits a number of challenging files, including the war in Ukraine, outdated North American air defense systems and pressure to meet the North Atlantic Treaty Organization commitment of spending 2% of economic output on defense.
Blair must also continue Anand’s work of transforming military culture after several top soldiers were accused of sexual misconduct. Pressed by reporters on whether he was the right choice to lead that shift, Blair said that under his watch the Toronto police became among the most diverse forces in North America.
Trudeau also shifted Pablo Rodriguez from heritage to transport, after the previous minister in charge of that role said he wouldn’t run again. Pascale St-Onge will take over the heritage file amid the contentious rollout of a new law to require digital giants to compensate news outlets for their content.
Other Key Roles
- Dominic LeBlanc becomes public safety minister
- Arif Virani becomes justice minister
- Jonathan Wilkinson’s title becomes energy and natural resources minister
- Ahmed Hussen becomes international development minister
- Lawrence MacAulay is the new agriculture minister
- Karina Gould becomes government House leader
- Marc Holland becomes health minister
- Gary Anandasangaree becomes Crown-Indigenous relations minister
- Ya’ara Saks becomes mental health and addictions minister
(Updates with quotes and details throughout.)
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