Carney Revamps Cabinet: Focused on Canada-U.S. Relationship, Affordability, and Crime

Two weeks after securing a mandate from Canadians, Prime Minister Mark Carney announced his new cabinet for the 45th Parliament with new ministers in all but two portfolios. The cabinet is comprised of predominantly new faces, but Carney has placed experienced Trudeau-era ministers in many of the key portfolios.  

Structure and Geography 

In addition to the 28-member cabinet, the Prime Minister has reintroduced the role of junior ministers or “Secretaries of State,” last seen in the government of Stephen Harper. There are 10 Secretaries of State who will “provide dedicated leadership on specific issues or priorities within the broader portfolio of a cabinet minister. While they are not members of cabinet, they may participate in cabinet or cabinet committee meetings when matters related to their responsibilities are raised, providing support and policy expertise in discussions.”  

This shuffle restores the gender parity of the Trudeau-era Ministry but there is no “Deputy Prime Minister” in this cabinet.  

The election of many new Liberal MPs in the latest election enabled Carney to refresh at least part of the government’s front bench with new choices. There were 24 MPs who were sworn in for the first time with 14 MPs who were part of the Trudeau-era.   

Ontario and Quebec delivered Carney his minority and they have been rewarded with 18 of 28 spots in cabinet. Every province also has at least one minister or secretary of state. 

Cabinet and the US Relationship 

A core focus of the Prime Minister’s mandate will be to define a new relationship between Canada and the United States. Carney’s appointment of Dominic LeBlanc as Minister Responsible for Canada-US Trade, Intergovernmental Affairs, and One Canadian Economy indicates the heavy importance that the Prime Minister will be putting on LeBlanc’s ability to try and get things done with the Trump Administration. Having already built solid relationships with people like Commerce Secretary Howard Lutnick, LeBlanc will continue to play a key role in navigating what will continue to be turbulent times over the next several years. 

Other Notable Moves 

• Anita Anand moving to Minister of Foreign Affairs 

• François-Philippe Champagne remaining at Finance but adding National Revenue to the portfolio 

• David McGuinty moving to Minister of National Defence  

• Melanie Joly becoming Minister of Industry (with Canada Economic Development for Quebec Regions responsibilities as well) 

• Sean Fraser as Minister of Justice and Attorney General of Canada (with ACOA responsibilities as well) 

• Gary Anandasangaree replacing McGuinty as Minister of Public Safety 

• Shafqat Ali joining cabinet as President of the Treasury Board 

• Patty Hajdu moving to Minister of Jobs and Families (with FedNor responsibilities as well) 

Former ministers not returning include Jonathan Wilkinson, Bill Blair, Kody Blois, Arielle Kayabaga, Ginette Petitpas Taylor, Terry Duguid, Nathaniel Erskine-Smith, Elisabeth Briere, and Ali Ehsassi. 

The full list of members of the cabinet can be found here. 

Hitting the Ground Running… 

Nine rookie MPs hold full ministerial portfolios. These include: 

• Former Goldman Sachs Canada CEO and Chair of Hydro One Tim Hodgson as Minister of Energy and Natural Resources 

• Former Vancouver Mayor Gregor Robertson as Minister of Housing, Infrastructure, and Communities 

• Former Yellowknife Mayor Rebecca Alty as Minister of Crown-Indigenous Relations 

• Former Grand Chief of the Grand Council of the Crees, Mandy Gull-Masty as Minister of Indigenous Services 

• Former CBC and CTV broadcaster Evan Solomon as Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario 

• Former Trudeau-era PMO Deputy Chief of Staff Marjorie Michel as Minister of Health 

Who Sits Where and Does What? 

While Carney is known to be direct in his cabinet discussions and briefings, the day-to-day challenges of governing and the churn of decision-making in a government would challenge the most experienced individual, even one who had roles as a bank governor and board chair.

Much of the day-to-day of decision-making is undertaken by Cabinet committees, and Carney announced nine. These include the traditional “inner Cabinet” of Priorities and Planning, spending controllership of Treasury Board, and issues management of Operations and Parliamentary Affairs, along with an ad hoc Incident Response Group for emergencies. The others are revealing of PM Carney’s priorities:

• National Security Council chaired by the Prime Minister focused on international relations and intelligence
• Government Transformation Committee chaired by the Finance Minister that “co-ordinates efforts to realize more effective and efficient government services and processes and to improve service delivery for Canadians [and] co-ordinates efforts to reduce government expenditures”
• Build Canada Committee chaired by Natural Resources Minister Tim Hodgson and focused on “housing, infrastructure investments, climate action, indigenous economic prosperity, and other measures to increase Canada’s economic resiliency”
• Secure and Sovereign Canada Committee chaired by the Defence Minister to “reinforce Canadian sovereignty, productively manage Canada-U.S. relations, and advance Canada’s interests around the world”
• Quality of Life Committee chaired by Canadian Identity Minister Guilbeault “considers ways to improve community safety and health, advance reconciliation with Indigenous Peoples, and augment the overall quality of life and well-being of Canadians”

Former Liberal MP Marco Mendicino currently serves as Chief of Staff to the Prime Minister and Tom Pitfield is the Principal Secretary to the Prime Minister. The coming weeks will reveal how Carney’s Prime Minister’s Office (PMO) is established with many staffing holes yet to be filled. It will also take a few days or weeks for the various ministerial chiefs of staff to be put into place.

Parliament’s Return and a King’s Appearance 

On May 27, His Majesty King Charles III will deliver the Speech from the Throne, the first time that a Canadian monarch has opened a Parliament since Queen Elizabeth II in 1977. As a unique touch, the invitation by the Prime Minister to the King is more than pomp and circumstance – it demonstrates the living ties between Canada and the Crown and reinforces how Canadians govern themselves, at a time of instability with our closest neighbour to the south. 

Despite a Liberal minority government (which is now close to majority status), it is expected that the government will work with the various opposition parties to pass legislation on a case-by-case basis. Given the realities of a much-reduced NDP, a diminished Bloc Quebecois, and a Conservative Leader running in a by-election, Carney should be able to pass his spring agenda.  

Prime Minister Carney has set out several immediate priorities including the removal of federal interprovincial trade barriers by Canada Day, amendments to legislation to fast-track priority infrastructure projects, and passing the main Supply Bill (budget) by mid-June when the House of Commons rises. The continued challenges on the Canada-US front, plus hosting the G7 in Kananaskis, Alberta in June, should keep the Carney team extremely busy. 

Urgent priorities and a desire to be a transformational Prime Minister in a time of crisis will imbue Carney with a desire to govern in the early days of his government as if he holds a majority mandate. A risk-averse federal public service, a disparate opposition landscape, and difficulties in staffing up the Prime Minister’s Office and key Minister’s offices could slow momentum as the government seeks to act decisively. The challenge for Carney will be to harness the urgency of the moment without being dragged into the inertia of the system he inherits.