Projecting Change and Stability: PM Mark Carney Names his Election Cabinet

In the midst of a historic realignment of the international order, Canada has a new Prime Minister.

Mark Carney formerly held roles as Governor of the Bank of Canada, Governor of the Bank of England, Chair of Brookfield Asset Management, the UN Special Envoy on Climate Change and as Chair of the Financial Stability Board.  Prime Minister Carney is taking on this new role at a time of extraordinary instability for Canada.  He is expected to call an election ahead of the return of Parliament, which is due to meet by March 24.

The new Prime Minister has opted for a smaller and more nimble cabinet, shrinking from 39 to 25 ministers. Carney’s cabinet is filled with a mix of new faces and experienced incumbents from the prior Ministry. Notably, Carney has broken with Trudeau’s commitment to gender parity by opting to appoint 13 men and 11 women to cabinet – and no standalone ministry of Women and Gender Equality.

Not including Carney, who doesn’t have a seat in Parliament (and still has not announced where he will run), the cabinet contains 11 Ontario MPs, 6 from Quebec, 5 from the Atlantic, and only 2 from Western Canada (Alberta and Saskatchewan have no seat at the cabinet table).

A Note on Caretaker Convention

With an election call expected within the coming week, the power of this new cabinet will be severely constrained. Once the Governor General issues a writ for a General Election, cabinet and the rest of Canadian government must adhere to the Caretaker Convention. While cabinet will remain intact for the duration of the election, it will only be able to make decisions that are routine and uncontroversial or necessary because of extraordinary circumstances. Any decision taken by cabinet must be easily reversible by future governments.

Ahead of the election call, Carney’s cabinet is meeting today to make some key decisions. It is expected that his cabinet will issue directives on the consumer carbon tax and possibly the capital gains exemption, fulfilling key Carney campaign promises.  The fate of the oil and gas emissions cap may also be decided.

The Cabinet of the 24th Prime Minister

Who’s moving?

François Phillippe-Champagne (Minister of Finance) – A staunch supporter of Carney’s leadership run, Champagne has developed a reputation as a dealmaker with Canadian industry and has a strong sense of the investments the private sector needs to unlock economic growth.

Anita Anand (Minister of Innovation, Science, and Industry) – A promotion from her recent appointment, Anand will be tasked with implementing the new PM’s plans to boost productivity, leverage AI, support research and fulfill his promise to make Canada the strongest economy in the G7. Anand will need to navigate the continued importance of attracting US investment to Canada in the face of new tariff barriers.

Kamal Khera (Minister of Health) – A registered nurse and Sikh Canadian who knows the issues that healthcare practitioners face, Khera will inherit the new pharmacare deals with BC, Manitoba and PEI that came out of the Liberal – NDP agreement. It remains to be seen if she will adjust these programs to help those most in need or retain their universal characteristics.

Steven Guilbeault (Minister of Canadian Culture and Identity, Parks Canada and Quebec Lieutenant) – A divisive figure in Western Canada and the energy sector over his support of the carbon tax and emissions cap, Guilbeault has been moved back to the renamed Heritage file where he will defend the CBC/RDI and newspaper industry from suspected Conservative cuts. He retains control over Parks and biodiversity from his previous portfolio and has added the politically important Quebec Lieutenant role where he will be the main interlocutor with the Quebec government.

Gary Anandsangaree (Minister of Justice, Attorney General, and Crown-Indigenous Relations) – Anandasangaree recently wrapped up a historic tour of First Nations over the last several months, signing agreements and delivering apologies on behalf of the Government. Representing the Tamil community, he will need to determine whether the controversial Trudeau-era Online Harms Act will return to green chamber.

Chrystia Freeland (Minister of Transport and Internal Trade) – Freeland’s reinstatement to cabinet after her take-down of Justin Trudeau is a show of unity between the two front runners of the Liberal Leadership. A former intergovernmental affairs minister, Carney has given her an important role in reducing interprovincial trade barriers which is connected to enhanced trade corridors. A supporter of high-speed rail, Freeland can also build on the government’s recent announcement to allow pension fund investment into Canada’s airports.

Terry Duguid (Minister of Environment and Climate Change) – Taking over the file from Guilbeault, Manitoba MP Terry Duguid will be tasked with managing Carney’s removal of the consumer carbon tax and questions about the oil and gas emissions cap. Duguid has long led the advocacy for the new Canada Water Agency which will take on greater importance in the face of President Trump’s threats to our freshwater and the end of negotiations over the renewal of the Columbia River Treaty.

Rachel Bendayan (Minister of Immigration, Refugees and Citizenship) – Previously Associate Minister of Public Safety, Bendayan will be moving into a pivotal role in cabinet as concerns about immigration continue to mount in Canada.  The lone Jewish MP in cabinet, she inherits a file that has cast Canada’s post-secondary education sector into turmoil with new caps on international students and a reduction in overall immigration as services and housing catch up to our economic needs for new labour.

Arielle Kayabaga (Leader of the Government in the House of Commons and Minister of Democratic Institutions) – Born in Burundi and representing the bellwether London West riding, Kayabaga is a black MP who backed Carney during the leadership and will be tasked in the House with holding off the CPC, filling in Karina Gould’s shoes.

Kody Blois (Minister of Agriculture and Agri-Food and Rural Economic Development) – First elected in 2019, Blois is a Nova Scotia MP as well as a former Parliamentary Secretary for Agriculture.  The well-spoken Atlantic caucus chair was the only Liberal MP to support opposition motion Bill C-234, which sought to amend the Greenhouse Gas Pollution Pricing Act by exempting natural gas and propane used by farmers to dry grain and heat barns from the federal carbon tax.

Ali Ehsassi (Minister of Government Transformation, Public Services and Procurement) – named one of the country’s top 25 most influential lawyers in 2024, Ehassi is a Muslim MP of Iranian heritage. He takes on the thorny procurement file at time when procurement from Canadian-owned businesses takes on greater importance and PM Carney has committed to balance the operating budget of the government.

Rechie Valdez (Chief Government Whip) – Taking over the title from Mona Fortier, Valdez is a Filipina Canadian who earned the nickname “Minister Cupcakes” for championing local small businesses in her prior role. Given the House is not sitting and may not before an election, it’s unlikely the Whip will need to exercise much power over the Liberal Caucus.

Joanne Thompson (Minister of Fisheries, Oceans and the Canadian Coast Guard) – The Newfoundland MP briefly served as Minister for Seniors and takes on the regionally-important role as Fisheries minister.

Who stays put?

Melanie Joly (Minister of Foreign Affairs and International Development) – Joly remains in the foreign affairs file in the lead up to Canada’s G7 Presidency and maintaining Canada’s global standing during the trade war. She has been part of the core team dealing with the Trump administration and has developed many connections that the PM will need to leverage.

Dominic LeBlanc (Minister of International Trade, Intergovernmental Affairs, and President of the King’s Privy Council for Canada) – LeBlanc is a lynchpin the Canada-US relationship, both due to his ties south of the board and across the Premier’s table, as exemplified by his recent meeting with Commerce Secretary Howard Lutnick and Premier Ford.

David McGuinty (Minister of Public Safety and Emergency Preparedness) – McGuinty will continue to stickhandle difficult files such as the US border and illicit drugs, both of which have become pain points for Canadians as Trump’s threats of annexation persist.

Bill Blair (Minister of National Defence) – Blair will continue in this vital ministry as the global military order is destabilized and NATO remains threatened. Defense spending is expected to boom as Canada accelerates our pace to the 2% GDP target. It remains to be seen if Canada will pivot away from US defense prime contractors.

Patty Hajdu (Minister of Indigenous Services) – Northern Ontario’s representative in cabinet, Hajdu has held this position since 2021. Her ministry has recently come under scrutiny for the impact on the 2024 Fall Economic Statement.

Jonathan Wilkinson (Minister of Energy and Natural Resources) – Wilkinson will continue in the economically important ENRCan file but will face questions over the government’s plans for new oil and gas pipelines in the face of a controversial oil and gas emissions cap and methane regulations. The lone BC minister in cabinet, Wilkinson will seek to leverage the strategic importance of critical minerals and petroleum in the US trade war.

Ginette Petitpas Taylor (President of the Treasury Board) – Elected in 2015, Taylor has held various cabinet roles across the government and provides stability to the new government while facing the challenge of reducing the size of the civil service.

Steven MacKinnon (Minister of Jobs and Families) – MacKinnon’s previous roles in Labour and Employment have been combined to focus on jobs and productivity at a time when tariffs threaten Canadian manufacturing jobs. He takes over responsibility for the national childcare program.

Nate Erskine-Smith (Minister of Housing, Infrastructure and Communities) – A recent appointment to Cabinet in December, Erskine-Smith chose to not run for re-election but is now back in the race as one of the LPC’s most skilled communicators.

Élisabeth Brière (Minister of Veterans Affairs and Minister responsible for the Canada Revenue Agency) – Brière is a new appointment to cabinet from the December 2024 shuffle and adds Veterans to her previous role as Revenue Minister.

Who’s out?

Karina Gould (former Government House Leader) – After pushing for a progressive vision of the Liberal Party in the leadership race, Gould has departed cabinet with a larger profile and firm credentials as an experienced politician who knows how to speak to Liberals across the country. Her ouster from cabinet signals a rightward turn in the government and may create an opening for the NDP to exploit.

Jean-Yves Duclos (formerly Minister of Public Services and Procurement) – A surprise departure after successful roles at health and procurement, Duclos supported Carney in the leadership and has committed to run in the next election in his Quebec City riding.

Mark Holland (formerly Minister of Health) – Trusted by the former PM to negotiate the pharmacare deals with the provinces, Holland supported Freeland in the leadership and will not run for re-election.

Marc Miller (formerly Minister of Immigration, Refugees, and Citizenship) – One of the most active ministers in the Trudeau cabinet since 2019, despite his support for Carney, his close personal ties to the former PM may have played a role in his exit.

Ya’ara Saks (former Minister of Mental Health and Addictions) – Saks’ ministry has been folded into the Ministry of Health.

Ahmed Hussen (former Minister of International Development) – In cabinet since 2017, Hussen’s portfolio has been merged with Foreign Affairs.

Diane LeBouthillier (former Minister of Fisheries, Oceans, and the Canadian Coast Guard) –A Freeland leadership supporter, LeBouthillier has departed cabinet after several appointments to National Revenue and Fisheries and Oceans.

Other departures:

• Terry Beech (formerly Minister of Citizens Services)
• Jenna Sudds (formerly Minister of Children, Families, and Social Development)
• Darren Fisher (formerly Minister of Veterans Affairs and Associate Minister of National Defence)
• Ruby Sahota (formerly Minister of Democratic Institutions and Minister responsible for the Federal Economic
• Development Agency for Southern Ontario)

What’s next?

PM Carney is expected to go to Europe with visits to London and France to meet with the leaders of both countries. Mark Carney has said that he will meet with President Trump when “he is ready to show Canada some respect.”

An election will likely be called before Parliament is scheduled to return on March 24 with the expected election day on April 28.

NT5