Prime Minister Justin Trudeau meets with Bank of England governor Mark Carney at the G20 Summit in Buenos Aires, on Nov. 30, 2018.Sean Kilpatrick/The Canadian Press
Prime Minister Justin Trudeau is considering a cabinet shuffle before Christmas, possibly as early as Wednesday, that could see a major role in the Liberal government for former central banker Mark Carney, three sources say.
Mr. Trudeau has six cabinet positions to fill but the big question in Ottawa is whether Mr. Trudeau will replace Chrystia Freeland as Finance Minister and bring in Mr. Carney, the former governor of the Bank of Canada and Bank of England.
The Globe and Mail is not identifying the three sources who were not authorized to discuss the matter.
One of the sources, a senior government official, said a cabinet shuffle is tentatively being planned before Christmas, likely on Wednesday. But the source stressed that nothing is confirmed and it could still be pushed back.
The timing may depend on whether Mr. Carney accepts a role in cabinet, possibly as finance minister. Such a role for Mr. Carney could also include the responsibility of handling Canada-U.S. relations as Donald Trump is about to move back into the White House in January, the official suggested.
At the moment, Ms. Freeland also chairs a revived cabinet committee on Canada-U.S. relations, with Public Safety Minister Dominic LeBlanc serving as vice-chair.
A second Liberal Party source said there is still lots of movement on the political chessboard but added that Mr. Carney would expect to become finance minister if he decides to leave the private sector for the Trudeau government, which has been lagging the Conservatives by double-digit poll numbers for more than a year. This source stressed that talks with Mr. Carney continue and nothing is definite at this point.
A third source, a Liberal Party insider, said the Prime Minister’s Office is working on two cabinet shuffle scenarios – one in which Mr. Carney jumps in and triggers a much bigger reorganization and a second in which Mr. Carney is not involved.
The Liberal Party source said talks with the former central banker are serious and have progressed to the point of discussing which riding he would run in.
Should Mr. Carney join cabinet, the source said, Ms. Freeland would be moved to an international portfolio.
The goal for the shuffle is twofold, the source said: ensure the government is best positioned to handle the Trump presidency and economic concerns and also show Mr. Trudeau can still attract high-level talent to his team.
The shuffle is about creating Mr. Trudeau’s election cabinet, the source said, and should be viewed as further confirmation of his commitment to stay on as Liberal Leader to contest the next election.
Ms. Freeland, who is also Deputy Prime Minister, did not answer directly on Friday when asked by a reporter at a news conference in Toronto about her future in cabinet. The reporter noted the Prime Minster has not defended her after The Globe reported this week about increased tensions over spending between Finance and the PMO and that Mr. Carney has been approached once again to serve in the government.
“For me, it is a huge privilege that I do not take for granted to serve Canada and Canadians every single day. It’s a big deal,” Ms. Freeland responded, as she teared up.
“I am proud and grateful to be able to serve in the cabinet of the Prime Minister. And I really don’t spend a lot of time focusing on Ottawa gossip. My focus is doing what I can to serve Canada and Canadians in what is really challenging time for our country.”
The Globe reported earlier this week that relations between Ms. Freeland and the PMO have chilled over increased spending that will make it difficult to meet her promised $40.1-billion deficit target in Monday’s fiscal and economic update. Keeping the deficit at or below that level was one of three self-imposed “fiscal guideposts” that she set for her government in April.
Citing 10 sources, The Globe reported tensions have risen between Ms. Freeland and the PMO about increased spending, such as the two-month GST holiday on toys, alcohol and food that begins Saturday, and a promised $250 rebate for working people earning $150,000 or less. The two measures would cost $6.28-billion.
On Tuesday, Ms. Freeland gave the strongest signal yet that the pledge will be missed when the economic update is released on Monday. Parliamentary Budget Officer Yves Giroux estimates the final deficit for 2023-2024 would be $46.4-billion while the Bank of Montreal predicted it could hit $55.8-billion.
In July, The Globe reported that Mr. Trudeau held talks with Mr. Carney to entice him to join the government. Mr. Trudeau confirmed those discussions after The Globe reported that the Prime Minister’s chief of staff Katie Telford viewed Ms. Freeland as ineffective in selling the government’s economic policies.
One scenario discussed in the PMO at the time was to shuffle Ms. Freeland to foreign affairs if Mr. Carney could be lured into the government as finance minister.
The former central banker is widely seen as a possible contender for Liberal leader should the position open up. Mr. Carney hasn’t ruled out a run, but he has been careful not to publicly declare any ambition.
Mr. Carney is chair and head of impact investing at Brookfield Asset Management and chairman of Bloomberg Inc. In September, Mr. Trudeau named Mr. Carney as special adviser and chair of the Liberal Party task force on economic growth, a move that was seen as a rebuke to Ms. Freeland.
A cabinet shuffle was expected to take place early in 2025. Mr. Trudeau needs to replace Transport Minister Pablo Rodriguez, who quit to run for the provincial Liberal leadership in Quebec, Randy Boissonnault, who left cabinet under a cloud of controversy this fall, and four other ministers who announced in October that they are not planning to run in the next election campaign.
National Revenue Minister Marie-Claude Bibeau, Northern Affairs Minister Dan Vandal, Sports Minister Carla Qualtrough, and Filomena Tassi, minister responsible for the Federal Economic Development Agency for Southern Ontario, won’t be seeking re-election.
Mr. Rodriquez’s job as Transport Minister was handed to Treasury Board President Anita Anand, who now holds dual roles in cabinet. Veterans Affairs Minister Ginette Petitpas Taylor assumed Mr. Boissonnault’s responsibilities as minister of employment and workforce development, as well as official languages.
With a report by Laura Stone