Bill Morneau resigned from the senior cabinet position Monday.
SHE WAS THE BUSINESS EDITOR FOR THOMPSON REUTERS
By Zi-Ann Lum
Althia Raj
08/18/2020
ADRIAN WYLD/CP
Deputy Prime Minister Chrystia Freeland listens to a speaker during a news conference in Ottawa on April 7, 2020.
OTTAWA — Chrystia Freeland has been sworn in as the federal finance minister who will oversee Canada’s economic recovery after the COVID-19 pandemic, a task her predecessor warned would be “extremely challenging.”
The appointment was made official Tuesday with a ceremony at Rideau Hall. Bill Morneau stepped down as finance minister Monday evening.
Freeland’s succession of the coveted portfolio makes her Canada’s first female finance minister. Her appointment was first reported by CTV News Tuesday morning.
She retains her position as deputy prime minister, but her previous role as minister of intergovernmental affairs now belongs to veteran Liberal MP Dominic LeBlanc, who held the portfolio from July 2018 to November 2019.
LeBlanc will continue to serve as the president of the Privy Council.
Prior to entering politics as a star candidate for the Liberals in a 2013 byelection race in Toronto Centre, Freeland rose the ranks in journalism as a business reporter and editor. She wrote for the Financial Times, the Washington Post, the Economist, and worked as a senior editor with the Globe and Mail, the Financial Times and Thomson-Reuters in New York City before deciding to run for public office.
She has written two books, including “Plutocrats: The Rise of the New Global Super-Rich and the Fall of Everyone Else.” Before the Liberals were elected in 2015, she co-chaired Trudeau’s economic advisory council with former MP Scott Brison.
Watch: Bill Morneau resigns as finance minister. Story continues below video.
The Alberta-born mother of three has represented the Toronto riding of University—Rosedale since 2015. She was appointed Trudeau’s first minister of international trade, overseeing the final negotiations of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).
After Donald Trump’s election as president of the United States in November 2016, Freeland became the lead on the North American Free Trade Agreement (NAFTA) renegotiations. She kept that portfolio as she moved to become Canada’s foreign affairs minister in 2017.
Following the 2019 election, Freeland was named deputy prime minister and given the task of intergovernmental affairs. She has earned praise from former opponents for her work on the new NAFTA negotiations. Provincial premiers of different political stripes have also spoken highly of working with her during the government’s response to the COVID-19 pandemic.Ontario’s Progressive Conservative Premier Doug Ford had glowing words to say about Freeland’s promotion Tuesday, calling her a “good friend.” Ford said the pair have a solid relationship and that he’s excited to continue working with Freeland in her new portfolio.
“I sent her a message this morning. She was swamped as deputy prime minister and if there was one person I have confidence in, it’s Chrystia Freeland.”
Freeland steps into the role after Morneau announced his decision to leave politics.
ADRIAN WYLD/CP
OTTAWA — Chrystia Freeland has been sworn in as the federal finance minister who will oversee Canada’s economic recovery after the COVID-19 pandemic, a task her predecessor warned would be “extremely challenging.”
The appointment was made official Tuesday with a ceremony at Rideau Hall. Bill Morneau stepped down as finance minister Monday evening.
Freeland’s succession of the coveted portfolio makes her Canada’s first female finance minister. Her appointment was first reported by CTV News Tuesday morning.
She retains her position as deputy prime minister, but her previous role as minister of intergovernmental affairs now belongs to veteran Liberal MP Dominic LeBlanc, who held the portfolio from July 2018 to November 2019.
LeBlanc will continue to serve as the president of the Privy Council.
Prior to entering politics as a star candidate for the Liberals in a 2013 byelection race in Toronto Centre, Freeland rose the ranks in journalism as a business reporter and editor. She wrote for the Financial Times, the Washington Post, the Economist, and worked as a senior editor with the Globe and Mail, the Financial Times and Thomson-Reuters in New York City before deciding to run for public office.
She has written two books, including “Plutocrats: The Rise of the New Global Super-Rich and the Fall of Everyone Else.” Before the Liberals were elected in 2015, she co-chaired Trudeau’s economic advisory council with former MP Scott Brison.
Watch: Bill Morneau resigns as finance minister. Story continues below video.
The Alberta-born mother of three has represented the Toronto riding of University—Rosedale since 2015. She was appointed Trudeau’s first minister of international trade, overseeing the final negotiations of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).
After Donald Trump’s election as president of the United States in November 2016, Freeland became the lead on the North American Free Trade Agreement (NAFTA) renegotiations. She kept that portfolio as she moved to become Canada’s foreign affairs minister in 2017.
Following the 2019 election, Freeland was named deputy prime minister and given the task of intergovernmental affairs. She has earned praise from former opponents for her work on the new NAFTA negotiations. Provincial premiers of different political stripes have also spoken highly of working with her during the government’s response to the COVID-19 pandemic.Ontario’s Progressive Conservative Premier Doug Ford had glowing words to say about Freeland’s promotion Tuesday, calling her a “good friend.” Ford said the pair have a solid relationship and that he’s excited to continue working with Freeland in her new portfolio.
“I sent her a message this morning. She was swamped as deputy prime minister and if there was one person I have confidence in, it’s Chrystia Freeland.”
Freeland steps into the role after Morneau announced his decision to leave politics.
ADRIAN WYLD/CP
Deputy Prime Minister Chrystia Freeland looks for a seat as Bill Morneau and Prime Minister Justin Trudeau wait in the House of Commons on May 13, 2020.
Morneau resigned Monday following a morning meeting with the prime minister. He said his decision was based on timing, explaining it was never his intention to run for more than two elections.
“As we move to the next phase of our fight against the pandemic and pave the road towards economic recovery, we must recognize that this process will take many years,” he told reporters hastily called to a news conference.
“It’s the right time for a new Finance Minister to deliver on that plan for the long and challenging road ahead.”
A senior adviser in the Prime Minister’s Office told HuffPost that Morneau was concerned with the possibility he would table a budget, upon which an election would be called, that he would not be there to defend or promote.
The former Morneau Shepell executive chairman said he is leaving politics — including his Toronto Centre seat — to prepare his candidacy to become the next secretary general of the Organisation for Economic Co-Operation and Development (OECD).
He said the prime minister did not ask for his resignation and “has given me full support in this quest.”
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Morneau resigned Monday following a morning meeting with the prime minister. He said his decision was based on timing, explaining it was never his intention to run for more than two elections.
“As we move to the next phase of our fight against the pandemic and pave the road towards economic recovery, we must recognize that this process will take many years,” he told reporters hastily called to a news conference.
“It’s the right time for a new Finance Minister to deliver on that plan for the long and challenging road ahead.”
A senior adviser in the Prime Minister’s Office told HuffPost that Morneau was concerned with the possibility he would table a budget, upon which an election would be called, that he would not be there to defend or promote.
The former Morneau Shepell executive chairman said he is leaving politics — including his Toronto Centre seat — to prepare his candidacy to become the next secretary general of the Organisation for Economic Co-Operation and Development (OECD).
He said the prime minister did not ask for his resignation and “has given me full support in this quest.”
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Morneau also leaves amid a cloud of controversy over his failing to recuse himself in the handing out of a multi-million-dollar contract to WE Charity, an organization that employs one of his daughters.
Tuesday, Conservative finance critic Pierre Poilievre accused the prime minister of “inventing a conflict” to force Morneau out.
If Trudeau fired Morneau for his role in the WE Charity controversy, then the prime minister would resign as well, Poilievre said.
Both Trudeau and Morneau have apologized for failing to recuse themselves from cabinet discussions related to the Liberal government’s decision to award the WE Charity the administration of a since-cancelled $912-million student grant program. Both men have connections with the Toronto-based international charities.
Last month, Morneau admitted to making a $41,000 mistake when he and his family accepted free travel from the WE Charity to visit the organization’s school projects in Kenya and Ecuador in 2017. He said he was unaware he had not paid for the trips and repaid the organization for the travel.
Morneau also told the House of Commons finance committee that his wife donated $100,000 to the charity in the last two years.
CP/ADRIAN WYLD
Morneau also leaves amid a cloud of controversy over his failing to recuse himself in the handing out of a multi-million-dollar contract to WE Charity, an organization that employs one of his daughters.
Tuesday, Conservative finance critic Pierre Poilievre accused the prime minister of “inventing a conflict” to force Morneau out.
If Trudeau fired Morneau for his role in the WE Charity controversy, then the prime minister would resign as well, Poilievre said.
Both Trudeau and Morneau have apologized for failing to recuse themselves from cabinet discussions related to the Liberal government’s decision to award the WE Charity the administration of a since-cancelled $912-million student grant program. Both men have connections with the Toronto-based international charities.
Last month, Morneau admitted to making a $41,000 mistake when he and his family accepted free travel from the WE Charity to visit the organization’s school projects in Kenya and Ecuador in 2017. He said he was unaware he had not paid for the trips and repaid the organization for the travel.
Morneau also told the House of Commons finance committee that his wife donated $100,000 to the charity in the last two years.
CP/ADRIAN WYLD
Conservative MP Pierre Poilievre speaks about the resignation of the finance minister during a news conference on Aug. 18, 2020 in Ottawa.
Poilievre also cast aspersions on the news Freeland will become the next finance minister. He pointed out that Freeland was chair of the cabinet committee that initially approved the WE Charity deal.
“For Freeland, higher taxes is a religion,” he said, suggesting her to be no different than Morneau. “Regardless though of how you play musical chairs, we still have the same corrupt and incompetent prime minister ahead of the same corrupt and chaotic government.”
Morneau’s resignation came after weeks of speculation about his political future, fed by anonymous leaks suggesting a fraying relationship between Trudeau and his finance minister.
Differing opinions about handling the growing deficit and emergency COVID-19 spending fuelled tensions between the two men, according to the Globe and Mail. Reuters reported disagreements over proposed funding for green initiatives further added to problems.
The prime minister’s office attempted to quell the leaks of bad relations with a statement last week saying Trudeau has “full confidence” in Morneau. But Trudeau, who was on vacation, made no additional measures to publicly support his finance minister.
After his announcement that he is leaving politics, Morneau described the disagreements he’s had with the prime minister as “necessary vigorous debate.”
With files from Ryan Maloney and Sherina Harris
Zi-Ann LumPolitics Reporter, HuffPost Canada
Althia Raj Ottawa Bureau Chief, HuffPost Canada
Canada's finance minister quits amid charity scandal and tensions with Trudeau
CONSERVATIVES ATTACKS TAKE DOWN MINISTER
Issued on: 18/08/2020 -
Canada's Minister of Finance Bill Morneau looks at Prime Minister Justin Trudeau during a press conference in Ottawa, Ontario, Canada March 11, 2020. © REUTERS/Blair Gable/File Photo
Issued on: 18/08/2020 -
Canada's Minister of Finance Bill Morneau looks at Prime Minister Justin Trudeau during a press conference in Ottawa, Ontario, Canada March 11, 2020. © REUTERS/Blair Gable/File Photo
Text by:NEWS WIRES
Canada's finance minister resigned on Monday amid friction with Prime Minister Justin Trudeau over spending policies and after coming under fire for his ties to a charity tapped to run a student grant program.
Bill Morneau said he would not run for parliament again and would instead seek to become the next secretary general of the Organisation for Economic Cooperation and Development (OECD).
Just last week, Trudeau had expressed confidence in his finance minister as rumors swirled of a rift between the two men. Morneau, 57, has been in the job since Trudeau's Liberals took power in 2015.
"This morning I went to the prime minister and I tendered my resignation," Morneau told reporters at a hastily arranged news conference on Monday evening.
"It's appropriate that the prime minister find someone with a longer term approach for the role, since I'm not running for office," he added.
Morneau and his team have pushed back against other cabinet ministers about how much pandemic funding was needed, including to what extent the post-lockdown recovery could be helped by investing in environmental projects, sources told Reuters on Sunday.
Trudeau, who campaigned on a platform to tackle climate change, believes the 2021 budget should have an ambitious environmental element to start weaning the heavily oil-dependent economy off fossil fuels and he recently hired former Bank of England Governor Mark Carney as an informal adviser, aides say.
Canada's budget deficit is forecast to hit C$343.2 billion ($253.4 billion), the largest shortfall since World War Two, this fiscal year. Total coronavirus support is nearly 14% of gross domestic product.
'Consumed by scandal'
The Canadian dollar showed little reaction to the news.
"We had a little bit of a sell-the-rumour type weakness in the lead up to the resignation," said Ray Attrill, head of forex strategy at National Australia Bank in Sydney. "There doesn’t seem to be any suggestion at this stage that this any broader implications for the Canadian government."
Possible replacements for the key post include Deputy Prime Minister Chrystia Freeland, Foreign Minister Francois-Philippe Champagne and President of Canada's Treasury Board Jean-Yves Duclos.
In a statement, Trudeau thanked Morneau for his service over the past five years and said he would "vigorously support" Morneau's bid to head the OECD.
Adding to Morneau's challenges, several cabinet members were upset when he disclosed he had forgotten to repay travel expenses covered for him by a charity at the heart of an ethics probe. Morneau and Trudeau are facing ethics inquiries related to the charity.
Bill Morneau said he would not run for parliament again and would instead seek to become the next secretary general of the Organisation for Economic Cooperation and Development (OECD).
Just last week, Trudeau had expressed confidence in his finance minister as rumors swirled of a rift between the two men. Morneau, 57, has been in the job since Trudeau's Liberals took power in 2015.
"This morning I went to the prime minister and I tendered my resignation," Morneau told reporters at a hastily arranged news conference on Monday evening.
"It's appropriate that the prime minister find someone with a longer term approach for the role, since I'm not running for office," he added.
Morneau and his team have pushed back against other cabinet ministers about how much pandemic funding was needed, including to what extent the post-lockdown recovery could be helped by investing in environmental projects, sources told Reuters on Sunday.
Trudeau, who campaigned on a platform to tackle climate change, believes the 2021 budget should have an ambitious environmental element to start weaning the heavily oil-dependent economy off fossil fuels and he recently hired former Bank of England Governor Mark Carney as an informal adviser, aides say.
Canada's budget deficit is forecast to hit C$343.2 billion ($253.4 billion), the largest shortfall since World War Two, this fiscal year. Total coronavirus support is nearly 14% of gross domestic product.
'Consumed by scandal'
The Canadian dollar showed little reaction to the news.
"We had a little bit of a sell-the-rumour type weakness in the lead up to the resignation," said Ray Attrill, head of forex strategy at National Australia Bank in Sydney. "There doesn’t seem to be any suggestion at this stage that this any broader implications for the Canadian government."
Possible replacements for the key post include Deputy Prime Minister Chrystia Freeland, Foreign Minister Francois-Philippe Champagne and President of Canada's Treasury Board Jean-Yves Duclos.
In a statement, Trudeau thanked Morneau for his service over the past five years and said he would "vigorously support" Morneau's bid to head the OECD.
Adding to Morneau's challenges, several cabinet members were upset when he disclosed he had forgotten to repay travel expenses covered for him by a charity at the heart of an ethics probe. Morneau and Trudeau are facing ethics inquiries related to the charity.
Morneau's resignation "is further proof of a government in chaos," said Conservative Party leader Andrew Scheer said on Twitter, adding the "government is so consumed by scandal that Trudeau has amputated his right hand to try and save himself."
The clash reflected concerns among business leaders that Ottawa had little apparent interest in the economy, sources told Reuters.
Business and analysts have also fretted about Ottawa becoming distracted by the discord as it tackles the coronavirus crisis.
"I doubt you'll be seeing other finance ministers around the world step down at this time of elevated economic and fiscal uncertainty," David Rosenberg, chief economist at Rosenberg Research & Associates. "It's like a boxer being forced to take his gloves off in the fifth round."
(REUTERS)
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