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FM AMEMBASSY OTTAWA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0281
INFO ALL CANADIAN POSTS COLLECTIVE IMMEDIATE

UNCLAS OTTAWA 000070 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV ECON PINR CA
SUBJECT: CANADA: MODEST CABINET SHUFFLE 
 
¶1.  (SBU)  Summary: PM Harper reshuffled his cabinet on January 19 
in preparation for a new session of Parliament and Speech from the 
Throne on March 3 and a federal budget on March 4.  The changes 
included ten medium and lower rank portfolios, and reflected a 
strongly economic focus.  He identified the economy as his 
government's "top priority," while insisting that the government 
would continue to "stay the course" by keeping all key economic 
portfolios with veteran ministers and by retaining almost all 
senior ministers in place.  End summary. 
 
 
 
"RECALIBRATING" THE TEAM 
 
 
 
¶2.  (SBU)  In a long expected move, Prime Minister Stephen Harper 
on January 19 introduced ten ministers with new portfolios in a 
brief, televised  ceremony with Governor General Michaelle Jean at 
Rideau Hall.   All key economic portfolios remained in the hands of 
veteran ministers, and most other senior ministers -- at Finance, 
Foreign Affairs, and National Defence - also remained in place. 
The PM had previously signaled that the reshuffle would be part of 
his efforts to "recalibrate" his government during the 
parliamentary prorogation (suspension) until March 3.  The 
reshuffle followed the January 16 resignation of Veterans' Affairs 
Minister Greg Thompson (New Brunswick's cabinet representative), 
who cited fatigue and family reasons for stepping down as minister 
(but not yet as MP), and who pledged not to run again in the next 
election.   The changes in responsibilities took place immediately 
following the ministers' oath-taking at the ceremony.  Only MP - 
Rob Moore - is a first-time minister; all others were previously in 
the Cabinet. 
 
 
 
¶3.  (U)  The following link provides details about the new 
portfolios and biographies of the ministers: 
http://www.pm.gc.ca/eng/cabinet.asp?featureId =8.  Key changes 
included moving International Trade Minister Stockwell Day to the 
Treasury Board (the department responsible for managing the federal 
public service) and Public Safety Minister Peter Van Loan to 
International Trade.  Two ministers -- National Defence Minister 
Peter MacKay and Government Leader in the Senate Marjorie LeBreton 
-- had minor additional responsibilities taken away (Atlantic 
Canada and Seniors, respectively) to free them to concentrate on 
their primary portfolios. 
 
 
 
NEW CABINET CHANGES 
 
 
 
¶4. (U) The new cabinet responsibilities are as follow: 
 
 
 
-- Stockwell Day, President of the Treasury Board, and Minister for 
the Asia-Pacific Gateway (formerly Minister of International Trade) 
 
 
 
 
-- Peter Van Loan, Minister of International Trade (formerly 
Minister of Public Safety) 
 
 
 
-- Vic Toews, Minister of Public Safety (formerly President of the 
Treasury Board) 
 
 
 
-- Marjorie LeBreton, Leader of the Government in the Senate 
(formerly also Minister of State for Seniors) 
 
 
 
-- Jean-Pierre Blackburn, Minister of Veterans' Affairs and 
Minister of State (Agriculture) (formerly Minister of National 
Revenue) 
 
 
 
-- Rona Ambrose, Minister of Public Works and Government Services 
Canada (PWGSC) (formerly Minister of Labour) 
 
-- Christian Paradis, Minister of Natural Resources (formerly 
Minister of PWGSC) 
 
 
 
-- Lisa Raitt, Minister of Labour (formerly Minister of Natural 
Resources) 
 
 
 
-- Diane Ablonczy, Minister for State for Seniors) (formerly 
Minister of State for Small Business and Tourism) 
 
 
 
-- Keith Ashfield, Minister of National Revenue, Minister of the 
Atlantic Canada Opportunities Agency (ACOA), and Minister for the 
Atlantic Gateway (formerly Minister of State  for ACOA), and, 
 
 
 
-- Rob Moore, Minister of State for Small Business and Tourism. 
 
 
 
"AN EXPERIENCED TEAM" 
 
 
 
¶5.  (U)  PM Harper emphasized in a statement  that "this is an 
experienced team that will stay the course" on the second and final 
implementation phase of the Canada Economic Action Plan, while 
meeting the challenges of emerging from the recession, restoring 
balanced budgets, and promoting economic growth and job creation. 
He described the changes as a "fine-tuning."  The reshuffle 
increased the size of cabinet to 39 members, including the Prime 
Minister, 24 ministers, ten Ministers of State, as well as the 
Leader of the Government in the Senate, the Leader of the 
Government in the House, and the Chief Government Whip.  Eleven 
members of the cabinet are women (unchanged from the previous 
cabinet).  PM Harper insisted to skeptical reporters after the 
ceremony that the increase in the size of cabinet at a time of 
fiscal restraint was justifiable, given that this was not the right 
time for demotions, that ministerial budgets constituted only a 
small part of government spending, and that the government needed 
all the ministers to promote its policies. 
 
 
 
¶6.  (U)  PM Harper increased cabinet representation from Atlantic 
Canada with Moore's elevation, as well as the promotion of fellow 
New Brunswicker Ashfield to Minister of National Revenue.  Ashfield 
becomes the province's senior representative in cabinet, which the 
outgoing Greg Thompson had been before.  Observers had expected 
Quebec to receive a boost; rumors had circulated that former 
Foreign Minister and Quebec MP Maxime Bernier might return to 
favor, but PM Harper sidestepped questions on Bernier in a 
post-ceremony press conference. 
 
 
 
UP, DOWN, BUT NO ONE OUT 
 
 
 
¶7.  (SBU) The shuffle contained few surprises. Among the perceived 
demotions, former Natural Resources Minister Lisa Raitt slipped to 
Minister of Labour, which the media was quick to attribute to 
stumbles in 2009 over an aide's loss of sensitive documents and 
Raitt's apparent insensitivity over medical isotope shortages.  The 
media also claimed that Van Loan had been unhappy at Public Safety 
and had sought the move to much smaller International Trade 
portfolio.  Stockwell Day's move to the Treasury Board appeared to 
many at best as a lateral move and possibly even a demotion for one 
of PM Harper's former leadership rival who had been highly activist 
and visible as International Trade Minister.  PM Harper nonetheless 
underscored publicly that he had handed Day a front line 
responsibility as part of the government's economic strategy to 
restrain spending, tackle the deficit, and promote economic growth 
and jobs.  PM Harper identified Day's experience as a former 
provincial finance minister and his distinguished performance in 
federal cabinet, as good fits for the "essential" role of the 
Treasury Board in the months ahead in constraining and monitoring 
government spending. 
 
¶8.  (SBU)  Perceived winners included Rona Ambrose, who had been 
effectively demoted in 2007 from Environment to Intergovernmental 
Affairs, and subsequently moved laterally to Labour in 2008.  The 
media called her promotion to Public Works and Government Services 
Canada (PWGSC) -- a department with one of the largest government 
budgets and responsibility for the key infrastructure file - a 
"second chance."  Quebecer Christian Paradis, Ambrose's predecessor 
at PWGSC, also moved up -- to Natural Resources, with 
responsibility for Atomic Energy of Canada (AECL) as well as the 
politically sensitive oilsands portfolio.  Natural Resources is an 
important file for Quebec, and Paradis will retain his role as 
political minister for the province.  PM Harper praised Paradis to 
the media as deserving of a more "stimulating" cabinet challenge. 
Diane Ablonczy's move from Minister of State for Small Business and 
Tourism to the Seniors' file was seen by some as a reward for a 
long-term and underappreciated MP, but a 2009 flap between her and 
Industry Minister Clement over funding to a Toronto Gay Pride event 
may have contributed to the move as well. 
 
 
 
¶9.   (SBU) There were a few changes to important Cabinet 
Committees.  Foreign Minister Lawrence Cannon replaced Stockwell 
Day as Chair of the Cabinet Committee on Afghanistan, which now 
includes Veterans' Affairs Minister Jean-Pierre Blackburn and 
Public Safety Minister Vic Toews  as well as National Defence 
Minister Peter MacKay and Minister for International Cooperation 
Beverley Oda.  The membership of the key Priorities and Planning 
Committee, chaired by the PM and made up of the most senior 
ministers, was unchanged.  Other minor committee changes reflected 
ministerial portfolio changes. 
 
 
 
NEXT STEPS 
 
 
 
¶10.  (SBU)  The next step in the government's "recalibration" is 
likely to come with the appointment imminently  of five new 
Conservatives senators to fill current vacancies. The appointments 
will give the Conservatives a plurality of 51 over the Liberals' 49 
in the 105-seat Senate for the first time since the government took 
office in 2006. Observers expect the government's deft handling of 
Canada's reaction to the Haitian crisis, acknowledged even by 
political opponents, to produce a modest uptick in the polls. 
Coverage of the Haiti situation and of the cabinet shuffle 
overshadowed a federal Liberal caucus retreat in Ottawa from 
January 19 to 20 convened to highlight the shuttering of Parliament 
during prorogation. 
 
 
 
¶11.  (U) Separately, the Prime Minister declared himself "very 
satisfied" with a Federal Court ruling on January 18 in favor of 
the Conservative Party in an important court battle with Elections 
Canada over eligible campaign expenses in the 2006 election. 
Elections Canada had contended that the party had deliberately 
exceeded its C$18.3 million campaign spending limit in 2006 by 
channeling C$1.2 million in national advertising funds through the 
local campaigns of 67 Conservative candidates (with separate 
spending limits) and had broken the law by doing so.  The party 
took Elections Canada to court, maintaining that it had done 
nothing wrong and had "followed the rules."  The Federal Court 
agreed, although it suggested that the overall legitimacy of the 
advertising issue remained a "'debatable" issue. 
JACOBSON