NEW CANADIAN CABINET: "CERTAINTY, STABILITY, AND

C O N F I D E N T I A L SECTION 01 OF 04 OTTAWA 001394 SIPDIS E.O. 12958: DECL: 10/29/2018 TAGS: PGOV PREL PINR CA SUBJECT: NEW CANADIAN CABINET: "CERTAINTY, STABILITY, AND COMPETENCE" REF: OTTAWA 1325 Classified By: PolMinCouns Scott Bellard, reason 1.4 (d) ¶1. (C) Summary. The Cabinet of the second government of Prime Minister Stephen Harper took office on October 29. Its expanded size includes more women and rewarded some new MPs from key geographic areas. As expected, former Minister of Transport Lawrence Cannon succeeded David Emerson as Minister of Foreign Affairs; he has long been a trusted aide to Harper, will retain close access, and brings a seasoned, capable hand to the Department of Foreign Affairs and International Trade (DFAIT). Also as anticipated, Defence Minister Peter MacKay and Finance Minister Jim Flaherty retained their portfolios to provide continuity in these departments, where they have performed well and retained PM Harper's confidence. The biggest shocker was the transfer of Public Safety Minister Stockwell Day to the much less considerable position of Minister of International Trade; Harper may be trying to sideline a potential rival for the next Conservative Party leadership. Replacing Day at Public Safety is the controversial Peter Van Loan, who, as Leader of the Government in the House of Commons, was seen as Harper's bulldog and blamed by many in the Opposition for supposedly bringing Parliamentary politics to new lows of mean-spiritedness and refusal to negotiate. Full list of Cabinet in para 12. Official biographies available at www.pm.gc.ca. End Summary. ¶2. (SBU) Conservative Prime Minister Stephen Harper presented his new, 38-person Cabinet to Governor General Michaelle Jean on October 30, two weeks after winning the October 14 federal election with a stronger minority in the House of Commons (reftel and previous). The Governor General swore in the ten new members; all previous Cabinet members did not require a new oath. The new Cabinet is not only larger than the previous Cabinet (with 27 Ministers and 5 Secretaries of State) but also -- for the first time since taking office in 2006 -- revived the title of "Minister of State" in lieu of the more junior "Secretary of State." PM Harper subsequently told the media that the new Cabinet reflected his commitment to "certainty, stability, and competence" and was the "right team for these times," and promised that the new "broad and inclusive" Cabinet will work on behalf of all Canadians in the face of the global financial crisis. He underlined that now was "not the time to take risks." ¶3. (SBU) Eleven of the new Cabinet are women, compared to five Ministers and two Secretaries of State in the previous Cabinet. Five ministers are brand-new MPs, including the first Conservative MP from Nunavut (Leona Aglukkaq, who becomes Minister of Health, after serving in a similar capacity in the Nunavut territorial government) and the first Conservative MP from Prince Edward Island in over 20 years (Gail Shea, who gets the relevant portfolio of Fisheries and Oceans). It also includes the first quadriplegic in Cabinet, John Fletcher, the new Minister of State for Democratic Reform (a long-term Conservative party priority, notably a shift to an elected Senate or at least term-limits). As usual, the Cabinet reflects a careful geographic balance in order to present a truly national, federal team. One apparent reason for the delay in forming the Cabinet was Qapparent reason for the delay in forming the Cabinet was awaiting the outcome of key recounts, i.e. in Nunavut. When asked why there were no Montrealers among the Cabinet, PM Harper noted his commitment to appointments only of MPs; the Conservatives again won no seats in either Montral or Toronto. ¶4. (U) The 40th Parliament will meet for the first time on November 18, with the Governor General presenting the new government's "Speech from the Throne" on November 19. KEY TO U.S. RELATIONS -------------- ¶5. (C) Foreign Affairs: Harper lived up to general expectations in selecting former Transport Minister Lawrence Cannon as the new Minister of Foreign Affairs, replacing David Emerson, who did not run for re-election. Cannon has been a long-time trusted confidante of Harper and advisor as the government's previous Lieutenant for Quebec (although whatever advice he provided did not in the end help the Conservatives to pick up additional seats in that province in this election). DFAIT staff expect Cannon to provide the same kind of measured, steady hand approach as Emerson -- in OTTAWA 00001394 002 OF 004 sharp contrast to previous Foreign Minister and fellow Quebecker Maxime Bernier. Fluent in both French and English, Cannon should be an insightful and helpful partner to the U.S. on bilateral and multilateral issues. ¶6. (C) Defence: Peter MacKay retains his portfolio at the Department of National Defence, where he remains well liked and respected. He will host Defense Secretary Gates at a RC-South ministerial meeting in Nova Scotia next month. Afghanistan and the deployment of Canadian Forces in Kandahar remain a top priority for PM Harper's foreign policy. ¶7. (C) Finance: Again as anticipated, Jim Flaherty remains at the helm at Finance Canada, with PM Harper emphasizing publicly the leading role that Canada intends to continue to play in shaping a global response to financial instability worldwide. Liberal Party deputy leader Michael Ignatieff has so far been a lone wolf in criticizing Flaherty's re-appointment, claiming that Flaherty's previous policies have been unsuccessful in protecting Canadians from the global crisis. (Lame duck Liberal Party leader Stephane Dion has yet to comment on the new Cabinet.) ¶8. (C) International Trade/Public Safety: PM Harper decided to move former leadership rival Stockwell Day from the huge Department of Public Safety -- which includes the Royal Canadian Mounted Police, the Canadian Security Intelligence Service, and Corrections Canada -- to the International Trade portfolio. Few observers -- or even Day's senior staff -- saw this move coming. While Trade is an important position, it is distinctly a step down for the still-ambitious Day, which may be part of Harper's gamebook, as some in the Conservative Party have begun to grumble that it is time the Conservatives look for new leadership since Harper has shown in three federal elections that he cannot win a majority. Day will, however, take over Emerson's former seat as Chair of the Cabinet Committee on Afghanistan. Replacing Day at Public Safety is Peter Van Loan, previously Leader of the Government in the House of Commons. This assignment is clearly a reward for the tenacious Van Loan, widely seen as Harper's attack dog in the Commons and perceived by many in the opposition (including, privately, Speaker of the House Peter Milliken) as bringing political debate in the House to new lows with his blanket refusals to negotiate or compromise. Van Loan was no doubt only doing exactly what Harper wished him to do. He can nonetheless be a genial interlocutor in other settings, with a quick wit and lively intelligence, although he lacks management experience (having served in an earlier Cabinet as Minister of Sport and of Intergovernmental Affairs). He will readily understand the central importance of a productive and successful partnership with his counterpart at the Department of Homeland Security. ¶9. (C) In the new Cabinet, PM Harper transformed Helena Guergis' former position as Secretary of State for Foreign Affairs and International Trade into a new Minister of State of Foreign Affairs (Americas) and gave it to neophyte Ontario MP Peter Kent, a former broadcast journalist. It is unclear what role this position will play in bilateral relations, but likely reflects the upcoming Summit of the Americas and the Harper government's pronounced priority for the Americas in QHarper government's pronounced priority for the Americas in its foreign policy agenda. OTHER WINNERS AND LOSERS -------------- ¶10. (C) Former Health Minister Tony Clement -- who reportedly lobbied hard for either Foreign Affairs or International Trade -- moves to Industry, another key portfolio, especially for an Ontario MP (Parry Sound-Muskoka). He replaces Jim Prentice, who had been a reported candidate for Foreign Affairs; Prentice moves to Environment Canada. PM Harper explained the move as a recognition that, despite tough ecoomic times, Canada cannot treat environmental policy as less important or separate from economic policy. Prentice will also chair the important Cabinet Committee on Operations. Former Natural Resources Minister Gary Lunn was downgraded to Minister of State for Sport, losing his seat to newcomer Lisa Raitt. Former National Revenue Minister Gordon O'Connor moves to Minister of State and Chief Government Whip, replacing Jay Hill, who will probably play a more conciliatory new role than Van Loan did as Leader of the Government in the House of Commons. Long-time MP Rona Ambrose moved up from Minister for Intergovernmental Affairs to Minister of Labour, while former OTTAWA 00001394 003 OF 004 Citizenship and Immigration Minister Diane Finley made a lateral transfer to Human Resources and Skills Development; her husband Doug Finley was the National Director for the 2006 and 2008 Conservative campaigns. Harper favorite John Baird made a similar move from Environment (where he performed solidly in a difficult portoflio) to Transport, Infrastructure and Communities. Josee Verner, whose tenure at Canadian Heritage received generally poor marks, moved to Intergovernmental Affairs and Minister for La Francophonie. Jason Kenney's successful outreach to new Canadians (more of whom apparently voted Conservative in 2008) as Secretary of State led to a Ministerial appointment for Citizenship, Immigration and Multiculturalism. STAYING PUT -------------- ¶11. (U) In addition to MacKay at Defence and Flaherty at Finance, several other ministers will not change portfolios, including Rob Nicholson at Justice, Greg Thompson at Veterans, Chuck Strahl at Indian Affairs, Vic Toews at Treasury Board, Bev Oda at International Cooperation, and Gerry Ritz at Agriculture. CABINET LIST (in order of personal precedence) -------------- ¶12. (U) As of October 30, 2008: Prime Minister: Stephen Harper Minister of Justice and Attorney General: Robert Douglas Nicholson Minister of National Revenue and Minister of State (Agriculture): Jean-Pierre Blackburn Minister of Veterans Affairs: Gregory Francis Thompson Leader of the Government in the Senate and Minister of State (Seniors): Marjory LeBreton Minister of Indian Affairs and Northern Development and Federal Interlocutor for Metis and Non-Status Indians: Chuck Strahl Minister of National Defence and Minister for the Atlantic Gateway: Peter Gordon MacKay Minister of International Trade and Minister for the Asia-Pacific Gateway: Stockwell Day President of the Treasury Board: Vic Toews Minister of Labour: Rona Ambrose Minister of Human Resources and Skills Development: Diane Finley Minister of International Cooperation: Beverley J. Oda Minister of the Environment: Jim Prentice Minister of Transport, Infrastructure and Communities: John Baird Minister of Foreign Affairs: Lawrence Cannon Minister of Industry: Tony Clement Minister of Finance: James Michael Flaherty Minister of Intergovernmental Affairs, President of the Queen's Privy Council for Canada and Minister for La Francophonie: Josee Verner Leader of the Government in the House of Commons: Jay D. Hill Minister of Public Safety: Peter Van Loan Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board: Gerry Ritz Minister of Citizenship, Immigration, and Multiculturalism: Jason Kenney Minister of Public Works and Government Services: Christian Paradis Minister of Canadian Heritage and Official Languages: James Moore Minister of Health: Leona Aglukkaq Minister of Natural Resources: Lisa Raitt Minister of Fisheries and Oceans: Gail Shea Minister of State (Sport): Gary Lunn Minister of State and Chief Government Whip: Gordon O'Connor Minister of State (Status of Women): Helena Guergis Minister of State (Small Business and Tourism): Diane Ablonczy Minister of State (Transport): Rob Merrifield Minister of State (Western Economic Diversification): Lynne Yelich Minister of State (Democratic Reform): John Fletcher QMinister of State (Democratic Reform): John Fletcher Minister of State (Science and Technology): Gary Goodyear Minister of State (Economic Development Agency of Canada for the Regions of Quebec): Denis Lebel Minister of State (Atlantic Canada Opportunities Agency): Keith Ashfield Minister of State of Foreign Affairs (Americas): Peter Kent OTTAWA 00001394 004 OF 004 Visit Canada,s Economy and Environment Forum at http://www.intelink.gov/communities/state/can ada BREESE