Leadership Change in Ottawa

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On January 6, Prime Minister Justin Trudeau announced that he would resign as Leader of the Liberal Party and Prime Minister pending a Liberal Party leadership race. His stepping down follows the resignation of Deputy Prime Minister and Minister of Finance Chrystia Freeland last month and mounting pressure from within the party for him to step aside. 

This decision comes as the government’s polling numbers continue to decline, and in the wake of important by-election losses across the country. Several ministers also announced their resignation from cabinet.  The looming threat of a non-confidence vote put before the house also threatened Trudeau’s hold on power as opposition parties have declared their intention to vote down the Liberal government at their earliest convenience. For months, members of the Liberal caucus have called for Trudeau’s resignation as leader, with a sharp increase in such calls occurring in the past couple of weeks.  

Prime Minister Trudeau also prorogued Parliament until March 24, allowing the Liberals time to elect a new leader and enact a new Parliamentary session upon return. Prorogation ends all proceedings before Parliament. Unfinished business dies on the Order Paper and must be started anew in a subsequent session. Notably, prorogation appears to have killed the Capital Gains hike that was tabled in June, which would have impacted many HRAI contractor members.  There have been some contradictory reports on this, however, so HRAI is seeking clarification on the status of this measure. 

On the other hand, prorogation has almost no practical effect on Private Members’ Business. Private Members’ bills and motions originating in the House, including motions for papers which have been transferred for debate, need not be reintroduced in a new session as they are automatically deemed to have passed all stages completed in the previous session and retain the same place on the Order Paper.  

There are a few Private Members Bills that could be of interest to members that have been left on the table:  

  • C-241 An Act to amend the Income Tax Act (deduction of travel expenses for tradespersons) (MP Chris Lewis) (Third Reading in the Senate) -- This enactment amends the Income Tax Act to allow tradespersons and indentured apprentices to deduct from their income amounts expended for travelling where they were employed in a construction activity at a job site that is located at least 120 km away from their ordinary place of residence. 

  • C-312 An Act respecting the development of a national renewable energy strategy (MP Don Davies) (Second Reading House of Commons) -- This enactment requires the Minister of Natural Resources, in consultation with the provincial government representatives responsible for energy matters, to develop and implement a national strategy to provide that, by December 31, 2030, 100% of electricity generated in Canada must be from renewable energy sources. 

  • C-382 An Act to amend the Excise Tax Act and the Income Tax Act (extra-energy-efficient products) (MP Don Davies) (Second Reading House of Commons) -- This enactment amends the Excise Tax Act to exempt extra-energy-efficient products from the goods and services tax. It also amends the Income Tax Act to provide a tax credit for the purchase of those products. 

Prorogation also does not affect the work of the Government as a whole, as Ministerial mandates remain active during this time.  

With MPs in their ridings for an unexpected three months until the end of March, HRAI will ramp up grassroot lobbying as part of our preplanned election strategy for 2025. HRAI is also moving forward with provincial advocacy. 

The Liberal Party of Canada will hold a leadership race to choose who replaces Trudeau as Liberal Leader and Prime Minister. High profile Liberals such as Mark Carney, Chrystia Freeland, François-Philippe Champagne and Christy Clark are likely leadership candidates. The party has yet to announce a timeline for the leadership race, but the party has stated there will be no changes to who can participate in the Liberal leadership race.  

When the House returns, a new Liberal Leader and Prime Minister will introduce a new Speech from the Throne almost immediately, and this will likely trigger a confidence vote. All opposition party leaders have expressed their desire for an election and have stated their parties will be voting non-confidence in the government at the next opportunity despite the party having a new leader. This would automatically result in a general election.  

With the PM stepping down it is easy to forget that Trudeau announced a Cabinet shuffle very late in December. The shuffle followed the resignation of Deputy Prime Minister and Minister of Finance, Chrystia Freeland. 

See below for more details on the shuffle:  

Who’s New to Cabinet: 

  • Nathaniel Erskine-Smith (ON) Minister of Housing, Infrastructure, and Communities.  

  • David McGuinty (ON) Minister of Public Safety. 

  • Rachel Bendayan (QC) Minister of Official Languages and Associate Minister of Public Safety. 

  • Élisabeth Brière (QC) Minister of National Revenue. 

  • Terry Duguid (MB) Minister Responsible for Prairies Economic Development Canada and Minister of Sport. 

  • Darren Fisher (NS) Minister of Veterans Affairs and Associate Minister of Defence. 

  • Joanne Thompson (NL) Minister of Seniors. 

  • Ruby Sahota (ON) Minister Responsible for the Federal Economic Development Agency for Southern Ontario, and Minister of Democratic Institutions. 

Who’s Moving: 

  • Dominic LeBlanc (NB) Minister of Finance earlier this week. 

  • Ginette Petitpas Taylor (NB) President of the Treasury Board. 

Who’s Out: 

  • Chrystia Freeland (ON), former Minister of Finance and Deputy Prime Minister. 

  • Sean Fraser (NS), former Minister of Housing, Infrastructure, and Communities of Canada 

  • Dan Vandal (MB), former Minister responsible for Prairies Economic Development Canada, Minister responsible for the Canadian Northern Economic Development Agency, and Minister of Northern Affairs. 

  • Filomena Tassi (ON), former Minister responsible for the Federal Economic Development Agency for Southern Ontario. 

  • Carla Qualtrough (BC), former Minister of Sport and Physical Activity. 

  • Marie-Claude Bibeau (QC), former Minister of National Revenue. 

All the other cabinet ministers remained in their respective portfolios. 

HRAI continues to engage with government officials and stakeholders to ensure important initiatives such as the Green Buildings Strategy and the $100 million Sustainable Jobs Training Fund move forward as both initiatives have received funding through Budget 2024. HRAI is also engaged with opposition parties to ensure there is a path forward for these important initiatives if a new government takes office after the next election.  

Despite the uncertainty of what will unfold when the House sits in late March, HRAI is taking all necessary steps to ensure effective engagement with all relevant players in Ottawa.  

For more information, contact Martin Luymes at 1-800-267-2231 ext. 235, or email mluymes@hrai.ca 


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