Parting Ways: Morneau out, Irish Ambassador Kelly to New York

As normal as Monday can be in the enigma that is 2020, that sense of normalcy quickly evaporated at 7:00PM when the media got word that Finance Minster Bill Morneau was calling a snap press conference. Not only was the timing unusual, the presser would be in a room on the West Block where opposition parties have their press conferences–an odd choice to say the least. Speculation of Morneau’s resignation started almost immediately but had little time to fester as the Finance Minister, suited and booted, was making his way up to the podium while journalists were frantically trying to notify Canadians of this evolving situation. After touching on the progress the government has made on economic issues, Morneau announced his resignation while reiterating the fact that he was exiting on his own terms. Morneau’s reasoning was a combination of his intent to never run for more than two-terms as Member of Parliament for Toronto Center and therefore, since the economic recovery from the global pandemic will be a long and arduous process, Canadians need someone who will be present for years to come. In concluding his press conference Morneau announced his intention to run for Secretary General of the Organisation for Economic Co-operation and Development (OECD) with the full support of Prime Minister Justin Trudeau behind him–another puzzling caveat.

Regardless of what was said in Monday’s unusual press conference, the hypothesis is that this a direct result of a plethora of events that have strained the relationship between Trudeau and Morneau. The WE Charity scandal, which has dominated headlines since late-June, has the Liberal government in hot water. Specific to Morneau, $41,000 in international travel expenses were incurred on the Kielburgers dime, an unpleasant surprise to the Prime Minister and Canadian public. To add fuel to the fire, countless reports over the past week highlighted a rift between Morneau and Trudeau over the direction of the economic recovery from the global pandemic. Reuters reported that Morneau was not interested in amassing a “huge deficit” which was at odds with the direction Trudeau and the current government wanted to go. Reportedly a surprise to Morneau, the Prime Minister also sought advice from former Governor of the Bank of Canada Mark Carney who had a pivotal role in managing Canada’s response to the ’08-’09 financial crisis.

As the first rookie Member of Parliament to be appointed Finance Minister, Morneau was a close ally of Trudeau. He oversaw a period of strong growth, low unemployment, the expansion of the Canada Pension Plan (CPP), and the lowest number of Canadians living under the poverty line ever. Over the past few months these accomplishments have been quickly forgotten as a widely publicized transgression and an economic depression have cast a shadow on the Finance Minister. As coveted a position as the Secretary General of the OECD is and as noble as term-limits are, these were not the reasons for Finance Minister Bill Morneau’s resignation–whether he’d like to admit it or not. The result of Morneau’s resignation was a slight but historic cabinet shuffle which saw Deputy Prime Minister Chrystia Freeland appointed as Canada’s first ever female Finance Minister.

Prime Minister Trudeau (right) playing Hurling with then Taoiseach Leo Varadkar (left)

Also departing Ottawa this week–on a much more amicable note–was Irish ambassador to Canada Jim Kelly. A product of Dublin, Kelly became ambassador to Canada (and non-resident ambassador to Jamaica and the Bahamas) in 2016 after previously serving as Deputy Permanent Representative for Ireland's Mission to the United Nations. During his tenure Kelly hosted over 20 members of the Irish government on diplomatic visits (including then-Taoiseach Leo Varadkar). There was also Prime Minister Trudeau’s visit to Ireland in July of 2017, the opening of a new diplomatic consulate in Vancouver, and Canada becoming Ireland’s number 5 tourist destination (an improvement from being number 10 not so long ago). Kelly was also involved with many local Irish organizations from coast to coast and stated in an interview with the Canadian Global Affairs Institute that the highlight of his time in Canada was his trip across all three territories.

Filled with well wishes from countless politicians and community members, Kelly is now moving to New York to assist with Ireland’s transition to the United Nations Security Council. Kelly will be replaced by another Dublin product, Eamonn McKee who was previously serving as Director General of the Trade Division at the Department of Foreign Affairs and Trade.

As Morneau and Kelly both move on from their current roles in much different ways, it seems only fitting during a year that has been predictably unpredictable.