On June 2, Prime Minister Jean Chretien made a major cabinet change, replacing Paul Martin as minister of finance. Paul Martin had served as minister of finance since Chretien’s Liberals came to power in 1993.

Prime Minister Chretien said Mr. Martin’s replacement was related to non-government

He Said, She Said “We agreed that for the good of the governance of the country, that it was better that he [Mr. Martin] was not to be the minister of finance.” Jean Chretien Prime Minister

issues, most likely Mr. Martin’s campaign to become the next leader of the Liberal Party. Mr. Martin, however, asserted that his conflict with the Prime Minister was related to a difference in government policy.

John Manley has replaced Mr. Martin as finance minister. In 2002, Manley was named deputy prime minister of Canada and minister of infrastructure and Crown corporations. Mr. Manley now takes on the finance portfolio in addition to his duties as deputy prime minister.

Prime Minister Chretien and Finance Minister Manley have assured the public that there will be no change in Canada’s economic policy. The government will continue to balance the budget, reduce the debt, and lower taxes.

The replacement has created a public division in the Liberal Party between supporters of Paul Martin and Jean Chretien. This division will be carried into the Liberal Party’s leadership review in February 2003. If Prime Minister Chretien loses that review, a leadership race will be held to elect a new party leader. That new leader would then become prime minister.

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