Responsibilities As minister of finance, Morneau was responsible for directing more than $300 billion in revenues via the federal budget each year. Administering tariffs and financial regulations were also part of his portfolio. Additional responsibilities included overseeing the
Bank of Canada, the
Royal Canadian Mint, and the
Canada Pension Plan (CPP) Investment Board, among others. Morneau represented Canada at international gatherings, including the
G7 and
G20 Summits, in addition to serving as governor of the
International Monetary Fund and
World Bank.
Federal budgets On 22 March 2016, Morneau released
his first budget as minister of finance. Items of note in the budget included $120 billion over 10 years for public infrastructure—focusing on transit, water, waste management and housing—as well as the introduction of the
Canada Child Benefit. The budget also included money for First Nations communities, as well as larger seniors and employment insurance benefits. On 22 March 2017, Morneau released
his second budget. The budget included new federal investments in early learning and child care, more flexible benefits for family caregivers, more support for Indigenous women, and a national strategy to address gender-based violence. Additionally, Budget 2017 included $11.2-billion for an 11-year national housing strategy. On 27 February 2018
Morneau's third budget continued the theme of greater equality for women in Canada, with money targeting new parental supports, gender equality and anti-harassment initiatives, as well as measures to promote pay equity. The budget also included new investments to tackle the opioid crisis, cope with a surge in asylum seekers crossing the border from the United States and improve living conditions for Indigenous people. On 21 November 2018 Morneau spoke to Parliament on a "fiscal update" with an increased expenditure of $17.6 billion over six years. On 19 March 2019, Morneau tabled
his fourth, and final, budget. The stated goals of the budget were to help Canadians feel a greater sense of financial security, gain new career skills, and be able to afford a first home. This budget also took "initial steps" toward a national pharmacare program by creating a national drug agency with the aim of bulk-buying drugs to lower costs.
Stance on budget deficits Morneau received criticism for abandoning the Liberal's 2015 platform commitment to run annual deficits of less than $10 billion during the first couple years of their mandate, and return to balance by 2019–20. A few months after taking office, he abandoned those vows, citing a weaker-than-expected economy. He then committed to continuing to reduce the government net
debt-to-GDP ratio, arguing it's a better measure of government fiscal health.
Intergovernmental affairs and internal trade Between April and November 2019, Morneau was asked to take on the additional portfolio of intergovernmental affairs and internal trade in addition to the finance portfolio, filling in for
Dominic LeBlanc who stepped down for health reasons. In the role, Morneau acted as the federal liaison to the provincial and territorial governments to encourage collaboration and trade.
Gender equality Morneau tabled Canada's first gender-based budget and introduced a banknote featuring civil-rights activist
Viola Desmond, making it Canada's first circulation banknote to feature a Canadian woman, and the first to feature a Black woman.
Small business tax changes The Liberal government changes to small business taxation, proposed in 2017, were a controversial issue during Morneau's tenure as finance minister. The changes involve restricting several tax planning strategies, including passive investment income and income-sprinkling for private corporations, that are often used by small businesses. In response to the criticism, Morneau made several changes, including reducing the overall small business tax rate from 11% to 9%.
Ethics scrutiny In September 2017, Morneau was fined for failing to disclose to the
Conflict of Interest and Ethics Commissioner a private non-commercial real estate holding company in
Avignon, France owned by him and his wife, which owns a family villa in
Provence, France. Morneau said that this was a result of early administrative confusion which led to only the property, and not the legal structure, being disclosed. Morneau was also investigated in 2018, over false accusations of insider trading, and in 2020 for his family accepting $41,000 in luxury hospitality from
WE Charity, which he paid back before publicly revealing the error. The commissioner determined that Morneau did not breach ethics laws in either of these investigations. Although never investigated by the commissioner, Morneau also received public criticism in the Fall of 2017 for not holding his assets in a
blind trust, something he was incorrectly reported to have done. This included a significant number of Morneau Shepell shares. Morneau responded to this criticism by selling the shares, donating a portion of the proceeds to charity, and setting up a blind trust for his remaining assets.
Other policies in June 2017 Morneau played a key role in implementing a number of signature Liberal government initiatives, including new benefits for parents, low-income workers and seniors, putting in place
Carbon pricing in Canada, as well as expanding the
Canada Pension Plan. Morneau also moved forward with the Liberal's commitment to lower income taxes on the middle class by raising taxes on the wealthiest Canadians. Morneau established the
Advisory Council on Economic Growth, which called for a gradual increase in permanent
immigration to Canada to 450,000 people a year. Morneau reached an agreement in 2016 with provincial and territorial governments to expand the Canada Pension Plan. The expanded CPP was designed to address the shortfall in middle-income retirement planning that is opening up as a result of disappearing corporate pensions. In 2017, Morneau also led negotiations on new health care funding agreements with the provinces and territories. In August 2017, all provinces and territories agreed to a
Common Statement of Principles on Shared Health Priorities, which outlines common priorities for action in home and community care, and in mental health and addiction services.
COVID-19 aid Morneau was responsible for the first five months of the federal government's economic response plan to the
COVID-19 pandemic in Canada. Major initiatives between March and August 2020 included: •
Canada Emergency Business Account, which provided emergency
interest-free
loans to
small businesses and
nonprofit organizations. •
Canada Emergency Response Benefit, which provided a taxable benefit of per month for Canadian residents facing
unemployment due to the pandemic. •
Canada Emergency Student Benefit, which was a counterpart to CERB to help students. •
Canada Emergency Wage Subsidy, which provided financial support for businesses and prevent large
layoffs.
The budget tabled in April 2021 showed the deficit for 2020 at $327.7 billion.
Resignation On August 17, 2020, following a meeting with the Prime Minister earlier in the day, Morneau held a press conference announcing he would step down as Minister of Finance and as the Member of Parliament for Toronto Centre, and that he would seek to become secretary-general of the
Organization for Economic Cooperation and Development (OECD). Morneau had been under pressure to resign due to his involvement in the
WE Charity controversy, where he had failed to recuse himself from Cabinet discussions involving the charity after accepting, then repaying $41,000 in expenses covered by the charity, as well as the fact that two of his daughters worked or volunteered for the charity. Morneau's resignation came amid reports of disagreements with Trudeau over the scandal, environmental initiatives, and COVID-19 relief spending. Morneau dismissed the reports and said his relationship with Trudeau was marked by "vigorous discussion and debate" that led to better policy. In 2023, Morneau cited disagreements with Trudeau over COVID-19 relief spending and overreach of the Prime Minister's office as the reason for his resignation. ==After politics==