Bill Morneau resigns as Canada’s finance minister

Bill Morneau resigned Monday as Canada's finance minister after weeks of speculation about his future following a charity scandal that has rocked the Liberal minority government.

Morneau told a news conference Monday evening that he was also stepping down as MP for Toronto Centre. He said he would put forward his name as a candidate to be the next secretary general of the Organization for Economic Co-operation and Development.

He said it had never been his intention to serve for more than two terms in the House of Commons.

Morneau spent five years steering the Canadian economy through a new government, an oil price crash and the economic fallout of a global pandemic.

But he and Prime Minister Justin Trudeau had reportedly clashed recently over how to spend billions of dollars to deal with COVID-19's impact on the Canadian economy.

Morneau had also badly shaken the Liberal government with the revelation that he had accepted trips from WE Charity before taking part in cabinet discussions to approve a $544-million contract for the organization, and only reimbursed the charity on the eve of an appearance before a House of Commons committee.

A Liberal source said Morneau's disclosure had cost him the support of the Liberal caucus, and that Liberal MPs were shocked and angered by Morneau's failure to grasp the political ramifications of his actions.

Trudeau and Morneau each have close family connections to WE Charity, but both claim that the decision to choose WE to administer the government's student volunteer grant program was not politically influenced.

One of Morneau's daughters works for the charity and another has also spoken at WE events. Trudeau's mother and brother have been paid to appear at WE Charity events, and his wife has had her expenses reimbursed when she has taken part in WE Charity activities.

Just days ago, Trudeau had tried to shut down speculation about Morneau's future after news that the prime minister had turned to former Bank of Canada and Bank of England governor Mark Carney for advice.

As recently as last week, Trudeau was still saying he had full confidence in his finance minister.

Morneau, 57, was first elected in Toronto Centre in 2015. Married to Nancy McCain, he was head of the large pension and human resources management firm Morneau Shepell. He sold his shares in that company amid a controversy over his handling of small business tax changes and a pension change bill he introduced and later withdrew.

Last week, the Prime Minister's Office praised Morneau's lead role" in creating emergency aid programs during the COVID-19 pandemic.

But senior governmental officials made clear to the Star that Trudeau was reassessing whether Morneau was the right finance minister for more aggressive spending to build back better" from the pandemic.

In a statement released Monday evening, Trudeau thanked Morneau for everything he has done to improve the quality of life of Canadians and make our country a better and fairer place to live.

I have counted on his leadership, advice, and close friendship over the years and I look forward to that continuing well into the future," he said.

Trudeau's statement also said that Canada would vigorously" support Morneau's bid to become the OECD's next secretary general.

Tonda MacCharles is an Ottawa-based reporter covering federal politics for the Star. Follow her on Twitter: @tondamacc