Peter Penashue quits the cabinet and resigns his seat

Intergovernmental Affairs Minister Peter Penashue announced today that he will be quitting the Harper cabinet and resigning his Labrador seat in order to run in a by-election.

The move comes as Penashue is under a scandalous cloud regarding his campaign during the 2011 election as he may have breached the limit and taken a corporate donation. Penashue’s defenders in the party state that he wasn’t aware of what had happened. Penashue is likely running to clear the air and take responsibility. He has also paid back $30,000 to the Receiver General for “ineligible” donations to his last campaign.

Penashue won Labrador for the Conservative Party beating incumbent Todd Russell with a margin of less than 1% of the popular vote. Liberals are now inevitably making the claim the seat was stolen now that Penashue has acknowledged the scandal.

Minister Denis Lebel will take over Penashue’s cabinet responsibilities as the interim intergovernmental affairs minister.

Here are the poll-by-poll breakdowns of Labrador in 2011.

Here is Penashue’s full statement:

“Due to mistakes that were made by an inexperienced volunteer in filing the Elections Canada return from the last campaign, I appointed a new Official Agent to work with Elections Canada to make any needed amendments to my campaign return.

During the examination we became aware that there were ineligible donations accepted by the former Official Agent.

Although I was unaware of the inaccuracies in the return, I believe I must be accountable to the people who elected me and therefore I am stepping down as the Member of Parliament for Labrador and will seek re-election through a by-election. I will also be stepping down as Minister of Intergovernmental Affairs and President of the Queen’s Privy Council for Canada.

My record as Member of Parliament for Labrador and Minister in Prime Minister Stephen Harper’s Conservative government over the past two years is one that I am very proud of.

I have worked to secure federal support for the development of Muskrat Falls, which will lead to $1.9 billion for our economy and thousands of jobs for Labrador. I have also worked with government and private industry to increase internet speed in Labrador, and delivered federal funding to pave the Trans-Labrador Highway.

There is much more to do for the people of Labrador, including protecting our way of life. We have scrapped the long-gun registry despite the efforts of the NDP and Liberals to keep it, and now we must continue to fight to defend the seal hunt against the NDP and Liberal parliamentarians who want to ban it. I will also continue to lead the defence of the polar bear hunt, something that is very important to Labradorians.

And the statement from the Prime Minister,

“The Honourable Minister Denis Lebel, currently the Minister responsible for Transport, Infrastructure and Communities and of the Economic Development Agency of Canada for the Regions of Quebec, will assume responsibility for Intergovernmental Affairs and President of the Queen’s Privy Council for Canada.

“Minister Lebel is now also responsible for the overall management and coherence of relations with provincial and territorial governments and for strengthening Canadian unity.”

“I would like to thank Mr. Penashue for his service as Minister and to the people of Labrador.”

Liveblogging the cabinet shuffle

9:52AM: Rob Nicholson, Gail Shea, Leona Aglukkaq, Peter Kent and Peter van Loan, Chuck Strahl show up to Rideau Hall

9:52AM: And Christian Paradis, Jim Prentice. CTV has speculated Prentice to environment.

9:54AM: John Baird has arrived.

9:55AM: Some MPs showing up in Blue Line cabs, some in airport cabs, some in their own cars.

9:55AM: Rona Ambrose shows up. Rumour is she’ll move to HRSDC.

10:00AM: Lynne Yelich is at Rideau Hall and Stockwell Day

10:01AM: James Moore arrives

10:03AM: Rahim Jaffer has shown up. Probably to support his newlywed wife Helena Guergis.

10:06AM: Jim Flaherty arrives with wife Christine Elliot.

10:08AM: The Prime Minister’s motorcade makes its way up to Rideau Hall.

10:16AM: Rumour is that Jason Kenney is moving to Citizenship and Immigration. You heard it here first.

10:25AM: Cabinet embargo about to end. Should have the list up soon.

10:31AM: Other MPs at Rideau Hall: Bev Oda, Peter MacKay, Keith Ashfield, Gary Lunn, Chuck Strahl, Gordon O’Conner, Tony Clement, Gerry Ritz, Stephen Fletcher, and Lawrence Cannon.

10:40AM: Here we go. Here comes cabinet into the hall.

10:44AM: Nicholson stays in Justice, no surprise there.

10:45AM: Greg Thompson at Veterans Affairs, Chuck Strahl at INAC, Vic Toews at Treasury Board

10:48AM: Bev Oda at CIDA, Flaherty at Finance, Gerry Ritz at Agriculture

10:50AM: Jean-Pierre Blackburn to Revenue. Aglukkaq to Health. Finley to HRSRC.

10:55AM: Raitt to NRCan, Day to International Trade and Asia-Pacific Gateway.

10:55AM: Ambrose to Labour.

10:58AM: Prentice to environment. The could be to negotiate new regs with the provinces when it comes to GHG emissions. Alberta will need to sit down with the federal government soon to finalize the new regulations for the oil and gas sector.

11:00AM: Baird goes to Transport/Infrastructure.

11:01AM: Cannon goes to Foreign Affairs.

11:02AM: Tony Clement goes to Industry.

11:05AM: Josee Verner to intergovernmental affairs.

11:05AM: Jay Hill to House Leader.

11:05AM: PVL to Public Safety.

11:07AM: Jason Kenney to Citizenship, Immigration and Multiculturalism.

11:08AM: Christian Paradis to Public Works.

11:09AM: James Moore to Heritage and Official Languages.

11:14AM: Gail Shea to Fisheries.

11:16AM: Gary Lunn to Sport.

11:17AM: Gordon O’Connor to Government Whip.

11:18AM: Helena Guergis to Status of Women.

11:19AM: Diane Ablonczy stays at Small Business.

11:20AM: Rob Merrifield to Minister of State (Transport).

11:22AM: Lynne Yelich to Western Economic Diversification.

11:24AM: Steven Fletcher to Democratic Reform.

11:27AM: Gary Goodyear to Minister of State for Science and Technology. Goodyear will work closely with Minister of Industry Tony Clement.

11:29AM: Denis Lebel to economic development for Quebec. Lebel will be the cash man for Quebec and this will help him electorally.

11:31AM: Keith Ashfield to ACOA.

11:32AM: Peter Kent to Secretary of State for Foreign Affairs (Americas).

Final cabinet speculation

Mostly certain:
– Prime Minister Stephen Harper
– Flaherty to stay in Finance (confirmed by numerous people in the department)
– Baird moving (confirmed)
– Clement moving
– Guergis moving (family has flown in, and hair appointment booked early AM tomorrow apparently)
– Bernier not in cabinet
– Aglukkaq in cabinet
– Prentice staying in Industry (no indication of a move from bureaucrats or political staffers up until midnight)
– Lunn moving (family has flown in)
– Verner moving
– MacKay stays in defence
– a good number of Secretaries of State named

Responsibly speculative:
– Cannon in foreign affairs (heard this from a high level source on Tuesday night)
– Kenney at CIC
– Nicholson stays in Justice
– Strahl stays at INAC
– Clement in trade
– Baird in transport
– Verner to intergovernmental affairs
– Ambrose to HRSDC
– Shea or Duncan in Fisheries
– Raitt in cabinet
– James Moore promoted

Wildly and so irresponsibly speculative:
– Raitt to get NRCan (doubtful)
– Liberal crosses the floor and enters cabinet (sourced at a high level, but I don’t see it happening. Yet, a number of Liberals staffers have been confirming they’ve heard the same rumour for days)
– Rob Moore in cabinet