Flaherty quits as finance minister

(Updated)
The prime minister’s right hand man is stepping down. Jim Flaherty has been the federal finance minister for nearly a decade — and now he’s announced his resignation. The bombshell came down late Tuesday afternoon.

Flaherty says he informed the Prime Minister Monday that he is resigning from cabinet. He says he made the decision with his family earlier this year. Flaherty, who represents the Ontario riding of Whitby-Oshawa, has been struggling with health challenges over the last year — but says he is on the road to a full recovery. He says the decision to leave politics is unrelated to his health, but is instead simply ‘the right decision for me and my family at this time.’

In the Finance Minister’s statement, he tries reassuring Canadians that things will stay on track through to 2015: “My goal was always to get Canada back on track to a balanced budget, after the large deficit we agreed was necessary in Budget 2009, to combat the Great Recession and protect Canadian jobs. As outlined in Budget 20-14, I followed through on that commitment. There is no doubt that Canada’s budget will be balanced in 2015. Canada’s fiscal position is the envy of the developed world. All Canadians can be proud of the country’s performance.”

Now in response — the Prime Minister issued a statement of his own: “It is with great reluctance that today I accepted the resignation from cabinet of Jim Flaherty, minister of finance. Canada has benefited immensely from Minister Flaherty’s contributions as one of the longest serving finance ministers in our history.

“Since 2006, he has been a steady hand, ably guiding Canada through the most challenging economic times since the great depression and gaining the country a solid global reputation for economic management.”

The Prime Minister says he will announce Flaherty’s replacement in the coming days.

Flaherty’s provincial counterpart in Ontario is also reacting to this news tonight. Charles Sousa says: “I have always respected minister Flaherty’s leadership and stewardship of the economy. I enjoyed working with him on many files, including the creation of a cooperative securities regulator. He is also compassionate, having spearheaded programs and initiatives to help those most in need. He has been a long-time public servant and I appreciate his dedication to our province and our country. His intentions are always good and I thank him for representing Canada well on the global financial stage. I wish Jim Flaherty the very best as he moves back to the private sector.

Marvin Ryder from the DeGroote School of Business provided analysis of the Flaherty resignation.

Video:  More from Marvin Ryder on Flaherty’s resignation and legacy:

Image: Jim Flaherty via Twitter