Carney Speaks on Why He Joined Liberals; Mum on Future in Politics

Former Bank of Canada governor Mark Carney speaks to reporters at the Liberal caucus retreat in Nanaimo, B.C., on September 10, 2024. Darryl Dyck/The Canadian Press

In explaining his decision to help the Liberal Party now, former Bank of Canada governor Mark Carney said he couldn’t turn down a request from the prime minister.

The Liberal Party announced on Sept. 9 that Carney would serve as chair of Justin Trudeau’s task force on economic growth ahead of the next election. The new role is a party appointment, not a government one.

Carney spoke to reporters on Sept. 10 after addressing the Liberal caucus meeting during its retreat in Nanaimo, B.C.

Asked why he decided to help the Liberals at this time, when the party has faced multiple setbacks and trails the Tories by a large margin in the polls, Carney said he abides by a “couple of simple rules.”

“One, if a prime minister of Canada asked me to do something, I will do it,” he said. “I will serve to the best of my ability.”

Trudeau said in July he tried to convince Carney “for years” to enter federal politics.

Carney has previously not denied being interested in running for Liberal party leader but he dodged questions about his political future and whether he intends to run in an election.

“The story for today and the tasks that I’ve taken on—it’s a big task, it’s an important task—but I’m the catalyst in a much broader effort,” he said.

Carney said his second reason for taking the adviser role is that he has experience in economic issues and is interested in helping Canada grow its economy.

Liberal ministers have touted Canada’s economic strength and celebrated the Bank of Canada’s lowering its policy rate as a sign that inflation is taming and that their economic policies are sound.

At the same time, Treasury Board President Anita Anand announced in late August her government was striking a working group to look at productivity issues and GDP per capita, which has significantly fallen behind the U.S. in the last 10 years. The gap currently stands at over US$30,000.

Carney served as head of Canada’s central bank from 2008 to 2013, and as governor of the Bank of England from 2013 to 2020. He is currently the chair of Brookfield Asset Management and Head of Transition Investing and serves as the United Nations Special Envoy for Climate Change and Finance.

Carney’s economic viewpoint and current work experience circle around the issue of transitioning away from hydrocarbons, in line with policies implemented by the Liberal government.

“Every major economy is accelerating their energy transition and being low carbon is becoming a key driver of competitiveness,” he said.

Carney said being a low carbon economy is going to be a “determinant” of whether Canada can access major markets like the U.S. or Europe to sell its products.

Carney made the comments after being asked whether he would be advising the Liberals to make changes to the carbon tax. He told a Senate committee in May the carbon tax, or fuel charge, had “served a purpose up until now” and that “one can always look for better solutions.”

The carbon tax applies to various forms of hydrocarbons and currently adds over 17 cents per litre of gasoline in some provinces and territories and will rise above 37 cents per litre by 2030. It’s been a major bone of contention between the Liberals and the Conservatives, who want to repeal the tax.

Several ministers spoke in favour of Carney’s addition to the Liberal team on the margins of the caucus retreat.

“Mark is a personal friend of very long standing,” said Finance Minister Chrystia Freeland. “He’s someone who I talk to often and whom I talk to often about economic policy since becoming finance minister.”

Foreign Affairs Minister Mélanie Joly said it’s “good news” Carney will provide help with economic issues.

Trudeau and the Liberals are looking for something positive to look forward to after setbacks over the summer. Those include losing a stronghold riding in Toronto to the Tories and the NDP pulling out of the deal to keep their minority government in power.