Trudeau set to form minority government in Canada

CANADIAN Prime Minister Justin Trudeau hung onto power after a tight election on Monday that saw his government reduced to a minority, results that will likely push his agenda to the left while alienating energy producing provinces.

Trudeau, one of the world’s most prominent progressive politicians, struggled domestic scandals. He now looks set to govern with support from the left-leaning New Democrats, who have 24 seats.

His Liberals did not win any seats in the oil-rich provinces of Alberta and Saskatchewan. The party was leading or elected in 157 seats, a decrease of 20, preliminary results showed.

Minority governments in Canada rarely last more than 2-1/2 years. Although the New Democrats lost 16 seats, leader Jagmeet Singh is positioned to press for action on priorities such as more social spending and increased action on climate change.

One senior Liberal noted that many legislators need to serve another two years to meet the six-year requirement for a Parliamentary pension.

“That gives us a pretty free hand for that period,” said the Liberal, who requested anonymity given the sensitivity of the matter.

The New Democrats struck deals to help keep Liberal minority governments in power from 1972-1974 and in 2005.

Investors worried

Together the two parties can muster a majority 180 seats in the 338-seat House of Commons.

The Canadian dollar weakened 0.2 percent to US$1.3120, or US cents 76.22, as investors worried about how the minority government would manage the resource sector.

Canada’s main stock index edged higher at the open.

Trudeau visited Montreal’s subway, posing for selfies with commuters early yesterday, an echo of 2015 when he did the same thing. But Trudeau barely mentioned the loss of his majority when he spoke to supporters yesterday, saying he had “a clear mandate” for a progressive agenda and more action to combat global warming.

This is unlikely to please the western provinces of Alberta and Saskatchewan, which cast out every Liberal legislator amid anger over what the energy industry sees as overly stringent environmental rules.

The most prominent victim was Public Safety Minister Ralph Goodale, one of Trudeau’s top cabinet members.

Trudeau’s liberal image took a blow early in the campaign when photos emerged of him wearing blackface in the early 1990s and in 2001.

He had already been wrestling with the fallout from accusations he pressured former Justice Minister Jody Wilson-Raybould to help shield engineering firm SNC-Lavalin Group Inc from corruption charges. In August, a top watchdog said he had breached ethics rules.

(Reuters)