A deepening rift between Prime Minister Justin Trudeau and his finance minister about coronavirus spending can be fuelled by disagreements over the scope and scale of proposed green initiatives, three sources aware of the matter said.

Trudeau and Finance Minister Bill Morneau are scheduled to fulfill on Monday in a bid to sort out their differences, said a fourth source aware of the meeting. The sources requested anonymity given the sensitivity of the situation.

Morneau and his team have pushed back against other cabinet ministers about how much funding was needed, including to what extent the recovery may very well be helped by investing in environmental projects, the people added.

Trudeau, who campaigned on a platform to tackle climate change, believes the 2021 budget must have an ambitious environmental element to start out weaning the heavily oil-dependent economy off fossil fuels and has recently hired former Bank of England governor Mark Carney as an off-the-cuff adviser, aides say.

The appointment, coupled with a Globe and Mail report that Trudeau and Morneau had clashed over the amount of cash Ottawa is spending to combat the coronavirus, led to speculation concerning the way forward for the finance minister. Morneau, 57, has been within the job for the reason that Liberals took power in late 2015.

Asked for a response to the Reuters reporting, Trudeau spokesman Cameron Ahmad noted the prime minister issued an announcement on Tuesday saying he had “full confidence” in Morneau, who confidants say is alarmed by ballooning budget deficits.

Environment Minister Jonathan Wilkinson together with Infrastructure Minister Catherine McKenna, who’s a former environment minister, have met with top civil servants to debate options that would involve billions of dollars in extra spending, said one in all the three sources aware of the matter. Heritage Minister Steven Guilbeault, a life-long green activist, also attended the meetings.

Morneau’s resistance to expensive environmental initiatives reflects his roots in Bay Street, Toronto’s financial centre, and a view held amongst right-leaning Liberals that deficits are uncontrolled.

“The concept of greening the economy just by spending money on every project you may have in front of you is just not really serious,” said a fifth source sympathetic to Morneau’s position.

Possible budget measures range from investments to assist provinces reduce their carbon footprint, boosting research into clean technology and inspiring the development of efficient buildings.

“Morneau has been saying: ‘We’d like to get a grip’. And that isn’t all the time popular,” said one in all the three sources aware of the matter.

The offices of Morneau and the three ministers didn’t reply to requests for comment.

Canada’s budget deficit is forecast to hit $343.2 billion, the most important shortfall for the reason that Second World War, this fiscal yr. Total coronavirus support is sort of 14 per cent of gross domestic product.

“He was not very keen on an enormous deficit; that’s not what he wanted as his legacy,” said a sixth source aware of Morneau’s considering.

Problems between a finance minister and colleagues with ambitious and expensive proposals should not unusual. “Each department in government that spends money finally ends up butting heads with Finance,” said the fifth source.

But Morneau is feeling increasingly isolated at the cupboard table, with no close allies amongst his colleagues, in accordance with the source.

Adding to Morneau’s challenges, several cabinet members were upset when he revealed that he had forgotten to repay $41,366 in travel expenses covered for him by a charity at the guts of an ethics probe, one in all the three sources said. Each Morneau and Trudeau are facing ethics inquiries related to the charity.


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