Cabinet shuffle will see Raitt demoted, Ambrose get second shot

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One of Stephen Harper's youngest ministers is getting demoted in a cabinet shuffle Tuesday as Lisa Raitt will suffer the effects of a 2009 scandal where she was taped badmouthing colleagues.

Ms. Raitt, 41, is losing her job as Canada's natural resources minister in a cabinet overhaul that's bigger than the "tweak" initially signalled by Harper government aides. Ms. Raitt is expected to take on the junior Labour portfolio.

Senior ministers - though not those in the most high-profile posts - were said to be switching jobs, including Public Works Minister Christian Paradis and Treasury Board President Vic Toews. And there was speculation that Trade Minister Stockwell Day would also change portfolio.

Labour Minister Rona Ambrose, who was previously demoted for what was perceived as a weak performance in the Environment portfolio during Mr. Harper's first mandate, was expected to receive a promotion, possibly to the Public Works portfolio vacated by Mr. Paradis.

Mr. Paradis appeared set to replace Ms. Raitt at Natural Resources, sources said.

The shuffle, expected since Mr. Harper prorogued Parliament to "recalibrate" his government's agenda, is expected to be larger than the mini-shuffle originally signalled when Veteran Affairs Minister Greg Thompson resigned his post this week.

There was speculation that Revenue Minister Jean-Pierre Blackburn would take Mr. Thompson's post. But broader changes are now in store.

Public Safety Minister Peter Van Loan was expected to be moved after Conservative insiders indicated that Mr. Harper was dissatisfied with his performance at the department that oversees prisons, Canada's spy agency, and the RCMP. There were reports that Mr. Toews - this week rumoured to be on his way out of cabinet - was in line to replace him.

The most senior ranks of the cabinet, including Finance Minister Jim Flaherty, Defence Minister Peter MacKay, and Foreign Minister Lawrence Cannon, were to stay put, according to insiders.

Ms. Raitt's demotion suggests that although Mr. Harper defended her last year after an embarrassing controversy, he did not forget.

With the government under attack for the extended shutdown of Atomic Energy of Canada Ltd.'s Chalk River - which cut the supply of medical isotopes needed for tests and treatment to Canada and much of the world - her aide left a damaging tape on the desk of a reporter in which Ms. Raitt criticized a cabinet colleague, Health Minister Leona Aglukkaq, and then left confidential documents at the offices of CTV News.

Mr. Harper is now set to switch Ms. Raitt to a relatively minor post.

With reports from The Canadian Press, Steven Chase, Jane Taber and Patrick White