Finance Minister Ralph Goodale has retained his spot in the new cabinet of Prime Minister Paul Martin, signaling no drastic changes in the Liberal agenda as it relates to economic and fiscal policy.

That could also be good news for bank mergers. Goodale has been a proponent of bank mergers and said shortly after the June 28 election that the minority Liberal government will press ahead with new guidelines. The announcement came as a surprise as many observers had predicted that a minority government would shy away from the controversial issue.

The Liberals expect to provide a formal position on the mergers issue in the fall.

Goodale has also said that Ottawa’s multibillion-dollar sale of shares in Petro-Canada is proceeding as planned.

In other cabinet moves Tuesday, Anne McLellan remains as deputy prime minister and public safety minister, while former veterans affairs minister and Royal Bank of Canada economist John McCallum becomes minister of national revenue and Jim Peterson remains at International Trade.

There will be eight new faces enter the 38-member cabinet, including former B.C. premier Ujjal Dosanjh, B.C. forestry executive David Emerson, former Montreal Canadiens hockey great Ken Dryden, former Tory Scott Brison and long-serving backbencher John Godfrey.

Dosanjh takes over the crucial Health portfolio from Pierre Pettigrew, who moves to Foreign Affairs. There he replaces Bill Graham, who becomes national defence minister in lieu of Pratt.

Dryden takes on the Social Development portfolio from Liza Frulla, who moves to Canadian Heritage to replace the defeated Scherrer.

Other high-profile appointments or changes:

  • :Stephane Dion, Jean Chrétien’s former intergovernmental affairs minister, is back in favour and the cabinet after throwing himself wholeheartedly into helping re-elect Martin, who had demoted him. He is Canada’s new environment minister;
  • Jean Lapierre, who left the Liberals in 1990 to help create the Bloc Québécois before returning to his old party at Martin’s invitation, transport minister and Quebec lieutenant;
  • Former Canfor executive David Emerson of British Columbia becomes industry minister;
  • Toronto-area MP John Godfrey will handle the new Infrastructure and Communities portfolio, which will play a key role in shoring up Liberal support in Canada’s largest municipalities;
  • Scott Brison, who ran for the leadership of the soon-to-be-defunct Progressive Conservative Party in the spring of 2003, then switched to the Liberal party in December, takes over the portfolio of Public Works, home of the sponsorship scandal;
  • Former transport minister Tony Valeri is the new government house leader in the House of Commons, an important role in a minority government as the Liberals negotiate with the opposition partiesto move legislation through Parliament;
  • Stephen Owen moves from Public Works to Western Economic Development and the minor portfolio of Sport;
  • Lucienne Robillard is the new intergovernmental affairs minister and president of the Privy Council, moving from Industry;
  • Tony Ianno was rewarded for beating NDP star Olivia Chow in Toronto Spadina, becoming minister of state for families and caregivers;
  • Albina Guarnieri becomes the new veterans affairs minister;
  • Jacques Saada is the new minister of economic development for Quebec and minister responsible for the Francophonie;
  • Andy Mitchell moves from Indian and Northern Affairs to Agriculture and Agrifood, taking on the troublesome BSE file;
  • Former minister Andy Scott of New Brunswick is back in cabinet as minister of Indian and northern affairs;
  • Former labour minister Claudette Bradshaw is minister of state for human resources development;
  • Joe Fontana is the new labour and housing minister;
  • Mauril Belanger becomes deputy leader of the government and minister for official languages, as well as associate minister of national defence; and,
  • Raymond Chan is the new minister of state for multiculturalism.

    Among the ministers staying in the same portfolios are Reg Alcock at Treasury Board, Irwin Cotler at Justice and the Attorney-General’s Office, Carolyn Bennett at Public Health, Joe Volpe at Human Resources and Skills Development, Geoff Regan at Fisheries and Oceans, Judy Sgro at Citizenship and Immigration, Aileen Carroll at International Co-operation, Joe McGuire at ACOA, John Efford at Natural Resources, and Joe Comuzzi as the minister of state for the Federal Economic Development Initiative for Northern Ontario .