Flahertys departure spells political uncertainty for Stephen Harper

OTTAWA Prime Minister Stephen Harpers government is suddenly staring political uncertainty in the face after the loss of its rock in cabinet.

Jim Flaherty was the only finance minister Harpers governing Tories ever knew. He delivered 10 budgets for the government and guided the country through the 2008-09 recession.

And now, just a year before the next election, Harper must pick a replacement and hope that person carries the same message of credibility to both voters and the markets.

Flaherty is leaving the federal treasury with a looming surplus of $6.4 billion in 2015-16 after several years of being in the red.

At the same time, he has stirred up a debate over whether the Tories unfulfilled promise from the last election of income-splitting for families is solid policy or a bad move for Canadian society.

The next finance minister will have less than a year to craft a budget that Harpers Tories can bring into the next campaign as their ticket to re-election.

CBC and CTV News reported Tuesday night that the next finance minister will be Joe Oliver, who currently holds the natural resources portfolio. The announcement will be made Wednesday.

Harpers choice among existing cabinet ministers there is no obvious standout successor in the wings could have political ramifications right up to voting day, on Oct. 19, 2015.

By the same token, it could either scare investors about the steadiness of Harpers economic policies, or provide a dollop of relief that there is no major change in the wind.

It is an important development, BMO Capital Markets chief economist Doug Porter said Tuesday of the resignation.

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Flahertys departure spells political uncertainty for Stephen Harper