Prime Minister Stephen Harper overhauled his cabinet Thursday, including appointing John Baird to replace the much-embattled Rona Ambrose as environment minister.

John Baird, who was sworn in as environment minister, is considered a star in the Tory cabinet and has been one of the few ministers allowed to speak on the government's behalf.
(CBC)

The shuffle is the first since the Conservatives came to power in January 2006.

Ambrose was made the minister of intergovernmental affairs at the morning swearing-in ceremony at Rideau Hall in Ottawa. She will also be minister of western economic diversification and president of the Privy Council.

"We recognize we need to do more on the environment," Harper told reporters after the ceremony.

Ambrose had been criticized for failing to sell the Conservative government's clean air act to Canadians. However, Harper defended her record on Thursday.

"Rona did some extremely good work," Harper said. "Frankly, a lot more was done by Minister Ambrose in one year than in 13 by the previous Liberal government."

Harper also praised Baird, who used to be president of the Treasury Board, as an experienced minister who "understands the challenges and will tackle them."

Baird, the Ottawa West-Nepean MP, was considered by many to be a star in Harper's 27-member cabinet and has been one of the few ministers allowed to speak on behalf of the government.

The CBC's Susan Bonner said Conservatives have praised his work on the Accountability Act, a response to the federal sponsorship scandal. The act was made law in December.

"He has a lot of experience, he has a proven track record at moving things to a conclusion in a minority Parliament," Harper said.

Baird said his battles with other parties over the Accountability Act were useful training for what lies ahead.

"I work well with New Democrats, work well with some Liberal MPs, and a few Bloc Québécois members," Baird said. "That's what's going to be needed in this challenge of global warming."

Nicholson named justice minister, AG

Other changes among ministers include:

• Rob Nicholson: from House leader to justice minister and attorney general.
• Vic Toews: from justice minister to president of the Treasury Board.
• Monte Solberg: from Immigration to Human Resources and Social Development.
• Peter Van Loan: from Intergovernmental Affairs and sport to government House leader and democratic reform minister.
• Diane Finley: from Human Resources to Citizenship and Immigration.

Not an 'election cabinet,' Harper insists

Harper announced the changes to his cabinet amid heavy speculation that another federal election was imminent.

Prime Minister Stephen Harper, shown outside Rideau Hall after the shuffle: 'I wouldn't call it an election cabinet because I'm not planning on calling an election.'
(CBC)

"I'd say it's a fine-tuning," he said. "I wouldn't call it an election cabinet because I'm not planning on calling an election."

Ambrose had been criticized for her performance as environment minister. Among other things, she committed a public gaffe while testifying before a Commons committee, when she was corrected on a point of fact by her assistant deputy minister.

Her new appointment puts her in familiar territory. She was the intergovernmental affairs critic after the Liberals won the 2004 election and she served as an intergovernmental affairs officer in the Alberta government.

New secretaries of state

Harper also announced six secretaries of state, including Marjory LeBreton, who remains in her position of Senate government leader but takes on the role of secretary of state for seniors.

The other five, who will not be part of Harper's cabinet, are:

• Jay Hill is secretary of state without a portfolio and chief government whip.
• Jason Kenney is secretary of state for multiculturalism and Canadian identity.
• Gerry Ritz is secretary of state for small business and tourism.
• Helena Guergis is secretary of state for foreign affairs and international trade and sport.
• Christian Paradis is secretary of state for agriculture.

The government also revealed its priorities for its second year:

• A budget to lower taxes and restore fiscal balance.
• Continued work on the crime package.
• Democratic reforms, including changes to senators' terms and appointments.
• Standing up for Canadian values on the world stage.
• More action to protect the environment and Canadians' health.

"The public's been clear to us, they want [the environment] to be a priority," Harper said. "I think it should be a priority, a priority for my children and grandchildren as much as anyone else's."

Environment seen as Achilles heel

Harper's government has faced criticism over its handling of the environment. Attacks have centred on the government's refusal to meet Kyoto greenhouse gas emission targets and its clean air act, which critics say is too weak.

'We recognize that, particularly when it comes to clean air and climate change, that Canadians expect a lot more.' -Stephen Harper

"We recognize that, particularly when it comes to clean air and climate change, that Canadians expect a lot more," Harper said after the shuffle.

A recent Decima poll shows says Canadians do not think Conservatives are doing a good job.

The poll of 1,800 people, conducted over the past two weeks, shows that the environment is the No. 1 issue for Canadians, coming ahead of health care, the military mission in Afghanistan and the economy.

Liberal Leader Stéphane Dion has made the environment a priority.