Governor General Michaelle Jean and Prime Minister Stephen Harper pose with members of the new cabinet following a ceremony at Rideau Hall in Ottawa on Thursday. (Adrian Wyld/CP)Prime Minister Stephen Harper expanded his cabinet Thursday, adding more female ministers and keeping veteran members in key portfolios as the government faces uncertain global economic times.

Harper increased his cabinet to 38 members from 31, and now has 11 women in cabinet, up from seven previously.

Former environment minister John Baird took over Transport, a post previously held by Quebec MP Lawrence Cannon, who moved to Foreign Affairs.

Tony Clement, who had been the health minister, replaced Jim Prentice in Industry, and will quickly have to deal with a manufacturing sector crisis that has hobbled the auto industry in his home province. Prentice took over Environment.

But Jim Flaherty and Peter MacKay remained in two of the major cabinet positions, Finance and Defence, respectively.

"The new cabinet introduced today is composed of an experienced team that's prepared to work on behalf of all Canadians," Harper said, at a news conference following a ceremony at Rideau Hall in Ottawa.

He also said, "This is the right team for these times. We will build a foundation of strength that will protect the earnings, savings and financial security of Canadians and ensure that Canada emerges from this time of global turmoil stronger than ever before."

But Liberal deputy leader Michael Ignatieff told CBC News, "Mr. Harper used the word team. The question is, is it a team or a one-man band as before?"

Ignatieff also criticized Harper's decision to keep Flaherty as finance minister.

"Keeping Mr. Flaherty says our economic policy so far has been good for Canadians. We in the Liberal opposition think it's been bad for Canada, because he made some tax cuts that left us no room to help Canadians in tough times."

Speaking Thursday after the cabinet announcement, Cannon defended Flaherty's efforts to protect the Canadian economy.

"My colleague, Jim Flaherty, is doing a lot of work and Canada is showing a lot of leadership in this area and I think that that is something that we all should be proud of as Canadians," Cannon said during an interview on CBC's Politics.

The newly appointed Foreign Affairs minister acknowledged much of his future efforts will be spent on issues of cooperation between Canada and the U.S. as the two countries struggle to stave off more economic fallout.

"The issue that confronts Canada as well as the United States and the rest of the world, of course, is the instability, the volatility in the marketplace," Cannon said.

More women in cabinet

Rookie female MPs were also given prominent cabinet positions, including Leona Aglukkaq, Nunavut's former health minister, who takes over the federal Health Ministry, and Toronto-area MP Lisa Raitt, the former chief executive officer of the Toronto Port Authority, who becomes the natural resources minister.

Gail Shea, a longtime provincial minister who won the P.E.I. riding of Egmont, has been given the Fisheries Ministry.

Other significant shuffles include:

• Stockwell Day, who will move to International Trade from Public Safety, a post now held by Peter Van Loan.
• Jason Kenney, who takes over Citizenship and Immigration.
• James Moore, the current secretary of state for the 2010 Winter Olympic Games, who takes over Heritage.

Cabinet ministers remaining in their posts include:

• Christian Paradis, minister of Public Works.
• Robert Nicholson, minister of Justice.
• Chuck Strahl, minister of Indian Affairs.
• Vic Toews, president of the Treasury Board.
• Beverley J. Oda, minister of International Co-operation.

• Gregory Thompson, minister of Veterans Affairs.

Agriculture Minister Gerry Ritz, who sparked controversy over jokes he made during the listeriosis outbreak, also remains in his post.

Some newly elected MPs were given junior cabinet roles, including Toronto-area MP Peter Kent, a former broadcaster, who has been named minister of state (Foreign Affairs, Americas); and Fredericton MP Keith Ashfield, minister of state (Atlantic Canada Opportunities Agency).

Rona Ambrose, who had been the minister of Intergovernmental Affairs following what was viewed as a demotion from Environment, has been moved to Labour.

Josée Verner, the previous minister of Culture, takes over Intergovernmental Affairs, in a move that is seen by some as a demotion following controversial cuts to arts just before the election campaign.

The cuts may have scuttled Tory electoral fortunes in Quebec and deprived the party of a majority.

The shuffle follows the Oct. 14 election in which the Conservatives won 143 of the 308 House of Commons seats.

The government will kick off the new session of Parliament with a throne speech on Nov. 19.

With files from the Canadian Press