In 1982, he became Deputy Government House Leader, and joined the Canadian Cabinet in 1983 as Minister of State for Small Businesses and Tourism.
Smith was appointed to the same position when John Turner succeeded Pierre Trudeau as Prime Minister of Canada in 1984.
Smith returned to the legal profession and served as Chairman Emeritus of Dentons LLP, one of Canada's largest law firms.
[1] In the 1990s, he worked as a senior backroom adviser to Liberal leader Jean Chrétien and played a leading role in the party's election campaigns.
He was later appointed by Liberal leader Stéphane Dion to serve as party's National Campaign Co-Chair with Mark Marissen and Nancy Girard.