Smith was promoted to cabinet on January 17, 2001 as Minister of Consumer and Corporate Affairs, with responsibility for administration of the Liquor Control Act.
[6] In May 2002, Smith introduced legislation giving investors the right to seek financial compensation from advisers who mismanage funds through violations of the Manitoba Securities Act.
[7] Smith also introduced legislation to protect customers from negative option billing, and reformed provincial laws concerning reverse mortgages.
[8] As Minister responsible for the Liquor Control Act, Smith indicated that his government would not expand the number of private wine stores in the province.
[11] Due in part to extra revenue from this change, the Manitoba Liquor Control Commission's net profits increased by $4.7 million in the 2001-02 year.
[15] Premier Gary Doer shuffled his cabinet on September 25, 2002, and appointed Smith as Minister of Transportation and Government Services with responsibility for Emergency Measures and administration of the Manitoba Lotteries Corporation Act.
In October 2002, Smith instructed drivers of the province's fleet vehicles to purchase environmentally friendly ethanol fuel in areas where it was reasonably available.
[19] In the same year, he joined with federal cabinet minister Rey Pagtakhan to announce significant upgrades to Manitoba's highway system.
[24] Smith was also in charge of the provincial government's efforts to maintain economic viability for the financially troubled port city of Churchill in northern Manitoba.
[28] He was promoted to Minister of Industry, Economic Development and Mines on November 4, 2003, retaining responsibility for Emergency Measures and the Manitoba Lotteries Act.
Smith helped oversee the controversial expansion of Manitoba's pharmaceutical sector, and defended local retailers who profited from the sale of medicine to American buyers.
[29] Smith also worked with Manitoba beef farmers through the summer of 2004, in an effort to purchase a new slaughterhouse with thorough bovine spongiform encephalopathy testing procedures.
Shortly after his appointment, Smith announced that the Doer government would not proceed with a series of controversial changes to the provincial Planning Act.
Representatives from major cities brought forward an alternate proposal, wherein 90% of the funds would be made available on a per capita basis and 10% put directly toward public transit in urban centres.
[42] In March 2005, he introduced legislation allowing Manitoba to sign mutual agreements for emergency preparedness with other provinces, American states, and countries.
[45] After another cabinet shuffle on September 21, 2006, Smith was designated as Minister of Competitiveness, Training and Trade while retaining responsibility for Lotteries and the Liquor Control Act.
[47] Smith presided over a continued expansion in Manitoba's manufacturing sector, with Statistics Canada reporting the creation of 3,000 new jobs in January 2007.
[48] Smith announced modernizing reforms to the Liquor Control Act in late 2004, giving private wine stores the right to sell drinks such as brandy and cognac.