Chrétien, Broadbent brokering possible coalition: reports
Former Liberal prime minister Jean Chrétien and ex-NDP leader Ed Broadbent are reportedly talking about a potential coalition between the two parties following widespread disagreement over measures proposed in the minority Conservative government's fiscal update.
Last Updated: Friday, November 28, 2008 | 11:17 AM ET CBC News

 

Former Liberal prime minister Jean Chrétien and ex-NDP leader Ed Broadbent are reportedly talking about a potential coalition between the two parties following widespread disagreement over measures proposed in the minority Conservative government's fiscal update.

The Canadian Press cited a senior NDP official as saying negotiations began Thursday soon after Finance Minister Jim Flaherty revealed the government's first economic update since re-election six weeks ago.

All three opposition parties �?the New Democrats, Liberals and Bloc Québécois �?have criticized the plan for not including a stimulus package to help boost Canada's slumping economy.

Also at issue was a proposal to save money by cutting public subsidies for political parties.

Prime Minister's Office spokesman Kory Teneycke told CBC News on Friday that the government won't tie that issue to the fiscal budget set for a confidence vote on Monday. The move eliminates one of the key points of contention.

"This is pure political self-interest and they are doing this in the most undemocratic fashion," said Teneycke.

Meanwhile, Flaherty also sought to reassure Canadians that a stimulus package is still in the cards if the economic situation doesn't improve.

 

Chrétien evades reporters
But the possibility of another federal election still appeared to loom, and there was word Friday that NDP Leader Jack Layton had cancelled a visit to Vancouver to stick around Ottawa.

According to the Canadian Press, an NDP official said Layton had asked Broadbent to call Chrétien with hopes the two elder statesmen might finesse a deal for the two parties to defeat the minority government and form a coalition with support from the Bloc.

The NDP official, who spoke on condition of anonymity, said the two former leaders spoke at least four times and will continue talking Friday.

The news agency also said an unnamed Liberal MP confirmed the talks were going on, and said Broadbent was scheduled to have a morning meeting with Layton.

Questioned about the reports in Ottawa, Chrétien feigned an inability to understand English. "Je ne comprends pas anglais," he said.

 

Fiscal update a 'pathetic scam'
In the House of Commons, Liberal MP Ralph Goodale called the economic update a "pathetic scam" to cut political party subsidies and sell assets in order to hide the Conservative government's mismanagement that put the country into the red.

"Canada is on the cusp of recession, the Conservatives are falling back into deficit, Canadians are facing the worst economic crisis since the 1930s and the Conservatives have no plan," said Goodale.

"There is no new stimulus. And all they can say is 'Wait, wait, wait."

Ted Menzies, parliamentary secretary to the finance minister, said opposition parties had "misconstrued" the fiscal update for the final budget, scheduled for release early next year.

He said the annual budget will include plans currently underway to help industries in Canada.

 

Tories won't back down (Note: The Tories have already started backing down despite their claims to the contrary.)
Speaking to CBC News on Friday morning, Foreign Affairs Minister Lawrence Cannon didn't respond to reports of coalition talks but reiterated that his party won't back down in the face of opposition.

"We have come forward with our plan, with our fiscal and economic update and whatever happens we'll see what happens, but this is our position," said Cannon.

"We are willing and ready to defend that position no matter the outcome."

He defended the lack of a stimulus package, saying Canada was "ahead of the curve" thanks to Conservative measures such as lowering the GST.

Flaherty's mini-budget proposes strict limits on federal spending and bans public-sector strikes through 2011.

Under the mini-budget, the government would also sell $2.3 billion in government assets and save another $2 billion through salary controls for public servants, MPs and senators.

 

Vote on package goes Monday
Cannon said the plan is indicative of the Conservatives' approach to "lead by example" and ensure everyone is living "according to our means."

The House of Commons is scheduled to vote on the package on Monday. If the opposition parties oppose the Conservative motion, they could topple the government and then request that the Governor General allow them to form a coalition government.

The Liberals were second in the Oct. 14 election with 77 seats to the Conservatives' 143, and would require the support of both the Bloc and New Democrats to form a coalition.

The Bloc holds 49 seats, the New Democrats have 37 and two MPs are Independents.

 

"We are deadly serious about opposing this measure," Liberal MP John McCallum told CBC News. "We will vote against it. Every Liberal. There is no doubt about it.

The Liberal finance critic called the mini-budget "pathetic and pernicious" for failing to take action on the economy and claiming to balance the budget in the face of several economist reports predicting a deficit.

 

'Heading for a clear confrontation'
NDP finance critic Thomas Mulcair pointed out that the opposition parties often work together in the House of Commons, and said contact has increased in the past 48 hours following Harper's "brazen" mini-budget.

"We're heading for a clear confrontation. We're not going to back down from this," he told CBC News.

Mulcair argued that a majority of Canadians did not cast their ballot for the Conservatives, and those voters would likely be happy to see the party out of government.

"I would tell those Canadians they just might get a Christmas present next week and have the Conservatives turfed, which is exactly what they deserve for their mismanagement of the economy, their failures to bring in a stimulus package," said Mulcair.

But Flaherty remained unperturbed about the brewing showdown, saying he expects some "sober second thought" on the fierce opposition.

 

With files from the Canadian Press