Politics Liberal caucus rallies behind Dion; Frank McKenna gets call to serve on economic panel

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Rob Linke
Telegraph-Journal

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OTTAWA - The Liberals and NDP stayed on their historic course Monday to topple the Conservatives within a week, unveiling an unprecedented agreement to govern in a coalition to be led for barely six months by Stéphane Dion.

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The Canadian Press

Liberal leadership candidates Dominic LeBlanc, left, Michael Ignatieff, centre, and Bob Rae throw their support behind Liberal Leader Stéphane Dion for a coalition government following a caucus meeting on Parliament Hill in Ottawa on Monday. The Liberals have reached an agreement to form a coalition government with the New Democrats, backed by the Bloc Québécois.

The Canadian Press

NDP Leader Jack Layton, Liberal Leader Stéphane Dion and Bloc Leader Gilles Duceppe speak with the media after signing agreements on Parliament Hill in Ottawa on Monday.

The opposition plans to vote down the minority Tories in a scheduled confidence vote next Monday.

It will then be up to Gov. Gen. Michaëlle Jean to decide whether to call an election or let the Liberal-NDP coalition govern. The Bloc Quebecois has agreed to support the coalition for 18 months.

Dion has written Jean advising that he has the confidence of the House of Commons to form a government should the Conservatives fall.

The Opposition leader, who in the wake of a disastrous election result for the Liberals just two months ago announced he would step down as soon as a successor was chosen, defended the coalition deal at a news conference, flanked by NDP leader Jack Layton and Bloc leader Gilles Duceppe.

"The three of us felt we had a responsibility to explore this possibility," said Dion. "Canadians elected 308 members of Parliament, not just Stephen Harper."

A grim-looking Environment Minister Jim Prentice countered at a Conservative news conference within the hour: "I say again, only six weeks after an election, an attempt to impose upon Canadians a coalition that they did not elect, supported by the separatists, not placed before the Canadian public in the election, is not reasonable - and is not what we should support as Canadians."

Prentice ended his remarks with a plea for calm and cooler heads - yet his voice trembled.

No wonder, on a day of momentous developments.

The dizzying decisions include the Liberal caucus deciding to rally behind Dion.

That leaves one New Brunswicker - Dominic LeBlanc - in the three-man race for the Liberal leadership, a contest that will be about immediately leading the country come May, rather than rebuilding the party through a long stretch in opposition.

LeBlanc could be in line for a position in the coalition government's 24-member cabinet.

Speculation holds that it will be tempting for Dion to give the three men vying to replace him - LeBlanc and Toronto MPs Michael Ignatieff and Bob Rae - the added exposure of a cabinet role.

"I would think they would want to be in cabinet," said Université de Moncton political scientist Donald Savoie. "My guess is they'd say yes if asked."

But some Liberals say it would be asking too much to have the candidates in cabinet while trying to rebuild the Liberal machine.

Dion will name all the cabinet ministers, 18 of them Liberals and six from the New Democrats.

"I will choose from these two parties those who have the best talents and skills, regardless of the leadership race," said Dion, adding a comment as to "the high regard" in which he holds all three.

Another New Brunswicker - former premier Frank McKenna - may vault onto a blue-chip panel of economic advisers to the Liberal-NDP coalition.

The Liberals have asked McKenna, now deputy chairman of the TD Bank Financial Group, to join former prime minister Paul Martin, former deputy prime minister John Manley and former Saskatchewan NDP premier Roy Romanow on the panel.

McKenna is awaiting details before agreeing to serve, said his spokesman.

"McKenna would bring knowledge, energy and a perspective from Atlantic Canada and from the private sector," said Savoie.

"If they can get a McKenna to serve in that capacity, it'd be a hell of a positive signal."

As for the size and speed of coalition spending to boost the economy or cushion laid-off workers, there are more assurances than specific answers.

Dion and Layton unveiled an economic "policy accord" which includes:

*"‚recognizing that the federal government is in deficit, which Flaherty denied;

*"‚speeding up infrastructure spending and making "substantial" new investments in such things as housing, transit, clean energy, water and trade gateways;

*"‚investing in key sectors such as forestry, manufacturing and the auto industry;

*"‚an income support program for laid-off older workers close to receiving retirement benefits;

*"‚introducing a cap-and-trade system for carbon emissions, but not a carbon tax;

*"‚eliminating the two-week waiting period for Employment Insurance claimants.

Both Madawaska-Restigouche Liberal MP Jean-Claude D'Amours and Acadie-Bathurst NDP MP Yvon Godin have fought for years to eliminate the waiting period.

"This is a victory for me," said D'Amours. "I don't believe in punishing laid-off workers who need to pay the rent and buy groceries."

The coalition does not plan to cancel more than $30 billion in tax cuts the Conservatives announced in their 2007 fall economic statement, which the NDP has called for and campaigned on.

The inevitable contradictions in Liberal, NDP and Bloc policies were fodder for the Conservatives in question period.

Flaherty quoted prominent Liberals calling NDP economic policy "delusional" and "clueless," and mocked the Liberals for cozying up to such "newfound friends."

Tobique-Mactaquac Conservative MP Mike Allen echoed the government message line in a member's statement before question period.

"While the Liberals, NDP and separatists are negotiating a backroom deal that would allow them to seize power without earning it in an election, we are accelerating investment in infrastructure, protecting seniors and working with the provinces and our G20 partners to inject even more stimulus into the Canadian economy," said Allen.

In an interview, Allen said that all weekend, constituents were telling him their biggest concern was "the Bloc - the separatists - holding the balance of power.

"That's very troubling - what extra concessions is that going to mean for Quebec and from a spending standpoint?"

D'Amours said the Conservatives - nearly all of whom are using the same language - are going too far by using the language of "a coup" or "seizing" power.

Dion, too, anticipated Canadians will be confused to see power about to change hands without an election.

"I am sure all Canadians are asking 'what will happen now?'" he said, then explained that the governor general has a responsibility, once the Conservatives are defeated, to ask if a government can be formed that has the confidence of the House of Commons.

Dion has written Jean asking her to "exercise her authority at the earliest opportunity."

Most constitutional experts agree that Jean would have little choice but to invite the coalition to try their hand at government, rather than calling a second election in two months.

But there were rumours the Conservatives might try other tactics, including asking Jean to prorogue Parliament until early in the new year.

Moncton-Riverview-Dieppe Liberal MP Brian Murphy said if the Conservatives want to point fingers at strange bedfellows in politics, they should look in the mirror.

"I never thought I'd see Hatfield Progressive Conservatives, sitting with hang 'em high Reform Party types," he said.

Layton also took pains to address worries about the NDP - which has never held power federally - being given influence over economic levers.

Said Layton of the coalition: "we will form a prudent, responsible government."

LeBlanc did not respond to requests for an interview, but did appear shoulder-to-shoulder with Ignatieff and Rae right after the Liberal caucus met.

"We've decided the only person - the best person - to lead and form a coalition government is the elected leader of our party, the Leader of the Opposition Stéphane Dion."

Speaking in French, LeBlanc went on to say the leadership campaign would continue to unfold in a positive, respectful manner.

Independent Nova Scotia MP Bill Casey, the former Conservative who opposed Harper on the Atlantic Accord and broke with the party, reflected late in the afternoon on what he thought was at the root of these events.

He pinpointed what he sees as Harper's political Achilles heel.

"Aggressive disrespect," said Casey, arguing Harper never acted like he realized he was governing in a minority and needed the support of the other parties.

Veterans Affairs Minister Greg Thompson did not have a front-row seat for the day's events. The veteran MP, third on the order of precedence in cabinet (which generally flows from length of service), was on a flight that could not get out of Saint John because of the fog.