Print

Mail

wiki links

Canada's Liberals retain power, but lose their majority

Canada's ruling Liberals hung on to power after Monday's federal election, but lost their comfortable majority in parliament and cannot now govern without the support of the left-leaning New Democrats.

The Liberals of Prime Minister Paul Martin, in power for a decade, did better than many had predicted. But they paid the price for voter fatigue and a scandal over government spending and won just 135 of the 308 seats in parliament.

The result gives Canada its first minority government in 25 years -- a potentially unstable scenario that could lead to another election within a couple of years.

The preliminary tally, reported by Elections Canada, gives 99 seats to the opposition Conservatives and 19 to the New Democrats.

This means the Liberals and New Democrats, who have co-operated in previous minority governments, are just one seat short of the 155 needed for a majority. But the close vote means recounts are likely in several districts, so the final tally could change.

"We as Liberals have lost votes, we have lost good members of parliament ... Canadians expected, and expect, more from us," Martin told supporters in Montreal.

"As a party and as a government we must do better and we will. I pledge that to you tonight ... This is the first minority government in a generation. It's unfamiliar terrain, but we are up to the challenge, and we will embrace it," he said.

Market reaction was muted and the Canadian dollar barely moved.

"With the Liberals remaining, one would assume that the same kind of fiscal policy will stay in place," said Carlos Leitao, chief economist at BLC Securities in Montreal.

The Liberals promise balanced budgets and more money for healthcare while the New Democrats want more social spending and higher corporate taxes.

"Over the last week Paul Martin made many commitments to Canadians that he would protect public healthcare ... that he would start a national childcare program," New Democrat leader Jack Layton said. "My commitment to Canadians tonight is that we will hold him to it with every ounce of energy we have."

The Liberals won 36.7 percent of the vote, down from 40.8 percent in the 2000 election. The Conservatives won 29.6 percent with the New Democrats on 15.7 percent. Voter turnout was 60.3 percent, the lowest since 1898.

The separatist Bloc Quebecois, earlier tipped as a kingmaker, won 54 of the 75 seats in Quebec, but was eclipsed by the New Democrats.

The results were a blow for Martin, who replaced Jean Chretien as prime minister in December, but who never recovered from a February report which showed C$100 million (US$75 million) in government funds had found its way to firms with close ties to the Liberals.

Opinion polls indicated voter anger was so great that the Liberals would end up level with the Conservatives.

But the main losers were the Conservatives, who got far fewer than the 120 seats many had predicted.

Officials said voters had been influenced by Martin's portrayal of Conservative leader Stephen Harper as a right-wing extremist.
This story has been viewed 2300 times.