Picture of the day
Alliance Leader Stephen Harper cancelled a town hall meeting in Calgary and was flying back to Ottawa on Wednesday to hold last-minute negotiations with Tory Leader Peter MacKay, even as lawyers looked at the fine print of a proposed agreement.
The Conservative caucus held a conference call Wednesday at which members were told a tentative deal had been reached, said a Tory source. There were voices of dissent, but when the Conservative Senators were taken into account, more than 80 per cent of caucus agreed with the merger.
The breakthrough in deadlocked negotiations appears to have come as a result of tremendous pressure from a range of interests, including five provincial Tory premiers and two former Conservative prime ministers, sources said.
Conservative and Alliance MPs have also been inundated with demands that the last hurdles be overcome.
The key sticking point in the talks has been how to select a new leader. Sources say the Alliance has agreed to Tory demands that ridings across Canada be given equal weight in choosing the next leader of a merged entity called the Conservative Party of Canada.
Any merger proposal still faces a number of logistical hurdles, particularly time constraints. Both party executives and memberships at large will have to be canvassed before a joint leadership contest can take place. A party platform would then have to designed in time for a general election anticipated as early as next April.
``It's going to be an interesting day,'' Loyola Hearn, the Tory House leader and one of six emissaries who tried to negotiate a merger, said Wednesday
``I think our leaders are working hard to make sure this thing materializes''
The fact that lawyers have been called in to vet the agreement is of ``high significance,'' said a Tory source, and indicates a deal is imminent.
A merged party would represent a remarkable breakthrough following weeks of public acrimony during which negotiations appeared to be at a standstill over what were described as ``philosophical differences.''
The deal-breaker set Tory brokerage politics against the Alliance philosophy of grassroots populism. The party of Confederation was concerned it would be swamped by the more organized, concentrated Alliance membership in Western Canada.
A group of six emissaries that included such Tory luminaries as former deputy prime minister Don Mazankowski and former Ontario premier Bill Davis disbanded without bridging the gap.
Harper and MacKay finally met face-to-face late last week but reported that, despite an amicable conversation, no headway had been made on the intractable issue of leadership selection.
MacKay began eulogizing the merger talks and saying a deal might not be achievable until after the next federal election. The Alliance responded by leaking a Harper memo that accused the Tories of negotiating in bad faith.
But sources said momentum for a deal _ both in the public and among the large sea of past and present organizers for both parties _ continued to push the party leaders together.
MacKay and Harper talked for about an hour by phone Tuesday, when lawyers were notified, and agreed to hold further talks Wednesday.
Une entente de fusion est imminente entre l'Alliance canadienne et le PC
Source: NTR - NTR
Oct 15 16:31
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OTTAWA (PC) _ L'Alliance canadienne et le Parti conservateur sont sur le point d'annoncer une entente historique en vue de fusionner les deux formations politiques. Les chefs des deux partis, Stephen Harper et Peter MacKay, sont d'ailleurs rentrés à Ottawa, aujourd'hui, pour mettre la touche finale. Une conférence de presse serait prévue pour demain.
A son arrivée dans la capitale fédérale, le chef conservateur, Peter MacKay, a déclaré que les négociations sont arrivées dans une phase cruciale. De son côté le chef allianciste, Stephen Harper, a indiqué avant son départ de Calgary, qu'il était disposé à faire tout compromis raisonnable pour présenter une alternative valable aux libéraux de Paul Martin lors des prochaines élections.
Des sources indiquent que les deux chefs ont déjà réglé les principaux points en litige. Stephen Harper aurait accédé à une requête des conservateurs qui exigaient que toutes les circonscriptions aient une voix égale dans le choix du chef et l'élaboration de la vision du nouveau parti.
Le Parti progressiste-conservateur craignait d'être avalé par l'Alliance canadienne qui prônait jusqu'ici le système d'un membre, un vote.
Le texte d'un accord de principe est en train d'être passé au peigne fin par des conseillers légaux.
La nouvelle formation issue de ce mariage s'appellera tout simplement le Parti conservateur du Canada.
Martin Fundraising Update (Still raising cash) (Martin-FundraisingUpdate)
Source: BN - Broadcast News
Oct 15 12:10
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OTTAWA -- Paul Martin has reported another 1.67 (m) million dollars in donations to his Liberal leadership campaign -- and he's still after more cash.
His declaration today brings his total to more than 10.7 (m) million dollars.
That's more than 10 times the amount raised by Heritage Minister Sheila Copps, the only other candidate left on the ballot for next month's convention that will choose a successor to Prime Minister Chretien.
A Martin spokesman says fundraising will continue because the candidate has campaign expenses such as flying to B-C and the Maritimes to tour disaster areas.
Any money left over after the campaign is supposed to go to help pay down the Liberal party debt of about 1.5 (m) million dollars.
Martin aides insist that despite their record fundraising haul, they don't know whether they'll finish with a surplus.
(BN)
OTTAWA (CP) _ Paul Martin reported another $1.67 million in donations to his Liberal leadership campaign Wednesday, bringing his total to a record $107 million.
That's more than 10 times the amount raised by Heritage Minister Sheila Copps, the only other candidate left on the ballot for the Nov. 15 convention that will choose a successor to Prime Minister Jean Chretien.
Copps, in a statement filed with Howard Wilson, the federal ethics counsellor, reported $485,000 in new donations, bringing her campaign total to about $991,000.
Her final count was boosted by the disclosure of more than $300,000 previously held in a blind trust to guard against potential conflict of interest in her ministerial duties.
The ostensible spending limit set by the party for the leadership race is $4 million. But that covers only the official campaign period that began in late February.
Much of Martin's cash was raised, and presumably spent, before that date. Even for the official campaign the party rules are leaky, excluding such major expenditures as air fares and hotels for the candidates and their staff.
Any money left over at the end of the campaign is supposed to go to party coffers to help pay down the Liberal debt that currently stands at around $15 million.
But Martin aides insist, despite their record fundraising haul, that they don't know yet whether they will finish with a surplus.
Rock Irving Conflict
Source: BN - Broadcast News
Oct 15 02:40
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OTTAWA -- Prime Minister Chretien says the case is closed regarding conflict-of-interest accusations against Allan Rock.
Chretien says federal ethics commissioner Howard Wilson already knew about the industry minister's association with the Irving family empire.
Federal departments headed by Rock made decisions affecting the Irvings before and after Rock was treated to a family fishing trip.
Rock denies he was in conflict of interest by flying on an Irving jet and staying in the family's fishing lodge in 2001.
Rock, who was health minister at the time, has said Health Canada didn't have direct dealings with Irving businesses.
But Rock has been linked to policymaking since the late 1990's that had a direct impact on the New Brunswick (b) billionaires' businesses.
New questions over alleged conflict of interest involving Rock, Irvings (Rock-Irving-Conflict)
Source: CP - The Canadian Press
Oct 14 21:39
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OTTAWA (CP) _ Federal departments headed by Allan Rock made policy decisions affecting the Irving family empire both before and after Rock was treated to a family fishing trip by one of Canada's richest families two years ago
Rock has been forced to fend off accusations of conflict of interest since the Canadian Alliance revealed he was among a number of Liberal politicians who flew on an Irving corporate jet and stayed in the family's upscale fishing lodge in the summer of 2001.
Rock, who was health minister at the time, contended he wasn't in a conflict of interest because Health Canada didn't have direct dealings with Irving businesses.
He said that once he was appointed industry minister in January 2002, he reported the free vacation to federal ethics commissioner Howard Wilson and followed his advice about avoiding possible conflicts of interest. That advice included steering clear of Irving issues for a full year.
Prime Minister Jean Chretien said Tuesday night that in light of Wilson's involvement, he considered the matter closed.
``The ethics counsellor made his comments on that so that's all right,'' Chretien said in Toronto before attending a show with incoming Ontario premier Dalton McGuinty.
``It's not a big problem, if they complied with the guidelines they complied with the guidelines.''
However, federal documents and past public statements make it clear Rock has been linked to policymaking since the late 1990s that had a direct impact on the New Brunswick billionaires' shipbuilding and oil refinery businesses.
Documents available on Environment Canada's website show that Health Canada, under Rock's watch, had a hand in developing low-sulphur fuel regulations in the late 1990s, a move seen as beneficial to Irving Oil which was ahead of the competition in that area.
After Rock moved to industry, his department was involved in a $55-million grant to Irving to help convert the company's idle shipyard in Saint John, N.B., to other industrial uses.
Rock is in Pakistan this week on government business and could not be reached for comment.
But an official in his office said Rock recused himself from the shipyard file after leading one cabinet discussion on the matter in May 2002 at which no decisions were taken. It was only after that cabinet meeting that Rock realized he could be in a potential conflict and sought the advice of Wilson, said the spokesperson.
As for the sulphur regulations, ``it was definitely an Environment (Department) file,'' said the official, who asked not to be named.
But while Rock was health minister, Health Canada was deeply involved in regulations introduced in December 2001 designed to cut sulphur content in diesel fuel 95 per cent by 2006.
``Clearly his department was involved in issues dealing with the Irvings,'' Alliance critic James Rajotte said Tuesday.
``Did he excuse himself from that decision? Did he have any influence with his department in either giving the thumbs up or thumbs down? Irving was ahead of the curve on that issue, so in a comparative way they did benefit from this.''
The sulphur regulations, part of Ottawa's clean air agenda, were strenuously opposed by the Canadian Petroleum Products Institute, the industry lobby group, which wanted a more graduated approach to allow refineries time to be refitted.
Rock, as health minister, had given the green light to the proposed regulations.
Petro-Canada and Esso asked for more time to comply. The Petroleum Institute proposed changing existing regulations to allow refineries to avoid interim requirements in exchange for advancing the compliance date on low-sulphur gasoline by one year _ to January 2004 from 2005.
Health Canada assessed the proposal but cited a ``loss in health benefits'' if the regulations were amended. Environment Minister David Anderson turned down the proposal in April 2000.
The association tried again, this time advancing the proposed deadline another six months. Again, Health Canada disapproved on the grounds of lost health benefits.
During this period in the late 1990s, Irving Oil was pouring $1 billion into upgrading its Saint John refinery's equipment to make it the top producer of low-sulphur gasoline in Canada. It has since made a $100 million commitment to low-sulphur diesel.
``We're three years ahead of the market,'' Arthur Irving, president of Irving Oil Limited, said last January.
He also surprised many with his public support for the Kyoto accord on climate change. As a rare dissenting voice in an oil and gas industry that had opposed the accord from the start, Irving said the plan to reduce greenhouse gas emissions was good for Canadians and wouldn't hurt his company.
Rock was appointed industry minister in January 2002. In June 2003, Irving received $55 million to shut down its idle Saint John, N.B., shipyard and convert it to other industrial uses.
The deal involved high-level talks that included meetings between the Irving family and top officials at Industry Canada. Rock was reported to have asked cabinet for $90 million to shut down and then clean up both the Irving site and a shipyard in Levis, Que.
Despite the ethic counsellor's warning to stay away from Irving business, Rock told reporters that discussions were under way.
Rock also appointed Andrew McArthur, vice-president of Irving Shipbuilding Inc., to a federal advisory board on shipbuilding in November 2002.
