BOOK EXCERPT PASSAGES Surviving the coalition: The parliamentary crisis of 2008

Lawrence Martin

In this compelling excerpt from his new bestseller, Harperland, author Lawrence Martin takes us behind the scenes of the parliamentary crisis of 2008, in which ’s newly elected government would have been toppled over its fall budget update had the prime minister not called “a time-out” and averted defeat by proroguing the House.

Dans ce percutant extrait de son nouveau best-seller intitulé Harperland, Lawrence Martin nous entraîne dans les coulisses de la crise parlementaire de 2008, qui aurait fait tomber le gouvernement nouvellement élu de Stephen Harper au lendemain d’une mise à jour budgétaire si ce dernier n’avait imposé un temps d’arrêt en prorogeant le Parlement.

uch of Stephen Harper’s idea, and the question was whether to knew more about the nation’s finances story involved a campaign seek a mandate for the change by cam- and the global economy than Harper or M against himself, against the paigning on it. In a decision they Flaherty, liked to get his oar in as well. opposition within. That opposition would come to regret, the Harper For the budget update, it was was the dark, vindictive side of his strategists mulled it over and said no. decided that no major stimulus spend- character — a side that at times he Leave it on the shelf for now. ing would be announced. “The fiscal could not subdue, and that on several After the election, the government update was not supposed to be a occasions, such as the government’s passed up another opportunity by not response to the economic crisis,” budget update in November 2008, including the plan in the Speech from recalled a Harper adviser, “it was sup- threatened to bring him down. the Throne. The next chance was the posed to be a baseline document that During meetings prior to the 2008 November 27 budget update, an occa- put out the fiscal forecast. It wasn’t election campaign, Harper and his sion of greater interest than normal supposed to be a mini-budget with a strategists debated including in their because of the cascading global econo- lot of measures because there were still platform a measure to dramatically my. In the run-up to it, Harper and a lot of things in flux.” alter political party funding. The meas- Finance Minister Jim Flaherty had diffi- All seemed settled between the ure would have annulled a 2003 culty squaring their projections over PMO and the finance department Liberal reform that outlawed big- questions of a deficit and the need for when, at the eleventh hour, word money contributions from corpora- fiscal stimulus for the economy. Harper came from Peru that something else tions and unions, replacing them with was in Lima, Peru, at a summit of the was to be put in the update. In the pre- public financing to the tune of two Asia-Pacific Economic Cooperation vious couple of weeks, the party dollars per vote for each party. group. The US and Britain had already financing measure had again been Harper’s plan would have repriva- moved ahead with stimulus plans to raised, and again it seemed it would be tized funding and, since his party was fight the recession, and Harper was put off. Now a BlackBerry message far and away the better money collec- hearing from other leaders who were came from the prime minister saying tor, provided the with a signifi- also embarking on such initiatives. party subsidies were to be eliminated. cant advantage. It was one more step Relations between Harper and Reaction in the PMO, as one official along the road to the goal of supplant- Flaherty were not always harmonious. put it, was one of much surprise, if not ing the Liberals as the dominant party Harper had an economics background, consternation. Harper’s advisers knew in the country. The caucus and knew the files, and liked to be his own of his earlier hesitancy. While they cabinet had approvingly debated the finance minister. Kevin Lynch, who didn’t disagree with including the

POLICY OPTIONS 79 DECEMBER 2010-JANUARY 2011 Lawrence Martin PASSAGES measure, some of them wondered why defeat in Liberal history. In four previ- At first there was disbelief in now. Politically, things were going ous elections, the Liberals had scored Harperland. This can’t be right, they well. They’d just won the election worse than Dion’s 77 seats, the low thought. But it took hardly a few sec- handily. What was the hurry? point being 49 in 1984. But their popu- onds to realize it was in fact right — Surprising as well was that Harper lar vote was the lowest ever. Dion was that it was simple arithmetic and they wanted it all done in one shot. When finished, and a leadership campaign had made a grave miscalculation. By the measure had first been debated, was already under way. No worries overreaching, they had handed the strategists had discussed several options. there, the Tories thought. The unsettled opposition a dagger. It had the makings Should the subsidy be phased out slow- landscape made it a good time to go for- of a repeat of the fiasco that had claimed Joe Clark’s minority At first there was disbelief in Harperland. This can’t be right, in 1979. A minority govern- they thought. But it took hardly a few seconds to realize it ment devours itself through boneheadedness. A depart- was in fact right — that it was simple arithmetic and they had ing Liberal leader returns to made a grave miscalculation. By overreaching, they had head the government. handed the opposition a dagger. Battered around for so long, out of power for almost ly? Should it just be reduced by half? ward with the financing reform. three years, the Liberals were hard- Should there be some pre-positioning to In delivering his fiscal update, pressed to contain their glee. They had- build support for such a measure? But Flaherty, an effective retail politician, n’t even begun to think of this the PM decided to pounce. His old lacked his customary cocky air. His possibility until just a couple of days instincts bubbled up. He saw a chance body language and tone of voice gave before. It had been too crazy to contem- to cripple the enemy. He couldn’t resist. the impression that this was a poison- plate. They’d suffered a humiliating “It’s unusual,” Tom Flanagan ous piece of work. On the opposition defeat — and yet victory appeared to be observed of Harper one day, “to have side, the rancour, so often fabricated, just a breath away. someone who is by nature a strategist this time was genuine, and it ramped The New Democrats celebrated as as leader.” Put him in the confines of a up in volume as Flaherty proceeded. well. They were on the verge of sitting on minority government, said Flanagan, The elimination of the party funding the governing side, holding cabinet posi- and “everything becomes survival and subsidy wasn’t the only provocative tions, for the first time in their history. tactics.” This was a time when he announcement. The budget update Brian Topp, one of Layton’s chief might have been giving his full ener- also included measures to suspend the advisers, had a Tory contact who was gies to the economic threat and a coop- right of public servants to strike and to close to Harper. As news of the potential erative plan with the opposition to limit women’s rights to appeal for pay coalition spread, Topp emailed the con- address it. Instead, Harper was thinking equity. It was as if every second para- tact to let him know that he was on his of partisan political advantage. graph contained a hand grenade. As way to Ottawa because, as he put it, the The Conservatives were well aware the derision from the opposition red button was being pushed. The that during the election campaign, the benches pelted his minister of finance, Conservative replied that the opposi- NDP leader had raised the prospect of Harper glared arrogantly across the tion might want to do some quick forming a , aisle, dismissively waving his arm at polling. The cancellation of the funding should another minority be returned. the critics. The physical gesture was subsidy would save the treasury $26 Stéphane Dion had categorically reject- something he rarely, if ever, made. million, he explained, and since the ed the possibility, but that didn’t stop country was entering a recession, voters the NDP. Feeling that the Liberal leader ithin two hours, all three oppo- would support that kind of measure. could change his mind, they had W sition leaders had pledged to Topp said they weren’t worried about formed a scenarios committee, and it vote against the package. The thought polls. Polls wouldn’t be necessary — not was quietly at work throughout the that they could lose a confidence vote with what was being planned. campaign, analyzing various options. didn’t bother the Tories. They believed Back came the reply: “You’re gonna But with their increased minority, there was no chance the Grits wanted run the government with separatists?” the Tories thought they had little rea- another election now. But then, to There it was. The Conservative son to worry. The Liberals and NDP their astonishment, came word that counterattack strategy was already combined did not have the numbers to the Liberals and the NDP were organiz- apparent. A coalition with separatists. vote down the government. For that, ing a coalition with the Bloc. That But the warning didn’t register loudly they would need the Bloc Québécois. would give the opposition side suffi- enough. Topp didn’t sound the alarm Dion had not only lost the election. He cient numbers to topple the govern- to , who should already had been trounced. It wasn’t the biggest ment and replace it. have known that the business with the

80 OPTIONS POLITIQUES DÉCEMBRE 2010-JANVIER 2011 Surviving the coalition: The parliamentary crisis of 2008 BOOK EXCERPT Bloc would have to be handled with there was a loophole in the rules. The was about to lose his own government the utmost discretion. For one thing, government’s prerogative allowed because of something he had not cam- Topp didn’t think that Harper, who Harper to impose the week’s delay. paigned on. He had failed to heed the was still keen on courting and That was absolutely critical in this Clark lesson and he had failed to exer- cutting into the Bloc vote, would instance. It gave Harper the days need- cise the discipline of power for which demonize the sovereigntists. For ed for a counter-insurgency. he was known. His highly regarded another, he knew that Harper himself strategic capacities had let him down. had been prepared to enter into a n Saturday, the prime minister did coalition-type arrangement with the O an about-face and withdrew his n the Monday, Harper was more Bloc and the NDP when the Liberals proposal to end public subsidies for O despondent than the others at held a minority a few years earlier. He political parties. It was one of the quick- the PMO. Some had expected him to didn’t think, Topp would later write, est reversals on a budget statement ever be geared for battle. But it was the “Harper and his team were capable of seen. He then began a hell-bent-for- opposite. He was resigned to defeat, bald-faced lying.” leather public relations blitz to under- prepared to give up the government. mine the credibility of the emerging Staffers had never seen him like this, t the PMO, they’d spent half the coalition. A memorandum from chief of pale and shaken. He told them, in so A night working on Harper’s staff Guy Giorno urged Conservatives to many words, that it was over, that the response to the insurgency. On the day “use every single tool and medium” at government would fall. after the budget update, he His team tried to dissuade delivered a statement in the A black mood hung over the Tories him from this defeatist course. foyer of the House of Commons. and, most notably, Harper. They argued that they had to The opposition was working on “Everyone was depressed,” recalled find a way to hang on to a backroom deal to overturn the an adviser. “The PM was sick. I power. “We thought,” recalled results of the election, the prime an adviser, “that once they minister charged, and he would mean, he was basically ready to were in office we’d lose control do everything within his legal throw in the towel.” No one had of events, and maybe they’d means to stop it. “The Liberals ever seen the usually domineering replace Dion and have a budg- campaigned against a coalition Harper so beaten down. He had et and win. So we felt that we with the NDP,” he pointed out, had to keep control. That’s “saying NDP policies were bad once denounced Joe Clark for losing what the PM eventually felt. for the economy. And now they his 1979 minority because of a But he was just completely want to form a coalition, saying gasoline tax Clark had not gob-smacked that weekend.” that this will strengthen the campaigned on. Of that loss, Harper The staff worked on economy.” He then added, “The changing his mood and con- opposition has every right to said, “You can be principled without vincing him to fight it out. It defeat the government. But being stupid.” turned out that there was no Stéphane Dion does not have need for that, however, the right to take power without an elec- their disposal. It provided Tories with because the coalition did it for him. tion.” This was an utterly groundless communications products — material Since 2002, when Harper came back claim, one of several he would make for letters to the editors of newspapers, to politics, events had an uncanny throughout this crisis. Anyone who fol- points to use on radio talk shows — to habit of turning his way. And now lowed politics knew that in a minority make their job easier. they turned his way again, as his Parliament there were several scenarios But a black mood hung over the rivals began blowing themselves up. under which the leader of the opposi- Tories and, most notably, Harper. The coalition leaders staged a big tion could take power without forcing “Everyone was depressed,” recalled an public signing of their agreement and another election. adviser. “The PM was sick. I mean, he decided to trot out Gilles Duceppe as if The PM announced that the oppo- was basically ready to throw in the he were a full partner in the enterprise. sition would get an opportunity for a towel.” No one had ever seen the usu- He wasn’t. The Bloc would have no vote of confidence — a pledge he was ally domineering Harper so beaten cabinet seats in the proposed govern- shortly to renege on — but that it down. He had once denounced Joe ment. It would have no members on would be delayed by a week. The Clark for losing his 1979 minority government committees or seats on Liberals had what was called an because of a gasoline tax Clark had not the governing side of the chamber. The Opposition day for the start of the fol- campaigned on. Of that loss, Harper Bloc’s only participation took the form lowing week and were preparing to said, “You can be principled without of a pledge not to vote to bring down move the confidence motion then. But being stupid.” It now looked as if he the coalition for 18 months. But that

POLICY OPTIONS 81 DECEMBER 2010-JANUARY 2011 Lawrence Martin PASSAGES was hardly the way it appeared. slouched. When Dion got up to ask the the House, have been in close consul- Duceppe mounted the podium with first question, Harper looked like he tation. We believe that should a Dion and Layton and proceeded to put was about to strangle him. request for dissolution arise, this his signature to the document. A surre- Dion asked when the PM would should give you cause, as constitu- al air hung over the proceedings. The meet his pledge to have a confidence tional practice has determined, to leaders of the three parties looked like vote. The Liberal leader said it would consult the opposition leaders and a band of thieves. violate fundamental constitutional consider all your options before exer- “That was the moment the whole principles if the prime minister did not cising your constitutional authority.” thing turned on,” recalled Kory allow one. Harper fumed. “Mr. Teneycke. “It was the moment we saw Speaker, the highest principle of ayton later explained that it was the three of them doing the signing of Canadian democracy is that if one L a shot across the bow, “a warn- the accord. We knew then it was over wants to be prime minister, one gets ing to that he better for them. As we say, a picture is worth one’s mandate from the Canadian peo- work with the opposition parties a thousand words.” Recalled Jack ple and not from Quebec separatists. seriously.” The NDP leader said he Layton, with more than a touch of The deal that the leader of the Liberal wouldn’t have gone through with understatement, “I don’t think we Party has made with the separatists is a that coalition deal because he didn’t were sufficiently sensitive as to the betrayal of the voters of this country want to make Harper prime minis- impact that would have.” … and we will fight it with every ter. But there was no doubt in his Mark Cameron noticed that after means that we have.” His voice thun- mind, he said, that Harper, even that press conference a total change dered and his backbenchers pounded though he had lost that election, came over the prime minister. their desks in fury. was prepared to take over from Defeatism turned instantly into a Dion, his face reddened, said Martin and govern a coalition. hunger for battle. His heart was pump- Harper hadn’t answered the question. “Harper was prepared to become ing and he took command. That night, He hadn’t. But that didn’t matter. It prime minister in some kind of rela- the Conservatives held their annual seldom does in the House of tionship with the Bloc. Without Christmas party. The air of defeat that Commons. Harper pummelled Dion question. Without question!” had threatened to engulf the govern- again with equal rage and the Liberal The opportunity was there for the ment was swept away by a politician leader, with his willowy academic coalitionists to paint the prime minis- who had never been known as the life of any party. On Saturday, the prime minister did an about-face and withdrew Harper gave a rousing 45- his proposal to end public subsidies for political parties. It was minute speech that left one of the quickest reversals on a budget statement ever seen. long faces gleaming. Standing ovation followed He then began a hell-bent-for-leather public relations blitz to standing ovation. The undermine the credibility of the emerging coalition. speech attacked the coali- tion as an illegitimate, separatist-pro- demeanour, couldn’t hold up. He was ter as a hypocrite. To counter the pelled power grab that would not be blown away like a sheet in a hurricane. Harper blitz, they should have taken allowed to stand if he, Stephen Harper, But the opposition leaders still the letter written to Clarkson, printed had anything to say about it. had a big card to play. Harper’s bid to it up in billboard size, and brandished discredit their dealings rested heavily it everywhere. Instead, they raised it a arper wrote most of the lines for on his contention that theirs was a couple of times in the House and then H that speech himself, recalled “separatist coalition.” But the opposi- let it drop. Teneycke. “More than anyone else, the tion had in hand a letter that could be Throughout the crisis, it was a PM really found his voice. You talk used to potentially devastating effect. case of one side being able to sell its about those things with him, but you Dated September 9, 2004, the letter message, the other side not. Force of don’t have to write a speech like that. was to Governor General Adrienne repetition can sweep the fine points That one comes from within.” It was a Clarkson and had been signed by of truth away. The number of distor- test run of some of the lines he Harper, Layton and Duceppe. It tions, half-truths and non-truths planned to use in the Commons the asserted that, given the minority offered by the Tories accumulated: next day. Liberal government, Clarkson could that it was a separatist coalition, that In the chamber, when Harper was be asked to dissolve Parliament at any the Liberal leader was not entitled to in attack mode, there was a telltale time. It read in part: “We respectfully form a government, that the Bloc had sign: he slouched in his chair with point out that the opposition parties, a veto over the coalition, that the chin lowered. That day, he was deeply who together constitute a majority in opposition would be allowed a

82 OPTIONS POLITIQUES DÉCEMBRE 2010-JANVIER 2011 Surviving the coalition: The parliamentary crisis of 2008 BOOK EXCERPT confidence vote, that there was no Canada, Duceppe told them, would looking at all conceivable options for Canadian flag at the coalition signing not react favourably to his presence. Rideau Hall. Harper’s advisers con- ceremony. When confronted with the cluded that if the prime minister latter, of photos of the Canadian flag aving demonstrated considerable asked for an election, the governor in the chamber, the Harper men said, H ineptitude in the crisis thus far, general would likely turn him down. Oh yes, but it was off to the side. But the Liberals now delivered Harper But they were quite certain that she the verities or lack thereof didn’t real- another prize. On the evening of would not turn down a request for ly matter. It was the force of their December 3, the networks had agreed prorogation. The PMO couldn’t com- campaign. It was the decibel range. it to broadcast statements to the nation municate in advance with Rideau was the Harper side knowing how to by Harper and Dion. (The NDP wanted Hall. “But we knew the GG’s two con- stage a propaganda blitz, the other Layton to speak, but one network said stitutional advisers,” recalled a Harper side having no idea. it wasn’t interested in presenting a strategist, “and we knew from talking The turnaround was a magnifi- “yard sale” of leaders.) to others and from what they had cent show of force and bluster, a cred- Harper used his time to repeat written that they were likely to offer it to Harper’s resilience and his coalition condemnations and sound advice. And we knew there was determination. He was often accused promise recovery measures in the only one sound course of action.” of retreating in gloom and despair new budget. Then it was Dion’s turn. Most of the PM’s strategists favoured the prorogation. Duceppe had warned the Liberals about handling it properly. Kory Teneycke was one When the three leaders met in Dion’s office prior to the who did not. He felt that if signing ceremony, he was heard suggesting to Liberal staff Harper lost a confidence vote in the House, the gov- that they be careful about the staging of the press ernor general would not conference. English Canada, Duceppe told them, would not turn power over to the react favourably to his presence. coalition — not given the Bloc involvement and when the going got tough. And it had But the Liberal leader didn’t show where public opinion stood. There looked for all intents and purposes up on time. His video arrived late. It would be an election, he reasoned, and on the Monday morning as if he was so late that one network didn’t Harper would score a majority. He was would do just that again. But not this bother to run it all. Not only was it ready to “bet the farm” on the GG’s time. Within the space of only a few late, it was also the work of ama- not meeting the coalition’s request. “It days, he was able to demonize the teurs. The video was grainy and would be cataclysmic for the monar- coalition to the point where public unfocused. The story was that his chy in Canada,” he said, “to overturn opinion moved in waves behind him. office was so inept that it couldn’t an elected government in such a way.” Rideau Hall was showered with thou- produce a decent video. Teneycke lost the argument, but he sands of anti-coalition missives. After heckling Harper’s perform- was content in the knowledge that pro- The coalition partners had a case ance, NDPers had anxiously awaited rogation was a good second choice. The as well. They had the numbers on Dion’s. They couldn’t believe what they PMO was nearly certain that the request their side. With the Green Party also saw. Brian Topp’s BlackBerry lit up. A would be granted. “The opposition had supporting them, they represented 62 message came from a supporter of passed the Throne Speech,” he noted. percent of the vote from the last elec- : “It’s all over dude.” “All the advice we had was that consti- tion, while the Conservatives repre- “How so?” Topp wrote back. tutionally they had a very thin case.” sented slightly less than 38 percent. “The chief spokesman can’t Mark Cameron felt the same, though The coalition had to drum home that speak.” he and his colleagues started getting point, but they didn’t. They had to Harper’s next move was to back nervous when Harper’s meeting with drum home the point that it was a out of his promise to give the opposi- Michaëlle Jean dragged on for almost two-party deal with peripheral sup- tion a vote of confidence and instead two hours. When the news finally port from a third. But they didn’t. ask the governor general to shut down arrived that the prime minister had Duceppe had warned the Liberals Parliament, having just re-opened it a been granted his wish, there was a sense about handling it properly. When the couple of weeks earlier. Harper had of relief though no great celebration. three leaders met in Dion’s office turned public opinion so effectively prior to the signing ceremony, he was that it was now obvious to Michaëlle Excerpted from Harperland: The heard suggesting to Liberal staff that Jean where Canadians stood. Politics of Control, Viking Canada, they be careful about the staging of While mounting their public rela- 2010. By permission of the author and the press conference. English tions blitz, the PMO had specialists the publisher.

POLICY OPTIONS 83 DECEMBER 2010-JANUARY 2011