Liberal caucus members agreed unanimously on Monday that Stéphane Dion will stay on to lead a Liberal-NDP coalition, following reports that the two parties reached a tentative agreement to replace the minority Conservative government. In an hour-long meeting, Dion received support from all three Liberal MPs vying to replace him as Liberal leader, Michael Ignatieff, Bob Rae and Dominic LeBlanc, the CBC's Susan Bonner reported from outside the House of Commons.After the caucus meeting, Liberal MP Jim Karygiannis confirmed the decision on Dion's interim position was "a done deal," while the leadership campaign to replace him will continue.The opposition parties say they have lost confidence in Stephen Harper's government after last Thursday's economic update by Finance Minister Jim Flaherty failed to provide a stimulus package for Canadians. Since then, the Liberals had been in negotiations to form a coalition with the NDP, planning to oust Harper's Conservatives in a confidence vote.
Earlier Monday, former NDP leader Ed Broadbent, who took part in the talks, told reporters that "a very constructive, positive agreement has been reached between the Liberal Party of Canada and the New Democratic Party that will bring stimulus to the economy, which is badly needed.""There are going to be a lot of jobs, a protection of pensions and I think we can look forward to a very constructive period," he told reporters, saying the deal included aid for the suffering auto and forestry sectors.
Details of the agreement were fleshed out Sunday night. Gov. Gen. Michaëlle Jean would still need to approve any coalition presented to her. The Canadian Press reported a source saying mid-Monday that the parties have agreed to present a $30-billion stimulus package that would offer substantial aid to the troubled auto and forestry industries.The source said the deal also calls for the formation of an economic advisory panel of experts that would include Paul Martin, John Manley, Frank McKenna and Roy Romanow. Under the proposed deal, the NDP would hold 25 per cent of cabinet positions, while the positions of finance minister, treasury board president and deputy prime minister would be held by Liberals.The deal would reportedly last 30 months.
The Bloc Québécois would not officially be a part of the coalition, but the new government's survival would depend on its support. Dion, who has been blamed by some for the poor showing of the party in the October election, had agreed to step down in May. The caucus, which is to meet Monday, is also expected to vote in a secret ballot as to who should lead the coalition.
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