Identifier
Created
Classification
Origin
08OTTAWA1325
2008-10-15 18:27:00
CONFIDENTIAL
Embassy Ottawa
Cable title:  

ELECTION 2008: WHAT IT MEANS

Tags:  PGOV PHUM PREL CA 
pdf how-to read a cable
VZCZCXRO6478
OO RUEHGA RUEHHA RUEHMT RUEHQU RUEHVC
DE RUEHOT #1325 2891827
ZNY CCCCC ZZH
O 151827Z OCT 08
FM AMEMBASSY OTTAWA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8604
INFO RUCNCAN/ALL CANADIAN POSTS COLLECTIVE PRIORITY
C O N F I D E N T I A L OTTAWA 001325 

SIPDIS

E.O. 12958: DECL: 10/15/2018
TAGS: PGOV PHUM PREL CA
SUBJECT: ELECTION 2008: WHAT IT MEANS

REF: OTTAWA 1324 AND PREVIOUS

Classified By: PolMinCouns Scott Bellard, reason 1.4 (d)

C O N F I D E N T I A L OTTAWA 001325

SIPDIS

E.O. 12958: DECL: 10/15/2018
TAGS: PGOV PHUM PREL CA
SUBJECT: ELECTION 2008: WHAT IT MEANS

REF: OTTAWA 1324 AND PREVIOUS

Classified By: PolMinCouns Scott Bellard, reason 1.4 (d)


1. (C) The next Canadian federal election campaign
effectively began on October 15, in the wake of the October
14 election results that gave the Conservative Party of Prime
Minister Stephen Harper a stronger "mandate" but yet another
minority position in the 308-seat House of Commons (reftel).
The Conservatives, Bloc Quebecois, and New Democratic Party
strategists may pat themselves on their respective backs all
they like for their gains of 16, two, and seven seats from
where they were on September 7, but they all must recognize
that it is virtually impossible for the new Harper government
to remain in place until October 15, 2012 -- the next date
under the still never-tested fixed election law that
Parliament put in place in 2007. The only real questions are
how soon and how best to prepare for the next competition.


2. (C) The historic nature of the Liberals' loss is already
exacerbating the long-standing schisms within the party about
next steps. Leader Stephane Dion has reiterated his pledge
to remain as party leader despite the dismal showing,
insisting that Canadians elected him as Official Opposition
Leader. But the knives are already out, as many in the party
believe that his personal style and obstinate insistence on
making the complicated "Green Shift" aka carbon tax policy
the central focus of the campaign led the party to its
dramatic defeat. All of the discontent about Dion that
surfaced after the 2006 Liberal Party leadership race has
bubbled back up, with many openly eyeing former leadership
rivals Michael Ignatieff and Bob Rae (both of whom easily won
re-election in their ridings) as successors -- soon! -- to
Dion, and others floating less probable candidates, such as
MPs Scott Brison and Frank McKenna. Even more implausibly,
newly elected first-time MP Justin Trudeau's name has emerged
as a possible contender, for no other reason than the name
recognition that comes from being the son of long-time,
popular Liberal late Prime Minister Pierre Trudeau. The
jockeying among possible candidates, discussions about what
to do with the remaining debts (mostly Dion's) from the
previous leadership race, deliberations about whether to give
Dion a second chance to face the electorate (the Liberal
norm),and consideration about whether to defer any decision
until the next party convention in May 2009 all buy the
Conservatives more time to govern, but not with much of a
comfort level. A Liberal Party under a new leader -- or one
eager to dump the current one -- might be more willing to
pull the plug on the government in a confidence vote at any
time, so the Conservatives will have to watch carefully.
However, the Liberals would still need the help of the other
two opposition parties to bring down the Conservatives at
whatever point, and they may not all be ready for a new
election at the same time.


3. (C) PM Harper likely will move quickly -- within the
next week -- to name his Cabinet (probably mostly familiar
faces, perhaps many back in the same portfolios),to get the
40th Parliament in session -- maybe as early as November 3 --
and to present yet another Throne Speech by the Governor
General soon thereafter. There is not too much left on the
Conservative legislative agenda, and PM Harper will be
hamstrung not only by the Conservatives' continued minority
status but also by recurrent pledges to avoid deficit
spending. A declining economy and possible recession will
make this difficult, but the Liberals as well as most of the
QCanadian public share this aversion to deficits, so the new
government may face tough choices that will require the kind
of political delicacy and behind-the-scenes Parliamentary
negotiations that the Conservatives largely resisted in the
previous Parliament.


4. (C) The likely outcome will be steady-as-she-goes
governance, with few bold initiatives or new policy
directions. This does not harm U.S. interests -- unless the
next U.S. Administration seeks allied support for new
directions of our own.

Visit Canada,s Economy and Environment Forum at
http://www.intelink.gov/communities/state/can ada

WILKINS