Ignatieff leadership gain of LeBlanc and the scuttling of the Liberal-NDP coalition?

News that is late-breaking tonight suggests that Liberal MP Dominic Leblanc will drop out of the Liberal leadership race and endorse Michael Ignatieff. It is rumoured that Leblanc will provide Ignatieff with an additional nine members of the Liberal caucus in what is shaping up to be a backroom leadership election by caucus. Leblanc’s move over to the Ignatieff camp should be smooth for Leblanc supporters as some senior east-coast Liberal organizers who were initially eyeing Frank McKenna for the top job of that party chose Leblanc instead. New Brunswicker Steve McKinnon, who would have backed McKenna has blazed charted the waters for martime Liberals to sail over to Ignatieff.

This late development means that Bob Rae, who is beating a path coast-to-coast promoting the coalition concept, finds himself further behind now that Ignatieff enjoys an even more comfortable lead among caucus colleagues. Somewhat ironic is the fact that the coalition deal was struck out of a sense of urgency (or opportunity) to topple the Harper government and that this sense of urgency is also driving the Liberal party to select a leader via caucus selection. Strategically, Rae should now advocate for a period of Liberal introspection, an abandonment of the push to a coalition with the Bloc and to have a real (yet delegated) full-blown leadership election. As it stands, Rae would fare worse under the urgent scenario than that which allows the Prime Minister to stay in power for now.

And why not? Some time for the Liberal party to heal might do them some good. Joining up with the NDP erodes the brand of both parties and upsets each ideological base. True, those that seek power despite principle would rather see Stephen Harper evicted from 24 Sussex tomorrow. However, for the longterm livelihood of the Liberal party they ought to take some time out to rebuild, to fundraise and to craft an original policy platform – one without the word “shift”.

If Michael Ignatieff does assume the helm of the Liberal Party through caucus selection, the January throne speech/budget combo should pass through Liberal abstention. Poll numbers are showing poor support for a Liberal-NDP coalition and Ignatieff himself has never been warm to the idea of coalition. Besides, don’t you get the sense that Iggy is the sort who plays the long game rather than leaps before he looks? A number of Liberals in caucus have privately expressed concerns over the coalition proposal and most scenarios of how a coalition would play out are unknown and therefore should be somewhat worrisome to most.

For Mr. Dion, the coalition concoction was to be his magical elixir which promised new life. Realistically, his leadership prospects have been long dead. For Mr. Rae to avoid a quick demise, he should insist upon a delegated leadership election as planned meaning that the coalition ought to be on hold for now or done like Dion.

Dion will implement carbon tax even if there’s a recession

After a joint address to the Empire Club and Canadian Club yesterday, Stephane Dion faced reporters. The exchange between Richard Madan from City and Dion was interesting.

MADAN (Voiceover): But Dion has shifted his own tune lately, suggesting that Canada may be headed into recession. And he only mentioned his controversial Green Shift plan just once at the end of his speech.

MADAN (to Dion): You mentioned “recession” in your speech. So if indeed Canada does hit a recession will you delay implementing your carbon tax?

DION: First, it’s not that. It’s the Green Shift.

MADAN: No, I know. But the question is: if things get worse, will you delay implementing a carbon tax, Green Shift, whatever you want to call it? Will you delay it?

DION: It’s not carbon tax, it’s a Green Shift. It’s to put a cost…

MADAN (interupts): Will you delay it?

DION: No, because it’ll be good for the economy.

Did you get that? If Canada falls into recession, Dion believes his “don’t call it a carbon tax” Green Shift will be just want Canada needs to get out of the storm.

Recently, Maclean’s editor Andrew Coyne has stated that he believes that there may be something to it when Harper complains that Canada’s opposition is “cheering for a recession”.

The Opposition parties have gone mad with attacks explaining that Mr. Harper doesn’t care about the economy because he’s not panicking. The opposition will be upset to learn that the World Economic Forum has declared Canada’s banking system the most stable in the world.

There have been cries of dissent from Dion’s own ranks on the Green Shift and it’s timetable for implementation. Liberal candidate Shawn Murphy told the Charlottetown Guardian on September 12th, “This winter, I don’t think you’re going to see the green shift even if the Liberals got elected.” Former Minister of Revenue John McCallum conceded about Dion’s carbon tax, “I cannot say to you that no Canadian will be unharmed by this… it’s not going to be totally painless for every human being”.

Even former NDP Ontario Premier Bob Rae is
sounding more lucid on the economy as he suggested yesterday that the implementation of the carbon tax should be delayed.

There’s an old saying that “if it ain’t broke, don’t fix it”. While Mr. Dion’s plan aims to address environmental concerns with his plan, the ballot question will ask who is the best manager of the economy as crises become a daily occurrence in foreign markets. Canada has a sound economic position — indeed, the fundamentals are strong — and while members of his own team have second thoughts about his carbon tax, Mr. Dion is ready to add new untested variables to the economic equation in a time that calls for the kind of stability that comes from an economist Prime Minister rather than untested tax theory from a man who is not.