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Table of Contents
The Main Event
The Current Event 		What's What
The Facts You Need to Know

Who's Who
The People You Need to Know

 Deeper Still
Dig Deeper Into the Issues
In-Quiz-ition
Test your Knowledge		 Lets Talk
Conversational
BC Treaty Referendum
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THE MAIN EVENT

On June 2, Prime Minister Jean Chretien made a major cabinet change, replacing Paul Martin as minister of finance. Paul Martin had served as minister of finance since Chretien’s Liberals came to power in 1993.

Prime Minister Chretien said Mr. Martin’s replacement was related to non-government
He Said, She Said

“We agreed that for the good of the governance of the country, that it was better that he [Mr. Martin] was not to be the minister of finance.”
Jean Chretien
Prime Minister

issues, most likely Mr. Martin’s campaign to become the next leader of the Liberal Party. Mr. Martin, however, asserted that his conflict with the Prime Minister was related to a difference in government policy.

John Manley has replaced Mr. Martin as finance minister. In 2002, Manley was named deputy prime minister of Canada and minister of infrastructure and Crown corporations. Mr. Manley now takes on the finance portfolio in addition to his duties as deputy prime minister.

Prime Minister Chretien and Finance Minister Manley have assured the public that there will be no change in Canada’s economic policy. The government will continue to balance the budget, reduce the debt, and lower taxes.

The replacement has created a public division in the Liberal Party between supporters of Paul Martin and Jean Chretien. This division will be carried into the Liberal Party’s leadership review in February 2003. If Prime Minister Chretien loses that review, a leadership race will be held to elect a new party leader. That new leader would then become prime minister.

Check Out the Latest from Major Canadian Media Outlets
Learn More about Mr. Martin at his Official Website
Check Out the Official Website of the Liberal Party of Canada
Check Out Mapleleafweb’s “War on Terrorism” Interview with Mr. Manley

Next: What's What >>
WHAT’S WHAT
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Timeline

  • 1990

    • Jean Chretien defeats Paul Martin and becomes leader of the Liberal Party.

  • 1993

    • Prime Minister Jean Chretien appoints Paul Martin as finance minister. Martin sets deficit reduction as his first priority.

  • 2001

    • May 4
      • It is rumoured that PM Chretien is preparing for retirement. Jean Pelletier leaves his job as the prime minister's personal adviser.
    • June 28
      • Paul Martin prepares for a possible leadership race. He hires Tim Murphy as his new senior political adviser.
    • October
      • Paul Martin supporters attempt to make rule changes that would affect a possible leadership race.

  • 2002

    • January 15
      • Brian Tobin (a Liberal leader contender) resigns as industry minister. PM Chretien makes a cabinet shuffle.
    • February 11
      • Allan Rock (another Liberal leader contender) publicly accuses Paul Martin's supporters of trying to restrict Liberal Party memberships.
    • February 27
      • PM Chretien indicates that he may stay on as leader of the Liberal Party.
    • May 26
      • PM Chretien fires Art Eggleton, the minister of defence, for hiring his former girlfriend to do research.
    • May 30
      • There are further accusations of government corruption. PM Chretien tells ministers to stop organizing for a possible Liberal leadership race.
    • May 31
      • Paul Martin publicly states that he is considering resigning as minister of finance.
    • June 2
      • PM Chretien replaces Paul Martin with John Manley as minister of finance.

PM Chretien’s Letter to Paul Martin

The following is the letter Prime Minister Jean Chretien sent to Paul Martin.

Dear Paul:

It is with sadness that I confirm that you are leaving the cabinet. As I told you, I will always be grateful to you for your remarkable work as Minister of Finance. There are very few Canadians who have ever served in a cabinet with such distinction.

Together we have achieved a great deal for Canada and Canadians. The success of the government's economic policy has situated Canada very well for continued growth and prosperity. Your contribution as Minister of Finance will be a continuing source of pride for you and for me.

You and I have worked extremely well together, ever since we took office in November 1993, on all matters relating to government policy. We have always been in full agreement on economic and fiscal policy.

But, unfortunately, matters unrelated to governing have gotten in the way of our working together on government policy. As such, we both understand, with real regret, that it is in the best interest of the government and the country that you step down from the cabinet.

As Prime Minister and on behalf of all our colleagues in cabinet, I thank you for a job very well done. Aline and I wish you and Sheila all the very best.

Sincerely yours,

Jean Chrétien

Paul Martin’s Public Statement

The following is Paul Martin's public statement shortly after being removed as finance minister:

Good evening.

Thanks to the hard work and the sacrifice of Canadians we are now in a position to make great strides as a country. With courage and with vision we can confirm Canada's place among the leading nations of the world for decades to come. We can build an even stronger economy, we can build an even more fair society.

What I also know, however, is that in order to achieve this objective the cabinet must be united in its vision. Certainly the prime minister and his finance minister must be working in common cause and with a shared perspective on the most basic questions of direction and approach.

For a long time the natural tensions between my views and those of the prime minister were well within the manageable, even healthy, range that is customary in a sound, working relationship. In fact, we were always able to resolve disagreements working issue by issue.

Unfortunately in recent months, and certainly during the last few days, the working relationship between myself and the prime minister had deteriorated. It was therefore threatening to impede our focus on the very important choices that confront us as a nation.

As I indicated on Friday, I intended to reflect on my options. That is now a moot point. I am no longer a member of the cabinet. And John Manley is now the new minister of finance. The nation already has full confidence in his skills. He is tremendously well qualified and will do an outstanding job, and I wish him the very best.

I also wish to express my genuine appreciation to the prime minister for the opportunity to serve as finance minister for the past nine years. It has been a great honour to serve my country.

Now before concluding, I'd like to emphasize a few things.

First, while these have been certainly a difficult few days, I feel passionately about the future of this nation and about the opportunities that are before us. I feel strongly with the Liberal party of Canada into which I was born and raised. And I believe very much in our caucus and cabinet. They are an outstanding and dedicated group of individuals motivated by a desire to make a great nation greater still.

Second, I will continue to sit as the member of Parliament for LaSalle-Emard, an active member of Parliament.

Third, I want to thank the many friends who called or sent messages in recent days. I'm enriched by their friendship and their support. In that respect, I want to thank above all others Sheila and my family for their patience and their advice.

As a final note, I would like to urge financial markets to keep in mind the extraordinary strength of the Canadian economy. GDP growth in the first quarter of this year was nothing short of remarkable. We're the only G7 nation in surplus and job creation continues to be very strong. When markets open tomorrow these are the facts that should be weighed.

Ministers of finance come and go. I leave knowing that our economy is very robust. And now I look forward to the work and the challenges that lie ahead.

Next: Who's Who >>
WHO’S WHO
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Prime Minister Jean Chretien

On June 2, Prime Minister Jean Chretien fired Paul Martin as minister of finance and assigned John Manley to the position. Mr. Chretien was born in Shawinigan, Quebec on January 11, 1934. He married Aline Chaine of Shawinigan in 1957, and together they have two sons and one daughter. Mr. Chretien was first elected to the House of Commons in 1963 as the Member of Parliament for Saint-Maurice-Lafleche (Quebec). In June 1990, Mr. Chretien was elected leader of the Liberal Party. In the national election of 1993, the Liberal Party won a majority of the seats in the House of Commons and Mr. Chretien was sworn in as Prime Minister of Canada.
Learn More About Prime Minister Chretien
Check Out the Prime Minister’s Official Website

Paul Martin

On June 2, Paul Martin was replaced as minister of finance. Mr. Martin is born in Windsor, Ontario on August 28, 1938. Mr. Martin is married to Sheila Ann Cowan, and together they have three children. Mr. Martin graduated in law from the University of Toronto. He also attended the universities of Ottawa and Toronto where he graduated with a degree in philosophy. In 1974, Mr. Martin is appointed president of Canada Steamship Lines. He buys the company in 1981. In 1988, Mr. Martin is elected to the House of Commons, representing the Quebec riding of LaSalle-Emard. In 1993, Prime Minister Jean Chretien appoints Paul Martin to the position of finance minister.
Learn More About Mr. Martin at his Official Website

John Manley

John Manley replaced Paul Martin as minister of finance. Mr. Manley was born in Ottawa on January 15, 1950. Manley is married and has three children. He graduated with a Bachelor of Arts degree from Carleton University in 1971, and a law degree from the University of Ottawa Law School. In 1985, he became a Member of Parliament. Mr. Manley has served as minister of industry, minister responsible for the Atlantic Canada Opportunities Agency, minister of western economic diversification, minister responsible for the Economic Development Agency of Canada for the region of Quebec, minister of foreign affairs, chairman of the ad-hoc cabinet committee on public security and anti-terrorism, and deputy prime minister of Canada and minister of infrastructure and Crown corporations.
Learn More About Mr. Manley from the Official Website of the Department of Finance
Check Out Mapleleafweb’s “War on Terrorism” Interview with Mr. Manley

Next: Deeper Still >>
DEEPER STILL
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Liberal Leadership Review

On February 20-23, 2003, the Liberal Party will hold a Policy Convention in Ottawa. At this Convention, the party will hold a leadership review.

The leadership review is mandated under the Liberal Party’s constitution. The constitution states that a resolution calling for a leadership convention shall be placed automatically on the first convention's agenda following a federal general election. If such a resolution is adopted, then a leadership convention must be held within one year to choose a new party leader.

In other words, the party must vote “yes” or “no” on the question, “should the party call a leadership convention to choose a new leader?” If the majority vote “yes,” then a leadership convention must be called within one year.

Liberal Party officials recently decided that the leadership review will consist of two votes: (1) a party member vote and (2) a party delegate vote. Prime Minister Chretien must win a majority (over 50 percent) in both votes to keep his job. However, some have suggested if Chretien receives less that 70 percent in either vote, he may choose to step aside.

Member Vote

  • A party “member” is any person who has membership in the federal Liberal Party and has paid their party fees. It is estimated thatf the Liberal Party has 100,000 members.
  • The member vote will take place weeks before the Policy Convention in Ottawa and the results will be announced during the Convention.

Delegate Vote

  • A party “delegate” is a person elected by Liberal members in a riding to represent them at the Policy Convention.
  • The delegate vote will take place during the Convention.

The two votes are important to Paul Martin. If Prime Minister Chretien loses the leadership review, Paul Martin will have his chance to become the new Liberal Party leader and Prime Minister of Canada. Martin will campaign within the Liberal Party for a “yes” vote. Chretien (assuming he will contest the leadership review) will campaign for a “no” vote.

Liberals in the Polls

The following are highlights of an Ipsos-Reid poll released on June 6, 2002, after Paul Martin’s departure as finance minister.

Jean Chretien’s Approval Ratings

  • 46% of Canadian approve of Jean Chretien’s performance as prime minister. This is the lowest level since he became prime minister in 1993.
  • 49% of Canadians disprove of the Prime Minister’s performance.
  • Regionally, the Prime Ministers approval rating is 67% in Atlantic Canada, 52% in Ontario, 43% in Quebec, 37% in British Columbia and Alberta, and 30% in Saskatchewan and Manitoba.

Paul Martin’s Approval Ratings

  • 78% of Canadians approve of Paul Martin’s past performance as finance minister.
  • 15% of Canadians disapproved of the former Finance Minister’s performance.
  • Regionally, the former Finance Minister’s approval rating is 81% in Quebec, 79% in Ontario, 78% in British Columbia and Atlantic Canada, 76% in Alberta, and 67% in Saskatchewan and Manitoba.

Liberal Leadership

  • 48% of Canadians believe Paul Martin would make the best leader of the federal Liberal Party.
  • 18% of Canadians believe Jean Chretien is the best leader for the federal Liberal Party.
  • 6% of Canadians believe Heritage Minister Shelia Copps would make the best leader of the federal Liberal Party.
  • 6% of Canadians believe former Federal Minister and former Newfoundland Premier, Brian Tobin would make the best leader of the federal Liberal Party.
  • 5% of Canadians believe Deputy Prime Minister and new Minister of Finance, John Manley would make the best leader of the federal Liberal Party.
  • 3% of Canadians believe Minister of Industry, Allan Rock would make the best leader of the federal Liberal Party.
  • 4% indicated that “none of these individuals” would make the best leader of the federal Liberal party

Check Out the Full Poll Done by Ipsos-Reid

Next: In-Quiz-ation>>
IN-QUIZ-ITION
Printable Version

Is This True? Answer true or false to the following questions.

  1. Jean Chretien is the longest serving leader in the Group of Eight (G8).
  2. Allan Rock is the current minister of health for Canada.
  3. The Conservatives have been in power more than any other party in Canada.
  4. Prior to becoming finance minister, Paul Martin fought Jean Chretien for the leadership of the Liberal Party.
  5. Brian Tobin was deputy prime minister prior to John Manley.

What's the Word? Define the following words and use them in a sentence.

  1. Cabinet Shuffle
  2. Economic Policy
  3. Party Convention
  4. Portfolio
  5. Party Member
  6. Gross Domestic Product (GDP)
  7. Party Delegate 8. Party Caucus

Answer Key

Let's Play! Rank the following Prime Ministers by their length in office, beginning with the longest serving Prime Minister

  1. Sir John A. MacDonald
  2. Brian Mulroney
  3. Pierre Elliot Trudeau
  4. Arthur Meighen
  5. John Diefenbaker
  6. William Lyon Mackenzie King
  7. Lester Pearson
  8. Joseph Clark

Answer Key

Next: In-Quiz-ation>>
LET’S TALK
Printable Version
  1. In 2000, the people in a general election elected Jean Chretien prime minister. Considering this, do you think he should have to face a leadership review by his own party? Why?
    Check Out the Latest from Major Canadian Media Outlets
     
  2. Do you think the division between Jean Chretien and Paul Martin will hurt the Liberal Party in the next election? Why?
    Check Out the Latest from Major Canadian Media Outlets
    Check Out the a Poll Done by Ipsos-Reid

     
Answer Key IN-QUIZ-ITION
Printable Version

Is This True?

  1. True
  2. False
    Allan Rock is the current minister of industry for Canada.
  3. False
    The Liberal Party has been in power more than any other party in Canada.
  4. True
    Paul Martin came in second to Jean Chretien in the 1990 Liberal Party leadership race.
  5. False
    Brian Tobin was the minister of industry. Herb Gray was deputy prime minister prior to John Manley.

What’s the Word?

  1. Cabinet Shuffle
    A “cabinet” is a body of persons appointed by a head of state or a prime minister to head the departments of the government. A “cabinet shuffle” is when the head of state or prime minister makes major changes to the cabinet.
  2. Party Convention
    A meeting of members or delegates of a political party for the purpose of setting party policy, strategy or elect a leader.
  3. Party Member
    A person who has membership in a political party and has paid their party fees.
  4. Party Delegate
    A person elected by party members to represent them at a party convention.
  5. Economic Policy
    A government plan or strategy for maintaining economic growth.
  6. Portfolio
    The office or post of a cabinet member or minister.
  7. Gross Domestic Product (GDP)
    The total market value of all the goods and services produced within the borders of a nation during a specified period (generally one year)
  8. Party Caucus
    Members of a political party who are also members of a legislative body.

Let’s Play!

  1. William Lyon Mackenzie King (23 years) (1921-26, 1926-30, 1935-48)
  2. Sir John A. MacDonald (19 years) (1867-73, 1878-91)
  3. Pierre Elliot Trudeau (15 years) (1968-79, 1980-84)
  4. Brian Mulroney (9 years) (1984-93)
  5. John Diefenbaker (6 years) (1957-63)
  6. Lester Pearson (5 years) (1963-68)
  7. Arthur Meighen (2 years) (1920-21, 1926)
  8. Joseph Clark (1 year) (1979-80)

 

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