PoliticsWatch 2002 in Review:
A year of leadership campaigns, resignations, and unofficial races
Will leadership struggles and internal divisions within the Liberal party 
prompt an early "changing of the guard?"

OTTAWA (PoliticsWatch posted December 16, 2002 @ 4 p.m.) If there was ever a year when party leadership dominated Ottawa's political scene, 2002 was it. 

The effects of leadership campaigns, resignations and unofficial races were felt by almost every party in the capital. Internal divisions and leadership struggles plagued the Liberal party, leading pundits and party members alike to question whether Prime Minister Jean Chrétien should remain at the party's helm. In August, Chrétien attempted to silence the buzz by announcing he would retire in February 2004, successfully dodging a mandatory leadership review set for February 2003. 

Prior to the prime minister's key announcement, leadership was at issue for discontented members of the  Canadian Alliance. In March, they voted in Stephen Harper as the party's new leader who ousted Stockwell Day. In June, New Democrat leader Alexa McDonough announced she was stepping down, touching off a heated race for her job. In August, Tory leader Joe Clark announced he would retire in 2004.  

There was even a notable November appearance on Parliament Hill by former prime minister Brian Mulroney. While he was there to attend the unveiling of his official portrait, there was some speculation of a resurgence into politics and a possible run for the Progressive Conservative leadership. 

However, the most significant and riveting leadership story of the year was that of former finance minister Paul Martin. A favourite topic among political observers, this story began 12 years ago after Jean Chrétien beat Martin for the Liberal leadership. Last summer, years of tension between the two rivals exploded.  

In June, Martin left Cabinet and spun his departure to make it look like Chrétien had fired him. Since then, Martin has secured major support among his colleagues, as was evident this past session when 56 backbenchers sided with Martin and the opposition in a vote to have committee chairs elected by secret ballot. On voting day, it was clear who the Liberals stood behind. 

Further backbench revolts in December played in Martin's favour. Proposed legislation, which fell under Chrétien's recent ethics package, calls for a $10,000-limit on individual donations to MPs. Going against their leader, Liberal members publicly denounced the plan as bizarre and detrimental to the fundraising efforts of leadership hopefuls. 

The financing of leadership campaigns became a little more transparent in the year that was. And the Martin camp seemed to lead the way by returning a donation of $25,000 that was raised by a Calgary lawyer who also worked for the Department of Finance. The incident triggered a set of reforms which saw leadership aspirants publicly declare, in full or in part, the donations they receive.  

More recently, additional Liberal MPs are publicly calling for Chrétien to step down before his retirement date. Some of these members are Martin supporters, others are close to Chrétien. Collectively, these members are saying the prime minister should save his reputation, listen to voters and restore direction to the party by stepping down early.

All of this talk adds much fuel to Martin's leadership bid. Helping his cause is www.paulmartintimes.com, a slick "news" site that provides options to donate to his campaign, register to become a party member, and even help with grassroots organization in cyberspace.  This site is without a doubt the best political use of the Web by a Canadian politician in 2002.  The only improvement would be to give users the added confidence of a privacy policy.  That is, providing users with full information on how the private information they submit to the site will be used and by whom. 

Looking back, the event that likely touched off Martin's departure from Cabinet and kicked his campaign into high gear happened early in the year. Chrétien's first of six Cabinet shuffles signalled the departure of long-time MP and Deputy Prime Minister Herb Gray. While Gray's departure seemed like a smooth one, some politics-watchers now speculate that it set the stage for Chrétien's strained relations with caucus and Paul Martin's departure from Cabinet. Chrétien would go on to have several more Cabinet shuffles in 2002 to deal with ministers involved in political controversies.

Highlighting some of those controversies was Auditor General Sheila Fraser, who distinguished herself in 2002 with the release of her quarterly reports.  Her report on mismanagement in government advertising and sponsorship contracts resulted in at least 13 publicly-known RCMP investigations. In early December, Fraser also blamed the government for allowing the cost of Canada's gun registry program to balloon to $1 billion from an original estimate of $119 million. 

Heading into the new year, there will be more leadership issues to deal with. The New Democrat leadership convention is in January, the Progressive Conservative party will hold its convention in May and June, the Liberals will hold theirs in November.  

First on the agenda, though, will be February's budget announcement: a chance for the Liberals to restore faith in voters and the party's reputation for fiscal responsibility. Perhaps some of the biggest questions that will likely be answered in 2003 are: Will the Liberal caucus mend their fractious ways and rally behind their leader? Or will Jean Chrétien succumb to internal pressure and bow out before his retirement date? And will Paul Martin be able to keep all his supporters keen and busy for the next 18 months? Stay tuned.

Other key events of 2002

The topic of Canada's rocky and deteriorating relationship with the U.S. dominated much of 2002. And the softwood-lumber dispute has emerged as the most poignant example. 

Canada's wound from the softwood-lumber dispute continued to widen in 2002. In February, our trade officials pulled out of negotiations with their U.S. counterparts, shattering any hopes of settling a trade war that has cost the Canadian industry millions of dollars in lost profits and thousands of jobs. International Trade Minister Pierre Pettigrew came under intense scrutiny for halting the negotiations. And the U.S. eventually slapped a damaging 27-per-cent duty on Canadian lumber exports. Further scrutiny toward the Liberal's stick-handling of the issue came from opposition members who called the government's $247-million aid package for the softwood industry "pathetic." Over the course of the year, the dispute dragged on. 

Following Bill Clinton's departure from the White House, Jean Chrétien hasn't been able to forge the same close relationship with George W. Bush. In fact, it seemed the Prime Minister had earned an unflattering nickname of "Dino" from some of Bush's aides in the White House. Many considered it an insult against the prime minister. But most importantly, the nickname characterized Canada's crumbling relationship with the United States. In the months after the nickname became known in Ottawa, Bush was dubbed a "moron" in the Canadian press. The reports came after a candid conversation between Chrétien's top aide and a reporter went public. Worth noting is one recent column from the Globe and Mail's editor in chief, Edward Greenspon, that gave reader's an insightful look into the world of journalistic ethics, and how reporters decide what is reported and what stays under wraps. 

Check out these PoliticsWatch stories for more coverage on the year's key political events:

Chrétien unveils major cabinet shuffle (Jan. 15)
The House of Commons honours the "Gray Fog"before the bar  (March 14)
 The 'Gray Fog' reappears briefly on Parliament Hill (April 24)
Pettigrew: Stumped! Softwood lumber dispute goes off the rails (Feb. 7)
Dino or Dean-O! Which is it? ( March 15)
Follow all the latest news and developments in the Canadian Alliance leadership race @ PoliticsWatch.
Auditor General to investigate Groupaction contracts ( March 19)
 U.S. softwood lumber decision provokes company to file $200 million NAFTA claim  
Pettigrew calls U.S. softwood lumber levy obscene (March 22)
 McDonough's done  as NDP leader ( June 5)
 Liberals emerge from caucus claiming the party is united ( June 5)
 MPs demand answers on Martin's terms of departure ( June 3)
 The Prime Minister and his final agenda ( September 30)
 Auditor-General focuses on SINs, health care (October 8)
 Aid package leaves out loan guarantees ( October 8)
 Martin outlines democratic reform ( October 21)
Liberals unveil new ethics package ( October 23)
Free votes on committee chairs ( October 30
House to vote on secret ballot motion ( November 1)
Chretien loses vote, 56 backbenchers favour Opposition motion (November 5) 
Mulroney portrait unveiled on Parliament (November 20)
Opposition points finger at Martin (December 6)

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