40th Canadian Parliament - 1st Session and Prorogation

1st Session and Prorogation

The first session of the 40th parliament opened on November 18, 2008, after Prime Minister Stephen Harper and the Conservatives won a slightly stronger minority government in the 2008 election. With a new government in session, Finance Minister Jim Flaherty tabled a fiscal update nine days later. Among other things, the update cut government spending, suspended the ability of civil servants to strike, sold off some Crown assets, and eliminated existing political party subsidies. This fiscal update was rejected by the opposition, and became a catalyst for talks of a coalition government. Stéphane Dion of the Liberal Party and Jack Layton of the New Democratic Party, signed an accord stating that in the event that the government lost the confidence of the house, they would form a coalition with the support of Gilles Duceppe and the Bloc Québécois, if asked to do so by the Governor General of Canada Michaëlle Jean. However, Stephen Harper delayed the vote of non-confidence scheduled for December 1, and the Governor General prorogued parliament on Harper's advice on December 4, 2008, until January 26, 2009.

After prorogation, calls came from within the Liberal Party for Dion to resign immediately. Dion initially scheduled his resignation for the party's leadership convention in May 2009, but on December 8, 2008, he announced that he would step down upon the selection of his successor. After the withdrawal of Bob Rae and Dominic LeBlanc from the leadership race, Michael Ignatieff became the only leadership candidate, and therefore was appointed interim leader of the Liberals and the opposition on December 10, 2008.