Editing Paul Martin (section)

====Economic policy====
Martin invested heavily in Quebec, for example with the [[Bombardier Inc.]] ''C series'' project,<ref name="epe1">{{cite news |url=https://epe.lac-bac.gc.ca/100/205/301/pco-bcp/website/06-10-10/www.pco-bcp.gc.ca/default.asp@language=e&page=archivemartin&sub=speechesdiscours&doc=speech_20050602_505_e.htm | title=Address by Prime Minister Paul Martin in Montreal }}</ref> which was later taken over by [[Airbus]] when the owner got into financial difficulties and called the [[Airbus A220]].<ref name="Leeham18oct2017">{{cite news |url= https://leehamnews.com/2017/10/18/war-partner-airbus-cseries/ |title= From war to partner: Airbus and the CSeries |date= 18 October 2017 |work= Leeham |access-date= 19 October 2017 |archive-date= 23 February 2018 |archive-url= https://web.archive.org/web/20180223104147/https://leehamnews.com/2017/10/18/war-partner-airbus-cseries/ |url-status= live }}</ref> By June 2005 Martin gave the [[Federation of Canadian Municipalities]] a [[Goods and services tax (Canada)|GST rebate]] and was about to supply to them a portion of the [[federal gasoline tax]];<ref name=epe1/><ref name="epe2">{{cite news |url=https://epe.lac-bac.gc.ca/100/205/301/pco-bcp/website/06-10-10/www.pco-bcp.gc.ca/default.asp@language=e&page=archivemartin&sub=speechesdiscours&doc=speech_20050605_507_e.htm | title=Address by Prime Minister Paul Martin to the conference of the Federation of Canadian Municipalities }}</ref> the programme was called "New Deal for Cities and Communities".<ref>{{cite news |url=https://sencanada.ca/en/senators/forest-eric/interventions/572377/29?context=1 |ref=sc1 |title=Senator Éric Forest - Topic Intervention 572377 - 29 }}</ref> This was a left-over of his time as Minister of Finance,<ref name="young09">{{cite journal |doi=10.1111/j.1754-7121.2009.00087.x |title=Why do municipal issues rise on the federal policy agenda in Canada? |date=2009 |last1=Young |first1=Robert |last2=McCarthy |first2=Kelly |journal=Canadian Public Administration |volume=52 |issue=3 |pages=347–370 }}</ref><ref name="cbc1">{{cite news |url=https://www.cbc.ca/news/canada/cities-call-on-pm-to-continue-support-in-martin-s-absence-1.309129 |title=Cities call on PM to continue support in Martin's absence |date=2002-06-04 |website=cbc.ca}}</ref> spurred by continued carping by academics,<ref name="mau05">{{cite news |url=https://cpsa-acsp.ca/papers-2005/Mau.pdf |first1=Tim A |last1=Mau |title=Political Rhetoric or Genuine Leadership: An Assessment of the "New Deal" for Cities |publisher=University of Guelph |date=June 2005}}</ref><ref name="osg1">{{cite journal|url=https://digitalcommons.osgoode.yorku.ca/cgi/viewcontent.cgi?article=1281&context=ohlj |title=Freedom of the City: Canadian Cities and the Quest for Governmental Status |volume=44 |number=3|date=July 2006 |first1=Ron |last1=Levi |first2=Mariana |last2=Valverde |journal=[[Osgoode Hall Law Journal]]|pages=409–459 |doi=10.60082/2817-5069.1281 |doi-access=free }}</ref> some of whom did not hesitate to note in 2004 that "[u]nlike the federal and provincial governments, municipalities cannot borrow for operating purposes; they can only do so for capital expenditures."<ref name="qu1">{{cite news |url=https://www.queensu.ca/iigr/sites/iirwww/files/uploaded_files/StateFed04.pdf |title=Municipal-Federal-Provincial Relations in Canada |editor-first1=Robert |editor-last1=Young |editor-first2=Christian |editor-last2=Leuprecht |date=2004 |publisher=McGill-Queen's University Press}}</ref>

===== Healthcare funding =====

At the [[First Ministers' conference|First Ministers' Meeting]] of September 13–15, 2004, Martin and the provincial premiers reached an agreement on increased funding for healthcare.<ref>{{cite news|title=Anatomy of an agreement |author=CBC News |publisher=CBC |date=September 16, 2004 |access-date=April 26, 2014 |url=http://www.cbc.ca/news2/background/healthcare/firstminconf.html}}</ref> This 10-year plan outlined $18 billion in increased transfers to the provinces over 6 years, notably through increases in the CHT:<ref>{{cite web |title=Dénouement d'une conférence des premiers ministres sur la santé |url=http://bilan.usherbrooke.ca/bilan/pages/evenements/23595.html |language=fr |website=bilan.usherbrooke.ca |publisher=[[Université de Sherbrooke]] |accessdate=16 May 2020 |date=2004-09-15 |archive-date=2020-02-23 |archive-url=https://web.archive.org/web/20200223061033/http://bilan.usherbrooke.ca/bilan/pages/evenements/23595.html |url-status=live }}</ref><ref>{{cite web |author1=Health Canada |title=New Federal Investments on Health Commitments on 10-Year Action Plan on Health |url=https://www.canada.ca/en/health-canada/services/health-care-system/health-care-system-delivery/federal-provincial-territorial-collaboration/first-ministers-meeting-year-plan-2004/new-federal-investments-health-commitments-10-year-action-plan.html |website=canada.ca |publisher=Government of Canada |archivedate=2021-09-07 |date=2004-09-16 |access-date=2021-12-23 |archive-url=https://web.archive.org/web/20210907191924/https://www.canada.ca/en/health-canada/services/health-care-system/health-care-system-delivery/federal-provincial-territorial-collaboration/first-ministers-meeting-year-plan-2004/new-federal-investments-health-commitments-10-year-action-plan.html |url-status=live }}</ref>
* The CHT was to be increased by $3 billion in 2004-05 and $2 billion in 2005-06;
* A new CHT base set at $19 billion starting in 2005–06, greater than suggested in the Romanow Report;
* An escalation factor set at 6% starting in 2006–07.

===== Equalization =====

Martin also introduced changes to the equalization program, under which the Federal Government is constitutionally obligated to redistribute federal revenue to provinces having less ability to raise revenues through taxation than wealthier provinces. The goal is to ensure uniformity of public service provision across the nation. This was received well in "have-not" provinces, but [[Nova Scotia]] and [[Newfoundland and Labrador]] sought to retain income from natural resources on federal marine territory that would generally be taken, or 'clawed back', by the federal treasury in lieu of equalization payments. In the 2004 federal election campaign, Harper provided a written promise that Newfoundland and Labrador and Nova Scotia under a Conservative government would receive 100 percent of the revenue generated from their natural resources without an equalization clawback, a promise he reneged upon when elected Prime Minister. NDP leader [[Jack Layton]] followed suit soon after with a similar guarantee, and later Martin promised that under a Liberal government both provinces would receive the same deal, except only for oil resources.<ref>{{cite news|title=Nfld. premier says PM broke promise|author=CBC News |publisher=CBC |date=October 26, 2004|access-date=April 26, 2014|url=http://www.cbc.ca/news/canada/nfld-premier-says-pm-broke-promise-1.485010}}</ref> Negotiations over the agreement were harsh, with [[Premier of Newfoundland and Labrador|Newfoundland and Labrador Premier]] [[Danny Williams (Canadian politician)|Danny Williams]] at one point ordering all Canadian flags removed from provincial government buildings in December 2004.<ref>{{cite news |title=Newfoundland's flag flap 'disrespectful,' PM says|author=CBC News |publisher=CBC |date=December 24, 2004 |access-date=April 26, 2014 |url=http://www.cbc.ca/news/canada/newfoundland-s-flag-flap-disrespectful-pm-says-1.471078}}</ref> The dispute was resolved when the federal government agreed to Martin's original campaign promise.

===== 2005 budget =====

The [[Canadian federal budget, 2005|2005 federal budget]] was presented in the House of Commons on February 23, 2005. The budget included an array of new spending for the [[Canadian Forces|Armed Forces]], the environment and a national child-care program.

Public hearings of the [[Gomery Commission]] inquiry into the sponsorship scandal involving alleged kickbacks and "donations" from [[Quebec]] advertising agencies and corporations to Liberal Party operatives led to a drop in the Liberal Party's popularity. The security of the minority government came under fire as the Conservatives threatened to force an election by use of their "opposition day," when they get to set the Parliament's agenda. The Conservatives would use this time to hold a [[vote of no confidence]] in order to topple Martin's government.<ref>{{cite news|title=Opposition threatens to shut down government|author=CBC News|date=April 19, 2005|publisher=CBC |url=http://www.cbc.ca/news/canada/opposition-threatens-to-shut-down-government-1.535171|access-date=June 5, 2015}}</ref> To avoid this, Martin removed all opposition days from the schedule and made a televised appearance on April 21, 2005, to attempt to gain support from the Canadian people to let the inquiry run its course before an election was called. In the rebuttal speeches by the opposition party leaders, Layton offered his party's support provided that they were given major concessions in the budget such as canceling the proposed corporate tax cuts. Days later, the Liberals took the NDP up on their offer and negotiated tax cut deferments and new spending initiatives. Among the new commitments was aid for [[Sudan]], which Sudan's officials turned down as Martin did not consult them about it beforehand. This aid was attacked as a perceived attempt to win the vote of a single independent MP, former Liberal [[David Kilgour]]. Kilgour nevertheless voted against the government.<ref>{{cite news|title=Sudan aid doesn't buy vote, Kilgour says|url=http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1115638352964_4/?hub=TopStories|author=CTV.ca News Staff|date=May 9, 2005|publisher=CTV.ca|access-date=November 29, 2006|url-status=dead|archive-url=https://web.archive.org/web/20050817003528/http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1115638352964_4/?hub=TopStories|archive-date=August 17, 2005|df=mdy-all}}</ref>

In May, Parliament passed a motion asking one of its committees to express a lack of confidence in the government. The Liberals dismissed this as a procedural matter, causing some to accuse them of governing unlawfully by ignoring parliamentary tradition. The Conservatives and Bloc interpreted it as a vote of no confidence, and they combined their votes to shut down the House of Commons early for two days in a row. The Speaker of the House of Commons later ruled in favour of the Liberal stance.

On May 17, 2005, [[Member of Parliament (Canada)|MP]] [[Belinda Stronach]] [[crossing the floor|crossed the floor]] from the Conservative Party and joined the Liberal Party to become [[Minister of Human Resources and Skills Development]]. Martin claimed Stronach's move was due to concerns over the direction the Conservative Party was taking; others accused Stronach of political opportunism.<ref>{{cite news|url=http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1116356334799_31|title=Stronach decision likely a long time coming|author=CTV.ca News Staff|publisher=CTV.ca|date=May 17, 2005|access-date=November 29, 2006|url-status=dead|archive-url=https://web.archive.org/web/20061028204429/http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1116356334799_31|archive-date=October 28, 2006|df=mdy-all}}</ref><ref>{{cite news|url=http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1116339348919_111748548/?hub=TopStories|title=Stronach crosses the floor, joins Liberal cabinet|author=CTV.ca News Staff|publisher=CTV.ca|date=May 17, 2005|access-date=November 29, 2006|url-status=dead|archive-url=https://web.archive.org/web/20061006050252/http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1116339348919_111748548/?hub=TopStories|archive-date=October 6, 2006|df=mdy-all}}</ref> The event changed the balance of power in the [[House of Commons of Canada|House of Commons]] in favour of the government. This, and the support of independent MP [[Chuck Cadman]], caused a tie during a May 2005 confidence vote, meaning that [[Peter Milliken]], [[Peter Milliken|Speaker of the House]] needed to cast the deciding vote. He voted with the government, following the tradition that the Speaker votes to continue debate, and that allowed the budget to pass through the House on May 19, 2005.