Editing Paul Martin (section)

==Prime Minister (2003–2006)==
{{Main|Premiership of Paul Martin}}

===Majority government and sponsorship controversy===

On December 12, 2003, Martin was appointed by then-Governor General [[Adrienne Clarkson]] as the 21st Prime Minister of Canada. When sworn in as prime minister, Martin held the flag that flew on Parliament Hill when the elder Martin died. Both father and son had served as Cabinet ministers and contested the Liberal leadership on multiple occasions; their attempts from 1948 to 1990 were unsuccessful. Martin's election as leader and becoming prime minister was described as fulfilling a family dream. Both also earned the honorific prefix ''[[The Right Honourable]]''. One difference between them was that Paul Sr. was one of the most left-wing members of the party, while Paul Jr. is considered on the right-wing.<ref>{{cite news|url=http://www.cbc.ca/archives/entry/paul-martin-sworn-in-as-prime-minister |title=Paul Martin sworn in as prime minister|publisher=Archives.cbc.ca |date=December 12, 2003 |access-date=June 5, 2015}}</ref>

When he was sworn in, Martin's new cabinet retained only half the ministers from Chrétien's government, a noteworthy break in tradition from previous instances where a retiring prime minister handed over power to his successor as party leader. Martin and his supporters exercised control over the riding nomination process, breaking with the precedent to automatically sign the nomination papers of backbenchers and former ministers who wanted to run for reelection. While these were signs of open party infighting, this had little impact on Martin's record popularity, with several pundits suggesting that the cabinet change was meant to present a new government different from Chrétien's ten-year tenure. Martin declined to appoint leadership contestants [[John Manley]] and [[Sheila Copps]] to cabinet.

Martin and the Liberals were adversely affected by a report from [[Auditor General of Canada|Auditor General]] [[Sheila Fraser]] on February 9, 2004, indicating that sponsorship contracts designed to increase the federal government's status in Quebec resulted in little to no work done. Many of the agencies had Liberal ties, and roughly $100 million of the $250 million in program spending went missing. The scandal hurt Martin's popularity, especially in Quebec, where [[Bloc Québécois]] leader [[Gilles Duceppe]] even accused Martin of planning to widen the St. Lawrence seaway to benefit his own [[Canada Steamship Lines]]. The scandal also cast skepticism on Martin's recommendations for Cabinet appointments, prompting speculation Martin was simply ridding the government of Chrétien's supporters to distance the Liberals from the scandal. Martin acknowledged that there was political direction but denied involvement in, or knowledge of, the sponsorship contracts. He had a judicial inquiry called to investigate what came to be known as the [[sponsorship scandal|Sponsorship Scandal]], and nominated [[John Gomery]] to head it.

During his term, Martin appeared as himself in a fictional, comedic context in several programs, including an episode of the [[CTV Television Network|CTV]] sitcom ''[[Corner Gas]]'' in 2006, and also in the CBC [[mockumentary]] series ''[[Jimmy MacDonald's Canada]]'' in 2005.

====2004 federal election====
{{Main|2004 Canadian federal election}}

The Liberals were facing a new united [[Conservative Party of Canada|Conservative Party]] led by [[Stephen Harper]], while the [[Bloc Québécois]] and NDP were also buoyed by the Sponsorship Scandal. Martin advised Governor General [[Adrienne Clarkson]] to call an [[2004 Canadian federal election|election]] for June 28, 2004.

The Liberals were also hampered by their inability to raise campaign money competitively after Chrétien passed a bill in 2003 that banned corporate donations, even though the Liberals had enjoyed by far the lion's share of this funding due to the then-divided opposition parties. It has been suggested that Chrétien, who had done nothing about election financing for his 10 years in office, could be seen as the idealist as he retired, while his rival and successor Martin would have the burden of having to fight an election under the strict new rules.<ref>{{cite news |url=http://www.cbc.ca/news/background/realitycheck/gray/20060613.html |work=CBC News |title=Reality Check|first=John|last=Grey|date=June 13, 2006|archive-url=https://web.archive.org/web/20061114092059/http://www.cbc.ca/news/background/realitycheck/gray/20060613.html|archive-date=November 14, 2006|access-date=February 11, 2020}}</ref><ref>{{cite news|url=https://nationalpost.com/features/the-liberal-resurrection|title=The liberal resurrection|first=Richard|last=Warnica|newspaper=[[National Post]]|date=April 17, 2013|access-date= February 11, 2020}}</ref>

An unpopular provincial budget by Liberal Premier [[Dalton McGuinty]], who broke a pledge not to raise taxes, hurt the federal party's numbers in Ontario,<ref>{{cite web |url=http://usa.mediamonitors.net/headlines/why_stephen_harper_lost |archive-url=https://web.archive.org/web/20040805200120/http://usa.mediamonitors.net/headlines/why_stephen_harper_lost |url-status=dead |archive-date=August 5, 2004 |title=Why Stephen Harper Lost (by John Chuckman)&nbsp;– Media Monitors Network (MMN) |publisher=Usa.mediamonitors.net |author=(Friday, July 2, 2004) |access-date=October 24, 2008 }}</ref> as did a weak performance from Martin in the leaders' debates. The Conservatives soon took the lead, prompting some predictions of an imminent Harper government. The Liberals managed to narrow the gap and eventually regain momentum.<ref>{{cite news|url=http://www.cbc.ca/news/canada/tories-fail-to-make-breakthrough-in-ontario-1.508424 |title=Tories fail to make breakthrough in Ontario |publisher=CBC |author=CBC News |date= June 29, 2004|access-date=April 26, 2014}}</ref> Martin was successful in winning a plurality of seats to continue as the government, though they were now in a minority situation, the first since [[Joe Clark]]'s tenure in 1979–80.

===Minority government===

The Martin government faced combined challenges from Quebec separatism and general hostility arising from the Sponsorship Scandal. The first test of the Liberal minority came following the [[Speech from the throne]] on October 5, 2004. The Bloc Québécois moved an amendment to the speech challenging the government over provincial jurisdiction. The Conservatives supported the amendment, but the NDP opposed it. Collapse of the government on the confidence vote was averted after Martin called Harper and reached a last-minute deal watering down the motion's wording.<ref>{{Cite news |date=2004-10-07 |title=Parliamentary crisis averted |url=https://www.theglobeandmail.com/news/national/parliamentary-crisis-averted/article20433975/ |access-date=2025-04-13 |work=The Globe and Mail |language=en-CA}}</ref> The government faced another hurdle when the Conservatives announced their own plan to move an amendment to the speech. Harper denied that the Tories intended to bring down the government.<ref>{{Cite news |date=2004-10-06 |title=Tories won't topple government, Harper says |url=https://www.theglobeandmail.com/news/national/tories-wont-topple-government-harper-says/article25680246/ |access-date=2025-04-13 |work=The Globe and Mail |language=en-CA}}</ref> The fall of the government was averted for the second time after the Liberals reached a deal with the opposition parties.<ref>{{Cite web |date=2025-04-13 |title=Leaders condemn PM's plan - The Globe and Mail |url=https://archive.today/20250413032434/https://www.theglobeandmail.com/news/national/leaders-condemn-pms-plan/article1142659/ |access-date=2025-04-13 |website=archive.ph}}</ref> [[Don Boudria]], the Liberals' Chrétien-era House leader, likened the brinkmanship in the first few weeks of the [[38th Canadian Parliament|38th Parliament]] to a game of [[Russian roulette]].<ref>{{Cite news |date=2004-10-06 |title=A dangerous game indeed |url=https://www.theglobeandmail.com/incoming/a-dangerous-game-indeed/article1141971/ |access-date=2025-04-13 |work=The Globe and Mail |language=en-CA}}</ref>

====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.

====Social policy====

[[Same-sex marriage]] proved to be a [[defining issue]] of Martin's mandate. Martin opposed same-sex marriage in a 1999 vote on the issue along with a majority of MPs,<ref>{{cite web |last=Mackenzie |first=Ian |url=http://archives.xtra.ca/Story.aspx?s=14931500 |title=Marriage Vote: The Liberals could leave us at the altar |access-date=November 29, 2006 |work=XTRA Archives |url-status=dead |archive-url=https://web.archive.org/web/20070928010930/http://archives.xtra.ca/Story.aspx?s=14931500 |archive-date=September 28, 2007 |df=mdy-all }}</ref> but changed his stance on the issue in 2004, citing recent court rulings and his personal belief that same-sex marriage was primarily a human rights issue.<ref>{{cite news |title=Supreme Court OK's same-sex marriage |author=CBC News |date=December 9, 2004 |access-date=April 26, 2014 |publisher=CBC |url=http://www.cbc.ca/news/canada/supreme-court-ok-s-same-sex-marriage-1.500479}}</ref> In the midst of various court rulings in 2003 and 2004 that allowed for the legalization of same-sex marriages in seven provinces and one territory, the government proposed a bill to legalize [[same-sex marriage in Canada|same-sex marriage across Canada]]. The House of Commons passed the ''[[Civil Marriage Act]]'' in late June 2005 in a late-night, last-minute vote before Parliament closed down, the [[Senate of Canada|Senate]] passed it in July 2005, and it received [[Royal Assent]] on July 20 of the same year. This made Canada the fourth country in the world to allow same-sex marriages.<ref>{{cite news |title=The Supreme Court and same-sex marriage |author=CBC News |publisher=CBC |date=June 29, 2005 |access-date=April 26, 2014 |url=http://www.cbc.ca/news2/background/samesexrights/}}</ref>

In November 2005, the Martin government reached a historic consensus with Canada's provinces, territories, First Nations, Métis and Inuit. Known as the [[Kelowna Accord]], it aimed to eliminate the gaps between Aboriginal and non-Aboriginal Canadians in health, education, housing and economic opportunity.

====Foreign relations====
{{Further|List of international prime ministerial trips made by Paul Martin}}
[[File:President George W. Bush and Canadian Prime Minister Paul Martin respond to questions from the press corps in the Rose Garden after a meeting at the White House.jpg|thumb|Martin alongside U.S. president [[George W. Bush]], April 30, 2004]]

On February 24, 2005, Foreign Affairs Minister [[Pierre Pettigrew]] told the House of Commons that Canada would not participate in the [[United States national missile defense|American National Missile Defense Program]], and that he expected to be consulted in the case of a missile being launched over Canadian airspace. Martin's decision met with much praise, but others saw that the government was distancing itself from the U.S. His government continued to cooperate with the United States on border control, refugee claimants, and defense, and he appointed seasoned Liberal politician [[Frank McKenna]] as Canada's ambassador to Washington.

Martin was criticized for failing to reach a foreign-aid target of 0.7 percent of GDP, most notably by [[Bono]] of Irish rock group [[U2]] (who claimed that he was going to "kick <nowiki>[Martin's]</nowiki> butt" over the issue). Martin later responded that, in his view, many foreign leaders had made pledges that were too fanciful and that he would only commit to targets that he knew his government could be held accountable for.<ref>{{cite news |url=http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20050709/g-8_summitwraps_20050708?s_name=&no_ads= |archive-url=https://web.archive.org/web/20060302075722/http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20050709/g-8_summitwraps_20050708?s_name=&no_ads= |url-status=dead |archive-date=March 2, 2006 |author=CTV.ca News Staff |title=Resolute G-8 leaders unveil $50B in foreign aid |publisher=CTV.ca |date=July 9, 2005 |access-date=November 29, 2006 }}</ref><ref>{{cite news |url=http://newsfromrussia.com/society/2005/11/26/68542.html |title=Irish rock star Bono says Canadian Prime Minister mystifies him |work=News From Russia |publisher=pravda.ru |date=November 26, 2005 |access-date=November 29, 2006 |url-status=dead |archive-url=https://web.archive.org/web/20070417091827/http://newsfromrussia.com/society/2005/11/26/68542.html |archive-date=April 17, 2007 |df=mdy-all }}</ref>

Martin became involved in a diplomatic row with the United States administration after accusing, with [[Bill Clinton]], the US of not listening to [[Kyoto Protocol|global environmental concerns]]. Martin rejected US Ambassador [[David H. Wilkins|David Wilkins]]'s rebuke and said he was standing up for Canada's interests over softwood and other issues.<ref>{{cite news |title=Martin warns of threat to national unity |author=CBC News |publisher=CBC |date=November 30, 2005 |access-date=April 26, 2014 |url=http://www.cbc.ca/news/canada/martin-warns-of-threat-to-national-unity-1.542084}}</ref><ref>{{cite news |title=Martin rejects U.S. ambassador's rebuke |author=CBC News |publisher=CBC |date=December 13, 2005 |access-date=April 26, 2014|url=http://www.cbc.ca/news/canada/martin-rejects-u-s-ambassador-s-rebuke-1.543612}}</ref>

Martin promoted the expansion of the [[G8]] into a larger group of twenty nations, [[G20]], whose inaugural chairman was himself. He also forged a closer relationship with the People's Republic of China by announcing the [[strategic partnership]] initiative during PRC President [[Hu Jintao]]'s [[state visit]] to Canada in September 2005.<ref>{{cite web|url=http://ca.chineseembassy.org/eng/zjwl/t211490.htm |title=China, Canada agree on building strategic partnership|date=September 9, 2005|author=The Consulate General of The People's Republic of China in Canada|publisher=Embassy of the People's Republic of China in Canada|access-date=February 17, 2021}}</ref>

====Appointment of Governor General====
On August 4, 2005, the government announced that Martin had advised [[Queen of Canada|Queen]] [[Elizabeth II]] to appoint [[Michaëlle Jean]] as [[Governor General of Canada|governor general]]. The reception to the appointment was mixed: some applauded the move, while accusations that her husband had both dined with former members of the terrorist organization [[Front de libération du Québec|FLQ]] and been supportive of [[Quebec separatism]] surprised others.<ref>{{cite news |url=http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20050818/jean_harper_050817/20050818/ |title=Gov. Gen. designate denies separatist link |author=CTV.ca News Staff |publisher=CTV.ca |date=August 15, 2005 |access-date=November 30, 2006 |url-status=dead |archive-url=https://web.archive.org/web/20070922202400/http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20050818/jean_harper_050817/20050818/ |archive-date=September 22, 2007 |df=mdy-all }}</ref> Subsequent to her appointment, she reaffirmed her commitment to [[federalism]] and the issue died down.

====Fall of government====
The first volume of the Gomery Report, released on November 1, 2005, cleared Martin of any wrongdoing while placing some blame for the scandal on Chrétien for lack of oversight, although it acknowledged that Chrétien had no knowledge of the scandal.<ref>{{cite news|title=Justice John Gomery report lays blame with Chrétien, exonerates Martin|first=Jim|last=Brown|work=Canadian Press|publisher=canada.com|date=November 1, 2005|access-date=November 29, 2006|url=http://www.canada.com/national/nationalpost/news/story.html?id=187e67f3-155c-42d1-b2cc-524f3c6a890d|url-status=dead|archive-url=https://web.archive.org/web/20071014071204/http://canada.com/national/nationalpost/news/story.html?id=187e67f3-155c-42d1-b2cc-524f3c6a890d|archive-date=October 14, 2007|df=mdy-all}}</ref> On June 26, 2008, Chrétien was cleared of all allegations of involvement in the scandal.<ref>{{cite web|url=http://www.cbc.ca/news/canada/key-gomery-finding-involving-chr%C3%A9tien-pelletier-struck-down-1.750175|title=Key Gomery finding involving Chrétien, Pelletier struck down|publisher=CBC News|date=June 26, 2008|access-date=April 26, 2014}}</ref>

A Canadian judge issued a gag order that barred Canadian media from covering the hearings of the [[Gomery Inquiry]]. Despite this, leaked information circulated after being published in an American blog ''[[Captain's Quarters]]''.<ref>{{cite web|url=https://www.csmonitor.com/2005/0413/p09s01-coop.html|title=Borderless blogs vs. Canada press ban|newspaper=[[The Christian Science Monitor]]|date=April 13, 2005|first=Rondi|last=Adamson|access-date=February 11, 2020}}</ref>

After the Gomery findings, NDP leader [[Jack Layton]] notified the Liberals of conditions for the NDP's continued support; the terms of these conditions are unclear, but the two parties were unable to come to an agreement. An opposition proposal to schedule an election for February 2006 in return for passing several pieces of legislation was also unrealized.<ref>{{cite news |title=MPs pass motion calling for February election |author=CBC News |publisher=CBC |date=November 21, 2005 |access-date=April 26, 2014|url=http://www.cbc.ca/news/canada/mps-pass-motion-calling-for-february-election-1.528232}}</ref> The Conservatives, supported by the other two opposition parties (the NDP and Bloc Québécois), introduced a [[motion of non confidence]] against the Martin government. The motion passed on November 28 by a count of 171–133, defeating the government, after which the Governor General issued [[writ of election|election writs]] for a [[2006 Canadian federal election|vote to be held]] on January 23, 2006.<ref>{{cite news |title=Liberal government defeat sets stage for election |author=CTV.ca News Staff |publisher=CTV.ca |date=November 28, 2005 |access-date=November 29, 2006 |url=http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20051128/minority_liberal_election_051128/20051128?s_name=election2006 |archive-url=https://web.archive.org/web/20061010195633/http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20051128/minority_liberal_election_051128/20051128?s_name=election2006 |url-status=dead |archive-date=October 10, 2006 }}</ref><ref>{{cite news |title=Liberals lose confidence of the House |author=CBC News |date=November 28, 2005 |publisher=CBC |access-date=April 26, 2014 |url=http://www.cbc.ca/news/canada/liberals-lose-confidence-of-the-house-1.555183}}</ref>

Some commentators described Martin's tenure as Prime Minister as unfocused and indecisive, with the Canadian correspondent of ''[[The Economist]]'' reporting that he was being called "Mr. Dithers" in Ottawa.<ref name="Martin convention">{{cite news|url=http://www.cbc.ca/news/canada/martin-urges-liberals-to-leave-convention-side-by-side-1.588738 |title=Martin urges Liberals to leave convention 'side by side' |publisher=CBC |author=CBC News |date= December 1, 2006|access-date=April 26, 2014}}</ref><ref>{{cite news |url=http://www.cbc.ca/news/canada/british-magazine-dubs-martin-mr-dithers-1.527129 |title=British magazine dubs Martin 'Mr. Dithers' |publisher=CBC |author=CBC News |date= February 18, 2005|access-date=April 26, 2014}}</ref>

====2006 federal election====
{{Main|2006 Canadian federal election}}

Prior to the campaign and upon [[dropping the writ|dropping of the writs]], [[Opinion polling in the Canadian federal election, 2006|opinion polling]] indicated the Liberals were ahead of the Conservatives by 2–10% popular support (November 30, 2005: Liberals 35%, Conservatives 30%). But the Liberal lead did not last. They did not plan much serious campaigning during December, allowing the Conservatives to take the initiative in rolling out policy ideas. Several early gaffes were picked up by an [[Newspaper endorsements in the Canadian federal election, 2006|unsympathetic media]]. One notable gaffe was Liberal Party strategist [[Scott Reid (political advisor)|Scott Reid]]'s suggestion that parents might buy beer and popcorn with the Conservatives' child care subsidy, although Martin declined to apologize. Martin was also criticized for portraying himself as the defender of Canadian unity; some opponents said that the election was not a referendum while others pointed to the Sponsorship Scandal.<ref>{{cite news |title=Liberals wrong to play separatism card, Lord says |author=CTV.ca News Staff |publisher=CTV.ca |date=December 11, 2005 |access-date=November 29, 2006 |url=http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20051208/qp_bernard_lord_051211?s_name=election2006%7C&no_ads= |url-status=dead |archive-url=https://web.archive.org/web/20070311032538/http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20051208/qp_bernard_lord_051211?s_name=election2006%7C&no_ads= |archive-date=March 11, 2007 |df=mdy-all }}</ref>

Near the end of December, the Liberals were rocked by a [[Royal Canadian Mounted Police]] criminal investigation into the leaking of news of a federal tax change for [[income trust]]s.<ref>{{cite news|title=The Income Trusts Probe|author=CBC News|publisher=CBC|work=Canada Votes 2006|access-date=November 29, 2006 |url=http://www.cbc.ca/canadavotes/leadersparties/incometrusts.html |archive-url = https://web.archive.org/web/20061101060021/http://www.cbc.ca/canadavotes/leadersparties/incometrusts.html |archive-date = November 1, 2006}}</ref><ref>{{cite news|title=Income trust a major campaign turning point|author=Canadian Press|publisher=CTV.ca|date=January 22, 2006|access-date=November 29, 2006|url=http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20060121/election_turningpoints_060121?s_name=election2006&no_ads=|url-status=dead|archive-url=https://web.archive.org/web/20090116032918/http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20060121/election_turningpoints_060121?s_name=election2006&no_ads=|archive-date=January 16, 2009|df=mdy-all}}</ref> This again brought the Sponsorship Scandal to public attention at a time when Martin planned to make important policy announcements. Under constant campaign pressure by all opposition parties casting Martin and the Liberals as corrupt, Liberal support fell to as low as 26% in early January 2006. The decline was not halted even by a glossy election pledge booklet.<ref name="pol1">{{cite news |url=https://www.poltext.org/sites/poltext.org/files/plateformesV2/Canada/CAN_PL_2006_LIB_en.pdf |title=Securing Canada's Success |editor-first1=Paul |editor-last1=Marin |date=2006}}</ref>

Martin did not put in a strong performance during the televised campaign debates. While appearing passionate in his message, he stuttered in making statements and appeared somewhat flustered.<ref name="www1">{{cite web |url=http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20060103/ELXN_voters_reaction_060109?s_name=&no_ads= |archive-url=https://web.archive.org/web/20060818162102/http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20060103/ELXN_voters_reaction_060109?s_name=&no_ads= |url-status=dead |archive-date=August 18, 2006 |title=CTV.ca &#124; Debate cements, rather than sways, voter intents |publisher=Ctv.ca |date=January 9, 2006 |access-date=October 24, 2008 }}</ref><ref>{{cite web|url=http://www.stephentaylor.ca/2004/06/harper-wins-the-english-debate/ |title=Stephen Taylor&nbsp;– a blog on Canadian politics » Blog Archive » Harper wins the English debate |publisher=Stephentaylor.ca |date=June 15, 2004 |access-date=October 24, 2008}}</ref> During one debate, Martin made a surprise pledge that he would eliminate the [[Section Thirty-three of the Canadian Charter of Rights and Freedoms|notwithstanding clause]]; the Conservatives pointed out that this was not one of the announced Liberal campaign promises.<ref>{{cite web |url=http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20060103/ELXN_liberals_debate_amendment_060109/20060109/ |title=CTV.ca &#124; Martin vows to end federal notwithstanding clause |publisher=Ctv.ca |date=January 9, 2006 |access-date=October 24, 2008 |url-status=dead |archive-url=https://web.archive.org/web/20080316204319/http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20060103/ELXN_liberals_debate_amendment_060109/20060109/ |archive-date=March 16, 2008 |df=mdy-all }}</ref>

In an attempt to sway voter sentiment in the final two weeks of the campaign, the Liberals prepared a series of [[2006 Harper attack ads|attack ads]]. One unreleased ad was seen widely as disrespectful of the military and it not only overshadowed the other ads but also forced Martin to defend it instead of releasing new policies. During the last week, Martin was forced to defend Harper after the latter was called a separatist by [[Canadian Auto Workers]] union leader [[Buzz Hargrove]]. In another tactic similar to the 2004 campaign, Hargrove urged all progressive voters to unite under the Liberal banner in English Canada and the Bloc Québécois in Quebec to stop the Conservatives, hoping to attract voters who were leaning towards the NDP, but New Democrat leader [[Jack Layton]] responded by focusing his attacks on Liberal corruption.

In the end, the Conservatives won a [[plurality (voting)|plurality]] of support and seats, finishing 31 seats short of a majority. The Liberals held their base of support in Ontario, with 54 seats of the 103 in the province. The Liberals lost a number of seats in Quebec, winning only 13 of the 75 seats in the province, down from 21 in 2004, while the Conservatives won 10 seats there. The Liberals did not improve their standings in the Western provinces, winning only 14 of the 92 seats, the same number as in 2004.

Shortly after midnight on January 24, 2006, after it became clear that the Conservatives were on their way to a plurality, Martin conceded defeat. (Near the end of the 2004 election, Martin and Harper both pledged that they would not form a government unless they won a plurality of seats.)  Martin surprised many by announcing his resignation as party leader, saying "I will continue to represent with pride the people of LaSalle—Émard, but I will not take our party into another election as leader." The next day, Martin officially informed [[Governor General of Canada|Governor General]] [[Michaëlle Jean]] of his intention to resign as prime minister.<ref>{{cite web|title=Media Advisory|publisher=Rideau Hall Press Office|last=Richer|first=Eric|date=January 24, 2006|access-date=November 29, 2006|url=http://www.gg.ca/media/doc.asp?lang=e&DocID=4654|url-status=dead|archive-url=https://archive.today/20060220042131/http://www.gg.ca/media/doc.asp?lang=e&DocID=4654|archive-date=February 20, 2006|df=mdy-all}}</ref> Jean asked Harper to form a government later that day. Martin remained as prime minister until the Harper minority government was sworn on February 6, 2006.<ref>{{cite web|title=Details regarding the swearing-in ceremony of the 22nd prime minister of Canada and his ministry|last=Richer|first=Eric|publisher=Rideau Hall Press Office|date=February 6, 2006|access-date=November 29, 2006|url=http://www.gg.ca/media/doc.asp?lang=e&DocID=4662|archive-url=https://wayback.archive-it.org/all/20081125163007/http://www.gg.ca/media/doc.asp?lang=e&DocID=4662|url-status=dead|archive-date=November 25, 2008|df=mdy-all}}</ref>

=== Supreme Court appointments ===
Martin chose the following jurists to be appointed as justices of the [[Supreme Court of Canada]] by the [[Governor General of Canada|Governor General]]:
* [[Rosalie Abella]] (October 4, 2004&nbsp;– July 1, 2021)
* [[Louise Charron]] (October 4, 2004&nbsp;– August 30, 2011)