Paul Martin

The sponsorship scandal dominated the beginning of Martin's tenure as Prime Minister and weakened his minority government. As a former Finance Minister and the new Liberal leader, he faced political questions concerning a system of irregular contracts and commissions established under the previous government.

Days before a confidence vote that could have brought down his government, Martin welcomed Conservative MP Belinda Stronach into the Liberal caucus and immediately appointed her a minister. The opposition denounced the appointment as a political reward intended to save the government.

State of the evidence

Documented

Attribution

Political responsibility

The government initially reported a very small amount of federal contracts awarded to CSL while Martin was a minister, before revised figures revealed much higher cumulative payments, amounting to approximately $161 million. The discrepancy fuelled significant controversy over the accuracy of government disclosures and connections between CSL and Ottawa.

State of the evidence

Documented

During his years at the Finance Ministry, Martin had placed his interests in CSL under a management arrangement overseen by trustees. He nevertheless received periodic briefings on significant matters concerning the company, prompting criticism of the apparent separation between his public duties and private interests. In 2003, before becoming Prime Minister, he transferred control of the company to his sons.

Attribution

Directly implicated

The rivalry between Paul Martin and Jean Chrétien over the future leadership of the Liberal Party escalated into open conflict. In June 2002, Martin left the Finance Ministry amid tensions over his leadership activities and the loyalty of his political organisation, an episode that deeply divided the parliamentary caucus and accelerated the party's leadership transition.

State of the evidence

Documented

Attribution

Direct responsibility

Canada Steamship Lines, historically controlled by Martin, was criticised for using foreign flags, companies established in favourable tax jurisdictions and less expensive international crews. The controversy was particularly sensitive because Martin simultaneously held senior federal government positions.

State of the evidence

Documented

Attribution

Direct responsibility

As Finance Minister, Paul Martin championed the 1995 Budget and Program Review, which sharply reduced programme spending, cut the federal workforce and reorganised federal transfers to the provinces. The strategy was praised for restoring fiscal health but strongly criticised for its effects on public services and provincial finances.

State of the evidence

Documented

Attribution

Political responsibility

Opponents argued that tax provisions in Bill C-28 could benefit Canada Steamship Lines (CSL), a company connected with Martin, then Finance Minister. The matter was raised before the Finance Committee and the federal Ethics Counsellor.

Attribution

Directly implicated