Potential deals on legislation could keep the Liberal government in power

Liberals and Conservatives are working out a path that could keep the government in power, sources tell CBC News, while Prime Minister Mark Carney continues to downplay the likelihood of a spring election.

Asked on Monday whether an election was coming, Carney demurred.

“It’s time to do a lot more work. We’ve got a lot of work to do,” he said on his way into West Block.

But behind the scenes, Liberals and Conservatives have been working on potential deals that could end a parliamentary gridlock and potentially avoid a second federal election in 12 months, three senior Liberal and Conservative sources said.

Such deals would leave space for some concessions for the Opposition, the sources said. CBC News is not naming the sources because they were not authorized to discuss internal discussions.

Carney’s Liberals are still three seats shy of a majority, and in the last parliamentary sitting, faced challenges finding support to pass their legislative agenda.

But this sitting may be different. Last Wednesday, Carney and Conservative Leader Pierre Poilievre sat down for a one-on-one meeting. Afterward, the prime minister said on social media, “this is an important time to be working together, and to pass the legislation Canadians are counting on.”

Poilievre said he pushed for lower taxes, a smaller deficit, and “policies to make Canada affordable, safe and self-reliant.”

Two sources said the tone was more conciliatory on both sides, reflecting a change from the fall sitting. 

Liberals had been privately expressing concerns over how they would pass the Budget Implementation Act, which is expected to be a confidence vote, later this sitting. Losing that vote would likely trigger an election.

In the conversation between Carney and Poilievre, the prime minister opened the door to potential amendments to the omnibus bill, which was tabled last fall and is more than 600 pages long. It is currently being studied at committee. 

What those amendments could look like is still in the early phases of development, two sources said. Conservatives are expected to oppose a segment of the bill that allows a cabinet minister to exempt select corporations from some laws.

There are also ongoing discussions about C-9, a justice bill which proposes new criminal code offences including one that would make it a crime to intentionally promote hatred against identifiable groups in public using certain hate- or terrorism-related symbols. 

The bill was being held up by Conservatives at the justice committee amid concerns from some religious groups that the bill would criminalize some religious texts and worship. 

A source said that one option could include tabling another bill with some elements of C-9 included, giving parliamentarians an ability to fast-track legislation that has widespread support, while continuing to debate more controversial elements. 

Sources say parties are trying to hammer out an agreement on that bill. A committee meeting scheduled for Monday was cancelled last minute — so last minute that the catering order had been called in, and MPs were seen eating soup in the committee room before leaving.

Another bill that was discussed for potential amendment was C-8, a cybersecurity bill meant to protect critical infrastructure. 

Carney’s elusive majority

Carney is no closer to having a majority government than he was in the fall, when speculation was rampant following two Conservative floor crossings, and Conservative MP Matt Jeneroux abruptly announcing he would be giving up his seat.

Since then, Liberal MPs Chrystia Freeland and Bill Blair have left their jobs. Toronto MP Nate Erskine-Smith said last week he plans to vacate his seat to run provincially in an upcoming byelection. 

Conservative sources say they believe the Liberals redoubled their efforts to convince more MPs to cross the floor following the winter break — so far, unsuccessfully. 

As first reported by the Globe and Mail, one source confirms the topic of triggering an election to try to win a majority government came up in recent conversations between Carney and Ontario Premier Doug Ford.

But publicly, Carney has dismissed the idea — saying on Jan. 26 that his government is “focused on results for Canadians.”

Poilievre, who is back from a leadership review having earned a resounding 87.4 per cent approval from the party’s grassroots, has struck a more collaborative tone going into this sitting of Parliament.

In an open letter to the prime minister ahead of the return of the House of Commons, Poilievre proposed working with the government to fast-track some bills and help diversify Canadian trade while also trying to preserve Canadian jobs that rely on trade with the U.S.