The first Conservative majority victory in
26 years—and only the second in
54 years—initially seemed to give Mulroney a very formidable position. The Tories had won just over half the popular vote, and no other party crossed the 50-seat mark. Although it appeared as though he had wide discretion to take Canada in virtually any direction he wanted, his position was far more precarious than his parliamentary majority would suggest. Mulroney's support was based on a grand coalition of
socially conservative populists from the West,
Quebec nationalists, and fiscal conservatives from Ontario and Atlantic Canada. Such diverse interests became difficult for him to juggle as the years went on, and would eventually lead to the
collapse of the grand coalition entirely in 1993. Most of Mulroney's ministers had little government experience, resulting in conflicts of interest and embarrassing scandals. Many Tories expected patronage appointments due to the long time out of government. Mulroney included a large number of Westerners in his Cabinet (including Clark as
minister of external affairs). He was not completely successful, even aside from economic and constitutional policy. For example, he moved
CF-18 servicing from Manitoba to Quebec in 1986, even though the Manitoba bid was lower and the company was better rated. Mulroney also received death threats for exerting pressure on Manitoba over French language rights. in September 1984
Economic policy Social programs and spending Despite Mulroney referring to social programs as a "sacred trust" when he was Opposition leader in 1983, he began to reduce expenditures on the programs when he came into office. In terms of
old age security, Mulroney's government gradually reduced its benefits at middle-income levels and above. Mulroney's government cut spending for
unemployment insurance (UI) and reduced the range of workers covered by the benefits from the program. In their
first budget in 1985, the Mulroney government announced that
registered home ownership savings plan (RHOSP) contributions would not be deductible if made after May 22, 1985, (funds left in the RHOSP after this date could be withdrawn tax-free, "regardless of the use") and no contribution could be made after December 31, 1985; the government also announced that income earned in an RHOSP after December 31, 1985, was to be included in the owner's taxable income, effectively ending the last desirable feature of RHOSPs. In 1990, the government limited cost-sharing under the
Canada Assistance Plan in three provinces in response to their concerns that unemployed workers would apply for cost-shared provincial social assistance (as a result of rising unemployment). Also in 1990, Mulroney's government eliminated its financial contribution to UI, making all UI costs covered by worker and employer contributions. In Spring 1993, the government lowered benefits for unemployed Canadians and eliminated benefits for the unemployed who failed to prove the reason they left their job. In 1985, Mulroney's government introduced a four-year plan to restructure family benefits. Starting in 1986,
family allowances were partially
indexed to the
cost of living. For three years, from 1986 to 1988, the refundable
child tax credits were increased to $549 per year. Starting in 1989, the tax credits were partially indexed in the same manner as family allowances. That same year, as part of the government's program to target social benefits to low or middle-income Canadians, universal family allowances ended as high-income parents were required to repay all of their benefits at tax-filing time. This system maintained and increased a tax deduction for childcare expenses, benefiting high-income families the most. In 1992, the government replaced family allowances with a new Child Tax Benefit that included the family allowance, the Refundable Child Tax Credit, and a non-refundable child tax credit. The new benefit paid a maximum of $85 per month per child up to the age of 18 and was tax-free. It was income-tested on the net family income reported in the preceding year's income tax returns. Mulroney's government reduced the federal workforce by 1 percent each year from 1986 to 1991, resulting in the laying off of 11,000 federal employees. Mulroney's government transferred a significantly increased share of the costs of
universal health care and
higher education to the provinces, departing from the previous standard of
cost-sharing of the two levels of government. As a result, some provinces had to drop insurance coverage for certain medical procedures and drugs. Mulroney's government eliminated subsidies to government-owned passenger rail and postal services, resulting in the closing of post offices in some small towns and the elimination of certain train routes. The government also introduced fees for forwarding misdirected letters. Under Mulroney, military spending growth was reduced to 1.5 percent per year and foreign aid growth was reduced to 3 percent per year. The
worldwide recession of the early 1990s significantly damaged the government's financial situation. Mulroney's inability to improve the government's finances, as well as his use of tax increases to deal with it, were major factors in alienating the Western conservative portion of his power base – this contrasted with his tax cuts earlier as part of his 'pro-business' plan which had increased the deficit. At the same time, the
Bank of Canada began to raise interest rates in order to meet a
zero inflation target; the experiment was regarded as a failure that exacerbated the effect of the recession in Canada. Annual budget deficits ballooned to record levels, reaching $42 billion in his last year of office. These deficits grew the national debt dangerously close to the psychological benchmark of 100 percent of GDP, further weakening the
Canadian dollar and damaging Canada's international credit rating.
Taxation Mulroney's government de-indexed
personal income tax brackets and eliminated open corporate tax loopholes. The government also increased taxes on alcohol, tobacco and gasoline. In 1988, Mulroney's government reduced the corporate income tax from 36 percent to 28 percent. That year, his government increased the
capital gains tax inclusion rate from 50 percent to 66.67 percent before increasing it to 75 percent in 1990. Mulroney's government passed a major tax reform bill, Bill C-139, which was made effective on January 1, 1988. It included reforms for personal and corporate income taxes. The bill expanded the tax base for personal and corporate income; lowered rates applicable to taxable income; supplanted exemptions with credits; and removed certain deductions for personal income tax. The bill replaced the 1987 rate schedule of 10 brackets (with rates ranging from 6 to 34 percent) with a schedule of only three brackets (with rates of 17 percent, 26 percent, and 29 percent). The bill also limited the lifetime capital gains exemption to $100,000; lowered capital cost allowances; established limitations on deductible business expenses; and cut the dividend tax credit. In August 1989, Mulroney's government announced the introduction of a nine percent national sales tax, the
goods and services tax (GST), to replace the hidden 13.5 percent manufacturers' sales tax (MST). The government argued that the MST damaged the Canadian economy's competitiveness as it only applied to domestically manufactured goods, as opposed to the new GST, which applied to domestic and imported goods. The GST did not apply to basic groceries, prescription drugs, health and dental care, educational services, daycare, and legal aid. Following public backlash, Mulroney's government reduced the tax to seven percent. Although the government argued GST was not a tax increase, but a tax shift, its visibility made it extremely unpopular, and many polls showed that as many as 80 percent of Canadians opposed it. Two Progressive Conservative MPs from Alberta,
David Kilgour and
Alex Kindy, left the party in protest of the tax. One of the causes of the early 1990s recession was several tax increases instituted by Mulroney's government between 1989 and 1991. The introduction of the goods and services tax and increases related to excise and payroll taxes were modelled to have reduced real GDP growth by 1.6, 2.4 and 5.1 percentage points in 1990, 1991 and 1992, respectively. Had these tax increases not been implemented, the national debt would have increased significantly.
Privatizations Mulroney's government privatized many of Canada's
Crown corporations. In 1984, the
Government of Canada held 61 Crown corporations. Under Mulroney, it sold off 23 of them, including
Air Canada, which was completely privatized by 1989, although the
Air Canada Public Participation Act continued to make certain requirements of the airline. Mulroney's government also privatized
Connaught Laboratories in 1984 through two public issues (one in 1984 and one in 1987) and
Petro-Canada in 1991.
Energy policy On June 1, 1985, Mulroney's government negotiated the
Western Accord on Energy with the governments of the
oil-producing provinces. It permitted the full deregulation of oil prices and allowed the market forces of international and local supply and demand to determine prices. This accord abolished the
National Energy Program, which was a policy of Trudeau's Liberal government that was highly unpopular in the Western provinces.
Environmental policy The environment was a key focus of Mulroney's government. His government added eight new national parks (including
Bruce Peninsula and
South Moresby), and passed the
Canadian Environmental Assessment Act and
Canadian Environmental Protection Act. In 1987, Mulroney hosted an international climate conference in
Montreal, Quebec. There, 46 nations signed the
Montreal Protocol to limit the use and production of
chlorofluorocarbons (CFCs); this agreement came after the discovery that CFCs were burning a hole through the
ozone layer. Mulroney secured the
U.S.–Canada Air Quality Agreement, an
environmental treaty on
acid rain, with United States president
George H. W. Bush in 1991. Both nations committed to reducing the emissions of the air pollutants (sulphur dioxide and nitrogen oxide) that caused acid rain through a
cap-and-trade system. Negotiations began in 1986 when Mulroney first discussed the issue with then-president
Ronald Reagan. Mulroney repeatedly pressed the issue in public meetings with Reagan in 1987 and 1988. Under Mulroney, Canada became the first industrialized country to ratify the 1992
Convention on Biological Diversity at the
Earth Summit in Rio de Janeiro, Brazil. Conference experts claimed that Canada's signing of the treaty motivated the United Kingdom and Germany to pledge their support and thus avoid the convention's defeat. The conference also introduced the
United Nations Framework Convention on Climate Change, which sought to reduce greenhouse gas emissions to an environmentally friendly level; Canada was the first
Group of Seven (G7) nation to sign the treaty. At the convention, Mulroney pledged $260 million from Canada toward advancing sustainable development for developing nations; this included an offer to forgive $145 million in debts owed to Canada by Latin American nations on the condition that the sum of money be used for sustainable development and social programs. At the end of the conference, Mulroney stated, "I leave this conference believing we have a better chance of saving the world than we had when we came here." By 1992, Newfoundland and Labrador cod of breeding age dropped to one percent of its estimated peak. Concerned about the
overfishing of cod stocks off the coast of the province, Mulroney's government, in the summer of that year imposed a
moratorium on cod fishing; they initially set the ban for a minimum of two years, but later extended it indefinitely. This resulted in the layoff of 30,000–40,000 workers. Mulroney's government introduced the Northern Cod Adjustment and Recovery Program (NCARP) that provided
unemployment insurance payments and retraining to workers; most of the workers viewed this as insufficient. In the first decade of the ban, Newfoundland and Labrador's population fell by 10 percent as people left to search for work.
Immigration Mulroney's government significantly boosted Canada's
annual immigration targets, moving them up from around 84,000 to over 250,000 by the early 1990s, a major policy shift focusing on economic class via the
points system, reflecting a broader strategy to grow the population and labor force.
Social policy On September 22, 1988, Mulroney issued an official apology on behalf of the Canadian government for
Japanese Canadian internment during World War II. Mulroney's government provided a 300 million dollar compensation package, which included $21,000 to each of the remaining 13,000 survivors, $12 million for a Japanese community fund, and $24 million to create a Canadian race relations foundation. Mulroney argues he set up the
Deschênes Commission of inquiry on
Nazi war criminals soon after he was first elected in 1984, even though it was controversial among "communities where Nazi criminals posed as respectable citizens." On issues of
abortion, Mulroney declared he was opposed to "abortion on demand" but gave no details on what that meant legally. In the Spring of 1988, the Mulroney government offered a compromise solution that would give easy access to abortion in the early stages of pregnancy and criminalize late-term ones. The law in the House of Commons was defeated 147 to 76 in a
free vote, voted against by both MPs who opposed easy access to abortions and those who opposed adding any abortion rules to the criminal code. Some pro-life social conservatives who played a role in Mulroney's 1984 landslide were disappointed by this move, as they were in favour of outlawing abortion completely, regardless of the circumstance. In 1989, the government introduced a much stricter bill. If enacted, it would ban all abortions unless a doctor ruled the woman's life or health would be threatened. Anyone found in violation of the law could be imprisoned for up to two years. In another free vote, the House of Commons passed the new bill by nine votes. A few months later, the bill failed in the Senate on a tie vote. Under the rules of the Senate, a tie meant the measure was defeated. This was the last time the federal government attempted to enact abortion laws. Today, abortion in Canada remains completely legal at all stages of pregnancy, regardless of the reason. In 1991,
Frank magazine ran a satirical advertisement for a contest inviting young Tories to "Deflower
Caroline Mulroney." Her father was incensed and threatened physical harm toward those responsible before joining several women's groups in denouncing the ad as an incitement to rape on national television. Frank's editor
Michael Bate, called the spoof, intended to mock her unpopular father for bringing her to public adult-oriented events, "clumsy" but had no regrets. Bate also shared sympathy toward her father's reaction over the spoof.
Attempted constitutional reform Meech Lake Accord A major undertaking by Mulroney's government was an attempt to resolve the divisive issue of national unity. In 1981, Quebec premier
René Lévesque, leader of the Quebec nationalist
Parti Québécois government, had been the only provincial premier not to agree to the package of constitutional amendments which
patriated the
Constitution of Canada. In the
1985 Quebec provincial election, the Parti Québécois government suffered a landslide defeat to the
Liberals led by
Robert Bourassa. Some believed that the new Quebec government's moderate stance on nationalism would allow the province to formally endorse the constitution. Mulroney wanted Quebec to endorse the constitution and wanted to include Quebec in a new agreement with the rest of Canada. In August 1986, Mulroney met with
provincial premiers in Edmonton, Alberta, where the ministers agreed to the "Edmonton Declaration". It stated that a "Quebec Round" of constitutional talks based on Bourassa's five conditions that would have to be met for Quebec's endorsement of the constitution (recognition of Quebec's distinct character (Quebec being historically Catholic and majority French-speaking); a veto for Quebec in constitutional matters; input from Quebec into the appointment of Supreme Court justices; entrenchment of Quebec's role in immigration; and a limit on the federal spending power) would occur before further reforms would be undertaken. Mulroney called a
First Ministers' conference with the ten provincial premiers for April 30, 1987, at Willson House, located on the shores of
Meech Lake, Quebec, in the
Gatineau Hills. During the conference, Mulroney negotiated the
Meech Lake Accord, a package of constitutional amendments designed to satisfy Quebec's demand for recognition as a "
distinct society" within Canada. The accord also devolved some powers to the provinces such as giving provinces a role in nominating people to serve in some federal institutions (e.g. the
Senate and
Supreme Court of Canada); allowing provinces to withdraw from federally-financed social programs on the conditions that the province establish its own program that meets national standards; giving constitutional status to federal–provincial immigration agreements; and mandating annual First Ministers' conferences (the accord also required that
Senate reform and
fisheries be discussed at the conferences), which made the federal-provincial consultative process constitutional. As well, other parts of the accord were made under the general amendment provision. That meant that there was a three-year deadline for those amendments to pass. On June 23, 1987, Quebec became the first province to approve of the Accord, triggering the three-year time limit provided for by the Section 39(2) of the
Constitution Act, 1982; this meant that June 22, 1990, would be the last possible day the accord could pass. Opinion polls showed that a majority of Canadians supported the accord. Some believed the accord would weaken
Quebec separatism. Critics believed the accord would weaken the federal government's authority, and some from
English Canada worried the "distinct society" clause would give Quebec special status to the detriment of the other nine provinces. Mulroney told the
Toronto Star, "You can have the old style of warring federalism, or you can have genuine co-operative federalism, on which we're trying to build a new country." As criticism grew, support for the Accord declined outside of Quebec; some there feared its failure would spark a backlash in the province and damage national unity. In early June 1990, all premiers finally agreed to ratify the accord provided there be further constitutional discussions revolving around an elected Senate, the amending formula, equality, and Indigenous issues. Around that time, New Brunswick agreed to ratify the agreement. Manitoba and, Newfoundland, and Labrador remained the only provinces to have not ratified it; they only had a few weeks left. Unanimous support from every member of the
Manitoba Legislative Assembly was required to bypass the necessary public consultations in the assembly and proceed with ratification. On June 12, 1990, Member of the Legislative Assembly of Manitoba
Elijah Harper announced his opposition to the Accord on the grounds that
Indigenous groups had not been consulted. Harper's opposition prevented the amendment from proceeding; thus, the accord failed to pass in the legislature. This allowed the
premier of Newfoundland and Labrador,
Clyde Wells (who revoked the province's previous assent though reluctantly agreed to ratify the accord in June 1990), to excuse himself from bringing the accord to a vote in the
Newfoundland and Labrador House of Assembly. The accord failed to be ratified as Manitoba and Newfoundland and Labrador did not approve of it by the June 23, 1990, deadline. Clark was responsible for establishing a new accord to end the constitutional deadlock with Quebec. Mulroney's government appointed two Quebec bodies (the
Allaire Committee and the
Belanger-Campeau Committee) and two national bodies (the Beaudoin-Edwards Committee and the
Spicer Commission) to engage in discussions regarding constitutional reform. These bodies generated various reports, including the federal document titled ''Shaping Canada's Future Together
. The Mulroney government then held five national conferences to discuss the proposals in the document. The conferences led to another federal report titled A Renewed Canada.''. Afterward, negotiations between the federal, provincial, and territorial governments occurred. Unlike the Meech Lake Accord, Indigenous peoples were included in the discussions. Quebec was included in the final stages. The negotiations culminated in the
Charlottetown Accord, which was unveiled in
Charlottetown, Prince Edward Island, on August 28, 1992. The accord gave provinces jurisdiction over
forestry,
mining,
cultural affairs, and other areas; required the federal government to negotiate policy with the provinces in certain areas such as telecommunications, labour and training, regional development, and immigration; abolished
disallowance (which gives the federal
Cabinet power to overrule provincial legislation within one year of it being passed); and required provincial consent for the federal government gaining power over provincial infrastructure projects. The accord allowed provinces to create their own social programs and mandated the federal government to compensate provinces as long as the provincial social programs met national standards. It also mandated the federal government to compensate provinces that withdrew from any constitutional amendment that transferred provincial powers to the federal government; the compensation would allow provinces to fund their own programs. In addition, the accord addressed
Indigenous self-government and contained the "Canada Clause" that determines Canadian values including egalitarianism,
multiculturalism, and recognition of Quebec as a distinct society. Finally, the accord entrenched the structure and appointment process for the
Supreme Court of Canada in the constitution; changed the Senate into a
Triple-E Senate with reduced powers (such as requiring a majority of all senators and a majority of
Francophone senators in certain votes); increased the number of seats in the
House of Commons; guaranteed Quebec at least a quarter of the Commons's seats; and increased the number of matters that require unanimous approval for a constitutional amendment. On March 17 and 18, 1985, the "
Shamrock Summit" between Mulroney and Reagan was held in
Quebec City. The summit gained its name from the two leaders' Irish background, and because the meeting started on
St. Patrick's Day. In the summit, Mulroney and Reagan sang
When Irish Eyes are Smiling; this signified the camaraderie between the two leaders and a turning point in
Canada–United States relations. The
Air India Flight 182 bombing, which originated in
Montreal, occurred on June 23, 1985. This was the largest terrorist act before the
September 11 attacks, with the majority of the 329 victims being Canadian citizens. Mulroney sent a letter of condolence to Indian prime minister
Rajiv Gandhi, sparking an uproar in Canada since he did not call the families of the actual victims to offer condolences. Furthermore, there were several warnings from the
Indian government to the Mulroney government about terrorist threats toward Air India flights. Questions remain as to why these warnings were not taken more seriously and whether the events leading to the bombing could have been prevented. In November 1984, Mulroney sent his newly appointed
Canadian ambassador to the United Nations,
Stephen Lewis, to the
Headquarters of the United Nations in New York City to persuade the
General Assembly to take action against
the ongoing Ethiopian famine. Days later, the UN and
Red Cross launched an effort to save seven million starving Ethiopians and 22 million others in Africa. The Mulroney government's efforts to aid Ethiopia differed Canada from the United States and the United Kingdom, two Western nations which avoided taking action against the famine due to Ethiopia's
Marxist regime. Mulroney's foreign affairs minister,
Joe Clark, became the first senior Western official to visit Ethiopia during the famine, ahead of UN officials. Mulroney's government spent tens of millions of dollars to match private donations to combat the famine. Canada contributed to over 10 percent of international aid to Ethiopia. After the famine, Mulroney's government increased aid and development funding to Africa. , Canada, on March 18, 1985, the second day of the "
Shamrock Summit." On December 2, 1991, Canada became the first Western nation to recognize Ukraine as an independent country, next day after the
landslide referendum in favour of independence in Ukraine.
Apartheid Mulroney's government opposed the
apartheid regime in South Africa. Beginning in 1985, Mulroney led an effort within the
Commonwealth to
sanction the South African government with the goal of pressuring them to end apartheid and release
anti-apartheid activist
Nelson Mandela from prison. This put Mulroney at odds with British prime minister
Margaret Thatcher, who opposed apartheid but believed the sanctions could harm Britain's economic ties to the country and cause unemployment in South Africa. United States President Ronald Reagan also opposed sanctions, believing that Mandela and other leaders of the
African National Congress were communists. At an October 23, 1985,
United Nations General Assembly meeting, Mulroney stated, "if there is no progress in the dismantling of apartheid, Canada–South Africa relations|[Canada]'s relations with South Africa may have to be severed completely"; he restored this line in his speech after he originally removed it at the advice of External Affairs. After an August 1986 meeting in London, Canada, along with other Commonwealth nations, implemented 11 new sanctions on South Africa including bans on new air links, new investment, promotion of
tourism, The day after Mandela was released on February 11, 1990, he spoke with Mulroney through the telephone, thanking him for his efforts to end apartheid. Mandela made the
Parliament of Canada his first legislature in the world to make a speech. On June 18 that year, Mandela spoke in the
House of Commons of Canada, where he thanked Mulroney and Canadians. The two remained in contact after they left politics; during his annual business trips to South Africa, Mulroney visited Mandela. though the 1985 report of the
MacDonald Commission suggested free trade as an idea to him. Negotiations between Canada and the United States for a
free trade treaty started in May 1986. In October 1987, a deal was reached; the
Canada–United States Free Trade Agreement (CUSFTA) stated that all
tariffs between the two countries would be eliminated by 1998. This deal was achieved not least because of Mulroney's close relationship with U.S. president Ronald Reagan. This agreement was controversial; while Mulroney used his massive majority in the House of Commons to pass the bill, the
Liberal-dominated
Senate demanded an election before proceeding to a ratification vote. This induced Mulroney to ask
governor general Jeanne Sauvé on October 1 to dissolve
Parliament and call
an election for November 21. (standing), US president
Bush, prime minister Mulroney (seated),
Jaime Serra Puche,
Carla Hills,
Michael Wilson. The trade deal was the main issue of the election, with the Liberals and
New Democratic Party (NDP) opposing it; Liberal leader
John Turner (who was preparing for his second campaign after Mulroney defeated him in
1984) believed that the agreement would "Americanize" Canada and cost many Canadian jobs. A week after the October 25 debate, the Liberals were six points ahead of the PCs. To combat this Liberal surge, the PCs began running a more negative campaign, capitalizing on the perceived lack of public confidence in Turner, his perceived inability to lead the Liberal party, and arguing that he only opposed free trade because of political opportunism. The Progressive Conservatives' poll numbers began to rebound, and they were re-elected with a greatly reduced majority, winning 169 out of 295 seats and 43 percent of the popular vote. In this election, Mulroney transferred to another eastern Quebec seat,
Charlevoix. Also on November 21, Mulroney made a controversial
Order in Council which allowed the establishment of the AMEX Bank of Canada (owned by
American Express), despite finance minister
Michael Wilson rejecting AMEX's application to open a Canadian bank in 1986. The Amex Bank of Canada started operating on July 1, 1990.
Toronto-Dominion Bank chairman Richard Thomson accused Mulroney's government of favouritism toward Amex as its chief executive officer, James Robinson, supported free trade. The government implemented the deal; it was made effective on January 1, 1989. In 1994, CUSFTA was replaced by the
North American Free Trade Agreement (NAFTA), which now included Mexico.
Gulf War In the early 1990s, Mulroney played a vital part in upholding international law to stop
Saddam Hussein's aggression in
Kuwait. Along with ambassador
Yves Fortier, When the UN authorized full use of force in the operation, Canada sent a
CF-18 squadron with support personnel and a field hospital to deal with casualties from the ground war as well as a company of
The Royal Canadian Regiment to safeguard these ground elements. The
Canadian Forces code-named Canada's participation
Operation Friction. In August, Mulroney sent the destroyers
HMCS Terra Nova and
HMCS Athabaskan to enforce the trade blockade against Iraq. The supply ship
HMCS Protecteur was also sent to aid the gathering coalition forces. When the air war began, Canada's planes were integrated into the coalition force and, provided air cover and attacked ground targets. This was the first time since the fighting on Cyprus in 1974 that Canadian forces participated directly in combat operations.
Unpopularity and retirement Fracturing of electoral coalition In late 1987, the Western Canada-based
right-wing populist Reform Party of Canada was founded. The creation of the party was motivated by Western Canadian discontent with Mulroney's government and the Progressive Conservatives in general. The Reform Party opposed the Mulroney government's promotion of the Meech Lake and Charlottetown accords as well as their introduction of the goods and services tax. Although the party won only 2 percent of the popular vote and no seats in the 1988 election, it won its first seat in the Commons on
the May 6, 1989, by-election in the Alberta riding of
Beaver River, where Reform candidate
Deborah Grey defeated Progressive Conservative candidate
Dave Broda by a nearly 20 percent margin. This was the first sign that Mulroney's coalition was fracturing; the PCs had dominated Alberta's federal politics since the
1958 election. In June 1991, the pro-Quebec sovereigntist
Bloc Québécois was founded by Mulroney's former
environment minister and
Quebec lieutenant,
Lucien Bouchard. The party's foundation was motivated by the collapse of the
Meech Lake Accord, which would have benefited Quebec if it had been ratified. The party attracted a few other PC and Liberal members of parliament.
Resignation Widespread public resentment of the goods and services tax, the early 1990s recession, the fracturing of his political coalition, and his lack of results regarding the Quebec situation caused Mulroney's popularity to decline severely during his second term. Mulroney entered 1993 facing
a statutory general election. By this time, his approval ratings had dipped into the tens, and were at 12 percent in a 1992
Gallup poll, making him the most unpopular prime minister since opinion polling began in Canada in the 1940s. during a visit to Washington, D.C., shortly before his resignation announcement, February 1993 On February 24, 1993, Mulroney announced his intention to resign as prime minister and retire from politics. In his announcement, Mulroney stated, "Whether you agree with our solutions or not, none will accuse us, I think, of having chosen to evade our responsibilities by sidestepping the most controversial issues of our time." Mulroney claimed his resignation was not related to the consensus that he would be heavily defeated by
Jean Chrétien's Liberals if he led the Tories into the next election and rather argued he could defeat the Liberals if he sought another term. The last Gallup Poll taken before Mulroney's announcement of resignation showed the PCs' polling numbers had rebounded to 21 percent. In his final days in office, Mulroney conducted a European "farewell" tour using Canadian federal funds. On
June 13, 1993, Mulroney was replaced as leader of the Progressive Conservatives by defence minister
Kim Campbell. On June 25, 1993, Mulroney resigned as prime minister and chose not to run for reelection at the Commons.
Aftermath In the October 25, 1993 election, the Progressive Conservative party was reduced from 156 seats to two seats in the worst defeat ever suffered for a governing party at the federal level in Canada. The Tories were no longer recognized as an official caucus in the House of Commons since the required minimum number of seats for
official party status is 12. As an example of the antipathy toward Mulroney, his former riding fell to the Bloc by a lopsided margin; the Tory candidate finished a distant third, with only 6,800 votes out of nearly 40,000 cast. The more right-wing Reform party won over
alienated Western Canadians and replaced the PCs as the major conservative party in Canada; they won 52 seats and 18.7 percent of the popular vote, which was greater than the PCs (which won 16 percent of the popular vote). The Bloc replaced Mulroney's voting base in Quebec, becoming the
Official Opposition (at 54 seats). In the election, Chrétien's Liberals won a strong majority government. Mulroney claimed he was not responsible for the obliteration of the PCs, and instead blamed Campbell and her relationship with her boyfriend. In
The Secret Mulroney Tapes, it was revealed Mulroney said of Campbell, "Throughout the whole goddam thing she's been screwing around with this Russian guy. The guy was sneaking into hotel rooms and the campaign bus"; he also said it was "the most incompetent campaign I've seen in my life." In the following
1997 and
2000 elections, the Progressive Conservatives would continue being the smallest party in the House of Commons, holding on to fifth-place status though regaining official party status. In 2003, the party merged with Reform's successor, the
Canadian Alliance, to create today's
Conservative Party of Canada. == After politics (1993–2024) ==