QUEBEC - Liberals say they're unlikely to support the coming federal budget, putting the onus squarely on the NDP to prop up or topple Prime Minister Stephen Harper's minority Conservative government.
The possibility of an imminent election was front and centre Tuesday as the Liberal caucus met to plot strategy for next week's resumption of Parliament. And while newly minted leader Stephane Dion and most of his MPs professed little interest in plunging the country into an election, they made it clear they won't support the budget - likely the first confidence vote of the winter sitting - just to avoid an election.
"Given this government's track record, including the hocus pocus that was in the last budget and all of the broken promises and, in some cases, outright lies that we've seen since then, I would think Liberals would be hard pressed to find a budget that would be satisfactory," said Liberal House leader Ralph Goodale.
And that, he said, will create a "dilemma" for NDP Leader Jack Layton.
The caucus meeting is being held on the first anniversary of the Tories' election victory.
With the recent defection of Liberal MP Wajid Khan to the Conservatives and another Liberal MP, Jean Lapierre, resigning his seat, Harper's government now needs only the support of the 29 New Democrats to survive a confidence vote.
"He (Layton) has lusted all these many months for the role of balance of power," Goodale said. "He now has it and he's finding himself in the role of propping up a government that is doing all the things that Jack Layton says he's totally opposed to.
"That's Mr. Layton's bed. He's made it . . . He will have to explain to Canadians, and particularly to rank and file NDP supporters across the country, why he is supporting this government."
In a speech to students at the University of Quebec at Montreal, Layton said support for the coming federal budget depends on how the Conservatives deal with climate change.
"I have made it clear that we need tough action on climate change and it has to happen immediately," he said.
"Any support for an upcoming budget will hinge upon how it will advance the battle against climate change," Layton said.
While some Liberals believe Dion would be wise to force an early election, taking advantage of a post-leadership bump in popularity, most seem to feel the party needs time to raise money, get organized and develop policy after an almost year-long leadership contest.
Dion himself has said he wants time to prepare properly for an election. In a campaign-style opening speech to caucus, Dion cautioned it won't be enough for Liberals simply to oppose the government; they must also develop "an action plan" for the 21st century.
"It will not be enough for us to underline the numerous mistakes and failures of this government. We will offer to Canadians the most generous vision."
Moreover, polls suggest Liberals are only slightly ahead of the Tories and still not in position to win a majority.
But while they'd ideally like more time, Gerard Kennedy, Dion's special adviser on election preparedness, said the Liberals will be ready if need be to fight an election in 45 days, roughly the timing expected for introduction of the budget.
The freeze on nomination of candidates will be lifted within about 10 days, he added.
Kennedy, a former leadership contender who does not have a seat in the Commons, hinted broadly he's all but decided to seek the nomination in Toronto's Parkdale-High Park.
Kennedy used to represent the same riding, currently held by the NDP, in the Ontario legislature.
"We will be ready if Mr. Harper wants to inflict an election on the country for his own political interests," Kennedy said.
Dion unveiled his national campaign team Monday and announced Tuesday creation of advisory committees in each province, aimed at providing more caucus and grassroots input into policy development and campaign strategy.
Tuesday's caucus meeting was taken up almost entirely by presentations on various aspects of election readiness. Among other things, MPs were told that a comprehensive election platform will be ready in 60 days.
As part of the platform exercise, MPs were split up into small discussion groups and asked to propose campaign themes that could help the party earn voters' trust.
Insiders said a common thread through the discussions was the need to emphasize the link between environmental sustainability and economic prosperity - a message hammered home later by two scientists who were invited to explain to the caucus the grave dangers posed by global warming.
At the end of the day-long meeting which continues Wednesday morning, Dion told reporters the Liberals are considering three scenarios: an election in two months, an election in June or an election in September or later.
"We don't know when an election may come . . .so we need to be ready," he said.
Bob Rae, co-chair of the platform development committee, said the committee will do more grassroots consultation if it has time. But, given all the policy work done last fall by caucus and all the leadership contenders, he said it will be able to produce a "bold" document on short notice if necessary.
"I'm very confident it will be bold and it will be clear and, if I have anything to do with it, it will be short."
Amid all the signs of election fever, Montreal MP Denis Coderre sounded a note of caution, warning it would be folly to force a federal election at the same time as a provincial election.
Quebec is likely to hold a provincial election in March or April - about the same time as the budget is expected to be brought down - and voters in Ontario and Newfoundland and Labrador may also head to the polls this year.
"There's a convention . . . we can not have an election at the same time," Coderre said. "That's obvious."
Still, former rival Scott Brison said the party can't allow fear of a premature election to guide its decision on something as crucial as the budget.
"I don't think we should fear doing the right thing that is consistent with the interests of Canadians and the values that we stand for," he said. "That's going to be the litmus test."
Deputy leader Michael Ignatieff said Liberals "are here to oppose" the government.
"If they offer us junk on the budget, we vote it down," he said. "If they offer stuff that seems to be in the interests of citizens of this country, we'll take another view."
In his speech, Dion accused Harper of copying much of the Liberals' environmental platform, with a host of recent climate change initiatives.
"Canadians will not be fooled," Dion told his caucus.
"They will know that there is something Mr. Harper cannot copy.
"It is the conviction, this conviction that we have as Liberals. Convictions about social justice in this country, about economic prosperity, about environmental sustainability here in Canada and abroad, the role of Canada in the world. This conviction will never be copied by Mr. Harper."