Paul Martin
Paul Edgar Philippe Martin, also known as Paul Martin Jr., is a Canadian lawyer and retired politician who served as the 21st prime minister of Canada and the leader of the Liberal Party of Canada from 2003 to 2006.
The son of former senator and secretary of state for external affairs Paul Martin Sr., Martin was a lawyer from Ontario before he became president and the chief executive officer of Canada Steamship Lines in 1973. He held that position until his election as a member of Parliament for the Montreal riding of LaSalle—Émard in 1988. Martin ran for leader of the Liberal Party in 1990, losing to Jean Chrétien. Martin became Chrétien's longtime rival for the leadership of the party, though he was appointed as minister of finance after the Liberal victory in the 1993 federal election. As minister, Martin oversaw many changes in the financial structure of the Canadian government, and his policies had a direct effect on eliminating the country's chronic fiscal deficit by sharply cutting spending and reforming programs. In 2002, he left as finance minister as tensions with Chrétien reached their peak. Martin initially prepared to challenge Chrétien's leadership, but when Chrétien announced his intention of retiring, Martin entered the 2003 Liberal Party of Canada leadership election. Martin won the leadership in a landslide, and was sworn in as prime minister that December.
Martin led the Liberal Party in the 2004 federal election, in which the party retained power as a minority government, losing its majority due to the sponsorship scandal that began to develop in the late 1990s. After the election, Martin's government reached an agreement with provincial premiers on increased healthcare spending, signed the Kelowna Accord to improve the living conditions of Indigenous peoples, and legalized same-sex marriage through the Civil Marriage Act. In 2005, the opposition parties in the House of Commons passed a motion of no confidence contending that his government was corrupt after the Gomery Commission released new details about the sponsorship scandal, which triggered the 2006 federal election. In that election, Martin's Liberals were defeated by the newly unified Conservative Party led by Stephen Harper, ending over 12 years of Liberal rule.
Shortly after the defeat, Martin stepped down as Liberal leader and declined to seek re-election in 2008. Evaluations of Martin's prime ministership have been mixed, whereas his tenure as finance minister has been viewed more favourably. Now seen as a global diplomat, Martin continues to contribute on the international arena through a variety of initiatives such as Incentives for Global Health and the not-for-profit behind the Health Impact Fund, the latter of which he serves on as a member of the advisory board. He also sits as an advisor to Canada's Ecofiscal Commission.
Early life
Martin was born at Hôtel-Dieu of St. Joseph Hospital in Windsor, Ontario, and grew up in Windsor and Ottawa. His father, Paul Martin Sr., a Franco-Ontarian of Irish and French descent, served 33 years as a member of the House of Commons of Canada, and was a Cabinet minister in the Liberal governments of Prime Ministers W. L. Mackenzie King, Louis St. Laurent, Lester B. Pearson, and Pierre E. Trudeau. His mother, Eleanor "Nell" Alice, was of Scottish and Irish descent. He had one sister, Mary-Anne Bellamy, who was diagnosed with Crohn's disease at a young age. She died on July 20, 2011. Martin contracted polio in 1946 at the age of eight.Martin briefly attended the University of Ottawa before transferring to St. Michael's College at the University of Toronto, where he graduated with a B.A. in history and philosophy in 1961. He was a member of the U of T Young Liberals during his time at the University of Toronto. He then attended the University of Toronto Faculty of Law, where he received an LL.B. in 1964. He was called to the Ontario bar in 1966.
On September 11, 1965, Martin married Sheila Ann Cowan, with whom he has three sons: Paul, Jamie and David.
Business career
Board of directors
In 1969, Power Corporation took a controlling share in Canada Steamship Lines. On December 2, 1970, Paul Martin, the 32-year-old executive assistant to Power Corporation Chief Executive Officer Maurice Strong, was appointed to the CSL board of directors. In 1971, CSL minority shareholders sold outstanding shares to Power Corporation, making CSL a Power Corporation subsidiary.Presidency
CSL suffered losses in 1972 when forced to cover unexpected cost overruns in the construction of three 80,000-ton ocean-going tankers at Davie Shipbuilding. On November 22, 1973, Martin was appointed president and CEO of the CSL Group. In 1974, CSL earnings were further hurt by an eight-week strike on the Great Lakes.In 1976, Power Corporation reversed itself and took over the investment portfolio that had been sold to CSL five years earlier. CSL reverted to an operating division of Power Corporation.
Early political career (1988–1993)
In 1988, Martin was elected as the Member of Parliament for the southwestern Montreal riding of LaSalle-Émard. He was re-elected without much difficulty at every election until he retired from politics.In 1984, the Liberal Party was defeated under the leadership of John Turner, falling to just 40 seats. A group of young Liberals approached Martin as a possible candidate to replace Turner, and while he did not take part in an attempt to overthrow Turner, he did prepare to succeed him in the leadership should the position open.
Martin was a candidate at the 1990 Liberal Party of Canada leadership election, losing to Jean Chrétien in a bitter race that resulted in lasting animosity between the two men and their supporters. A key moment in that race took place at an all-candidates debate in Montreal, where the discussion quickly turned to the Meech Lake Accord. Martin, favouring Meech, attempted to force Chrétien to abandon his nuanced position on the deal and declare for or against it. When Chrétien refused to endorse the deal, young Liberal delegates crowding the hall began to chant "vendu" and "Judas" at Chrétien. Chrétien was upset at the response from the floor and another similar outburst by Martin supporters at the convention when Chrétien accepted the party leadership. Jean Lapierre and his supporters, who supported Martin, wore black armbands at the convention to protest Chrétien's victory. The Meech Lake accord was officially defeated just one day before the Liberal leadership was to be decided. In the House of Commons, Lapierre then crossed the floor to the newly formed Bloc Québécois.
After the leadership convention, Martin co-authored the election platform Creating Opportunity, colloquially known as the Red Book. The Liberal Party won a landslide majority government in the 1993 election.
Finance Minister (1993–2002)
After the Liberals formed the government, Martin was chosen as minister of finance by Prime Minister Chrétien. At the time, Canada had one of the highest budgetary deficits of the G7 countries. Standard & Poor's had lowered its rating on Canada's foreign-denominated government debt from AAA to AA-plus in 1992, and in 1994, Moody's lowered its rating on Canada's foreign currency debt from Aaa to Aa1, partly due to Canada's growing public debt. In his debut as finance minister, Martin made huge budget cuts that almost ground economic growth to a halt, scaling down government to 1951 levels. In 1994–96, when these cuts were made, economic growth decreased by 3.5 percentage points, according to a study by CIBC-Wood Gundy. The resulting loss in tax revenue almost eliminated the savings made by the cuts and turned the economy away from the public sector toward the private sector. The cuts endangered the provinces' abilities to pay for social programs, health care, and public infrastructure. In response, the Bank of Canada lowered interest rates to avoid contributing to a growing recession, causing a huge spurt of economic growth and resulting increase in government revenue. In 1998, Martin introduced a balanced budget, an event that had occurred only twice in 36 years before 1997. In 2002, Moody's and Standard and Poor's restored Canada's domestic and foreign currency debt ratings to AAA.During his tenure as finance minister, Martin was responsible for lowering Canada's debt-to-GDP ratio from a peak of 70 percent to about 50 percent in the mid-1990s. In December 2001, he was named a member of the World Economic Forum's "dream cabinet." The global business and financial body listed Martin along with United States Secretary of State Colin Powell and United Nations Secretary-General Kofi Annan as top world leaders.
Also during his tenure as finance minister, Martin coordinated a series of meetings between the finance ministers of all provinces to discuss the pending crisis in the Canada Pension Plan. Consequently, Martin oversaw the creation of a general public consultation process in February 1996 that eventually led to major structural reform of the CPP. The results of this public consultation process were collected and analyzed by the Finance department. Eventually, it led to a proposal for overhauling the CPP, which was presented to Parliament and was approved soon after, averting a pension crisis.
While Martin's record as finance minister was lauded in business and financial circles, there were undeniable costs. Some of these took the form of reduced government services, affecting the operations and achievement of the mandate of federal and provincial departments. This was probably most noticeable in health care, as major reductions in federal funding to the provinces meant significant cuts in service delivery. Martin's tactics, including those of using contributor's funds from RCMP, Military and Civil Service pension plans and Employment Insurance, created further controversy. CAW economist Jim Stanford said that a combination of a spending freeze at 1994 levels and lower interest rates would have eliminated the deficit in two years through economic growth alone, without the reduction in services.