OTTAWA -- Paul Martin's hasty exit from cabinet yesterday was an unceremonious chapter in an otherwise charmed political career.

Mr. Martin, a pillar of the government since his party took office in 1993, has been widely regarded as the architect of Canada's fiscal turnaround. He was appointed finance minister nine years ago and handed the challenge of combating the country's ballooning debt.

The front-runner in the race to replace Prime Minister Jean Chrétien was demoted days after Mr. Chrétien threatened to fire those ministers plotting to challenge his leadership. He has vowed to stay on until 2004 and, possibly, to serve a fourth term.

Mr. Martin was born Aug. 28, 1938. The Windsor, Ont., native is the only son of Paul Martin Sr., who spent 39 years in the House and Senate before serving as high commissioner to Britain in the late 1970s. His father twice ran for the Liberal Party leadership -- in 1958 and 1968 -- but lost both bids. Friends of the junior Mr. Martin have said his father was his greatest influence.

Unlike his father, Mr. Martin spent years in the private sector before he crossed over to public life. He amassed a personal fortune estimated at $30-million before he was elected to represent the Montreal riding of LaSalle-Émard in 1988.

A graduate of the University of Toronto law school, he largely accumulated his wealth through a debt-financed takeover of Canada Steamship Lines in 1981.

He is regarded as a Liberal who scores well with the business crowd. He has shied away from labels.

"I mean, it really isn't a right wing or a left wing, it's basically that the two have got to go together," he has said. "I'm not an ideologue. I'm very pragmatic, all right? What's going to work?"

As an undergraduate at St. Michael's College, he majored in philosophy. When he finished law school, he was determined to work in the Third World, but businessman Maurice Strong persuaded him instead to work for Mr. Strong at Power Corp. of Canada. The Montreal-based company has interests in mutual-fund, insurance and media companies.

In 1974, Mr. Martin was appointed president of Canada Steamship Lines, a shipping company that then operated primarily on the Great Lakes and St. Lawrence Seaway. When Power Corp. decided to sell Canada Steamship in 1981, Mr. Martin and a friend purchased it for $180-million. In 1988, Mr. Martin bought out his partner's stake and became sole owner.

His removal yesterday from cabinet came two days after he announced he was reviewing his options.

Supporters say Mr. Martin's departure as finance minister will deliver a body blow to the Liberal government, already smarting from a series of charges of cronyism and corruption.

"The morale will be hurt and shattered," said Liberal MP Nick Discepola, who represents Vaudreuil-Soulanges.

"There will be a lot of soul searching."

Mr. Martin's departure would have a negative impact in the next election, he said.

"When you're going for your fourth Stanley Cup without one of your key players, you're going to be hurt."

But opposition critics are buoyed at the prospect of the government losing Mr. Martin, whose appeal is much stronger than Mr. Chrétien's in Liberal-unfriendly Western Canada.

"Whenever the governing party is in turmoil, it's going to help the opposition," Canadian Alliance MP Jason Kenney said.

"The government is in disarray. It's a real opportunity for us."

In his own words

For a long time, the natural tensions between my views and those of the Prime Minister were well within the manageable, even healthy, range that is customary in a sound, working relationship. In fact, we were always able to resolve disagreements working issue by issue.

Unfortunately, in recent months, and certainly during the last few days, the working relationship between myself and the Prime Minister had deteriorated. It was threatening to impede our focus on the very important choices that confront us as a nation.

As I indicated on Friday, I intended to reflect on my options. That is now a moot point.

I am no longer a member of the cabinet. And John Manley is now the new Minister of Finance. The nation already has full confidence in his skills. He is tremendously well qualified, and will do an outstanding job and I wish him the very best.

I also wish to express my genuine appreciation to the Prime Minister for the opportunity to have served as finance minister for the past nine years. It has been a great honour to serve my country . . .

As a final note, I would like to urge financial markets to keep in mind the extraordinary strength of the Canadian economy. GDP growth in the first quarter of this year was nothing short of remarkable. We're the only G7 nation in surplus and job creation continues to be very strong. When markets open tomorrow, these are the facts that should be weighed.

Ministers of finance come and go. I leave knowing that our economy is very robust. And now I look forward to the work and the challenges that lie ahead.

...a sad departure

Dear Paul,

It is with sadness that I confirm that you are leaving the Cabinet. As I told you, I will always be grateful to you for your remarkable work as Minister of Finance. There are very few Canadians who have ever served in a Cabinet with such distinction.

Together we have achieved a great deal for Canada and Canadians. The success of the government's economic policy has situated Canada very well for continued growth and prosperity. Your contribution as Minister of Finance will be a continuing source of pride for you and for me.

You and I have worked extremely well together, ever since we took office in November 1993, on all matters relating to government policy. We have always been in full agreement on economic and fiscal policy.

But, unfortunately, matters unrelated to governing have gotten in the way of our working together on government policy. As such, we both understand, with real regret, that it is in the best interests of the government and the country that you step down from the Cabinet.

As Prime Minister and on behalf of all our colleagues in Cabinet, I thank you for a job very well done. Aline and I wish you Sheila all the very best.

(ORIGINAL SIGNED BY THE RIGHT HONOURABLE JEAN CHRETIEN)