OTTAWA — The knives were out for Paul Martin before the polls closed last night, even in Newfoundland and Labrador, and well before he surprised everyone by announcing he will not lead the Liberal Party into the next election.
It was a strange reversal for a party that became almost resigned in the closing weeks of the campaign to a resounding defeat and an immediate change of leadership. On the night, the Liberals achieved a better result than most expected, but ended up with a leadership contest anyway.
Over the past several days, potential Liberal leadership candidates -- Martin Cauchon, John Manley and Maurizio Bevilacqua -- had been calling colleagues.
And at one election party in Ottawa last night -- just one of many gatherings of disaffected Liberals -- the host put up posters of former New Brunswick Liberal premier Frank McKenna.
Paul Martin announced Monday he will be stepping down as Liberal Leader after his party's defeat in Monday's election.
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No matter that the posters were from Mr. McKenna's 1987 campaign, they made the point. These Liberals wanted a new regime, and Mr. McKenna, now Canada's ambassador in Washington, could represent that.
And in an emotional speech last night, Mr. Martin opened the door to that new regime.
Some Liberal insiders suggested last night's result had bought time for Mr. Martin, mere hours before the Liberal Leader said that, although he will continue to represent the people of his Lasalle-Émard riding, he will not lead the party into the next election.
"During the coming days, I will consult with caucus and the party leadership in order to come across with an orderly transition and ensure an effective leadership in the House of Commons and the party," he said, as some of his supporters yelled "no, no."
"My dedication to the Liberal family will never wane," he said. "I have always been and I've been at the service of our party, today, tomorrow and always."
Said a veteran insider about Mr. Martin's speech: "It was a classy thing to do. Tonight's results show that Martin and not the Liberal Party was defeated."
His announcement provoked a flood of phone calls and BlackBerry messages among Liberals.
"The leadership is on," said a long-time Cauchon supporter. "I think he [Mr. Cauchon] has no choice. We're testing the waters." But his supporter cautioned that Mr. Cauchon has to talk to his wife and his family, and take time to reflect before making a final decision.
A spokesperson for Brian Tobin said the former Newfoundland premier and federal cabinet minister had received calls, but that "Brian is enjoying private life with Jodean and the kids."
A Liberal source said that Mr. McKenna would "almost certainly" run.
Mr. Martin's decision could also force the hand of Mr. Harper, who will have to decide whether he can maintain such a high-profile Liberal in the important U.S. post.
Meanwhile, newly elected Liberal MP Michael Ignatieff, who has also been rumoured to be interested in the job, gave no direct response to the question of whether Mr. Martin's decision to step down would impact on his own political future.
Mr. Ignatieff said last night was a moment for the country to reflect on the "fantastic" job Mr. Martin had done in government. "A courageous prime minister has passed from the scene . . . a man who tried to clean up a scandal. And it will take a while for us all to focus [on what happens next]."
Mr. Martin will leave the leadership of a strong opposition party with a wide base, one with more than 100 seats. This can only help a new leader, who must rebuild the party that has suffered from the internal Chrétien/Martin wars.
While rebuilding is important, so is putting the party on stable financial footing. One senior Liberal organizer wondered, too, if the Liberals could even afford a costly leadership race at this time.
"Clearly, Canadians wanted desperately to elect a Liberal government tonight but Martin and the party leadership failed to provide Canadians with a positive reason to vote Liberal," said a Liberal insider.
There has been much hand-wringing and angst of late about the party and its future. Fingers have been pointed at the national campaign strategists.
Most fingers were pointed at the so-called board, the close group of strategists around Mr. Martin, such as David Herle, Scott Reid, Tim Murphy, Terrie O'Leary and Michele Cadario.
One long-time Liberal was harshly critical of this group.
"They are mean people," said the Liberal organizer. "They have destroyed the reputation and integrity of a brilliant world businessman . . . because of their own egos."
He said that the board members are "finished."
"No leadership contender, if there is a leadership, will be seen in the same room as them," he said.
