Ted Morton vows to merge Alberta Conservatives with upstart Wildrose

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Ending two days of speculation since his near-resignation sparked the departure of Premier Ed Stelmach, Ted Morton has let the other shoe drop, announcing he'll step down immediately as finance minister and make a bid to become his party's next leader.

Thursday's joint announcement, during which Mr. Stelmach and Mr. Morton sought to show that the Progressive Conservatives are united, kicks off a leadership race for Canada's longest-serving government that seemed nearly impossible only days earlier.

Mr. Morton also said he would not only seek to lead his own party, but also to merge it with the Wildrose Alliance, a growing threat on the party's political right, under the Progressive Conservative "mothership."

Wildrose officials called the notion laughable.

Mr. Stelmach can now claim victory over the annual budget, which Mr. Morton had wanted to include deep service cuts to speed a return to surplus. Provincial revenues have sagged because of low natural gas prices and a slow economic recovery, but the majority of caucus preferred to use a savings fund to maintain services, which the previous premier had already cut.

Mr. Stelmach's long-time ally Lloyd Snelgrove will take over as minister of finance and, presumably, table a budget that avoids such cuts.

"Stelmach's going to get his budget, Ted's going to sit on the backbench, we're probably going to have an election no later than June 15, and there's nothing left to fight about," one veteran Tory said.

Mr. Morton would have had to resign his cabinet post to make a run for the leadership.

"While I have not yet stated that publicly, thanks to all of you, it's widely perceived [I'll run]" Mr. Morton told a Calgary news conference, confirming his intention. "Under these circumstances, I believe it would be difficult, if not impossible, for me to continue to discharge my duties as minister with the required perception of impartiality."

Two days earlier, Mr. Stelmach announced he would resign, just hours before Mr. Morton planned to do the same in protest against the budget. But the premier played down suggestions of a rift in caucus: "Let me be clear to all Albertans that Mr. Morton supports this government and he supports this provincial budget."

On Thursday, Mr. Stelmach once again declined to say when he would leave. He estimated the government's business could take about 25 days during the spring legislative session, which suggests the sitting could end in mid-April, well before it is scheduled to conclude. That would mean a leadership race would likely wrap up during summer.

"Until then, I look forward to continuing my work as premier and leader of government as we work to meet the needs of Albertans," Mr. Stelmach said.

Mr. Morton is no shoo-in for leader. He has lost most of his supporters on the PC party's right flank to Wildrose, including those who helped his failed 2006 leadership bid.

"I can give you the names of the top 20 people on that team. Ted's got two of them [left]" one source said. "I don't think Ted Morton can win."

Other cabinet ministers are considering running, but none have resigned yet.

Wildrose leader Danielle Smith dismissed Mr. Morton's suggestion of a merger as "highly optimistic and also a little patronizing."

"I gather he figures he'll win the leadership and then I'll just roll the party into the PCs. I think that is pretty delusional," Ms. Smith said. "This is a real signal of a government in disarray, quite aside from the bright face they're trying to put on."