Bob's out, Iggy is new Grit leader

What a difference one night makes. On Monday Liberal MP Bob Rae was in a race with his Parliamentary colleague Michael Ignatieff for the leadership of the federal Liberal party in Canada. Less than 24 hours later he announced to reporters in Ottawa that he is no longer running and urged all his supporters to rally behind the party's choice.

The Liberals have not formally announced that Ignatieff is the new leader but since he's the only candidate there is no longer a contest and all that remains is the party's coronation, which is expected to come on December 17. A full convention in Vancouver will confirm him as leader next May.

In an immediate response, Ignatieff said: "Bob Rae has dedicated his life to serving Canadians and I have always felt privileged to count him as a friend and colleague. His decision today reflects his commitment to the unity of our Party and our purpose in these challenging times. I am grateful for his support, and I look forward to continuing the work of rebuilding the Liberal Party with him, and all Liberals, in the weeks and months ahead."

Rae had been lobbying for a wide consultation with the general membership before choosing a leader. He suggested that the party use modern technology to get all members to vote for the leader using the telephone and the Internet. That would have meant amending the party's constitution for the one-member-one-vote.

In the last leadership convention the delegates debated and rejected that idea in preference for the delegate system.

The party's executive found itself in a dilemma and called in riding presidents for consultation. If they had to get a leader in place by the Jan. 27 budget, the delegated convention was not going to happen.

Ignatieff was a clear favourite among elected members of Parliament. In an email to supporters he listed the names of 46 MPs who had pledged to support him for leader, a majority among the 77 seats the party currently holds.

Rae had little choice. "I know how to count," he told reporters. But he was not bitter or dejected. In fact he was rather upbeat and joked with reporters as he acknowledged that there was no further point in seeking the job. However he made an appeal for the party to consider amending the rules to allow one-member-one-person voting in future leadership contests.

The Toronto-area MP said Ignatieff is a brilliant man who would make an excellent prime minister and urged the party to rally behind the new leader pointing out that his election is "constitutional, legitimate and appropriate."

He offered his full support for Ignatieff and made it clear that he remains committed to working with his party and Ignatieff to deal with the serious challenges ahead, the most immediate being the economic crisis that the country faces.

Rae slammed Prime Minister Stephen Harper for what he said was a partisan plan to deal with the economy without addressing key concerns. He also criticized Harper for shutting down Parliament at a time when the country is in a deep financial bind. Rae told reporters Harper is not fit to lead Canada.

The question that remains unanswered is how the NDP-Liberal coalition swiftly cobbled together last week would hold and whether it would be able to oust Harper. Ignatieff still supports the coalition but believes it is only one of the elements for change.

Parliament reconvenes on the eve of the Jan. 27 budget and all indications are that the coalition would seriously consider voting against it. That would in effect be a confidence vote, which means that the Harper government would fall.

The next step is slightly blurred. Harper can ask the governor general to dissolve Parliament and call for fresh elections. For its part the coalition can ask the head of state to appoint its leader as prime minister. The governor general can choose any of the two options.

Harper would go for a new vote mainly because he has the means available to return to the hustings. The other parties and battle-scarred and not in the best financial health. In such a scenario, Harper would likely win again and perhaps even get the majority he had hoped to win in the federal election on Oct. 14.

In an interview with the CBC Tuesday afternoon Prime Harper extended an invitation to the new Liberal leader to join him to discuss what's best for the country.

In an obvious move to drive a wedge in the Liberal-NDP coalition, Harper insisted that the only interest of the NDP and the Bloc Quebecois is to topple the government, adding that the Liberal Party has a long history of governance and can see things in the wider national context. He said he could never accept a situation in which a separatist party like the BQ is handed veto over government policy.

He had no regrets or remorse about anything he said and did during the height of the political crisis that led to the prorogation of Parliament and sidestepped a question on whether his decision to shut down the legislature rather than face a no-confidence vote was contrary to his campaign promises.

Who is Ignatieff? Read the CBC report along with comments from Canadians