Changes

===Political Conditions===

===Political Conditions===

On February 6, 2006, Stephen Harper was sworn in as Canada's twenty-second Prime Minister, succeeding Liberal Party leader Paul Martin. An admitted "policy specialist," Harper rose from the ranks of conservative political party staffers. Prior to becoming Prime Minister, he sat as a Member of Parliament, including as Leader of the Opposition since 2002 when he became head of the western-based Canadian Alliance. He was elected the first leader of the Conservative Party of Canada when it was created in 2003 through the merger of Canadian Alliance and Peter MacKay's Progressive Conservative Party. The January 23, 2006 election victory by the Conservative Party ended 12 years of Liberal Party rule that, in the end, was tainted by corruption and ethics concerns, despite the economic progress Canada achieved while the Liberals were in power. In a subsequent federal election on October 14, 2008, the Conservatives won 38% of the vote and formed a second minority government with 143 seats in the House of Commons. The Liberals won 26% of the vote and 77 seats in the House of Commons. As the party with the second-largest number of seats, the Liberals form the "official opposition."

On February 6, 2006, '''Stephen Harper,''' leader of the Conservative Party, became Canada's twenty-second prime minister, succeeding Liberal Party leader Paul Martin. A policy wonk from Alberta, Harper rose from the ranks of conservative political party staffers. As a Member of Parliament, he became Leader of the Opposition (2002-6). In 2003 he became head of the western-based Canadian Alliance. He was elected the first leader of the Conservative Party of Canada when it was created in 2003 through the merger of Harper's Canadian Alliance and Peter MacKay's Progressive Conservative Party. The January 23, 2006 election victory by the Conservative Party ended 12 years of Liberal Party rule that, in the end, was tainted by corruption and ethical failures, despite the economic progress Canada achieved while the Liberals were in power. In a subsequent federal election on October 14, 2008, the Conservatives won 38% of the vote and formed a second minority government with 143 seats in the House of Commons. The Liberals won 26% of the vote and 77 seats in the House of Commons. As the party with the second-largest number of seats, the Liberals form the "official opposition."

The Conservatives made unexpected gains in Quebec by winning ten seats in the January 2006 election, but failed to increase their number of seats in the province in the 2008 election. The separatist Bloc Quebecois (BQ) has a majority (49) of Quebec's 75 seats (the BQ offers candidates only in Quebec). The left-leaning New Democratic Party (NDP) now has 37 seats, and two independents also sit in Parliament.  

The Conservatives made unexpected gains in Quebec by winning ten seats in the January 2006 election, but failed to increase their number of seats in the province in the 2008 election. The separatist Bloc Quebecois (BQ) has a majority (49) of Quebec's 75 seats (the BQ offers candidates only in Quebec). The left-leaning New Democratic Party (NDP) now has 37 seats, and two independents also sit in Parliament.  

[[Quebec]], with 23% of the national population, its distinctive French-language ("francophone") culture, and is perceived by the western provinces as wielding undue influence on the Federal Government. Until Albertan Stephen Harper became prime ministeer in 2006, the western provinces had sometimes expressed concern that Ottawa did not fully attend to their oil interests. Ontario, believes that it pays out significantly more to the Federal Government than it gets back in revenues, while the Atlantic Provinces seek to assert greater control over fishing and mineral rights off their shores. The Federal Government ceded some power in a few areas of provincial jurisdiction, while seeking to strengthen the federal role in many other areas such as inter-provincial trade and the regulation of securities.  

 

In Canada's political system, a key challenge for any federal government is balancing the conflicting interests of Canada's 10 provinces and 3 territories. Recognizing the advantages of a coordinated approach in dealing with the federal government, the provinces and territories created a Council of the Federation in 2003, with their leaders (Canada's first ministers) meeting regularly in that forum to develop common positions. Prime Minister Harper met with the provincial premiers and territorial leaders formally on January 11, 2008 and on November 10, 2008.

 

Quebec, which represents 23% of the national population (and has a similar proportion of seats in the House of Commons), seeks to preserve its distinctive francophone nature, and is perceived by the less-populous western provinces as wielding undue influence on the Federal Government. At least until January 2006's election of Albertan Stephen Harper as Prime Minister, the western provinces had sometimes expressed concern that Ottawa did not fully attend to their interests. Ontario, believes that it pays out significantly more to the Federal Government than it gets back in revenues, while the Atlantic Provinces seek to assert greater control over fishing and mineral rights off their shores. The Federal Government ceded some power in a few areas of provincial jurisdiction, while seeking to strengthen the federal role in many other areas such as inter-provincial trade and the regulation of securities.  

====National Unity====

====National Unity====

Popular support for sovereignty appears to be on the wane in Quebec, although pride in that province's unique cultural and linguistic identity remains very strong. Most Quebec voters seem to appreciate the economic benefits of remaining in the Canadian confederation and aim to advance their separate francophone identity within the confederation. In a provincial election held on December 8, 2008, provincial Liberal Leader Jean Charest won a majority government. The separatist Parti Quebecois placed second.

Popular support for Quebec sovereignty appears to be on the wane, although pride in that province's unique cultural and linguistic identity remains very strong. Most Quebec voters seem to appreciate the economic benefits of remaining in the Canadian confederation and aim to advance their separate francophone identity within the confederation. In a provincial election held on December 8, 2008, provincial Liberal Leader Jean Charest won a majority government. The separatist Parti Quebecois placed second.

====Quebec secession movement====

====Quebec secession movement====

There are separatist movements lobbying for independence from Canada in British Columbia, Alberta, and Québec. The only movement of real significance is in Québec, where the province has twice voted on whether or not to separate from Canada, once in 1980 and again in 1995; the vote in 1995 failed by just 1 percent. On November 27, 2006, the Federal Government passed a motion declaring Québec a nation "within a united Canada". <ref> http://www2.parl.gc.ca/HousePublications/Publication.aspx?Pub=hansard&Language=E&Mode=1&Parl=39&Ses=1&DocId=2544166&File=0#OOB-1799206</ref>

There are separatist movements lobbying for independence from Canada in British Columbia, Alberta, and Quebec. The only movement of real significance is in Quebec, where the province has twice voted on whether or not to separate from Canada, once in 1980 and again in 1995; the vote in 1995 failed by just 1 percent. On November 27, 2006, the Federal Government passed a motion declaring Québec a nation "within a united Canada". <ref> http://www2.parl.gc.ca/HousePublications/Publication.aspx?Pub=hansard&Language=E&Mode=1&Parl=39&Ses=1&DocId=2544166&File=0#OOB-1799206</ref>

===Taxation===

===Taxation===