US embassy cable - 04OTTAWA3132

C O N F I D E N T I A L SECTION 01 OF 02 OTTAWA 003132 
 
SIPDIS 
 
NOFORN 
 
E.O. 12958: DECL: 11/18/2009 
TAGS: CA, PGOV, PREL 
SUBJECT: CANADA'S LIBERALS ON THE DEFENSIVE: POLITICAL 
BACKDROP FOR PRESIDENTIAL VISIT 
 
REF: OTTAWA 3115 
 
Classified By: Political Minister Counselor Brian Flora, reasons 1.4 (b 
) (d) 
 
1. (C/NF) Summary: Just over ten days in advance of President 
Bush's visit to Canada (reftel), PM Martin,s Liberals were 
hit from three sides in Parliamentary Question Period 
November 18.  Conservatives criticized the PM,s slow 
disciplining of anti-American MP Carolyn Parrish, questioned 
the Party's knowledge of a former Liberal Minister,s alleged 
mafia ties, and accused the Immigration Minister of 
impropriety.  The three cases received front-page attention 
the following day, and their negative impact for the PM and 
his Liberal caucus will likely drag on for some time.  The 
Liberal Party is already hamstrung by its minority government 
status, and this will make things even more difficult for 
Martin to pursue his agenda.  The only good news is that 
anti-American MP Parrish's ejection from the Liberal Party 
will save Martin from the guilt by association that he has 
been enduring because of her.  End Summary 
 
2. (C) This cable offers additional political background in 
advance of President Bush's visit to Canada November 30 to 
December 1 (see reftel). 
 
PARRISH THE THOUGHT: CAROLYN GETS THE BOOT 
------------------------------------------ 
 
3. (C) Thursday,s Question Period in Parliament brought to 
the public three embarrassments for the Martin government. 
Just prior to the Question Period Martin finally put his foot 
down and gave Carolyn Parrish the boot.  In a tersely worded 
statement he said &After speaking with the caucus executive 
earlier this afternoon, I am announcing the decision, 
effective immediately, to dismiss Carolyn Parrish from the 
government caucus. . . I told her that, while I have defended 
her right to express her views frankly, I cannot, as Leader 
of our Party and the government caucus, tolerate behavior 
that demeans and disrespects others. . .8 
 
4. (C) The decision came after two incendiary incidents, 
Parrishisms as they are known here.  First, a Parrish skit 
that will air tonight on a popular Canadian television 
program of political satire -- &This Hour has 22 Minutes,8 
was previewed in the press Thursday.  In the skit, Parrish is 
seen crushing a George W. Bush doll with her boot, laughing 
as she grinds it into the carpet.  This of course, was added 
to Parrish,s many &off camera8 remarks about the American 
bastards8 and the &coalition of the idiots.8  Parrish 
followed this up by stating in an interview that the reason 
Martin can,t control her is that she has &absolutely no 
loyalty to this team -- none.  After what they put me through 
and lots of my colleagues, they can all go to hell.8  She 
went on to state that she would not be upset if Martin loses 
the next election, and continued her diatribe Friday by 
stating that she was relieved to be out of the party,&which 
is no longer the party of Trudeau, Pearson, or Chretien.8 
 
5. (C) Parrish will still be a member of Parliament, joining 
the other independent Chuck Cadman.  (Cadman, a staunch 
conservative, will probably be less than thrilled by the 
prospect of sharing a bench with Parrish.)  The move leaves 
the Liberals with 132 seats (taking out Speaker Milliken who 
only votes to break a tie), which, when added to the 19 NDP 
totals 151.  The Conservatives and Bloc together have 153 (99 
and 54).  The two independents thus become very significant 
players in contentious votes, as does the Speaker. 
Presumably, Parrish will be less likely to help the 
government than Cadman will be to help the opposition. 
 
6. (C) The Conservatives used question period to spotlight 
the fact that Martin did not move against Parrish for her 
many attacks against the United States, but when she attacked 
him she was put out immediately.  Parrish,s riding outside 
Toronto is reported by the Globe and Mail to be reacting with 
a combination of &pride, anger, and amusement8 to 
Parrish,s antics and her ouster from the Liberal Party. 
 
ALL IN THE FAMILY: FORMER MINISTER ACCUSED OF MOB TIES 
--------------------------------------------- --------- 
 
7. (C) Staying on the offensive, Opposition Leader Stephen 
Harper then raised allegations in Question Period that former 
Liberal Cabinet Minister Alfonso Gagliano had ties to the 
Bonanno crime family in New York.  The accusations, which 
were reported November 18 in the New York Daily News, were 
based on FBI documents which are quoted in the National Post, 
as follows: & was shown a picture of 
Alfonso Gagliano.  Lino stated he recognized Gagliano from 
his trip to Montreal in the early 1990,s.  Lino advised that 
Gagliano was introduced to him as a soldier in the Bonanno 
family by Joe Lopresti, another Bonanno member in Canada.  At 
a dinner, Lopresti bragged to the individual that the 
Montreal Bonannos had such extensive connections, including 
to Gagliano, a politician.8 
 
8. (C) Harper asked the PM in Question Period whether the 
government was aware of these accusations and when it became 
aware of them?  Martin replied that he had not seen the 
report until that morning, but stated that the accusations 
were very serious and &everyone should be careful about 
accepting or in fact repeating such allegations in a 
premature way.8  The story was front page above the fold 
news in all major dailies, and the details as reported in the 
press cut several different ways.  Lino, according to some 
involved in the Bonanno family case, has questionable 
credibility (he reportedly pleaded guilty to six murders and 
is an admitted drug user).  On the other hand, Gagliano, an 
accountant, admitted in 1994 to keeping books for a convicted 
mob figure in Montreal (the RCMP later cleared Gagliano of 
any wrongdoing in the case but the individual in question 
served six years).  It is the kind of case that will drag on 
for weeks or months as accusations and counter-accusations 
surface. 
 
THE CITIZENSHIP FOR STIPPERS PROGRAM 
------------------------------------ 
 
9. (C) In a rare triple-header, the Conservatives then turned 
on Immigration Minister Judy Sgro, who was accused of 
fast-tracking the citizenship petition of a Romanian stripper 
who worked on Sgro,s campaign part-time.  Tory MP Monte 
Solberg also demanded an explanation for the $11,000 lodging 
and per diem expenditures for Ms. Sgro,s political staff in 
Toronto during the election.  Sgro responded regarding the 
nude dancer petition that &all the things I have done have 
been based on humanitarian and compassionate grounds.  How 
dare they question a person,s lifestyle and suggest that 
they are less worthy.8  She then defended the temporary duty 
during the election by stating that all the spending by her 
staff conformed completely with treasury department rules. 
Solberg responded for the Opposition: &I do not think the 
immigration minister understands how serious the situation 
is.  If she will not answer, will she step aside until the 
ethics commissioner finishes his investigation?8 
 
COMMENT 
------- 
 
10. (C/NF) Overall it was not a good day for PM Martin, who 
departed later in the afternoon for a 10-day trip to Latin 
America and Africa.  The Parrish dismissal was inevitable and 
takes away an ongoing thorn in the PM,s side.  Parrish will 
retain the capacity to embarrass Canada, but will no longer 
heap shame on the Liberal Party and provide such rich 
material for the Conservatives in Question Period.  The 
significance of the Gagliano case, according to one 
commentator, is not what actually happened, but the fact that 
a mob figure has been tied to the Liberals at all, at a time 
when they are still digging out of the sponsorship scandal. 
It will be a millstone around the Liberal,s neck and 
Harper,s team will look to milk it for everything it is 
worth.  And the Sgro controversy will likewise conjure up 
images of a Liberal Party that skirts the rules whenever it 
suits it. 
 
11. (C/NF) While the minority Liberal government does not 
seem to be in danger of falling anytime soon, taken together 
these cases further weaken Martin personally, who comes out 
looking tepid for his slow disciplining of Parrish and his 
failure to investigate earlier allegations against Sgro.  It 
was probably a good time to get away. 
 
Visit Canada's Classified Web Site at 
http://www.state.sgov.gov/p/wha/ottawa 
 
DICKSON