With the Liberals threatening to bring down the government, the Conservatives are giving them an opportunity to do so -- but possibly at the expense of a popular tax credit not yet made into law.
The Tory government is planning to introduce a budget ways-and-means motion when the House of Commons resumes later this month, which will include legislation for the Home Renovation Tax Credit, and will be a confidence matter.
The move comes after Liberal Leader Michael Ignatieff announced his party would bring down the government at the first opportunity.
A vote on the matter could come as early as Sept. 14, and its failure to pass would trigger an election.
Conservatives say that if they are defeated the tax credit could be in jeopardy.
Liberal MP Ralph Goodale, a former finance critic, told CTV News his party is in support of the tax credit and said Revenue Canada routinely recognizes tax changes without the law actually being passed.
Fellow Liberal MP John McCallum dismissed the move as a political stunt, calling it "Conservative fear mongering."
But Prime Minister Stephen Harper told reporters in Sault Ste. Marie, Ont., Wednesday that the government will pass the tax credit "with or without an election."
"This government remains committed to that tax credit, it's a good idea, and I urge all political parties to support it," he said.NDP to support Tories?
The Liberals will need the help of other opposition parties to defeat the government. While the Bloc Quebecois has expressed a willingness to go to an election, the NDP may be looking to make a deal to spare a fourth election in five years.
A source has told The Canadian Press that NDP Leader Jack Layton is set to announce he will support the government on a case-by-case basis if the Tories back New Democrats' private member bills on issues ranging from EI benefits to regulating credit-card rates.
Layton will hold a news conference on Thursday to speak about his party's position.
Earlier, Harper sounded downbeat on the possibility of working with the NDP.
"I have no indication of that from Mr. Layton," Harper said when asked if he thought the NDP could work with the government.
The prime minister said Layton's goal was to have a coalition government between the Liberals, the Bloc and the NDP.
That aside, Harper said he was willing to work with any party that has "ideas to help the economy."
In a news conference Wednesday afternoon, Bloc Quebecois Leader Gilles Duceppe said he would take each issue in Parliament one by one, but that he was willing to topple the government if necessary.
"Our position was never to ask whether or not we want elections," Duceppe said. "We vote on the value of a proposal. If it's good for Quebec, we vote for it."
