Financial Times FT.com

Canadian government in crisis after inquiry lifts ban

By Bernard Simon in Toronto

Published: April 7 2005 23:49 | Last updated: April 7 2005 23:49

Canada's minority Liberal government was plunged into crisis on Thursday, after a judicial inquiry lifted a publication ban on potentially explosive allegations that public funds earmarked for a campaign against Quebec separatists were clandestinely funnelled to the Liberal party.

The allegations could embolden opposition parties, including the separatist Bloc Quebecois, to precipitate a no-confidence vote in the House of Commons. Such a move would force Paul Martin, the prime minister, to call a general election.

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