40th Canadian Parliament

The party standings as of the election, and at dissolution, were as follows:

The first session of the 40th parliament opened on November 18, 2008, after Prime Minister Stephen Harper and the Conservatives won a slightly stronger minority government in the 2008 election. With a new government in session, Finance Minister Jim Flaherty tabled a fiscal update nine days later. Among other things, the update cut government spending, suspended the ability of civil servants to strike, sold off some Crown assets, and eliminated existing political party subsidies. This fiscal update was rejected by the opposition, and became a catalyst for talks of a coalition government. Stéphane Dion of the Liberal Party and Jack Layton of the New Democratic Party, signed an accord stating that in the event that the government lost the confidence of the house, they would form a coalition with the support of Gilles Duceppe and the Bloc Québécois, if asked to do so by the Governor General of Canada Michaëlle Jean. However, Stephen Harper delayed the vote of non-confidence scheduled for December 1, and the Governor General prorogued parliament on Harper's advice on December 4, 2008, until January 26, 2009.

After prorogation, calls came from within the Liberal Party for Dion to resign immediately. Dion initially scheduled his resignation for the party's leadership convention in May 2009, but on December 8, 2008, he announced that he would step down upon the selection of an interim leader. After the withdrawal of Bob Rae and Dominic LeBlanc from the 2009 leadership race, Michael Ignatieff became the only leadership candidate, and therefore was appointed interim leader of the Liberals and the opposition on December 10, 2008.

The Governor-in-Council recalled parliament on January 26, 2009. Its first business (after the Throne Speech) was to present the federal budget, which included a large deficit. After negotiations with new opposition leader Michael Ignatieff, the government promised to present regular updates on the stimulus budget, and the Liberals and Conservatives joined to pass the budget and keep the Conservative government in power. The Conservative government made crime a major focus of the session. The Conservatives reintroduced their former mandatory minimums bill, known as Bill C-15.[25]

Protest on Parliament Hill in Ottawa against the prorogation

March in Vancouver against the prorogation

On December 30, 2009, Prime Minister Stephen Harper announced that he would advise the Governor General to prorogue parliament during the 2010 Winter Olympics, until March 3, 2010. He telephoned Governor General Michaëlle Jean to ask her permission to end the parliamentary session and Jean signed the proclamation later that day.[26][27] According to Harper's spokesman, he sought his second prorogation to consult with Canadians about the economy.[26] In an interview with CBC News, Prince Edward Island Liberal member of parliament Wayne Easter accused the Prime Minister of "shutting democracy down".[28][29] The second prorogation in a year also received some international criticism as being not very democratic.[30]

In response to the prorogation, demonstrations took place on January 23, 2010, in over 60 Canadian cities, and at least four cities in other countries. The protests attracted thousands of participants, many who had joined a group on Facebook.[31][32] Media related to Protests against the prorogation of the 40th Parliament of Canada at Wikimedia Commons

The Senate of Canada has seen new members appointed in blocs of 18, 9, and 5; all were appointed to the Conservative caucus. The balance of power shifted for the first time on August 27, 2009, when the Liberal caucus was reduced to holding a plurality of 52 seats. On January 29, 2010, the balance shifted again as five vacancies were filled by appointed Conservatives, giving them a plurality of 51, with the Liberals holding the next-highest number of seats at 49. The Conservatives achieved an absolute majority when Don Meredith and Larry Smith were appointed on December 20, 2010. After dissolution, Smith and Fabian Manning resigned to run in the 2011 election. That reduced the Conservative caucus to 52, but they retained a majority of sitting senators as there were 50 senators of other parties and 3 vacancies.

For full lists of members of the 40th Parliament of Canada, see List of House members of the 40th Parliament of Canada and List of senators in the 40th Parliament of Canada.