Why did the Liberal Party of Canada lose power in the 2006 federal election?

The Liberal Party of Canada lost power in the 2006 federal election primarily due to the political fallout from a major financial scandal in Quebec.12

An investigation, known as the Gomery Commission, revealed that the Liberal government had funneled excessive payments to advertising firms associated with the party, particularly around the time of the 1995 Quebec referendum. Although then-Prime Minister Paul Martin was personally exonerated by the commission's report in November 2005, the findings were highly critical of the Liberal administration and former Prime Minister Jean Chrétien.12

Following the release of this report, the Liberal minority government lost a vote-of-confidence motion in the House of Commons. This defeat forced a general election in January 2006, during which the newly unified Conservative Party of Canada—formed by the merger of the Canadian Alliance and the Progressive Conservative Party—was elected to lead a minority government under Stephen Harper.12