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Manley, one of outgoing Prime Minister Jean Chrétien's most prominent loyalists, is mulling over his future as the new Paul Martin-led government prepares to take control in Ottawa.
Sources say Manley, 53, has been waiting for weeks for a sign from Martin that he might be retained in the next cabinet. But the call has reportedly not come.
A senior Ontario government official confirmed recently that discussions have taken place with Manley about a high-level position in the electricity sector.
"He's a talented guy and he could really help us," said the insider.
Manley held private talks recently with his close friends McGuinty and Finance Minister Greg Sorbara.
The Ontario official said if Martin does not offer Manley a suitable position, Queen's Park will almost certainly make overtures to the Ottawa South MP.
Sources say Manley could be in line to replace Tory appointee Bill Farlinger at the helm of the troubled Ontario Power Generation utility or take the helm of some new task force or panel to oversee the province's electricity industry.
Martin, whose new cabinet will be sworn in on Dec. 12, plans to send a message of change to Canadians by replacing most of the current ministers with a new team of backbench MPs.
While there is always a chance Manley might be one of the few Chrétien ministers to be retained in cabinet by Martin, it is highly unlikely that Manley would be given the one cabinet job he would want, the prestigious foreign affairs portfolio, a source close to the deputy prime minister said.
Having held most of the top jobs in cabinet, Manley might see any portfolio other than foreign affairs as too much of a comedown to be worthwhile.
Publicly, Manley has been saying he plans to run in the next federal election. But insiders say he has privately been considering dropping out of politics. The deputy prime minister, who spoke in Montreal recently, was not available for comment.
Manley opposed Martin in the Liberal leadership race, but dropped out in July, leaving only Heritage Minister Sheila Copps. Manley hurt himself with the Martin organization during the leadership campaign by accusing the frontrunner of trying to hide the identity of his campaign's financial backers.
Manley recently held a party in Ottawa to celebrate the 15th anniversary of his election as an MP on Nov. 21, 1988.
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