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The Progressive Conservative party is dead. Their numbers within the CPC are too low compared to the core of Reformers that make up the party. It would take quite a bit (more than just getting rid of Harper) to change the direction of their policy to more in line with what the PC party was.
The truth is, the Liberals under Chretien were far more conservative in the fiscal policy than most seem to recall. They hugely cut spending and as a result managed to be the only G7 country to run deficit free budgets. It's for this reason that many in the PC party didn't return to PC party after Mulroney left the party shattered. They stayed Liberal for many years. It was only with the ad scandal and then Dion, that Liberals bled votes to the Conservatives, NDP and Greens.
There are a number of votes that can be won back with the right leadership at the helm of the Liberals.
I still don't see a majority for any party but we could easily see a minority for the Liberals within one or two elections... and given the frequency of elections these days, that could be a year from now.
The other thing of note is that even if the Conservatives fall, this time over the appointment of the Senators, I have heard that Ignatief may attempt to form the government with the support of the NDP and Bloc but not in the form of an official coalition (the difference being there would be no cabinet seats for the NDP).
The Trudeau minority in the early 70s had a similar set up.
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"My hands are on fire. Hands are on fire. Ain't got no more time for all you charlatans and liars."
- Old Man Luedecke
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