The dynamics of Ontario’s first minority government in a generation have taken a dramatic turn after a veteran Progressive Conservative MPP broke ranks with his party to run for speaker of the Legislature.

In a major blow to Progressive Conservative Leader Tim Hudak that could prop up Premier Dalton McGuinty’s Liberals, Tory MPP Frank Klees on Tuesday said he wants to be the referee of the 107-member House.

That means a Klees victory would see the Liberals with 53 votes and the Tories and New Democrats with a combined 53. Because the speaker traditionally votes with the government, McGuinty could stay in power until the 2015 election.

The prospect left Conservatives reeling and Liberals relishing fresh dissent across the aisle so soon after the Oct. 6 election.

“There’s no doubt it makes it more challenging for both opposition parties,” a grim-faced Hudak acknowledged, portraying his former leadership rival Klees as a turncoat who ignored an edict that no Tory would vie to succeed retiring Speaker Steve Peters.

“Clearly, I’m disappointed. We all hoped Frank’s first goal would be to help us on the opposition benches in keeping this government on a short leash . . . Frank’s made a decision and Frank is Frank.”

Both Hudak and NDP Leader Andrea Horwath had maintained their members would not seek the prestigious $152,914-a-year post of speaker — which includes a lavish suite of offices and a private apartment at Queen’s Park — for fear of undercutting their own odds of defeating McGuinty when the time is right.

Klees, the Newmarket-Aurora MPP who twice ran for his party’s top job and placed second to Hudak in the 2009 leadership race, insisted there were no sour grapes in his decision.

Sources said it came after Klees demanded the post of deputy leader — held by Whitby-Oshawa MPP Christine Elliott — and was instead offered the shadow cabinet role of transportation critic along with ethnic outreach in hopes he could play a similar role to federal Citizenship and Immigration Minister Jason Kenney in making inroads with multicultural voters.

“The fact is I have done some soul-searching, thinking where I’d make the most meaningful contribution,” Klees told the Star, suggesting he’s ready for a new challenge.

“I’ve been a cabinet minister and held numerous critic portfolios,” he added. “I believe Ontarians want their government to work, especially in a minority. I don’t think Ontarians are looking forward to a lot of brinksmanship.”

When asked about siding with the government in confidence votes, Klees said he would follow his own conscience.

“There’s a convention the speaker casts a vote with the government, but that’s a convention, not a rule . . . you make your mind up based on what guides you . . . what’s in the best interest of the government and the Legislature.”

Privately, Conservatives were furious at what they see as Klees’ “betrayal” of their 37-member caucus.

“This is the equivalent of crossing the floor,” fumed one MPP, warning no Tories would vote for their colleague as speaker.

“The Liberals better support him, because Frank doesn’t have a lot of friends in our caucus today,” the MPP added.

A high-ranking party insider conceded “this is very bad” because it suggests a broader schism in the ranks than is the case.

“This is Frank Klees turning his back on the party that he purports to support,” the PC source said.

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Klees pitched Hudak the speaker idea on Sunday night, and the Tories feverishly tried to get him to reconsider.

At the same time, sources say the Liberals informally approached at least two Conservative MPPs over the weekend about running for speaker. This was done in conjunction with an ongoing back-channel effort to convince one of them to cross the floor to give McGuinty a 54-seat majority.

The machinations have the Liberals rubbing their hands with glee, even if Klees has to face off against at least three Grit MPPs already in the race — Donna Cansfield (Etobicoke Centre), Dave Levac (Brant) and David Zimmer (Willowdale).

“With the number of Liberals running, we don’t see a scenario where a Liberal doesn’t end up being the speaker,” said a senior party source, claiming no Liberals will be discouraged from running.

“What’s most interesting about this is the discontent in Hudak’s party.”

Another senior Liberal said it is unlikely Klees would join the governing party if he’s not voted speaker and is shunned by the Tory caucus.

“Frank is pretty conservative,” he said.

Klees is a social conservative who was backed by a coalition of evangelical Christrians, anti-abortion activists and new Canadians in his two leadership bids.

After the June 2009 leadership convention, he wasted no time in laying claim to a major role in the future direction of the PC party.

“I am not supposed to speak very long but I will, because I can,” Klees said in a surprisingly impolitic concession speech at the time.

“I don’t think the new leader of our party would cut me off. I think he might need me along the way.”

Hudak later played down the jibe as “a good joke,” but members of his campaign and those in Elliott’s third-place camp weren’t laughing.

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