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They shouldn't merge. The liberals should rebrand themselves, work their way closer to the center of the spectrum and get a leader that has a corporate background ... people with a corporate background tend to have a good grasp on practicality, which would give them some credibility.
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JIM DINNING! Seriously, I really like that guy, he would move the Libs closer to the centre but it would have to be a rebranding of the Libs, which wouldn't be such a bad idea.