The possible collapse of the Liberal minority government is once again a hot topic on Parliament Hill, fuelled by reports of explosive new testimony at the sponsorship inquiry.

Although exact details of the testimony cannot be revealed due to a publication ban, there are reports its disclosure would prove so devastating that Paul Martin's Liberal minority could fall if it became public.

Watching developments in Ottawa Friday night, CTV's Mike Duffy says the capital is buzzing with speculation the opposition will confront the Liberals with some of that testimony next week.

"It's probably going to be raised here on Monday by the opposition," Duffy told CTV News.

"Because MPs have privilege on the floor of the House of Commons it is conceivable that the Bloc Quebecois could get up and run some information from behind the closed doors" at the Gomery inquiry, he said.

According to a report from The Canadian Press, the threat is looming so large all parties are quickly reviewing their election plans.

Liberal MPs in so-called "safe seats" have been asked to contact neighbouring ridings to help organize local campaigns, CP reports. One Liberal MP, who asked to remain anonymous, went so far as to tell the news agency: "Our election readiness went up 20 per cent today."

Martin's government is already on edge over a critical budget vote that all parties had at one time signalled willingness to support.

Their backing was called into question, however, after the Liberals added measures to broaden the Canadian Environmental Protection Act and implement the recent offshore oil agreement.

That thrust the Conservative Party, with their opposition to Kyoto, into a political predicament as the combination of their vote with those of the NDP and Bloc Quebecois would be enough to bring the government down.

If an election were called, CTV Ottawa Bureau Chief Robert Fife said Parliament could be in line for shakeup.

The Bloc Quebecois could potentially sweep Quebec in an election, Fife said.

"It could mean that the Conservatives will make real significant gains in Ontario and perhaps parts of Atlantic Canada," he added. "It could mean that the Liberals will be in opposition and the Conservatives would form a minority government."

Despite the potential gains, until now no party has wanted to be responsible for calling Canadians back to the polls so soon after the last election.

But mounting criticism spurred by a stream of revelations at the sponsorship inquiry headed by Justice John Gomery appears to be changing that.

"All I can say is that given what was said yesterday the political landscape may be changing quite rapidly," Conservative Justice Critic Vic Toews told CP.

Montreal advertising executive Jean Brault appeared before the inquiry in Montreal Thursday.

His testimony is covered by a publication ban intended to protect his right to a fair trial on criminal-fraud charges related to the now-defunct sponsorship program.

His inquiry testimony could be made public once his trial is over.

Lawyers for the former Groupaction chief petitioned a Montreal court Friday, to have his May trial date pushed back to September.

The court is expected to issue its decision next Wednesday.

While the NDP accused the Liberals of attempting to orchestrate both their own demise and a scapegoat in the Opposition, senior Liberals dismissed such accusations wholesale.

According to Martin spokesperson Scott Reid, no matter how explosive the inquiry testimony, the present government shouldn't pay a price.

He also dismissed suggestions his party is angling for a return to the polls.

"The Canadian people do not want an election," he said.

"The government does not want an election. The only leader who has spoken about the possibility of an election is Stephen Harper."

Last week, Harper suggested he was set for a showdown with the government over the federal budget bill.

Debate on the bill begins next week.

With reports from CTV News and The Canadian Press