Percy Downe, Prime Minister Jean Chretien's chief of staff, will be appointed to the Senate for Prince Edward Island.

"Mr. Downe has worked tirelessly for the prime minister and been involved in politics most of his life," said Chretien's spokesman Jim Munson. "He provides an invaluable service to the prime minister."

Downe has been Chretien's chief of staff for the past two years. Before that he was the prime minister's appointment secretary.

Chretien's senior policy adviser Eddie Goldenberg will replace Downe.

Long-time Liberal Paul Massicotte, who heads up a Montreal real estate investment trust, will also be appointed to the Senate for Quebec. Massicotte has a long history with the not-for-profit organizations and in the real estate industry.

CTV's Craig Oliver says the appointments are just the beginning of many expected to be made by the prime minister prior to his retirement next February.

"I think it is Chretien rewarding the friends and others he thinks are deserving of rewards as he leaves office," said Oliver.