For the third straight day, Prime Minister Paul Martin fended off accusations linking him to the sponsorship scandal, denying he ever discussed contracts with a key figure in the affair over lunch.

"I have never had a lunch with Claude Boulay or anybody else to discuss the direction of contracts, directing contracts, intervening in contracts, that's just simply not my style of politics," he said, referring to the Montreal ad executive.

Asked if he had lunch with Boulay to discuss something else, Martin told reporters Thursday: "I can't recall having had lunch with him since we formed the government."

When pressed further, Martin elaborated: "I do not remember ever having any lunch with Mr. Boulay. But I did make his acquaintance at the beginning of the leadership in 1990, but it didn't last for long."

Earlier this week, Liberal organizer and Groupaction employee Alain Renaud testified at the Gomery inquiry that he overheard Boulay and his wife "pushing" Martin for an Attractions Canada contract during a lunch at a Liberal convention.

During question period in the House of Commons on Thursday, Conservative Leader Stephen Harper pressed Martin on the issue.

"According to sworn testimony at Gomery, the prime minister discussed over lunch Attractions Canada with Claude Boulay," Harper said. "Attractions Canada only came in to existence in 1997, after the Liberals formed the government. Could the prime minister explain this contradiction?"

"I have never discussed any contract, of any kind, with Mr. Boulay, I do not play that kind of politics," Martin replied.

Not satisfied with the prime minister's answer, Harper asked again: "Did that discussion of Attractions Canada ever take place?"

"No," Martin replied.

In earlier comments, Martin is quoted as saying that he would describe Boulay and his wife as "acquaintances. I don't know them well, but I do see them."

"I would bump into them socially or at political events in the Montreal area. I have a place in the country about an hour and a half away."

As Martin dealt with intense questioning over Boulay, he got some good news Thursday.

Liberal MP Pat O'Brien announced he would be staying, despite recent public musings that he might leave.

O'Brien, who is opposed to same-sex marriage legislation, said he has received assurances from Martin that there will be full public hearings on the gay marriage bill.

On Wednesday, Liberal David Kilgour announced he would be sitting as an Independent. He cited anger over the sponsorship scandal as the reason he decided to quit the Liberal caucus.

Testimony at the sponsorship scandal alleging kickbacks has sparked speculation of a spring election, with the Liberals and opposition trading barbs daily.

Martin said Thursday he is not in an "election mode" and that he wants to focus on the current agenda.

There is no doubt that "Canadians have expressed very clearly that they do not want an election at this time," Martin said.