After running an election campaign centred largely on an unpopular carbon tax during a time of economic uncertainty, musings about the Liberal leader's future began as soon as the polls started to lean towards a Conservative win.

When the dust settled the Liberals wound up with 76 seats, their poorest showing since 1984.

Rae stopped short of saying Dion's carbon tax was a mistake but suggested Canadians didn't seem to embrace the plan.

"It's obviously a good idea from the point of public policy. From the point of politics clearly there was a reaction and a response to it in a number of parts of the country, and that's a very natural reaction and that's something we're going to have to reflect on," Rae told CTV's Canada AM on Wednesday.

He said the campaign was Dion's first, and he was successful in holding Conservative Leader Stephen Harper to a minority government.

Rae also said the Liberal Party has a leadership review scheduled for May in Vancouver, and it will be up to party members to determine Dion's future.

He called him a man of principle and courage and said the fact he survived the bumpy ride that has characterized much of the campaign is a victory for Dion. More...