This is how a parliamentary system of government works.
The following motion just passed in the Canadian House of Commons by a vote of 156-145.
Mr. Ignatieff (Etobicoke—Lakeshore) — That the House agree with the finding of the Standing Committee on Procedure and House Affairs that the government is in contempt of Parliament, which is unprecedented in Canadian parliamentary history, and consequently, the House has lost confidence in the government.This was immediately followed by a motion from the Prime Minister to adjourn the House. That motion carried.
Michael Ignatieff, who moved lack of confidence, is the Leader of Her Majesty's Loyal Opposition (Leader of the Opposition) and the leader of the Liberal Party.
The defeat of the government on this confidence motion means that the Prime Minister (Stephen Harper) must resign. He will probably go to the Governor General (the de facto Head of State1) and seek permission to dissolve the House of Commons and call for a general election. In the absence of any party or coalition that could command the confidence of Parliament, that request will be granted.
1. Officially, the Governor General is the Canadian representative of the Queen of Canada who lives in the United Kingdom. The Governor General will not be phoning the Queen to ask her advice. The current Governor General is His Excellency the Right Honourable David Johnston.