Former prime minister Jean Chrétien delivered a spirited defence of the federal sponsorship program Tuesday, telling the Gomery inquiry while "there are always mistakes," it was needed to save the country.

In a full day of testimony, Chrétien said any wrongdoing by some individuals should not detract from the success of the program in combatting Quebec separatism.

"I am fully convinced that our national unity strategy was necessary and right ...Sponsorship was conceived in good faith, its objectives were noble," he said in an opening statement.

Former prime minister Jean Chrétien is sworn in Tuesday. (CP Photo)

The inquiry was established by Prime Minister Paul Martin after last year's report by the auditor general found an estimated $100 million from the $250-million program went to Liberal-friendly ad firms and other middlemen for little or no work.

Chrétien refused to be pinned down when asked what he thought of the auditor general's report and whether he agreed with its conclusions.

"I have no opinion," he responded to commission counsel Bernard Roy. "I am no longer in politics. I'm just here to answer your questions."

Former prime minister Jean Chrétien holds a golf ball during his testimony at the Gomery inquiry. (CP photo)

Roy asked Chrétien what the basis was for his statement several months ago that a few million dollars could have been stolen from the sponsorship program.

'I don't know if there was money stolen'

"I don't know if there was money stolen," Chrétien replied, adding, "I would be very much surprised" if it amounted to $100 million as has been suggested.

Chrétien said that as prime minister during the program he must take ultimate responsibility for any mistakes and for what went wrong, but he was unaware there were problems with the program or that rules were being broken.

"If unscrupulous people used that program or any other opportunity to line their own pockets ... they should be found out and put in jail," he said.

Chrétien denied knowledge of specific details and transactions, saying he left it to bureaucrats to deal with such matters. He said he never knew Chuck Guité, the man who ran the sponsorship program, or most of the ad executives who won contracts under it.

He also maintained he knew nothing about the sponsorship dealings of his friend, Montreal businessman Jacques Corriveau, who received subcontracts under the program.

Chrétien conceded that Corriveau was a "good friend" who hired his son Michel in the late 1980s. However, he was adamant that he never talked sponsorship with Corriveau, didn't know he was getting government business and didn't realize he was a major contributor to the Liberal party.

Asked by his own lawyer David Scott whether there was any connection between Corriveau's contributions to Chrétien's election campaigns and sponsorship contracts, Chrétien replied: "Absolutely not. No."

Laughter greets golf ball display

Chrétien ended the day by taking a theatrical shot at inquiry commissioner Gomery, who said in a controversial year-end media interview that he found the fact the Prime Minister's Office had golf balls made up with Chrétien's signature to be "small town cheap."

A smiling Chrétien proceeded to pull from his briefcase golf balls that he said he'd received from people from small towns, including U.S. President George W. Bush and former president Bill Clinton.

While Gomery sat impassive and expressionless through the golf ball show, it drew loud laughter from the audience.

Gomery has adjourned the inquiry until Thursday when Prime Minister Paul Martin is scheduled to take the stand, marking the first time since John A. Macdonald that a sitting head of government has testified publicly at such a probe.