Canada's political leaders hammered out an agreement late Monday on the flight home from the Netherlands to fast-track a $1-billion benefits package for veterans through the House of Commons.

Prime Minister Paul Martin and the opposition leaders had spent the day sniping at each other, after being criticized by war veterans for arriving after a parade in Canada's honour in Apeldoorn.

But during the plane ride back to Ottawa from Amsterdam, NDP Leader Jack Layton disappeared into the prime minister's private quarters, CTV's Rosemary Thompson told Canada AM Tuesday.

About half an hour later, Layton came out to bring back Conservative Leader Stephen Harper and Bloc Quebecois Leader Gilles Duceppe.

Not long after all the leaders met, they emerged from the cabin and announced they had agreed to a benefits package that would help veterans -- particularly those who are disabled -- better reintegrate into civilian life after leaving the service.

"We've put ourselves in the shoes of the veterans and we've said 'How can we improve their lives and their lot?'," said Veteran Affairs Minister Albina Guarnieri, who also met with the leaders.

"Not just for themselves but for their family. So it's a very comprehensive package."

The package would impact thousands of veterans. However, it would have no impact on men and women who served in the Second World War.

With the all-party agreement, the leaders will be able to fast-track the legislation through the House of Commons and Senate before the end of this week. It will come into effect next April.

While this deal makes it appear as if the leaders are getting along, Thompson said it actually shows the opposite.

"I think the party leaders were quite embarrassed actually at the end of the day that they were fighting with each other so much and not looking at the bigger picture of what they should be doing for Canadians," Thompson told CTV's Canada AM.

"In yesterday's case, it was the veterans."

Martin had been scheduled to attend a parade in Apeldoorn on Sunday, in which 200,000 Dutch came out to honour Canadian war veterans who helped liberate their country.

But the PM ended up sending Gov. Gen. Adrienne Clarkson in his place, fearing a motion of non-confidence would be passed while he was away.

This angered many Canadian veterans, and in a compromise, Martin and the opposition leaders agreed to travel to the Netherlands on Monday.

It was too little, too late for many veterans, who complained that domestic politics were getting in the way of paying proper respects to the 60th anniversary of the end of the war in Europe.

Martin said Monday he regretted the decision not to come sooner, while Harper and Duceppe sided with the veterans in criticizing the PM. Layton said all four leaders failed to call a truce when it mattered.

Special Thank's to The Canadian Press