Spending spree matches surplus

Canada's Liberal government has gone on a $5.8-billion spending spree just after Finance Minister John Manley pledged to cut costs.

Estimates show the money is being allocated across departments and agencies, a move called "wasteful" by the Opposition Alliance party.

Manley said targets for spending reductions should be in place by the next budget, expected in February.

John Williams of the Alliance said there are many areas where cuts could be made including the $14-million added for innovation projects, $7.8-million to promote and advertise federal programs, $55-million more for "unique legal cases," and another $72-million for gun control.

The next budget is expected to include a surplus of roughly the amount being newly spent. Half was to be set aside in a "rainy day fund" while $1-billion was for programs such as aid to softwood lumber workers caught in a trade dispute.

Prospects of higher surpluses are pressuring Manley to spend, especially on health care and the environment -- key areas of interest to Prime Minister Jean Chretien.

Business leaders have applauded the surplus projections, saying any additional money should be used to pay down the federal debt.

Professor seeks review of Health Care Act

A law professor wants a review of the Canada Health Act to recognize that people have a constitutional right to health care.

In a report to the federal health commission, Martha Jackman of the University of Ottawa stopped short of calling for health care to be included in the Charter of Rights.

She did say there should at least be a symbolic gesture to protect Medicare before the federal government and the provinces begin any major overhaul of the system.

A Senate committee report has recommended $5-billion be raised through new taxes to pay for health care.

In brief

-- The 15th anniversary of the death of former Quebec Premier Rene Levesque was marked by a call to continue his fight for independence for the province. Parti Quebecois Premier Bernard Landry urged Quebeckers to make sovereignty a reality as he laid a wreath at the statue of Levesque on the legislature grounds in Quebec City. Polls say most Quebeckers don't want another sovereignty vote.

-- Political strategist John Tory says he won't run for the leadership of the federal Conservative party. Tory, 48, is chief executive officer of Rogers Cable. The party will select someone to replace retiring Joe Clark at a convention in the spring.

-- Anyone considered to be a security threat, human rights violator or organized criminal could have their Canadian citizenship revoked on hearsay evidence and face deportation under a proposed new citizenship act. It will also require that new citizens swear an oath of allegiance to Canada.

-- Canada's Supreme Court has struck down the law that barred prison inmates from voting in federal elections. In a 5-4 ruling, the court said it violates their rights. "The right to vote is fundamental in our democracy and the rule of law and cannot be lightly set aside," Chief Justice Beverley McLachlin said.

Facts and figures

Canada's dollar is again higher at 64.14 U.S. cents while a U.S. dollar returns $1.5590 Canadian before bank exchange fees.

There is no change in the Bank of Canada key interest rate of 2.75 percent or the prime lending rate of 4.5 percent.

Canadian stock markets were mixed, with the Toronto exchange index lower Friday at 6,279 points while the Canadian Venture Exchange was higher at 918 points.

Lotto 6-49: (Wednesday) 5, 6, 13, 22, 29 and 46; bonus 8. (Oct. 26) 5, 6, 14, 29, 33 and 47; bonus 43.

Regional briefs

-- Police arrested 13 Alberta farmers for breaking customs rules by taking their grain to the United States. They face fines of up to $7,500. The arrests led to a protest by hundreds of farmers outside the Lethbridge courthouse. They complained that Canadian Wheat Board policies require them to sell their grain to the board instead of trying for a better price independently. Ralph Goodale, federal minister responsible for the board, said it has wide support from farmers and those jailed were grandstanding.

-- Federal by-elections will be held Dec. 9 to fill vacancies in the House of Commons in two districts in Quebec. Prime Minister Chretien called the votes to replace two Bloc Quebecois members of Parliament who have left federal politics to run provincially. They are Michel Bellehumeur of Joliette and Stephan Tremblay of Lac-Saint-Jean-Saguenay.

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