Canada report

Spring elections still on track

A spring federal election is still being considered by the Canadian government despite the damaging sponsorship scandal that has rocked the Liberals.

Prime Minister Paul Martin told a meeting of his caucus that his strategy is working to deal with the fallout from revelations by Auditor General Sheila Fraser that $100-million in federal sponsorship money was misused.

Martin has been shocked and outraged at the situation and put several senior bureaucrats under review. He also set up an inquiry to look into the situation that happened in the government of Prime Minister Jean Chretien, who retired in December.

Some members of Parliament are concerned the scandal could cost them votes if an election is held as early as the spring.

Martin said, however, he is "ahead of the curve" on handling the report that said in the late 1990s the money went to Liberal-friendly ad agencies that did little to promote a goal of enhancing national unity.

An outline of the Liberals' campaign platform will come March 23 when Finance Minister Ralph Goodale delivers the federal budget.

Toronto residents were unimpressed with the federal government's handling of the SARS crisis, a report obtained by the Canadian Press newswire shows.

Former Prime Minister Jean Chretien's visit to a Chinese restaurant at the height of the first wave of the outbreak was derided as an insincere "photo op," and his decision to move a weekly Cabinet meeting to Toronto in late April was deemed insignificant.

Those asked in focus groups said the government didn't grasp the seriousness of severe acute respiratory syndrome until the World Health Organization issued a travel advisory. That warning urged people to avoid Canada's largest city, and the crisis took on serious economic overtones.

A parliamentary committee is investigating whether Canadians are getting their money's worth from the Governor General's Office. The review is probing the role, budget and constitutional history of the office, an appointed position representing the queen in Canada, now held by former broadcaster Adrienne Clarkson. This follows last fall's controversial $5.3-million circumpolar junket by Clarkson and 59 elite guests.

Canada can't spare a sizable military force to quell the rebellion in Haiti, but Prime Minister Paul Martin vowed his government would live up to its responsibility to help. Defense Minister David Pratt said earlier it would be difficult to make any commitment beyond aiding the 1,025 Canadians in Haiti because military resources are stretched thin with 2,000 soldiers in Afghanistan.

Air Canada's chief executive wants the federal government to take steps to help Canadian carriers compete with U.S. airlines. Robert Milton said air travelers in Canada are being taxed to the same extent as smokers and drinkers. The U.S. industry enjoys the benefits of subsidies and loan guarantees while Canadian airlines are struggling to compete, he said.

Canada's dollar rose Friday on news the gross domestic product grew 3.8 percent on an annualized basis in the fourth quarter, higher than the 3.1 percent expected by economists.

The dollar trades for 74.71 cents U.S., while the U.S. dollar returns $1.3385 Canadian before bank exchange fees.

The Bank of Canada's key interest rate is steady at 2.5 percent, while the prime lending rate is 4.25 percent.

Canadian stock markets are mixed, with Toronto's composite index higher at 8,784 points and the Canadian Venture Exchange lower at 1,879 points.

Lotto 6-49: (Wednesday) 1, 9, 25, 27, 37 and 40; bonus 45. (Feb. 21) 4, 5, 26, 33, 38 and 44; bonus 49.

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