Canada report

Martin to call for June 28th election

Prime Minister Paul Martin has unleashed an attack on political opponents, saying the pending federal election will be a showdown between vastly different visions of Canada.

He is expected to announce today a June 28 date for the election as he seeks his first mandate from the public after being chosen by his Liberal Party to succeed retiring Prime Minister Jean Chretien in December.

"Rarely has an election presented Canadians with such a stark and clear choice among the contending political parties," Martin said after being nominated by his party to continue representing Quebec's LaSalle-Emard region.

He called the newly merged Conservatives a threat to social programs with an unrealistic plan to cut taxes while suggesting the New Democrats are spendthrifts ready to spend Canada "back into chronic deficit."

Over the past several months, Martin has made campaign-like swings across the country, lately announcing major spending initiatives. The latest is $125-million to help revitalize Toronto's waterfront.

Even though the ruling Ontario Conservative government continues to break its election promises, Premier Dalton McGuinty makes no apologies.

Instead of cutting taxes, his government's first budget has imposed many new fees, including a health care premium, ranging from $300 to $900 per taxpayer, depending on income in excess of $20,000 annually. The Conservatives and New Democrats insisted McGuinty owed Ontario voters an apology for lying, but the premier refused to discuss the issue.

McGuinty insisted he isn't worried about his government being branded a promise-breaker, saying he is confident people will benefit from an improved health care system through money raised by the levy.

Other tax hikes included $2.50 on a carton of cigarettes, smaller increases on beer and wine and many higher fees.

Air Canada has reached a crucial cost-cutting agreement with the Canadian Auto Workers as part of its year-old restructuring. The tentative pact with the last of seven Air Canada unions to hold out against new concessions freed the country's largest airline to seek an extension of its court-ordered bankruptcy protection.

Quebec plans to drop out of the Canadian parental leave program to create its own enriched plan for parents who need time off to care for their children. Starting in January 2006, Quebec parents will have two more generous options - 75 percent of their income for 40 weeks after a child is born or 70 percent for the first 25 weeks followed by 55 percent for 25 weeks.

About 3,000 police officers from across North America paid their last respects in Cobourg, Ontario, to Constable Chris Garrett, 39, who was stabbed to death last weekend. In the first murder in the town of 17,000 people in almost 30 years, Garrett was stabbed in a store parking lot while responding to an emergency call. Troy Davey, 18, is in custody.

The Canadian dollar regained a little over the past week, reaching 72.83 U.S. cents on Friday while the U.S. dollar returned $1.3730 Canadian before bank exchange fees.

The Bank of Canada's key interest rate is unchanged at 2 percent while the prime lending rate is 3.75 percent.

Stock markets were higher, with Toronto's composite index at 8,196 points and the Canadian Venture Exchange at 1,574 points on Friday.

Lotto 6-49: (Wednesday) 5, 16, 24, 26, 46 and 48; bonus 11. (May 15) 21, 24, 30, 32, 40 and 41; bonus 7.

Nova Scotia's attempt to give consumers early warning of gasoline price shocks crashed in the House of Assembly. Opposition politicians defeated the bill by Conservative Premier John Hamm's government that would have forced oil companies to provide 48 hours notice of price increases and to justify them. The development came as public anger over record fuel costs at about $1 a liter for regular gasoline across the country (or about $3.75 a gallon). An all-party committee will hold public hearings in the province this summer to investigate whether the high pump prices are justified.

The British Columbia Court of Appeal has ruled the province can proceed with a lawsuit seeking to recover $10-billion in health care costs from tobacco companies. In a unanimous decision, the court ruled the Liberal government's Tobacco Damages and Health Care Costs Recovery Act is constitutionally valid legislation. Attorney General Geoff Plant said the government intends to take on the tobacco companies in the courts and is prepared to take the fight to the Supreme Court of Canada if they launch an appeal.

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