Canada report

Provinces ask for Medicare money

The federal Liberal government, in preparation for a showdown with the provinces over health care funding this week, is rejecting soaring monetary demands as a remedy for an ailing Medicare system.

Provincial leaders are asking for what the government estimates would be more than $20-billion a year as the prescription for sound health care.

Prime Minister Paul Martin said he agrees with a proposal to cover 25 percent of health care costs, up from 16 percent, and to increase the amount paid annually to keep pace with steadily rising costs.

A contentious issue is a recommendation the government also assume responsibility for a comprehensive national pharmacare program that could cost up to $12-billion.

The money is there, provincial leaders say, noting the Liberal government's election platform predicted surpluses totaling $55-billion over five years.

Martin's government wants to keep to its promised $9-billion in increased funds over five years. This would include $4-billion to reduce waiting times for cancer and cardiac care, high-tech diagnostic tests, cataracts and joint replacements and $2-billion for home care.

More federal money is going to assist the Canadian beef industry reeling from the continued ban on shipping live cattle to the United States over mad cow disease.

The industry will get $488-million more and the Alberta government pledged $230-million.

Federal Agriculture Minister Andy Mitchell said the program will seek to increase slaughter capacity, implement transition measures to sustain the industry while packing plants are built and further develop foreign markets to reduce dependency on the U.S.

An estimated $6-billion and thousands of jobs have been lost since May 20 of last year when the disease was diagnosed in one Alberta breeder cow.

Federal and provincial governments have spent $1.6-billion to help producers. In 2002, Canada exported $1.8-billion in beef products to the United States.

Nortel Networks is working on a plan to cut 3,500 jobs, or 10 percent of its work force, as the huge communications firm restructures. There could be big job losses in Canada's capital, Ottawa, where 6,000 employees are based. Officials say they would be split between research and development and sales and administration and in other facilities around the world.

The stars are out in Toronto for the annual International Film Festival. About 250,000 people are expected over 10 days for the showing of 328 films from 60 countries. The official opening gala belonged to the film Being Julia, and star Annette Bening, who arrived on the red carpet on the arm of her husband, actor Warren Beatty. Also attending are Dustin Hoffman, Penelope Cruz, Kevin Spacey, Colin Firth, Sandra Bullock, Orlando Bloom and Sigourney Weaver.

The Bank of Canada signaled that higher interest rates are on the way by raising its key rate by 0.25 percent to 2.25 percent, the first hike in more than a year. The prime lending rate rose to 4 percent.

The central bank cited stronger than expected growth and a positive outlook. It hinted at more interest rate increases to keep the economy from overheating and fueling inflation.

Canada's dollar is higher, ending the week at 77.45 U.S. cents while the U.S. dollar returned $1.2911 Canadian, before bank exchange fees.

Stock markets are mixed, with the Toronto exchange index higher at 8,368 points and the Canadian Venture Exchange down at 1,520 points.

Lotto 6-49: (Wednesday) 10, 26, 37, 40, 42 and 47; bonus 5. (Sept. 4) 2, 4, 5, 44, 46, 47 and 3.

Dar Heatherington, 41, the former Lethbridge, Alberta, city councilor who faked a stalking complaint and said she had been abducted to Las Vegas, was given a conditional sentence and eight months of house arrest for public mischief. Judge Peter Caffaro said after that she must obey an overnight curfew for 12 months and perform 100 hours of community service work. She must undergo counseling and can't have alcohol or nonprescription drugs, he said.

A Quebec labor board has rejected Wal-Mart's challenges to unionizing of one of its stores. The retailer contested the composition of the bargaining unit by the United Food and Commercial Workers Union at its store in Saguenay. The board accredited the union and if it withstands other challenges, it would become the only unionized Wal-Mart in North America. Similar storewide union drives are under way in Ontario, Saskatchewan, Manitoba and British Columbia.

Jim Fox can be reached at canadareport@hotmail.com

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