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Surprise surplus of $9.1-billion sparks budgetary debate

It has been called an embarrassment of riches: The Canadian government is sitting on a surprise surplus of $9.1-billion.

While this stash of cash would normally be considered good news, unlike running a deficit, political opponents accuse the Liberals of deliberately underestimating revenues to secretly guarantee a debt-reduction promise.

It's the practice of the Canadian government to use all surplus dollars to pay down debt.

Finance Minister Ralph Goodale said the surplus for this year is more than four times the $1.9-billion he forecast in the federal budget.

A surge in economic growth this year contributed to the seventh consecutive surplus, a record unmatched within the Group of Seven major industrial nations.

Canada had a surplus in the previous three years of $40.3-billion.

Opposition politicians want the Liberals to dip into the surplus to pay for improved health care and other priorities instead of applying the costs to the $501-billion debt.

The battle of the upstart airlines has Jetsgo suing WestJet Airlines, alleging its discount-travel competitor pilfered proprietary information.

It also charges that WestJet conducted "an unlawful campaign with the specific purpose of injuring Jetsgo, its business and reputation."

A statement of claim in Ontario Superior Court seeks $50-million plus unspecified damages for interference with economic relations and civil conspiracy.

Jetsgo, based in Montreal, is a growing competitor in the discount market and is headed by Michel Leblanc, formerly of Royal Airlines.

WestJet, of Calgary, has become Canada's second-biggest airline, with about 20 percent of the domestic market, cutting into Air Canada's dominance.

The Canadian government and its biggest union have failed to reach a tentative contract settlement to end a strike. The Public Service Alliance of Canada is urging its 90,000 members to reject the latest offer.

In all, nearly 125,000 federal workers left their jobs Monday to back contract demands.

Canada's health ministers are gathering this weekend to plan how to best spend new federal money to cut patient waiting times at hospitals.

The ministers are also expected to make another plea for a national Pharmacare program, which Prime Minister Paul Martin has already rejected as being too costly.

Most of the sailors from the burned submarine HMCS Chicoutimi were flying home this weekend from Scotland. Cmdr. Luc Pelletier and other crew members were remaining to help investigators determine why an electrical fire broke out while the leased, second-hand British sub was making its initial voyage to Canada. Lt. Chris Saunders, 32, was killed, and eight others were injured.

The Canadian dollar continues to cruise just below 80 U.S. cents, closing Friday at 79.78 cents, while a U.S. dollar returned $1.2534 Canadian, before bank exchange fees.

There's no change in the key Bank of Canada interest rate of 2.25 percent or the prime lending rate of 4 percent.

Stock markets were lower for the week, with the Toronto exchange index at 8,781 points and the Canadian Venture Exchange at 1,658 points.

Lotto 6-49: (Wednesday) 6, 15, 22, 30, 31 and 48; bonus 1. (Oct. 9) 16, 23, 33, 35, 43 and 49; bonus 6.

Investigators say the tail of a Boeing 747 struck the runway twice, then broke off, before the loaded cargo jet crashed during takeoff in Halifax, killing seven crew members. The MK Airlines plane ran off the end of a runway and struck a berm topped by navigational equipment.

The Ontario government has proposed legislation to outlaw pit bulls after a rash of attacks over the summer. If approved, the law would be the first by a Canadian province. Current owners of the breed can keep their pets but will face "severe restrictions."

Key environmental hurdles have been removed by the British Columbian government to allow a controversial year-round ski resort. The developers of Jumbo Glacier Ski Resort in the Kootenays originally planned a sprawling $450-million complex. The size was reduced by 60 percent to cut the impact on the 150 grizzly bears in the area. There would be a village of condos, chalets and stores for 6,250 guests and 800 full-time employees.

Jim Fox can be reached at canadareport@hotmail.com