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Canada report

Budget expected to bolster cities, education, environment

By JIM FOX
Published February 6, 2005

Canada's minority Liberal government will announce what many consider to be a "pre-election" budget this month, outlining spending priorities for the next year.

The Feb. 23 budget announcement by the 7-month-old government of Prime Minister Paul Martin is expected to include billions of additional dollars for cities, child care, university and college education and the environment.

Opposition parties say they don't intend to defeat the government over the budget. This could occur with a minority parliamentary government, as the number of opposition politicians exceeds those of the party in power.

Martin's Liberals consider the budget to be a key document because it would largely become their campaign platform should the government fall and a federal election is required.

Finance Minister Ralph Goodale suggested the healthy budget surpluses wouldn't lead to a spending binge. The recent surpluses should "skinny out" for a couple of years before improving, he said.

Canada needs to pursue closer trade ties with the United States by creating a better method for resolving cross-border disputes, Quebec Premier Jean Charest told a New York audience.

Speaking at the Canadian-U.S. relations conference at Columbia University, Charest said a liberalized North American trade zone would allow services and workers to travel freely across national borders.

He also said Canada, the United States and Mexico must strengthen and expand the 10-year-old North American Free Trade Agreement.

Investigators were told the Liberal government took $1.5-million from its sponsorship program to build a giant TV screen for the Old Port of Montreal. Alfonso Gagliano, former public works minister, rejected claims the expenditure was a misuse and said he didn't know $300,000 was paid in commissions to Liberal-friendly ad agencies in the deal.

SkyDome, Toronto's landmark retractable domed stadium, is being renamed Rogers Centre after media mogul Ted Rogers. His company, Rogers Communications, also announced plans for extensive renovations and additions at the 16-year-old stadium.

Police have broken up a telemarketing ring based in Montreal that preyed largely on Americans. Twenty-five people were arrested on charges of fraud involving 100,000 victims bilked out of $45-million.

Deaths: Harry Boyle, former broadcaster and head of the Canadian Radio-television and Telecommunications Commission, at 89, in Toronto; and character actor John Verson, of Zehner, Saskatchewan, at 72, at his Los Angeles home.

Canada's jobless rate last month was steady at 7 percent, while the economy lost 6,000 jobs, Statistics Canada reported.

The report pushed the Canadian dollar lower to 80.06 U.S. cents Friday, while the U.S. greenback returned $1.249 Canadian, before bank exchange fees.

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

Stock markets are higher, with Toronto's composite index at 9,344 points and the Canadian Venture Exchange at 1,818 points.

Lotto 6-49: (Wednesday) 2, 6, 7, 13, 31 and 36; bonus 32. (Jan. 29) 4, 24, 26, 37, 41 and 43; bonus 11.

Atlantic Canada-based CanJet Airlines is starting flights in May and June to Calgary and Vancouver.

Former Lethbridge, Alberta, councilor Dar Heatherington, convicted of making up tales of being stalked and abducted to Las Vegas, was found guilty of breaching house arrest. A judge added another 31/2 months of house arrest and 50 more hours of community service.

Jim Fox can be reached at canadareport@hotmail.com

[Last modified February 6, 2005, 00:23:11]