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The race is on for the Jan.23 federal election as Canadians endure a rare campaign over the holidays after the minority Liberal government was defeated.
Opposition politicians ganged up on the year-old Paul Martin government, defeating it in a nonconfidence vote, and decided not to wait until spring for a vote promised by the prime minister.
Campaign promises so far include Conservative leader Stephen Harper pledging to immediately cut the 7 percent goods and services tax to 6 percent and then to 5 percent within five years. He pledges more tax cuts and shorter hospital waiting times.
The Liberals used last month's fiscal update to promise tax cuts of $30-billion over six years.
Socialist New Democratic leader Jack Layton said Canadians aren't looking for "deep tax cuts" but protection for the health care system and affordable postsecondary education.
Chretien, aide challenge scandal conclusions
Former Prime Minister Jean Chretien is taking court action, along with his former chief aide Jean Pelletier, to challenge the conclusions of the federal sponsorship scandal inquiry.
Both were implicated by Judge John Gomery who said the former Liberal government under Chretien improperly diverted hundreds of millions of dollars to supporters.
They claim in federal court that Gomery was biased, exceeded his mandate and based his report on erroneous facts. They say the judge was wrong to believe the testimony of Chuck Guite, who was at the center of the scandal and was considered an unreliable witness at the inquiry.
Last month, the court reinstated Pelletier as chairman of Via Rail, saying the government was unfair in the way it fired him in March 2004, blaming the scandal.
News in brief
--The Quebec government plans to appeal a court ruling that lifted all restrictions on the freedom of Karla Homolka, who helped her husband rape and murder two teenagers in the early '90s. The government is concerned by Judge James Brunton's removing restrictions that she advise police of her whereabouts and travel plans. Homolka, 35, who lives in the Montreal area, was released from prison in July after serving a 12-year sentence for the deaths of Ontario teenagers Kristen French and Leslie Mahaffy. Her husband, Paul Bernardo, is serving a life term in prison.
--There's no word on the fate of two Canadian hostages in Iraq, Jim Loney of Toronto and Harmeet Sooden of Montreal, members of Christian Peacemaker Teams. Greg Rollins, a colleague of the two men kidnapped last weekend, said there had been no contact from the kidnappers.
--Toronto-based former media mogul Conrad Black says prosecutors are trying to strangle him financially after he pleaded not guilty to fraud charges in Chicago. He was released on a $20-million bond. Black, 61, and several associates are accused of stealing tens of millions of dollars from Hollinger International Inc.
Facts and figures
Canada's jobless rate dropped to 6.4 percent last month, the lowest in 31 years, down from 6.6 percent in October.
It came as a bright spot after announcements of 1,800 job cuts at paper giant Domtar and 900 layoffs at the CIBC bank.
The Canadian dollar is higher at 85.95 U.S. cents and the American dollar is worth $1.1634 Canadian, before bank exchange fees.
The Bank of Canada is expected to raise its trend-setting interest rate, now at 3 percent, by a quarter-point Tuesday. The prime-lending rate is 4.75 percent.
Canadian stock markets are mixed, with the Toronto exchange composite index down at 11,008 points and the Canadian Venture Exchange higher at 2,075 points.
Lotto 6-49: (Wednesday) 5, 18, 22, 28, 29, 32; bonus 17. (Nov. 26) 15, 21, 31, 35, 41, 46; bonus 22.
Regional briefs
--The separatist federal Bloc Quebecois party wants Quebec to have its own "international" hockey team. Players from Quebec are "proud" to represent Canada, Hockey Canada president Bob Nicholson said. For Quebec to have its own entry, the province would have to separate from Canada.
--A memorial service was held Friday at Canadian Forces Base Gagetown in New Brunswick for a Canadian soldier killed in Afghanistan. Pte. Braun Scott Woodfield, 24, of Eastern Passage, Nova Scotia, died when the light-armored vehicle he was in rolled over as it swerved to avoid an oncoming car near Kandahar. Four other soldiers were hurt.
--The Alberta Legislature has passed bills authorizing $3.1-billion in unbudgeted spending from its soaring oil and gas revenues. About $1.6-billion will be given to Albertans as $400 resource rebate checks. The rest is for building projects, various savings and endowment funds and several one-time-only special grants.
--Doug McCallum, defeated as third-term mayor of Surrey, British Columbia, plans to run as a Conservative in the Jan.23 federal election. McCallum, 61, was beaten by Dianne Watts in last month's civic election. He wants to succeed Gurmant Grewal.
--Jim Fox can be reached at canadareport@hotmail.com