Canada report

By JIM FOX

© St. Petersburg Times, published May 13, 2001

Employment woes haven't hit Canada

The Canadian economy continues to roll along, defying a slowdown with a strong increase in jobs last month.

More than 25,000 jobs, most of them full-time, were created in April, similar to that of March, while the number of unemployed held steady at 7 percent, Statistics Canada reported Friday. Analysts called the figures "baffling" as all signs have pointed to a downturn or slowdown in the economy.

In light of this, Finance Minister Paul Martin is expected to give a somewhat upbeat economic update on Thursday, but analysts caution rough times could be ahead.

Adrienne Warren, an economist with Scotiabank, said she didn't believe the good numbers are "sustainable," as the United States had its biggest job decline in a decade.

Spillover is expected into Canada, which ships more than 80 percent of its goods to the United States. The upbeat report could also head off another interest-rate cut by Canada's central bank this month.

More trouble for Day

Troubles continue for beleaguered Stockwell Day, leader of the Canadian Alliance.

The revolt over his leadership could gain momentum next week when it's expected up to six Alliance members of Parliament might quit the party caucus.

Day supporters continue to try to maintain support among party members who will ultimately decide whether he stays or goes.

Many in the right-wing party have lost confidence in Day as leader after less than a year on the job. The Alliance was formed by a merger with the former Reform Party headed by Preston Manning.

In brief

Prime Minister Jean Chretien dismissed predictions the Canadian budget will sink back into a deficit in coming years. He told the House of Commons his Liberal government believes there will be balanced budgets "for years to come" as the way it has handled the finances since 1993 "has been a huge success."

The Canadian and Saskatchewan governments will pour almost $20-million into cleaning up water systems across the province. The announcement Friday follows a drinking-water contamination crisis in North Battleford, where a microscopic parasite got into the city's water supply, making hundreds of people sick. But health officials have changed the cause of three deaths originally attributed to the water.

Several thousand people protested Friday outside Quebec Premier Bernard Landry's office opposed to the forced merger of municipalities into a mega-city on the island of Montreal. The government is ordering the mergers of many cities and towns to cut costs and reduce overlapping services. In Montreal, the merger will swallow up cities such as Westmount, home to some of the province's political and business elite.

John Roth, president of Nortel Networks, Canada's largest technology company, said Friday he'll retire next April. Once a hero of the high-technology sector, Roth, 58, has been stung by criticism over Nortel's plunging stock price and mounting financial woes. The company is cutting 20,000 jobs, more than a fifth of its work force, to deal with the slump.

Facts and figures

The Canadian dollar retreated Friday after posting gains, closing at 64.54 cents U.S. The U.S. greenback was worth $1.5495 Canadian before bank exchange fees.

The Bank of Canada's key interest rate remains at 5 percent while the prime-lending rate is 6.5 percent.

Stocks markets were again higher with the Toronto Stock Exchange 300 Index at 8,023 points Friday while the Canadian Venture Exchange index was 3,176 points.

Lotto 6-49: (Wednesday) 3, 5, 7, 10, 30 and 43; bonus 23. (May 5) 19, 20, 23, 39, 40 and 43; bonus 47.

Regional briefs

The family of a 5-year-old girl believed abducted in Lethbridge, Alberta, is offering a $50,000 reward to anyone, including the abductor, for her safe return. Joyce Green said she's hoping the money will prompt someone to come forward with information that will find her niece, Jessica Koopmans.

The Ontario government will increase health spending by $1.2-billion in the next year while calling for more financial help from the federal government and a greater role by the private sector. The government also eliminated the income-tax surcharge on incomes exceeding $54,000 annually.

British Columbia Premier Ujjal Dosanjh is intervening in a contract dispute with nurses during his campaign for reelection. Dosanjh said the government will offer wages, benefits and premiums comparable to what nurses receive in neighboring Alberta. Polls suggest Dosanjh's New Democratic government will be defeated in Wednesday's election.

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