Canada report

By JIM FOX

© St. Petersburg Times,
published June 17, 2001

Chretien tells would-be successors: ‘I’m the leader’

"I'm the leader until I leave, everybody knows that," Prime Minister Jean Chretien advised those in the Liberal party who want his job.

Chretien made the comment when arriving for a two-day planning meeting, backing up an earlier warning to impatient leadership contenders to back off. He reminded them he has the power to fire any Cabinet member who doesn't comply with his wishes.

In the running to succeed Chretien, 67, is front-runner Paul Martin, the finance minister. Others include Industry Minister Brian Tobin and Heritage Minister Sheila Copps.

Chretien said he won't decide whether to seek a fourth term as prime minister before the second half of his mandate, around early 2003.

He has privately given would-be successors approval to organize and raise money as long as they do it discreetly and don't push him to leave before he's ready.

Then, on Friday when the meeting ended, Chretien said he welcomes the strong group of potential successors -- rumored to contain up to 10 politicians.

"There will be one day within the next 20 years that I will go," he said.

Inflation takes biggest jump in decade

Higher energy prices, more costly cigarettes and even higher-priced oranges were blamed as Canada's inflation rate took its biggest jump in a decade.

Statistics Canada reported Friday the annual cost of living climbed 3.9 percent in May.

Analysts said it might cause the Bank of Canada to be more hesitant to cut interest rates further for fear of triggering more inflation.

It's not an alarming situation, they said, as the central bank's new measure of core inflation, which eliminates eight volatile components including fruit, vegetables, transportation, tobacco and natural gas, rose only 2.3 percent in May.

Energy prices were 16 percent higher last month than a year earlier, while there was a 67.4 percent increase in natural gas prices. Gasoline prices rose by 12 percent nationally in May.

In brief

Toronto-based Nortel Networks, which has cut 20,000 jobs this year, said Friday it will cut 10,000 more. It forecast a net loss of $19.2-billion U.S. for the second quarter, the biggest loss for a Canadian corporation. Nortel will have about 64,000 employees worldwide, and most analysts expect the company to survive the worsening industry slump.

The Quebec League for Human Rights and Liberty is demanding amnesty for all 450 people arrested during last April's Summit of the Americas in Quebec City. The massive show of security was designed to control protests and protect the leaders of 34 countries who attended the trade summit. The group, which seeks a public inquiry into police actions, also wants files on the detainees to be destroyed.

Sheila Fraser has been chosen auditor general responsible for monitoring government spending and issuing reports highlighting problems. She succeeds Denis Desautels.

Facts and figures

The Canadian dollar was slightly lower Friday at 65.60 cents U.S. while the U.S. dollar returned $1.5243 Canadian before bank exchange fees.

The Bank of Canada's key interest rate is steady at 4.75 percent while the prime-lending rate is 6.25 percent.

Stocks markets were lower Friday on the worsening condition of Nortel Networks. The Toronto Stock Exchange 300 Index was off 104 points at 7,816 points while the Canadian Venture Exchange index was 3,330 points.

Lotto 6-49: (Wednesday) 7, 18, 22, 30, 36 and 43; bonus 24. (June 9) 1, 14, 23, 25, 30 and 41; bonus 43.

Regional briefs

Montreal's massive street party, otherwise known as the 11-day International Jazz Festival, will be headlined by Prince, George Benson and Canada's Diana Krall. More than 1.6-million visitors are expected for the 22nd annual event from June 28 to July 8.

A one-week strike by 12,000 nursing home workers across Saskatchewan ended Friday. A deal was reached with a mediator in which the provincial government will contribute an additional $4.5-million to cover a 3 percent pay raise in each of three years and improved benefits and pensions.

Union leaders say Nova Scotia's law limiting the right of nurses to strike is extreme and could provoke their exodus from the province. Nova Scotia is the fourth province in Canada, along with Prince Edward Island, Alberta and Ontario, with laws restricting the right of nurses to strike.

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