PRESS DIGEST-Canada-Oct 11


Oct 11 (Reuters) - The following are the top stories fromselected Canadian newspapers. Reuters has not verified thesestories and does not vouch for their accuracy.


* Flaws in a national databank that helps determine thevalue of houses across Canada have helped fuel inflation in homeprices, putting mortgage lenders and borrowers at greater risk,key players in the housing sector have warned.

* A Canadian naval intelligence officer pleaded guilty tospying for Russia, a public admission of an embarrassingespionage scandal that has damaged Canada's reputation amongallies and will likely reverberate for years.

Reports in the business section:

* British Columbia is attacking Enbridge Inc forits failure to detect most recent leaks on its U.S. pipelines,raising questions about the company's ability to spot oil spillsin remote stretches of its proposed $6-billion Northern Gatewayproject.


* Rocked by allegations of illegal financing, the QuebecLiberals mounted a counter-attack in defence of their party'sreputation Wednesday.

* Five weeks after its election, Pauline Marois' minorityParti Québécois government abandoned one of its central electionpromises Wednesday but still failed to win the oppositionsupport it needs.

Finance Minister Nicolas Marceau announced that thegovernment would maintain a health tax introduced by theLiberals and scale back a plan to significantly increase taxeson the wealthy.


* As the debate intensifies over whether Ottawa should openthe floodgates to Chinese investment in the Canadian oil and gassector, some argue that Nexen Inc , the Calgary-basedoil and gas producer targeted by CNOOC Ltd , isn'tworth protecting because its assets are predominantly basedoverseas.

* The province of Ontario has gone from criticizing the oilsands to increasing its efforts to capture their economicbenefits.

Brad Duguid, Ontario's minister for economic development,says he plans to increase his department's attention to Albertaby adding more staff to deal with trade issues.

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