PRESS DIGEST-Canada-Oct 11

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


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

* A Canadian naval intelligence officer pleaded guilty to spying for Russia, a public admission of an embarrassing espionage scandal that has damaged Canada's reputation among allies and will likely reverberate for years.

Reports in the business section:

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


* Rocked by allegations of illegal financing, the Quebec Liberals mounted a counter-attack in defence of their party's reputation Wednesday.

* Five weeks after its election, Pauline Marois' minority Parti Québécois government abandoned one of its central election promises Wednesday but still failed to win the opposition support it needs.

Finance Minister Nicolas Marceau announced that the government would maintain a health tax introduced by the Liberals and scale back a plan to significantly increase taxes on the wealthy.


* As the debate intensifies over whether Ottawa should open the floodgates to Chinese investment in the Canadian oil and gas sector, some argue that Nexen Inc , the Calgary-based oil and gas producer targeted by CNOOC Ltd , isn't worth protecting because its assets are predominantly based overseas.

* The province of Ontario has gone from criticizing the oil sands to increasing its efforts to capture their economic benefits.

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

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