Teetering Canadian Government Boosts Cities

"In exchange for agreeing to the New Democratic Party's demands for more spending on the environment, social housing, foreign aid and tuition reduction, the Liberals have secured a commitment of support on all no-confidence motions until the budget receives royal assent.

"The deal would see $4.6-billion in new spending over this year and next. Though the Liberal and NDP House leaders were continuing to negotiate details last night, the new spending is expected to include $1.6-billion over two years for affordable housing, including a specific fund for aboriginal housing.

Other new spending (all amounts would be spread over two years):

$1.5-billion to the provinces provided there is a pledge the money will go to reduce postsecondary tuition fees;

$900-million for environmental initiatives, such as a program to encourage low-income Canadians to conduct energy retrofits of their homes and an extra cent per litre of the gas tax will go toward municipalities;

$500-million for foreign aid;

$100-million in a "pension protection fund" to assist senior citizens who have lost their private pension due to a company declaring bankruptcy, though only the NDP would confirm that this measure is in the agreement."

Thanks to Michael Dudley