Ontario unveils budget, opposition support not clear

TORONTO (Reuters) - Ontario's minority Liberal government unveiled a budget on Thursday that projected a narrower-than-expected 2013-14 deficit and included measures meant to secure opposition support and prevent an early election for Premier Kathleen Wynne.

Canada's most populous province, which accounts for about 40 percent of the country's economy, will run a budget shortfall of C$11.7 billion ($11.60 billion) in 2013-14 under the budget plan unveiled by Finance Minister Charles Sousa, who succeeded Dwight Duncan in February.

The deficit is below the government's year-ago forecast of C$12.8 billion, but above its 2012-13 shortfall of C$9.8 billion.

New Democratic Party (NDP) leader Andrea Horwath, whose support is needed to pass the budget and prop up Wynne's government, said she would consult with her party members before deciding what to do.

"This budget clearly reflects the budget proposal we put forward ... but what we want to make sure (voters) get those results," she told reporters.

With just 51 seats in the 107-seat Ontario legislature, Wynne's Liberals need NDP support to pass the budget. The right leaning Progressive Conservatives, who hold the second-most seats, will not support the document, leader Tim Hudak said.

Wynne, whose party saw its popularity jump when she took over from longtime Liberal Premier Dalton McGuinty in January, has since watched poll numbers move in favor of the PCs, as her government has struggled with the fallout of a power generation spending scandal.

The PCs currently enjoy 36 percent support, followed by 33 percent for the Liberals and 26 percent for the NDP, according to an aggregation of recent polls published in the Globe & Mail newspaper on Tuesday.

As such, the budget featured more than a little input from NDP leader Horwath in certain areas, most notably a pledge to cut auto insurance premiums by 15 percent, as well as a C$295 million youth job creation program.

"We recognize that we're in a minority situation and we need to work with all sides of the house," Sousa told reporters.

The auto insurance reduction follows a ballooning in premiums in recent years, which insurers have blamed on rising claims and fraud-related costs.

Sousa said he has been in touch with insurance companies - Ontario's largest publicly-traded auto insurer is Intact Financial - and would hope to see rates start to come down within a year.

($1 = $1.0084 Canadian)

(Editing by Jeffrey Hodgson and Nick Zieminski)

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Magna Ontario auto plant resumes production after blast

May 1 (Reuters) - Post position for Saturday's 139th Kentucky Derby at Churchill Downs after Wednesday's draw (listed as barrier, HORSE, jockey, trainer) 1. BLACK ONYX, Joe Bravo, Kelly Breen 2. OXBOW, Gary Stevens, D. Wayne Lukas 3. REVOLUTIONARY, Calvin Borel, Todd Pletcher 4. GOLDEN SOUL, Robby Albarado, Dallas Stewart 5. NORMANDY INVASION, Javier Castellano, Chad Brown 6. MYLUTE, Rosie Napravnik, Tom Amoss 7. GIANT FINISH, Jose Espinoza, Tony Dutrow 8. GOLDENCENTS, Kevin Krigger, Doug O'Neill 9. OVERANALYZE, Rafael Bejarano, Todd Pletcher 10. PALACE MALICE, Mike Smith, Todd Pletcher 11. ...

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CP Rail says 400 barrels of oil spilled in Ontario, not four

By Scott Haggett and Allison Martell

(Reuters) - Canadian Pacific Railway Ltd raised its estimate of the amount of oil spilled in a derailment in northern Ontario a hundred-fold on Thursday, and said 400 barrels (16,800 gallons) had leaked from two tanker cars, up from its initial estimate of four barrels.

CP Rail spokesman Ed Greenberg said the size of Wednesday's spill, the company's second in a week, was not evident when crews first arrived at the remote site of the derailment near White River, Ontario, about 700 kilometers (400 miles) northeast of Toronto.

"During the clean-up yesterday our crews discovered the second derailed car containing oil had in fact lost product," Greenberg said. "The second car was difficult to assess due to its position among the derailed equipment but showed no signs of the product around its base during the initial assessments."

A boom in North American oil production has prompted a huge rise in crude-by-rail transport as output has outgrown the existing pipeline network. CP's spills over the past week have highlighted concerns about the environmental impact of rail shipments.

"I think rail is now going to face the same kind of scrutiny that pipelines have come under," said Keith Stewart, a spokesman for Greenpeace Canada. "Rail used to be pretty inconsequential in terms of moving oil, but we've seen rapid growth in the last three years and they're projecting massive growth. I think the industry has rose-colored glasses on if they think that they can ramp up moving oil by rail, the way they're talking about, without running into big opposition."

The new estimate puts the size of the northern Ontario spill above that of last week's CP derailment in Minnesota, where about 15,000 gallons, or 360 barrels, leaked from three tank cars.

But the two leaks are far smaller than last week's pipeline breach in Mayflower, Arkansas, in which an aging Exxon Mobil Corp pipeline broke and sent up to 5,000 barrels flooding through suburban streets.

The Ontario derailment came early on Wednesday, when 20 cars on an eastbound, mixed-freight train bound for Montreal left the tracks. CP, Canada's second largest railroad, said it was still investigating the cause of the accident, but that it expected the track to re-open later on Thursday.

Greenberg said the spill has been contained and no oil has been found beyond its containment berms.

CP shares fell 84 Canadian cents to C$121.67 on Thursday on the Toronto Stock Exchange.

($1=$1.01 Canadian)

(Reporting by Allison Martell and Scott Haggett; Editing by Janet Guttsman; and Peter Galloway)

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CP Rail says 400 barrels of oil spilled in Ontario, not four

By Scott Haggett and Allison Martell

(Reuters) - Canadian Pacific Railway Ltd raised its estimate of the amount of oil spilled in a derailment in northern Ontario a hundred-fold on Thursday, and said 400 barrels (16,800 gallons) had leaked from two tanker cars, up from its initial estimate of four barrels.

CP Rail spokesman Ed Greenberg said the size of Wednesday's spill, the company's second in a week, was not evident when crews first arrived at the remote site of the derailment near White River, Ontario, about 700 kilometers (400 miles) northeast of Toronto.

"During the clean-up yesterday our crews discovered the second derailed car containing oil had in fact lost product," Greenberg said. "The second car was difficult to assess due to its position among the derailed equipment but showed no signs of the product around its base during the initial assessments."

A boom in North American oil production has prompted a huge rise in crude-by-rail transport as output has outgrown the existing pipeline network. CP's spills over the past week have highlighted concerns about the environmental impact of rail shipments.

"I think rail is now going to face the same kind of scrutiny that pipelines have come under," said Keith Stewart, a spokesman for Greenpeace Canada. "Rail used to be pretty inconsequential in terms of moving oil, but we've seen rapid growth in the last three years and they're projecting massive growth. I think the industry has rose-colored glasses on if they think that they can ramp up moving oil by rail, the way they're talking about, without running into big opposition."

The new estimate puts the size of the northern Ontario spill above that of last week's CP derailment in Minnesota, where about 15,000 gallons, or 360 barrels, leaked from three tank cars.

But the two leaks are far smaller than last week's pipeline breach in Mayflower, Arkansas, in which an aging Exxon Mobil Corp pipeline broke and sent up to 5,000 barrels flooding through suburban streets.

The Ontario derailment came early on Wednesday, when 20 cars on an eastbound, mixed-freight train bound for Montreal left the tracks. CP, Canada's second largest railroad, said it was still investigating the cause of the accident, but that it expected the track to re-open later on Thursday.

Greenberg said the spill has been contained and no oil has been found beyond its containment berms.

CP shares fell 84 Canadian cents to C$121.67 on Thursday on the Toronto Stock Exchange.

($1=$1.01 Canadian)

(Reporting by Allison Martell and Scott Haggett; Editing by Janet Guttsman; and Peter Galloway)

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Ontario government reaches out to opposition, backs spending restraint

TORONTO (Reuters) - Ontario's Liberal government with its newly minted female premier pledged on Tuesday to work with its opposition parties to bring its spending under control.

Ontario, Canada's richest province, kicked off its new legislative session with a traditional speech from the throne that outlined the priorities of Premier Kathleen Wynne's government that could soon face a vote of confidence.

"For the benefit of the entire province, your government intends to work with opposition parties, in a spirit of renewed cooperation, to get the people's business done," said lieutenant-governor David Onley in a ceremonial speech.

"It does not believe that we are irreparably divided."

Wynn became the first female premier and first openly gay leader of a Canadian province in January, replacing Dalton McGuinty who stepped down amid controversy over costly cancellations of two natural gas power plants and battles to freeze teacher wages.

Canada's four most powerful provinces are led by women. British Columbia, Alberta and Quebec have female premiers, while women are also at the helm in Newfoundland and Labrador and in the thinly populated Arctic territory of Nunavut.

In the speech, the government reiterated its pledge to restrain spending and eliminate the deficit by 2017-2018.

"And after that, it will restrict overall spending increases to one per cent below GDP growth until the province's debt-to-GDP ratio returns to the pre-recession level of 27 per cent," Onley said.

Ontario will continue to promote renewable energy and work to end coal-fired energy generation in the province.

The center-left Liberals have been in power for nine years in Ontario, Canada's most populous province and home to most of Canada's banks and a large part of its manufacturing sector. But the party lost seats in the 2011 provincial election and needs support from at least one other party to stay in power.

The left-leaning New Democrats are the natural ally for Wynne, who has a reputation for seeking compromise and is viewed as being to the left of other Ontario Liberals.

The Liberals are facing a C$12 billion ($12 billion) budget deficit. They have vowed to curb growth in spending, as modest economic growth hurts revenues, and say it will take five more years to balance the budget.

Ontario accounts for roughly 40 percent of Canadian gross domestic product and is among the largest sub-national borrowers in the world, issuing bonds worth nearly C$35 billion in 2012.

(Reporting by Russ Blinch; Editing by James Dalgleish)

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