The economy moved swiftly to the forefront of the election today as the Conservatives took one of their most incendiary shots yet at the Liberals.

Conservative Leader Stephen Harper accused the Grits of cheering for a recession after Liberal Leader Stephane Dion blamed Tory policies for the recent economic slowdown.

"Each time you have Conservative governments, the economy is not going well. In fact, Tory times are tough times," Dion said Friday in Toronto.

Harper responded by accusing Dion of "trying to drive down confidence in the Canadian economy without foundation -- and quite frankly sitting on the sidelines virtually cheering for there to be a recession."

After hearing his rival's accusation, Dion hit back hard.

""He accused me to cheer for a recession in Canada, because I'm criticizing his mismanagement of our economy. Shame on him!" Dion said in a passionate tone that many Canadians have not seen yet from the leader in this campaign.

"Do you want more of this? Do you think it's the way, in a democracy, to debate and to try to find the best solutions for our country?"

Dion said that Harper's "right-wing policies" will hurt average Canadians, "You don't cheer for a recession, you want jobs, you want families to have a good living. You love your country."

But Harper was buoyed by reports of a $1.7-billion federal surplus in July, despite Dion's criticism that the Tories were overspending the surplus on tax cuts.

"The only way there's going to be a recession is if they're elected and that's why they're not going to be elected," Harper said of the Liberals.

The 'M' word

Harper made his strongest pitch yet Friday for a majority government, saying he'd like to win a strong mandate to ensure Canada's economy remains stable.

However, the Tory leader was very careful to avoid using the word "majority."

"Between now and October 14, Canadians most choose, they can choose a strong government to get Canada on track or they can choose a weak government," Harper said while campaigning in Calgary.

Harper said the position of the other parties on the economy has him worried.

"I'm clear that this government needs a strong mandate in order to ensure stability of our economy, to ensure that we can govern," he said.

Harper said he'd like to be part of a government where "the opposition parties could be focused on making a positive contribution to the government's agenda rather than just trying to defeat the government every turn."

Harper said his government would not undertake policies that will hurt the Canadian economy.

"He changed his message in terms of what he's trying to seek," CTV's Rosemary Thompson said, referring to Harper's calls for a strong government. "...It was a real pitch for a majority today from the prime minister."

Harper made the comments following an announcement in which he promised to prohibit the export of unprocessed oil to countries that don't have carbon-emission targets equivalent to Canada's.

The prohibition would apply to any new contracts, not to existing contractual obligations, Harper said.

He said the plan will prevent industry from avoiding Canada's environmental targets by exporting unprocessed oil. It will also ensure that Canada benefits from the revenues associated with oil sands development, Harper said.

"This is the right thing to do for our environment and our economy," he said.

Currently, Alberta's tar sands produce about 1.3 million barrels of bitumen daily -- of which one-third is exported.

Harper also promised to re-affirm Canada's position that the North American Free Trade Agreement cannot require Canada to export bulk water to other NAFTA countries.

Dion in Toronto

Earlier in the day in Toronto, Dion promised more tax cuts for seniors Friday as NDP Leader Jack Layton announced his plan to make prescription drugs more affordable.

Dion, campaigning in the Liberal-friendly Toronto riding of Parkdale-High Park, mainly spoke to a small group of nursing-home residents in the crowd.

Under the Liberal Green Shift plan, Dion said the Guaranteed Income Supplement (GIS) for low-income seniors will be increased by $600 for single seniors and $800 for couples.

"We need to help them," Dion said. "It's what we will do because we are Liberals and we care."

Dion also said the Liberal's $420-million Doctors and Nurses Fund will shorten wait lists for medical services.

"We'll invest to help provinces to have more doctors and nurses available for senior Canadians and the whole of Canada," Dion said.

He also said their $900-million catastrophic drug plan will help seniors living with serious illnesses.

Dion later attacked the Tories on the economy, saying the "party of the centre" has performed better during tough times.

He reminded the audience that during the Great Depression it was Democrat Franklin Roosevelt, not Republican president Herbert Hoover, who pulled the U.S. out of difficulty.

Another candidate forced to resign

Meanwhile, Liberal supporters could be heard shouting at reporters as they questioned Dion about comments made by Lesley Hughes, the Liberal candidate in the Winnipeg riding of Kildonan-St. Paul.

Hughes, who resigned later Monday, has been criticized over an old column she wrote that suggested Israeli intelligence warned the U.S. in advance of the Sept. 11th attacks on the World Trade Center and that "Israeli businesses" evacuated before the planes hit.

In Vancouver, NDP Leader Jack Layton slammed Harper for giving billions in tax breaks to corporations "while prescription drug costs break family budgets."

Layton said his drug plan was based on the Report of the Romanow Commission on the Future of Health Care.

"If elected Prime Minister I will take the prudent, practical first steps to launch a national program to help Canadians afford prescription drugs, and save provinces billions of dollars in costs," Layton said in a press release.

He said the NDP plan would include a catastrophic drug transfer -- to give provinces and territories money to help cover the cost of extremely expensive drugs on provincial drug plans.

The plan would be initiated with a transfer of $1 billion in the first year, increasing as finances permit.

Layton said the plan would support patients who have prescription drug costs that are catastrophic -- more than $1,500 annually.

The NDP say their plan also:

  • Establishes a national bulk purchasing program to reduce costs.
  • Reforms drug patent laws to prevent 'evergreening' of brand name drugs by giant pharmaceuticals.