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OTTAWA -- Canada and the United States have sunk to the moral equivalent of terrorists in their handling of a young Canadian held at Guantanamo, Liberal Senator Romeo Dallaire said Tuesday.

The former general said the two countries have flouted human rights and international conventions in dealing with Omar Khadr and are no better than those who don't believe in rights at all.

Nuke safety questioned

OTTAWA -- Canada's nuclear safety watchdog warned last month it was concerned about an "erosion of safety margins" at the Pickering B nuclear station near Toronto.

A letter from the Canadian Nuclear Safety Commission surfaced Tuesday on the eve of a hearing in which Ontario Power Generation will make the case for renewing the station's operating licence until 2014.

Fed spending in court

OTTAWA -- The former Liberal government broke the law by diverting billions of dollars in employment insurance premiums to help whittle down the federal deficit, the Supreme Court of Canada was told Tuesday.

A group of labour unions from Quebec, backed by the Canadian Labour Congress, wants the high court to set things right by belatedly declaring the diversion unconstitutional -- and ordering Ottawa to return $54 billion to the EI account.

Flaherty on the hot seat

OTTAWA -- Finance Minister Jim Flaherty was on the hot seat Tuesday afternoon, facing questions about multiple sole-sourced contracts worth more than $300,000 that were given by the government to someone from his political past.

The Public Accounts committee was hearing testimony about a contract given to Hugh MacPhie, the head of a small Toronto public relations firm, to work on communications for last year's federal budget.

-- From the news services

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