PRESS DIGEST - Canada - Oct 2

Oct 2 (Reuters) - The following are top stories from selected Canadian newspapers. Reuters has not verified these stories and does not vouch for their accuracy.

THE GLOBE AND MAIL:

- The Conservative government will introduce new rules this fall that extend parental benefits to the swelling ranks of self-employed Canadians, many of whom have complained they cannot afford to have children and run businesses at the same time.

- The long-delayed inquiry into Canada's handling of Afghan detainees is now facing a series of motions by Ottawa's lawyers that would restrict its scope, what it may make public and whether it can even begin to hear witnesses.

- David Letterman acknowledged on Thursday's show that he had sexual relationships with female employees and that someone tried to extort $2-million from him over the affairs.

During the taping of his CBS late-night show in New York, Letterman discussed receiving a threat to either pay $2-million or risk the relationships being made public.

Report on Business Section:

- National Post CEO Paul Godfrey has lined up financial support for the purchase of daily newspapers owned by CanWest Global Communications Corp CGS.TO as the media company's restructuring picks up speed.

- EnCana Corp (ECA.TO) is planning a multibillion-dollar oil sands project that will dramatically boost production and use a new technology that promises sharply reduced greenhouse gas emissions.

The company's Narrows Lake project, which it unveiled Thursday, will produce between 80,000 and 120,000 barrels a day, double EnCana's current oil sands output.

NATIONAL POST:

- A new war is brewing over Canada's multi-billion-dollar prescription-drug business, fuelling death threats against a top government official, plans for a major lobbying campaign and predictions of furious political debate to come.

- Even as he was facing the biggest challenge so far to his leadership, Michael Ignatieff and the Liberals tried Thursday to bring the government down and force a general election. But a Liberal motion of non-confidence failed to win enough support in the House of Commons.

Financial Post section:

- North American stocks started the fourth quarter with a sharp drop Thursday, as disappointing U.S. manufacturing figures added to brewing anxiety about the strength of the economic recovery.

- Canada, where the Harper government opted not to implement its own sizeable scrappage scheme to jump-start sales, auto volumes are recovering without state aid.

Sales of new cars and light trucks rose to an annualized 1.56 million units in September - the best performance since sales crashed in October of last year, said Scotiabank economist Carlos Gomes.