PRESS DIGEST-Canada-May 17

Fri May 17, 2013 5:13am EDT

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May 17 (Reuters) - The following are the top stories from selected Canadian newspapers. Reuters has not verified these stories and does not vouch for their accuracy.

THE GLOBE AND MAIL

* Paul Godfrey has been ousted as chairman of Ontario's lottery corporation, leaving his vision for a downtown Toronto casino in tatters and plans to overhaul the province's gambling operations in disarray. The entire board of directors at the Ontario Lottery and Gaming Corp resigned in protest on Thursday evening, with six of them penning a letter to the Finance Minister saying they are shocked by Godfrey's dismissal. ()

* Senator Mike Duffy is stepping down from the Conservative caucus, saying the ongoing controversy over his expenses has become a significant distraction to his colleagues and the government. Just days after being praised by the Conservative government for his "leadership" in paying back more than C$90,000 ($88,600) in expenses, Duffy will now sit as an independent as he faces various potential ethics probes. ()

Reports in the business section:

* Telus Corp's C$380 million ($374.07 million)agreement to buy faltering carrier Mobilicity presents the federal government with a stark choice - admit failure in its years-long push to create more competition in the wireless business or try to salvage the goal of having at least four players in every regional market. ()

NATIONAL POST

* It is said that the way to a man's heart is through his stomach, and Parti Québécois Premier Pauline Marois is hoping the same holds true for a nation. The polls have relegated her party's dream of independence to the distant future, but that did not stop Marois from making a unilateral declaration of "food sovereignty" on Thursday. Fulfilling a promise from last summer's election campaign, she announced a government policy aimed at achieving a 50 percent increase in the amount of locally produced food Quebecers eat. ()

* The fallout from Quebec's corruption scandals has reached the epicentre of Canada's Parliament, with the federal Opposition leader revealing on Thursday he once spoke to police about someone trying to pass him a suspicious-looking envelope. NDP Leader Tom Mulcair said he spoke to investigators two years ago about a 1994 meeting with the then mayor of Laval, Quebec, who has since resigned in scandal and been slapped with criminal charges. ()

FINANCIAL POST

* Prime Minister Stephen Harper is seeking to counter opposition to TransCanada Corp's Keystone XL pipeline, a project crucial for boosting Canada's economy and Harper's plans to make the country an energy superpower to rival Saudi Arabia. Harper, at an event on Thursday moderated by former U.S. Treasury Secretary Robert Rubin for the Council on Foreign Relations in New York, said there is a strong case for the U.S. government to approve the pipeline, citing the prospects for job creation and North American energy independence. ()

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