PRESS DIGEST- Canada - June 19

June 19 Thu Jun 19, 2014 5:44am EDT

June 19 (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

* Alberta's beleaguered disaster-compensation system triggered warnings from federal auditors well before the worst flooding in provincial history swamped 30 communities, temporarily shuttered Calgary's downtown and forced more than 56,000 people to flee their homes nearly one year ago. The warnings, undisclosed publicly until now, stemmed from audits of Alberta government requests for disaster aid in the wake of flooding in 2005 and 2007. (bit.ly/1lEhzkL)

* The battle over Northern Gateway could spill into British Columbia's emerging liquefied natural gas sector if First Nations withdraw or temper their support for LNG projects to press the provincial government to block the Enbridge Inc pipelines. (bit.ly/1vWx1fE)

* Clothing retailer American Apparel Inc fired its founder Dov Charney as chairman and chief executive following an ongoing investigation into alleged misconduct and said it had appointed an interim CEO. (bit.ly/1sq0cZX)

Reports in the business section:

* Enbridge Inc is hoping to win over Coastal First Nations who adamantly oppose its Northern Gateway pipeline with a claim that the controversial project would actually improve marine safety in the treacherous waters off the British Columbia coast despite the increase in supertanker traffic. (bit.ly/1quLq2n)

* The mood of long-suffering Canadian exporters is on the upswing again. Optimism among exporters, who are convinced that the U.S. recovery is for real, has improved for the third consecutive time, and is now higher than it was when the global economy was booming before the Great Recession, according to Export Development Canada's semi-annual Trade Confidence Index. (bit.ly/1uF5gpg)

NATIONAL POST

* Over the past few years, as Vancouverites dramatically ramped up their urban composting, some doomsayers predicted that putting out thousands of bins of rotting food would bring a reckoning of vermin upon the city. Last Friday, their worst fears appeared to be confirmed when children at a downtown daycare showed up to find their playground overrun by compost-eating rats. (bit.ly/1pigdvF)

* Former senator Pamela Wallin believed Conservative senators had placed a spy in her office as part of a plot by members of her own party to "get her," a new book alleges. "Wallin believed, as she told me in October 2013, that hard-core right-wing elements in the Conservative caucus had it out for her because she didn't 'have an R branded on my forehead' - she was not Reform enough," writes Patrick Boyer in "Our Scandalous Senate." (bit.ly/1njwpdx)

FINANCIAL POST

* A prolonged Iraq crisis could fuel spending in Canada's energy sector, boosting an already expansionary picture for the oil patch this year, according to global investment bank Barclays Bank Plc. "The Iraq situation is potentially helpful not only to the U.S. but also to Canada," Barclays Capital analyst James West told the Financial Post during a conference call on Wednesday to launch a new report on global oil and gas spending this year. "It is the quickest market to put capital to work to as prices move up." (bit.ly/T9BIUR)

* U.S. tax authorities are relaxing the rules and lightening penalties to induce American and dual citizens living abroad to comply with tax filing rules in the United States. Michael Danilack, a deputy commissioner at the Internal Revenue Service, said the changes should mean those affected - including up to one million people in Canada - "can sleep at night" knowing that they comply with U.S. rules and no longer face the prospect of financial penalties even if they owe no taxes. (bit.ly/1ngMrVn) (Compiled by Sampad Patnaik in Bangalore)

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