UPDATE 4-Canadian PM sets up confidence vote on government

(Adds quotes from leader of separatist party)

By David Ljunggren

OTTAWA, Sept 4 (Reuters) - Canadian Prime Minister Stephen Harper suspended Parliament on Tuesday and reconvened a new session on Oct. 16, setting up a vote of confidence in his minority Conservative government that could trigger an election.

Harper controls only 125 of the 308 seats in the House of Commons and starting a new session will effectively challenge the three opposition parties to bring down the government.

"I'm pleased to report that Canada is united, our government is clean and our economy is strong. Now it's time to launch the next phase of our mandate," Harper said in a statement.

His spokeswoman told Reuters: "We've listened to Canadians and they have priorities they would like to see action on."

Governments open new sessions of Parliament with a formal speech outlining their plans. Legislators have six full working days to debate the so-called speech from the throne and if they vote against it, the government falls.

Parliament had been due to resume on Sept. 17.

The Conservatives won the January 2006 election with 36 percent of the vote, but since then their support has barely budged in the polls, hampered by public unhappiness over Harper's rigid governing style and concern about the rising number of Canadian troops killed in Afghanistan.