Highlights from the news file for Thursday, Oct. 5

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TRANSCANADA SCUTTLES ENERGY EAST: TransCanada Corp. has abandoned its $15.7-billion proposed Energy East pipeline, citing changed circumstances. The company would not elaborate. Critics speculate the cancellation was prompted by low oil prices and the lack of commercial need for the project while supporters blame costs and delays from federal government regulatory meddling. The project ran into headwinds when regulatory hearings collapsed after protesters shut down hearings and accused the review panel members of bias, prompting the board to start the review process from scratch.

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B.C. SAYS FEDS PUT ALBERTA'S CONCERNS FIRST: A lawyer representing the B.C. government in its fight against the Trans-Mountain pipeline expansion is arguing that the Trudeau government put Alberta's economic needs ahead of B.C.'s concerns in approving the project. Thomas Berger told the Federal Court of Appeal Thursday that the federal government also breached its statutory duty to provide reasons for deciding the project is not likely to cause significant adverse environmental effects. First Nations, two environmental groups and the cities of Vancouver and Burnaby are also fighting the pipeline expansion.

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FEDS TO COMPENSATE '60s SCOOP SURVIVORS: The federal government will pay hundreds of millions of dollars to Indigenous survivors of the '60s Scoop. Sources tell The Canadian Press that the agreement to be announced Friday includes a payout of between $25,000 and $50,000 for each claimant. The compensation aims to resolve 18 related lawsuits over the harm done to Indigenous children who were placed with non-native families.

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LINDHOUT RELIVES KIDNAPPING IN SOMALIA: Former Canadian hostage Amanda Lindhout recounted her ordeal of being kidnapped in Somalia in 2008. She testified at the trial of one of the men accused of being involved in her hostage taking. Lindhout sobbed as she walked into court to give testimony Thursday. Ali Omar Ader, a 40-year-old Somalian national, has pleaded not guilty to a charge of hostage-taking for his alleged role as a negotiator.

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REPORT CRITICAL OF HANDLING OF FEDERAL PAYROLL SYSTEM: A consultant's report says officials underestimated the complexity of the federal government's Phoenix payoll system and were seemingly oblivious to warning signs before giving it the green light. The report says senior public servants didn't fully comprehend the complexity of switching dozens of aging pay systems over to Phoenix. The report also says the department overseeing the project had a strong culture against "speaking truth to power."

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REPORT SAYS SEVERAL RIGHT WHALES DIED FROM BEING HIT BY SHIPS: Expert analysis on the six right whales found dead in the Gulf of St Lawrence suggests four were struck by ships and one died after being caught in fishing gear. The sixth was too decomposed to reach a clear conclusion. In response to the deaths, the federal government has curbed the speed of vessels sailing across the Gulf.

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MORNEAU UPBEAT ABOUT ECONOMY: Finance Minister Bill Morneau says he is happy with the economy and expects the trend to continue. Morneau met with private sector economists in Toronto on Thursday said the economy is in a better place than would have been expected a year ago. Morneau's comments come as August statistics show the country's trade deficit widened to $3.4 billion — about a billion dollars more than expected. Overall exports declined for the third straight month to hit $43.6 billion.

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LIBERAL BACKBENCHER FACING PENALTY FOR DEFYING GOVERNMENT: A New Brunswick Liberal MP has been told how he will be punished for backing an opposition motion calling on his government to extend a consultation on its controversial tax proposals. Wayne Long has been notified, but his office isn't sharing details of the penalty because the issue is an internal matter. Long has said he was prepared to pay a price for his decision to vote his own way on the matter.

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FEDS ANNOUNCE MEASURES TO REDUCE SUICIDES IN MILITARY: The federal government has brought forward a suicide prevention strategy in hopes of cutting down on the number of suicides involving military personnel and veterans. A major focus of the strategy is easing the transition from a military career to civilian life. It also proposes, among other things, to better screen recruits for mental health problems.

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CHICAGO BEEFS UP SECURITY FOR SUNDAY'S MARATHON: Authorities say they are beefing up security for Sunday's Chicago Marathon following reports the Las Vegas shooter booked a Chicago hotel room during the weekend of a major music festival held across the street. Chicago Police Bureau of Organized Crime Chief Anthony Riccio said Thursday that there would be "significantly" more undercover officers working the marathon than in years past. A law enforcement official says Las Vegas gunman Stephen Paddock booked a room at Chicago's downtown Blackstone Hotel in August.

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News from © The Canadian Press, 2017