Canada opposition roughs out deal to take power

By Randall Palmer and David Ljunggren

OTTAWA (Reuters) - Canada's opposition parties have reached a tentative deal to form a coalition that would replace Prime Minister Stephen Harper's minority Conservative government less than two months after its reelection, a senior negotiator said on Monday.

The deal, which has yet to be formally signed, was struck late on Sunday after talks between the main opposition Liberals and the left-leaning New Democrats, who insist the government must go because it has failed to tackle the effects of the global financial crisis.

"A very constructive, positive agreement has been reached between the Liberal Party of Canada and the New Democratic Party that will bring stimulus to the economy," said former New Democrat leader Ed Broadbent, who took part in the talks.

"There are going to be a lot of jobs, a protection of pensions and I think we can look forward to a very constructive period," he told reporters.

The agreement includes aid for the suffering auto and forestry sectors, Broadbent said.

The New Democrats said one option would be a contract seeking to ensure the government's survival for 2-1/2 years. The Liberals denied a report the new government would bring in a C$30 billion (16 billion pound) stimulus package.

Parliament is due to hold a confidence vote on Dec 8 and if the government loses, the opposition parties could get their chance to run the country.

Liberal and New Democrat legislators met separately on Monday to discuss the outline deal. Some senior Liberals expressed caution, urging the parties not to move too fast.