PRESS DIGEST - Canada - Jan 11

Jan 11 (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: -- The first cracks have appeared in the NDP's massive Quebec base, fuelling the sense the leaderless party is losing momentum in the province that is key to its dreams of forming the next government. -- The Conservative government's 2012 budget will mean deep cuts for some departments while others will get off more lightly as Finance Minister Jim Flaherty says he wants to protect the direct delivery of services to Canadians. Reports in business section: -- Embattled Sino-Forest Corp is warning that its historic financial statements and audit reports should not be relied upon. The Canada-listed and Hong-Kong-headquartered forestry company said in a statement that it still can't release its third quarter financial statements because it hasn't been able to determine the nature of certain relationships between the company and its business partners. NATIONAL POST: -- Canadian half pipe freestyle skier Sarah Burke was in critical condition and in a coma Tuesday night after being airlifted to hospital in Salt Lake City, following a crash in the halfpipe at a sponsors event at Park City, Utah earlier in the day. Reports in Financial Post section: -- An expected confrontation between environmentalists and the oil community over Enbridge Inc's proposed Northern Gateway pipeline did not spill over into historic public hearings that started here Tuesday. But federal regulators charged with deciding whether the project is in the national interest were faced with a different clash that will prove tough to reconcile: a clash of values between First Nations and those favouring development in the rest of the country.

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