Prime Minister Stephen Harper celebrated his party's 2006 election victory while acknowledging Canadians haven't fully embraced his government.

"As we enter our second year in office, Canadians are still saying: `Show us what you can do','' Harper told assembled supporters Tuesday at Ottawa's Chateau Laurier hotel.

"And thanks to the passion, creativity and hard work of the Conservative team, we have a full exciting agenda for the months ahead.''
 
Harper said Canadians voted for change when they gave the Conservatives a minority government, ending 13 unbroken years of Liberal rule.

As accomplishments of his government's first year in office, Harper cited:

  • The Federal Accountability Act,
  • A budget that delivered 29 separate tax cuts,
  • The GST reduction,
  • The Universal Child Care Benefit,
  • A crackdown on street racing and money laundering,
  • A deal on softwood lumber, and
  • The rebuilding of the Canadian military

He also said the international community now knows that "Canada's back."

The Tories campaigned and won on five key goals: cleaning up government, cutting the GST, cracking down on crime, paying parents $100 for each child under six and establishing a health care patient wait times guarantee.

The only promise yet to be fulfilled is the wait times guarantee, although Harper has announced four separate patient wait time pilot projects since taking office.

"We can look back and say with pride: 'We have delivered'," he said.

Harper has listed his government's priorities for 2007:

  • Senate reform
  • Fighting crime
  • Economic growth
  • Tax cuts
  • A strong voice on the world stage

Speaking in French, Harper added that more than anything else, he wanted to present "concrete and realistic" strategies on the environment.

The 2007 budget would "keep federal spending focused on results, reduce taxes even further for families and individuals and resolve the fiscal imbalance with the federation of Canada," he said.

The opposition

While the Tories have 125 seats in Parliament, they need the support of the opposition to continue governing.

NDP Leader Jack Layton said he's negotiating with Environment Minister John Baird and the Bloc Quebecois to rewrite the troubled Clean Air Act.

The NDP wants emission caps on major polluters and new automobile fuel-efficiency standards.

"We have a great opportunity now to deliver some results and we intend to take full advantage to make it happen," Layton told reporters.

However, in previous statements, he has shied away from  threatening to trigger an election -- although he has accused the Liberals and Bloc Quebecois with propping up the Conservatives in confidence votes.

In Quebec City, Liberal environment critic David McGuinty didn't make it sound like his party was spoiling for a fight.

"I think the people of Canada don't want a spring election. The people of Parliament want Parliament to work," he told reporters.

However, Michael Ignatieff, the party's deputy leader said: "If they offer us junk on the budget, we vote it down."

Conservative cabinet ministers say the prime minister does not want an early election and he hopes to present a bullet-proof budget that includes more money for the environment.

A poll conducted last week by The Strategic Counsel for CTV and The Globe and Mail gave the Liberals a slight lead over the Conservatives, but showed no party with momentum.

With a report from CTV's Robert Fife and files from The Canadian Press