PRESS DIGEST- Canada - Sept 23

Sept 23 (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

** Former Canadian National Railway salesman Greg Shnerer is now at the center of a lawsuit launched by Canadian National that alleges he shared confidential company customer information with arch rival Canadian Pacific Railway Ltd , where he now works, to lure away his former employer's customers. Canadian National is seeking a court order blocking CP from using the information to win customers. (http://bit.ly/1JpfIrf)

** Bank of Canada Governor Stephen Poloz said he rejected any notion that the country was too reliant on the natural resources sector, despite the skid in commodity prices that has squelched economic gains. Poloz said the drop in prices for oil and base metals had forced companies to cut spending this year - in the oil patch, by as much as 40 percent - but it did not mean that it was a mistake to plow long-term capital into major projects that would operate for years. (http://bit.ly/1KzuEUR)

NATIONAL POST

** The fallout from Volkswagen AG's emissions scandal spread on Tuesday as the automaker said as many as 11 million cars could be affected and it would set aside $9.6 billion to cover related costs. But as regulators around the world vowed to act, Environment Canada was vague about how it would respond to revelations the company cheated on emissions tests. "Defeat devices are prohibited under Canadian regulations. If violations to Canadian regulations are found, enforcement action will be taken," Environment Canada spokesman Mark Johnson said. (http://bit.ly/1FtFQ9n)

** Canadian provinces should scrap their resource royalty regimes and replace them with "cash flow" taxes, according to a new study. The report by the C.D. Howe Institute, released on Wednesday, argues that a cash flow tax is a much fairer way to tax mining and oil and gas companies than a gross-revenue royalty, because it is based entirely on the profitability of their operations. (http://bit.ly/1FtGSCs) (Compiled by Mansi Goenka in Bengaluru)