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Prime Minister Stephen Harper used the anniversary of his government's first year in office to set out new policy priorities and paint his government as decisive and active.

The environment, taxes and crime were among the areas he targeted in what some had promoted as a "mini-throne speech" on Tuesday to the Canadian Club in Ottawa.

"(Canadians) will recognize that they have clear choices to make on the most important issues facing our country," Harper said.

"A clear choice between decisive action that is building a stronger economy, a cleaner government and a record of results, and going back to drift, scandal and empty rhetoric."

The Conservatives defeated the Liberals in the Jan. 23, 2006 federal election, forming a minority government, but were sworn into office on Feb. 6.

Pumping up his Conservatives as protectors of the environment, Harper promised to introduce caps to greenhouse gases and industrial emissions.

He hinted at incentives for green consumers.

"They will see regulations mandating greater use of ethanol and other green fuels. They will see measures to make energy efficiency vehicles more affordable," he said.

Harper promised to impose strict fuel efficiency standards for automobiles, starting in the 2011 model year.

"Canadians have made it clear to us that they want to put one task ahead of all others: protecting and improving the environment," Harper said to applause.

"The fundamental challenge of our time is to make real progress on environmental protection while preserving jobs and standards of living. Finding that balance will require sound science, rational debate and political will over a long period of time."

Harper said his government recognizes that global warming is a "serious threat" to the well being of Canadians, and promised a "realistic" plan that will address Canada's poor record of increasing smog and greenhouse gas levels as well as rising rates of asthma and other environment-related illnesses.

"After more than a decade of inaction on air quality and greenhouse gases, Canada has one of the worst records in the developed world," said Harper. He repeated that the previous Liberal government committed to ambitious greenhouse gas targets, "and then presided over a 27 per cent increase."

Using overhead graphs, Harper tried to illustrate the rise in emissions over the past decade, and the challenge Canadians face in meeting emission reduction targets set under the Kyoto Protocol.

A motion calling for the Conservative government to reaffirm Canada's commitment to the Kyoto protocol passed Monday night in the House of Commons.

Kyoto sets a six per cent cut in emissions below 1990 levels by 2012 as Canada's target (the average cut is about five per cent). Harper has said the Kyoto targets are unattainable by 2012, and his Tories voted against Monday's motion.

Harper said Tuesday that the Conservative Party will unveil its own plan.

"For the first time ever, Canada's new government will move to regulate greenhouse gas emissions from major industrial sectors; for the first time ever we will also move to regulate air pollution from major industrial sectors at the national level ... and for the first time ever we will set out enforceable regulatory targets for the short, medium and long term."

Liberal Environment critic David McGuinty said afterwards: "This is a smokescreen. I think this is an opportunity or an attempt by the prime minister to buy time and give the impression he is doing something meaningful."

On Â鶹´«Ã½net's Mike Duffy Live on Tuesday, Green Party Leader Elizabeth May said some of Harper's moves are sound.

However, she noted Environment Minister John Baird has said the government would move towards intensity targets, which could allow total greenhouse gas emissions to rise even if per-unit emissions fall.

"It's not yet clear what the prime minister's intentions are," she said.

"He did refer just a few days ago to Kyoto targets as fantasy. If he announced those targets in the context of meeting Kyoto targets, we could be enthused. As it is, we're just lukewarm."

Elected Senate, tax cuts

Harper told the Canadian Club his government will modernize the upper house by creating an elected Senate and fixed terms for senators.

"And we should democratize it by passing our senate elections bill so Canadians will finally have a say in who represents them in the Red Chamber," he said.

The prime minister is also promising what he calls a tax-back guarantee: "As the federal government pays down our national debt, it will be required to use the interest savings to cut personal income taxes."

Liberal finance critic John McCallum said: "That's 700 million per year. That's $35 for every Canadian taxpayer. I guess that's better than nothing but I would get too excited about it."

A federal budget is expected to be delivered on March 20.

Harper promised a "more open" federalism and said the provinces will start receiving long-term, stable transfers from Ottawa.

And Harper is calling for an "assertive" foreign policy, by boosting the strength of the military, as well as continuing reconstruction and the fight against terror in Afghanistan.

Harper says his government will table a comprehensive report in Parliament summarizing Canada's role in Afghanistan and announcing the next steps in its participation there.

Harper also addressed the government's currently stalled law-and-order agenda, including mandatory prison sentences for gun crimes. He issued dark warnings about the opposition parties -- criticizing them for holding up his government's law-and-order legislative agenda in Parliament.

Voters, said Harper, have "a clear choice between a country that values safe streets and safe communities, versus a country were the streets are ruled by guns, gangs and drugs.''

Turner, Israel

Harper made no mention of former Conservative MP Garth Turner's decision to join the Liberals.

That move came exactly one year after David Emerson, re-elected as a Liberal on Jan. 23, 2006, crossed the floor and joined the Conservatives as a cabinet minister -- a move that Turner heavily criticized. In early January, Ontario Liberal MP Wajid Khan crossed the floor to the Tories.

In a news conference in Ottawa on Tuesday, Turner criticized Harper's leadership style. Conservative MPs under Harper have no voice whatsoever, he said.

"I was shocked to get into a caucus where not only did we not have dissent, we didn't even have debate," said Turner.
 
On Tuesday evening, Harper gave another speech to a Jewish lobby group. He defended Israel's right to defend its borders.

"We are going to continue standing up against the terrorists, extremists and fanatics who eschew peace and stability," he said.

Liberal Leader Stephane Dion also addressed the Canadian Council for Israel dinner.

"Supporting the right of Israel to exist in a secure and peaceful Middle East is not a Liberal cause or a Conservative cause," Dion said in the prepared text of his remarks.

"It is not, and it must never be. It is a Canadian cause. It is the common cause of every democracy."

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