Stephen Harper says Canadians have "chartered the way forward" for Canada, after strong gains in Ontario gave the Conservatives a larger minority government.
"No matter what economic challenges we face from abroad, this is a land where people from every corner of the Earth have come together to build a peaceful and prosperous country without comparison," the Conservative leader told cheering supporters in Calgary. "Canada will always be the true north, strong and free."
He said the Conservatives would continue to ensure Canada is able to weather the global credit crisis, by enforcing firm regulations for banks and promoting business through low taxes.
"For Canada's $1.5-trillion economy, for the protection of the earnings, savings and future opportunities of our 33 million people, we have a realistic, prudent and responsible plan," he said.
Past midnight, the Tories had won or were leading in 143 ridings across the country, out of a possible 308. Harper needed at least 155 seats to form a majority government.
As the dust settled in Tuesday's election, the NDP had 37 seats and the Bloc Quebecois 50. The Liberals were headed to a crushing defeat, losing about 18 ridings to fall to 76.
In Liberal Leader Stephane Dion's concession speech, he promised to work closely with the Conservatives to tackle any economic troubles.
"We Liberals will do our part responsibly to make sure this government works," he said in Montreal. "It's clear our economy -- indeed, the global economic crisis -- is the most important issue facing our country. As the official opposition, we will work with the government to make sure Canadians are protected from the economic storm."
NDP Leader Jack Layton also said he would work closely with Harper, telling supporters in Toronto that the Tories could not govern alone without a majority.
"No party has a mandate to implement an agenda without agreement from the other parties," Layton said. "I believe the people of Canada have called upon all parties to put aside the acrimony that arises in campaigns, and to come together in the public interest. So we're going to do exactly that."
Harper needed to make strong gains in Quebec in order to secure a majority, but made missteps in the final weeks of the campaign by pledging to cut arts funding and crack down on young offenders.
The Bloc Quebecois appeared ready to dominate the election results in Quebec once again, while the Tories were leading or had won about 10 seats in the province -- a loss of roughly one riding.
Bloc leader Gilles Duceppe boasted of his party's strong performance, noting it was the sixth consecutive majority win in Quebec.
"I want to salute the work of all the candidates with the Bloc," he told supporters. "It was a great campaign."
Tory cabinet minister Michael Fortier was defeated in the Montreal-area riding of Vaudreuil-Soulanges, where he was defeated by incumbent Bloc MP Meili Faille.
But despite controversy, embattled Conservative candidate Maxime Bernier managed to keep his Quebec riding of Beauce. Bernier was removed from his post as foreign affairs minister earlier this year after he left sensitive government papers at the home of his former girlfriend, Julie Couillard.
"It's a good feeling, I'm very happy," said Bernier.
When asked if he hoped to return to cabinet, Bernier said "the prime minister will decide."
Strong gains in Ontario
Ontario was key to a strong Conservative victory, with the province's 106 seats. While Toronto was largely expected to remain a Liberal stronghold, early results suggested the Tories would pick up roughly nine more seats elsewhere in the province.
In one major loss for the Liberals, Garth Turner was defeated by Conservative candidate Lisa Raitt in the Ontario riding of Halton.
"I think the Liberal party, my party, failed to deliver a real, cogent response to the economic crisis," he told Â鶹´«Ã½.
But despite the Liberal losses, Bob Rae said the opposition parties had deprived Harper of his ultimate goal.
"I think it's important for people to recognize that Mr. Harper started this campaign looking for a majority. He didn't get it," Rae told Â鶹´«Ã½, after winning his riding of Toronto Centre. "Regardless of what anyone might want to say, tonight is a defeat for Mr. Harper because he didn't get what he was seeking to get."
In one hard-fought Liberal win, former leadership candidate Gerard Kennedy unseated NDP candidate Peggy Nash.
In British Columbia, the Conservatives were set to win 20 seats, including a win by Dona Cadman, the wife of the late Independent MP Chuck Cadman.
The Liberals largely held their ground in Atlantic Canada and swept Newfoundland, where Premier Danny Williams waged a fierce campaign against the Conservatives. But the Tories have made gains in New Brunswick.
Early results in the region showed the Conservatives completely shut out of Newfoundland and Labrador. One high-profile loss for the party was Fabian Manning.
Williams, a Progressive Conservative, has had a long-standing feud with Harper over rights to his province's offshore energy revenues and the latest equalization formula. In the past month he had publicized an "Anything But Conservative" campaign.
But Conservatives had a strong showing in other parts of Atlantic Canada. Peter MacKay staved off a challenge from Green Party Leader Elizabeth May to hang on to his Nova Scotia riding of Central Nova.
"It's overwhelming, it's exhilarating," he said. "All of these emotions come back every time."
May had likened the fight to David and Goliath, after casting her ballot early Tuesday morning. If she had won, it would have made her Canada's first elected Green MP.
While no Green Party candidates are headed to Parliament, the party did manage to increase its popular vote to 7 per cent from 5 per cent.
In New Brunswick, the Conservatives managed to unseat the Liberals in two ridings: Fredericton and Miramichi.
Before Parliament was dissolved on Sept. 7, the Conservatives had 127 seats, the Liberals had 95, the NDP 30 and Bloc 48. The Greens had one seat, but the MP had initially been elected as a Liberal.
Worst voter turnout in history
Only about 59 per cent of eligible voters decided to cast their ballots Tuesday, possibly the lowest in the country's history. In 2006, it was 64 per cent.
An estimated 1.5 million Canadians cast their ballots in early voting.
The election followed a 37-day campaign -- one of the shortest possible under Canadian law. Harper asked Canadians for a stronger mandate to govern the country, after two and a half years of minority rule.
He called an election after complaining that Parliament had become increasingly "dysfunctional," making it difficult for him to lead the country.
"It's difficult to see ... how the prime minister comes back to the people of Canada, at the end, of the day and says this election was worth something," former Liberal cabinet minister Brian Tobin told Â鶹´«Ã½.
