Canadian opposition Liberal leader resigns

TORONTO (AP) -- Canadian opposition Liberal Party Stephane Dion says he'll resign as leader of the once-dominant party after last week's bitter election loss.

Dion said Monday he'll stay on as leader until a new leader is elected by the party.

Dion campaigned for last Tuesday's election on an unpopular environmental tax during slowing economic times. His party suffered a drubbing, dropping to 76 seats in Parliament from 95.

Prime Minister Stephen Harper's Conservative party won re-election but fell short of the 155 seats it needed to rule without help from the opposition.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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