TORONTO -- The gloves are already off.

After lofty promises to adopt a more collaborative approach in the House of Commons, MPs heckled, hollered and hurled insults yesterday as debates began on the government's plan to calm the economic crisis.

Liberal Leader Stephane Dion was first from the gate, accusing the Conservatives of squandering a surplus, engaging in wild spending sprees and abandoning a rainy day fund.

"With the fundamentals of our economy already weakened, Canada entered the escalating economic crisis with one hand tied behind its back," Dion said.

FISCAL POSITION

But Prime Minister Stephen Harper flatly rejected the criticism, insisting Canada is better positioned than other countries to confront the economic challenges.

"We have, thanks to prudent financial management in recent years, the strongest fiscal position of any of the major industrialized countries," he said.

As the 40th parliamentary session opened this week, all parties vowed to co-operate to find ways to help the troubled economy, but it seemed to be business as usual yesterday.

At one point, a sarcastic Finance Minister Jim Flaherty suggested John McCallum was "masking his spirit of co-operation well" after the thundering Grit MP blamed the looming deficit on Flaherty's "reckless" policies.

Duff Conacher, of Ottawa-based Democracy Watch, wasn't surprised that the peace on Parliament Hill was short-lived. Politicians have always yelled and misled in the Commons, and the atmosphere gets even nastier in a minority setting, he said.

Conacher suggested politicians must be held to a higher standard by imposing fines for dishonesty. MPs should also be stripped of the "parliamentary privilege" that allows them to make false claims and outright lies in the Commons with impunity.

FINANCIAL UPDATE

As the squabbling likely continues, Canadians will get a sobering look at the state of the nation's finances next Thursday when Flaherty tables a financial update.

There are no stimulus announcements expected, and NDP Leader Jack Layton accused the Conservatives of being too slow to table concrete steps to deal with the growing crisis.

"It looks as though the government is taking a wait-and-see attitude as people lose their jobs right throughout the manufacturing backbone of the country," he said.

"They've been using the excuse that they have to wait to see what the Americans do, well the Americans are now acting. And in fact, the Americans have already put $25 billion forward; they're talking about an additional $25 billion, and our government has been missing in action."