OTTAWA (CP) - Canada has lagged far behind the United States in cutting air pollution in recent years, says a report based on the latest government data.

Companies across Canada emitted more than 4.1 billion kilograms of air pollution in 2003, the most recent year for which data is available, says the report released Wednesday.

Most of that pollution is associated with respiratory illnesses such as asthma and bronchitis.

"In many ways   George Bush's America is doing a much better job cleaning up its pollution than our own country," Rick Smith of Environmental Defence told a news conference.

The Ontario Medical Association has estimated that pollution causes 5,800 premature deaths annually. Asthma rates across North America have been rising, with air pollution believed to be the main culprit.

"This report confirms that pollution we thought we dealt with years ago is not only a problem but in fact getting worse," said Paul Muldoon of the Canadian Environmental Law Association.

Dion said he wanted to check the methodology of the report, but accepted the estimate that Canadian air pollution declined two per cent over the study period.

"It's not enough, we have to do much more," he said in an interview, noting that the government has passed regulations to cut sulphur in fuel, and is working on other measures.

He said it would be a mistake for Canada to withdraw from emissions-creating industrial activity to focus on a service economy.

"All these jobs and economic activities would move to new industrial countries that don't have the technology to decrease their emissions . . . as we have."

He noted the United States has seen a decline in some industrial sectors while the Canada has seen major growth especially in the oil and gas sector.

The report is available on the Internet at www.PollutionWatch.org. It lists the top 12 Canadian polluters with their total 2003 emissions:

-Inco Ltd., 368,624,879 kg.

-Alcan Inc., 288,311,262 kg.

-Ontario Power Generation, 248,537,673 kg.

-Nova Scotia Power Inc.174,404,618 kg.

-Hudson Bay Mining and Smelting Company Ltd.,168,783,694 kg.

-SaskPower,141,826,018 kg.

-Syncrude Canada Ltd., 120,699,098 kg.

-TransAlta Utilities Corporation, 102,558,188 kg.

-New Brunswick Power Corp., 100,265,046 kg.

-Noranda Inc., 84,698,864 kg.

-Aluminerie de Becancour Inc. 67,937,464 kg.

-EnCana Corporation,64,440,962 kg.

Alberta Environment Minister Guy Boutilier wasn't available for comment, but a spokeswoman said the amount of emissions in the province isn't unknown.

"Those numbers aren't any big surprise to us, because we are responsible for producing so much of the petroleum for other parts of Canada and the U.S.," said Erin Gregg.

Gregg said the province believes in a co-operative approach with industry when it comes to encouraging cleaner technologies.

She did point out that since the 2003 report, the province has improved air emission standards for electricity transmission so that coal-fired power plants now have to meet the same standards as natural gas-fired plants.