A "scaled-down anti-terrorism bill" introduced in Parliament Monday could force police to counter combustible protests without the help of the military during the G-8 summit in June.

Bill C-42, killed by the Liberal government last week as a threat to civil liberties, would have allowed the military to establish a wide exclusion zone around districts such as Kananaskis, site of the summit. With the stroke of a pen, the government could have asserted authority over an entire province in the name of national security.

Its replacement, the Public Safety Act, Bill C-55, restricts the military to "putting the cordon around a reasonable area," Defence Minister Art Eggleton said. "It cannot be used to protect international conferences or to prevent protesters from carrying on their activities. It couldn't be used in the Kananaskis case."

Will the no-fly zone over the Rockies shrink? Will protesters now be able to get up close and personal with U.S. President George W. Bush and other G-8 leaders?

Under C-55, Eggleton said, he will be able to call in the troops only to protect military or allied property, whereas C-42 aroused fears of the old War Measures Act, giving him power to declare national security threats in such areas as health, environment and air travel.

However, Alliance defence critic Leon Benoit argued nothing will change because the language of the new law permits wide interpretation. Park a military Jeep 10 kilometres outside of Kananaskis, and the government could have its loophole.

"We just got this bill today but from what I can see, it can still be very broad," he said Monday night from Ottawa. "I don't see what precludes them from doing any of that. In reality, it doesn't have any impact. I feel that power is absolutely there."

G-8 security spokesman Patrick Webb noted the team, a combined effort of RCMP and Calgary police, would not be subject to the legislation.

"The police do not work under military authority," he said. "We are under civilian authority."

Benoit countered that military backup would be called upon "once a situation arises that police can't handle."

The period for which the minister must obtain cabinet approval to enforce the legislation has been cut to 45 days from 90 days. Orders must be tabled in Parliament within 15 days and subjected to debate, and they can be repealed at any time. Benoit wanted government restricted to a 48- to 72-hour approval window.

The new bill puts tighter controls on interim orders, in which ministers can issue emergency measures, such as shutting down airports or moving anthrax antidote to a region.

At the same time, the bill does expand the power of police and security officers to scan airline manifests for terrorists, or anyone with an outstanding warrant for a serious offence.

"But they haven't dealt with the main problem, border controls, including customs and immigration and the refugee system," Benoit said.

Ottawa ordered Canadian banks to freeze the assets of several more groups and individuals with suspected terrorist links. Added to the list: