IMHO:
The House needs reform almost as much as the Senate does. Go with Mixed Member Proportional or Single Transferrable Vote for the House, and scrap the Senate.
If the Senate is to be retained for sober second thought, it should also be fairly elected (i.e. MMP or STV, same as the House). The differentiating feature could be term limits, which would allow senators to vote their consciences rather than worry about re-election.
O/T: Harper being a hypocrite is nothing new (see: getting "in bed with the separatists").
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