With 40 Conservative seats in Ontario, the Tories are not far off their goal of claiming 45 ridings in the vote-rich province that is so vital to national election success.

At final count on election night, the tally showed the Liberals leading in Ontario with 54 seats, the Conservatives holding 40 and the NDP with 12 in the province.

It represents a major gain for the Tories, who entered the election with only 24 Ontario MPs.

Pollsters and political analysts agreed before the election that the Conservatives had to make inroads in key Ontario regions such as Toronto in order to achieve a majority government.

Although the Tories made substantial gains in much of the province, pulling in 16 new seats, Canada's largest city remains a virtually impenetrable Liberal stronghold.

Exceptions to the rule in Toronto include New Democrat Leader Jack Layton in Toronto-Danforth and his wife Olivia Chow in Trinity-Spadina, who both won in their ridings. New Democrat candidate Peggy Nash was also successful in Parkdale-High Park, defeating the Liberal incumbent, Sam Bulte.

In his speech to a raucous crowd of supporters at a Toronto nightclub Layton called the double victory a "Christmas present," and pledged that "Olivia Chow will be a tireless and forceful representative."

He added: "Our Canada puts ordinary Canadians first and tonight ordinary Canadians in the millions put their trust in the NDP."

Chow pledged to represent her constituents and work for the poor.

"Although I'm happy we'll be working together again, this was never about us, this election was about you, the people in Trinity-Spadina. This victory is yours," she said.

The Tories had targeted a number of key Liberal-held Toronto ridings ahead of the election, including Etobicoke-Lakeshore where Conservative candidate John Capobianco faced off against Liberal Michael Ignatieff, a Harvard professor.

Ignatieff took the riding, with some saying he is a possible contender to replace Paul Martin as the next leader of the Liberal Party.

The York Simcoe, Durham, Whitby-Oshawa, Oshawa, Halton, and Dufferin-Caledon ridings -- all on the outskirts of the Greater Toronto Area, were claimed by the Conservatives.

Key victories and losses include:

• Liberal House Leader Tony Valeri was defeated in Hamilton-East Stoney Creek by NDP candidate Wayne Marston;
• Minister of International Cooperation Aileen Carroll was defeated in Barrie by Conservative Patrick Brown.
• Liberal Carolyn Bennett won the St. Paul's riding, beating Conservative Peter Kent;
• Social Development Minister Ken Dryden won his York Centre riding;
• Liberal MP David McGuinty, brother of Ontario Premier Dalton McGuinty, defeated Conservative Allan Cutler in Ottawa South;
• Minister of Veterans' Affairs John McCallum was re-elected in Markham-Unionville;
• NDP candidate Chris Charlton stole the Liberal-held riding of Hamilton Mountain;
• Minister of Human Resources Belinda Stronach was re-elected in Newmarket-Aurora;
• Conservative Tony Clement defeated Liberal Andy Mitchell in Parry Sound-Muskoka by just over 20 votes;
• Conservative Jim Flaherty has defeated Liberal Judi Longfield in the Whitby-Oshawa riding;
• Defence Minister Bill Graham won his Toronto Centre riding. 

Labour Minister Joe Fontana was also re-elected in his London-North-Centre riding, Liberal Maria Minna won her seat in Beaches East York, and Tory John Baird claimed the Ottawa West-Nepean seat from the Liberals.

Voters painted the Hamilton area a bold Tory blue and NDP orange. It's the first time residents haven't elected a Liberal MP since 1962.

Hamilton East-Stoney Creek MP Tony Valeri, who was first elected in 1993, was defeated.

Hamilton Centre remained in the hands of NDP incumbent David Christopherson, Liberal MP Russ Powers was defeated by Conservative David Sweet in Ancaster-Dundas-Flamborough-Westdale.

Burlington Liberal MP Paddy Torsney, who held the riding since 1993, was defeated by Conservative candidate Mike Wallace, and Hamilton Mountain was captured by NDP candidate Chris Charlton, who had run in four previous elections.

In Niagara West-Glanbrook, Conservative MP Dean Allison won re-election.

In the GTA that encompasses the city and the suburban communities that surround it, the Liberals were at 43 per cent going into the election while the Conservatives were 11 points behind at 32 per cent. In Toronto proper, known by its 416 area code, the Liberals held a 12 point lead at 39 per cent over the Tories and NDP who were tied at 39 per cent support.

Before the election was called the Conservatives held 23 seats in Ontario, compared to 74 Liberal seats, and seven for the NDP. Going into the election the Tories were aiming to pull in 45 seats in the province.