MACAULAY PRAISED AS PEI 'CASH COW'

Islanders grateful for federal projects that are under fire as ministerial
pork

CHARLOTTETOWN -- Officials with Correctional Service Canada did not plan to
build a facility when they decided to spend more time and money studying
prison inmates' use of illegal drugs.

They proposed that a small team of about five people, based in Ottawa, study
the problem, according to a source within the department. But they were
nudged by Solicitor-General Lawrence MacAulay -- the minister responsible
for the department -- until it was decided to spend $2.5-million on a
building, the source said.

The officials built the Addictions Research Centre in Mr. MacAulay's riding
of Cardigan in Prince Edward Island, despite the absences of federal inmates
in PEI and a university with which they could collaborate.

It is little wonder that while Mr. MacAulay's job is in jeopardy over
allegations in Ottawa of pork-barreling, he has been praised back home as a
"cash cow."

In Mr. MacAulay's riding, the federal government has delivered a facility
from Human Resources Development, waterfront revitalization along the
Montague River, cash for an interpretive centre in Greenwich National Park
and bundles of projects funded by the Atlantic Canada Opportunities Agency
and the now-defunct Transitional Jobs Fund.

Other parts of PEI have received millions of dollars for projects such as
the Confederation Centre of the Arts and Holland College in Charlottetown.

Mr. MacAulay is the minister responsible for overseeing federal projects in
the province.

But the question now is whether Mr. MacAulay will lose his job because of a
government contract that went to a friend's accounting firm. Ethics
counsellor Howard Wilson is expected to report on the matter this week and
to state whether the untendered deal broke Treasury Board guidelines.

Despite the controversy, people on the street and top elected officials in
PEI praise the minister. After all, he delivered a flow of government aid in
a province with a small and stagnant population but with a diversifying
economy.

Although Mr. MacAulay paid attention to his home base in the traditionally
poorer eastern region, he delivered federal help on projects across the
island.

"He didn't forget his province when he got elected," Conservative MLA Jim
Bagnall said.

"He's trying to achieve something for the people," said Firouz Ashdasi,
owner of a diner in downtown Charlottetown.

Ian MacIntosh, a barber in Montague, PEI, said the Canadian Alliance is
jealous because Mr. MacAulay brought home the bacon. "We don't want our cash
cow gone."

Mr. MacAulay has defended his actions, saying he works for the good of the
province, ensuring that it receives its fair share.

Despite the absence of prisons in PEI, he insisted that Correctional Service
Canada nonetheless have a presence -- jobs -- on the island.

Opened a year ago, the Addictions Research Centre brought about 20 full-time
employees -- including a number of people with PhDs -- to the village of
Montague, close to his constituency office.

But it has also brought ridicule and an accusation of patronage from the
Alliance.

"This is clearly a patronage job," said Alliance MP Randy White, who has
toured the modern, green-roofed facility on the quiet Montague River.

Mr. White said there are no drug problems or inmates to study in Montague,
adding that it makes no sense to put the building in a PEI rural community.
"It's not exactly the metropolis of the world."

But Mr. White acknowledged that his attack will not hurt Mr. MacAulay with
the voters at election time. "They love him for it," Mr. White said.

A small landscaping crew is working at the building that is next to a marina
that also received federal funds. One worker, planting trees around a new
parking lot, said the opposition's criticism is "just hype."

Brian Grant, the head of the Addictions Research Centre, said modern
communications such as e-mail and video-conferencing, and a nearby airport,
allow the institute to do its work. "There's no drawback to where we are."

He said the centre's location makes it easy to attract international
experts, and that research on inmates in places such as Manitoba is
conducted with the help of workers there. He said that had the centre been
in Ottawa, it would not have been closer to a prison.

As a result of such projects, Mr. MacAulay has earned the respect of mayors
and provincial politicians across PEI.

Charlottetown Mayor George MacDonald acknowledged that Mr. MacAulay appears
to surround himself with Liberal allies, but doing so is normal. "In
politics, in Prince Edward Island, that's very often part of the game."

Mr. MacDonald said Mr. MacAulay does not deserve to be kicked out of cabinet
for breaches of ethics guidelines. "I would never question his integrity."

PEI's Conservative Premier, Pat Binns, also defended Mr. MacAulay, saying
the Solicitor-General serves everyone.

But Mr. Binns said the controversy puts PEI in a bad light, making it look
like patronage heaven.

One plugged-in local resident said that apart from people who want Mr.
MacAulay's job, almost everyone likes Mr. MacAulay.

"I can't think of anyone who dislikes him, except for the crassest of
political reasons," the Islander said. "He's done a damn good job."