Local MPP John Tory, leader of the provincial Progressive Conservatives, says premier Dalton McGuinty "is trying to pass the buck and deflect attention from his completely inadequate compensation package for Caledonia residents."

He was commenting on a settlement announced Monday by Municipal Affairs Minster John Gerretson to compensate for losses sustained because of a First Nations occupation of a disputed tract of land.

The settlement, at $430,000, was about onefifth of what the local municipal council was seeking for the residents. It works out to between $3,000 and $6,000 per household depending on location.

"I think it's an embarrassment. I think it's pathetic," said Mr. Tory.

"Caledonia residents have been punished by a complete lack of leadership by Dalton McGuinty. They have seen a complete disrespect for the rule of law, and Dalton McGuinty's compensation package is a slap in the face."

Citing the case of a 91- year old Second World War veteran whose property value had allegedly declined to $150,000 from $250,000, he said residents there are paying a heavy price because of the dispute with Six Nations.

When in Dufferin for a tour of the OPP station here last spring, Mr. Tory said the Caledonia situation was stretching provincial police resources too thin.

His statement then was in the context of the force's need to replace the Dufferin detachment building because of its "deplorable" condition and lack of accommodation for the female officers, the water running through the basement, and lack of heat in the cells.

But there is some dispute about whether the Caledonia dispute is a provincial or a federal matter.

The land grants to, and treaties with, the First Nations centuries ago were by representatives of both the British and French Crowns of the time.

Traditional members of the Mohawk Nation have said the federal Indian Act is an illegal document, "forced on us at gunpoint," said one in an interview.

And, across Canada, some Indian bands take the position that First Nations constitutes a "nation within, but not part of" Canada. In that position, they believe their dealing should be directly with the reigning monarch and not with the "government of Canada."