Development fund used to finance luxury pet hotel, Marois says

More than $250,000 designated for regional development in Quebec's Eastern Townships was instead invested in a luxury hotel for dogs and cats in Montreal, according to Parti Québécois Leader Pauline Marois.

It was one more volley in the Opposition party's attack on the provincial government over the management of a public venture-capital fund known as FIER (Fonds d'intervention économique regional), which was designed to boost the economy in specific regions of Quebec.

"We don't think [investment in the pet hotel] is acceptable. And we think it's important to choose the investments. You know, there are many needs in many regions of Quebec, and they don't have access to this kind of [venture] capital," Marois told the legislature Wednesday.

Marois has called for a special audit of the fund.

She has said it is unacceptable that public money is making its way into the hands of private investors who shouldn't be receiving it, either because they are not in the appropriate region or because people handing out the money have a conflict of interest.

On April 29, the PQ released documents alleging people with ties to the Quebec Liberals diverted more than $6 million of venture capital into their own companies via an economic development fund in the Saguenay.

Both Premier Jean Charest and Economic Development Minister Raymond Bachand have said there are no problems with the way the money is handed out. But Bachand admitted to reporters Wednesday that there may be some problems with the way it's administered. He hinted that some kind of probe might be ordered, but didn't say anything more.