TORONTO - Premier Dalton McGuinty has again made veiled accusations of racism against Ontario's Conservatives and New Democrats which are beneath the dignity of his office, opposition party leaders charged Wednesday.

Conservative Leader John Tory and NDP Leader Howard Hampton were fuming after McGuinty quoted from a newspaper editorial that accused the opposition parties of playing politics by questioning year-end government grants to multicultural organizations.

In the legislature, McGuinty quoted from the May 3 editorial from Share, which bills itself as Canada's largest ethnic newspaper.

"We understand that the Conservatives and the NDP will grasp at any opportunity to try and embarrass the governing Liberals, especially with an election a few months away. What we don't find amusing is their using needed assistance to minority communities to further their political ends,'' McGuinty read from the newspaper.

However, he didn't include the quote from the Share editorial which most upset the opposition parties:

"Maybe the premier was implying that their behaviour was racist. And if he was, he was probably right. Why else would they focus on these small grants to people of colour?''

Tory said he couldn't believe McGuinty did not take one of the many opportunities he was given during question period Wednesday to distance himself from the racism charges.

"I think it is absolutely disgraceful what he has done personally, the fact he won't retract it and disassociate himself from those words in that editorial,'' Tory told reporters.

"This man, who purports to be the leader of this province will never get up and (apologize) because he doesn't have the common decency any more.''

Hampton also expressed his frustration at watching McGuinty slide up to the accusations of racism against the opposition parties for asking questions about $32 million in grants, which were given out at the end of the last two fiscal years without any paperwork to support the handouts.

"This is awful, this is ugly, this lowers the debate,'' Hampton complained.

"It's totally beneath the office of the premier. What is really terrible in this context is the premier was given several opportunities to disassociate himself from that again and chose not to.''

Hampton said it's obvious to him that three weeks of non-stop opposition questions on the grants are getting under the Liberals' skin and have the government worried the issue could spill over into the fall election campaign.

"No premier should engage in this, but I think it's a deflection strategy,'' said Hampton.

"The premier is desperate to avoid having the auditor general look at this $32 million slush fund where money went out the door with no accountability whatsoever.''

Tory said the Dalton McGuinty he knew as an opposition leader would have been quick to apologize for any suggestions of racism against his political rivals.

"It is such disgraceful thinking that is beneath the office he holds, and in the end I think people never like it when people in positions of leadership start talking about others being racist,'' said Tory.

"Dalton McGuinty has not changed the premier's office; the premier's office has changed Dalton McGuinty, and it's not for the better.''

It's not the first time McGuinty has been accused of playing the race card as the government tried to defend its decision to give out millions to various multicultural organizations, some with ties to the Liberal Party.

Last month, he wondered why the Tories and NDP were not questioning millions of dollars in grants to cultural organizations like the Art Gallery of Ontario and the Royal Ontario Museum, implying the opposition parties were only questioning the other grants because they went to immigrant groups.

McGuinty refused at the time to say if he was accusing the opposition of racism, but issued a statement late that night admitting he should have answered the questions directly by saying "No.''