A group opposed to the Toronto Island Airport is alarmed by reports a federal agency wants to build a pedestrian tunnel there at a cost of $38 million.

"This is the wrong way to spend scarce public dollars," Brian Iler, chair of CommunityAIR, said Monday in a news release. "Any real list of priorities for our city's public investment includes public transit, and meeting the basic needs of Torontonians. This tunnel isn't close to making that list."

The agency exploring the tunnel is the Toronto Port Authority. The main user of the airport is Porter Airlines, which is owned by Toronto businessman Robert DeLuce.

"This is all about the Harper government, and its majority on the TPA board, throwing its weight around to help Porter. The TPA has no accountability to the people of Toronto, who want their tax dollars spent on the City's priorities, not Mr. Deluce's." Iler said.

The Toronto Star reported Monday that the authority is seeking some federal stimulus cash to build the tunnel. The authority has issued a formal request for proposals to conduct an environmental assessment, which is the first step in any project.

Federal dollars would only cover half the cost. The authority would be prepared to kick in another $7 million, but it isn't clear whether the province would pay the other $12 million.

Late Monday, Premier Dalton McGuinty said he's willing to consider providing provincial funding, but only once his government sees a formal proposal.

"I'm not going to say yes or no because there's a process for these kinds of things," he said. "I think we'd have to see what pots of money (there are) for which the proposal might qualify and see if there's any money in those pots. But I think it's something that's worthy of consideration."

Mayor David Miller campaigned against a bridge to the airport in his 2003 election campaign. He is opposed to further expansion of the airport, saying the waterfront should be for people.

However, Porter has been continually expanding its destination list and number of flights.

Currently people have to take a 90-second ferry ride to access the airport.

The port authority paid $4.5 million for a 150-seat ferry in 2006. It has a $5 million backup ferry on order which should arrive in December, the Star said.

"No more public money - or public assets - should be handed over to Porter. If Porter wants the tunnel, it should be paying for it. Really, Porter should relocate to Pearson, where it would compete on a level playing field," Iler said.

With files from The Canadian Press