TORONTO - New Democrat backbencher Michael Prue learned a hard lesson about the perils of the media spotlight Friday as the official launch of his bid to lead Ontario's NDP was overshadowed by his comments on public funding for Catholic schools.

Prue, who celebrated his 60th birthday Monday, returned to his public housing roots in downtown Toronto's Regent Park neighbourhood, which is being extensively redeveloped, to highlight what he said was the need to reinvigorate the third place party.

With a construction crane towering over the site of his demolished childhood home, Prue spoke passionately about growing up in a poor neighbourhood that is being transformed into a mix of middle and low-income housing.

"The hopes and dreams and aspirations of this entire community are deep within my soul, and same for the NDP," he said.

"The hopes and dreams that we have and the revitalization that needs to take place is very much the same as is happening here in this community."

But Prue quickly found himself in hot water by suggesting it's time the NDP reviewed its policy of supporting public funding for Catholic schools.

"The NDP policy is there, it says that we support the dual system," he said. "It is time though, I think, that we take a look at that, but we need to leave that to (the) convention. It cannot be my position or an individual's position."

As handlers tried to end the news conference, Prue insisted he wasn't trying to re-open the debate about religion and schools that caused so much trouble for Conservative Leader John Tory in last year's election and accused reporters of trying to put words in his mouth.

"I think Tory ran a very poor campaign in the last election in terms of faith-based schools . . . and he suffered the consequences and dragged us down a little with it," he said.

"I think the NDP policy is quite clear and it is there until such time as the convention reviews it."

Prue, a councillor and mayor of the former Toronto borough of East York, was first elected to the Ontario legislature from the Beaches-East York riding in a 2001 byelection and serves as the critic for finance and community and social services.

He had worked as a federal civil servant for 20 years before entering politics, and said his time as a union activist with the Public Service Alliance of Canada would help him counter some of the high profile union defections to the Liberal Party.

"Part of what I want to do is bring labour back into the fold," he said. "I think that I can speak very strongly to labour and can convince them that their natural home is with the NDP, and that we are their allies."

NDP veteran Gilles Bisson has also said he plans to join the race to replace the retiring Howard Hampton. Others expected to make a run for the NDP's top job include Toronto member Peter Tabuns and Hamilton's Andrea Horwath.

Prue expressed concern that the $500,000 spending limit would be difficult to raise, and said he would be travelling the province extensively between now and the party's leadership convention next March, trying to sign up as many new members as possible before a Jan. 5, 2009 cutoff date.

"I'm worried that it may be too expensive. It will take some considerable doing to try to find that kind of money."