BC NDP leader Carole James speaks at the BC Rail/ CN Rail yard in West Vancouver, BC Wednesday morning, April 15, 2009 while on the BC NDP provincial election campaign. James said that if elected, the NDP would enact new laws to regulate lobbying and conflicts of interest. James was referring to the corruption trial involving the sale of BC Rail.

NDP leader Carole James took her campaign to rail yards in West Vancouver today to accuse the Liberal government of favouring friends and insiders.

"One of Gordon Campbell's closest friends — Patrick Kinsella — was paid $300,000 by B.C. Rail in the $1 billion sale [of B.C. Rail to CN Rail]," she said as engines shunted cars along the tracks behind her. "Campbell refuses to say why he was paid. People have a right to know the truth about the deal and who is really benefiting."

Kinsella, a Vancouver public-relations consultant, ran two Liberal campaigns in 2001 and 2005.

His involvement in the B.C. Rail story came to light in February after a judge released 8,000 pages of documents from a court case, where five men have been charged with corruption involving the sale.

Kinsella and Campbell have refused to comment, saying the case is before the courts. Kinsella is not among those who have been charged.

James's comments came on the second day of a 28-day election campaign in B.C. Voters go to the polls on May 12.

Under an NDP administration, James said, a public inquiry would be held into the $1 billion sale.

James's government would also introduce an Integrity Act and expand rules to include public appointees, blind trusts and campaign financing.

She would empower a registrar of lobbyists to enforce the rules.

James said Kinsella was also paid to help privatize part of B.C. Hydro.

According to the NDP's study of court documents, then-CN chair David McLean contacted Kinsella with regard to the rail deal.

The NDP says Kinsella was working for both CN Rail and B.C. Rail before the sale.

A May 19, 2004 e-mail presented to the court stated that Kinsella got a call from McLean to say the B.C. Rail deal was "at risk and anything they could do would be appreciated."

Court also heard that during the bid period, Kinsella was seen entering Campbell's office with McLean a number of times, says the NDP.

"The deal is a powerful symbol of why Gordon Campbell can't be trusted. He looked people in the eye and said he wouldn't sell B.C. Rail — and then he sold it. His campaign manager received rich rewards for helping with the sale. It's a disgraceful story. Campbell refuses to answer questions and he stonewalls. It's important to get to the bottom of this mess," she said.

James was asked if Kinsella's payments might be above-board, but she did not directly answer the question, saying the circumstances of the transaction were inappropriate.

Afterwards, James was sought out by a CN rail worker in an unscripted moment, who stopped an engine on the tracks and ran after her.

The unidentified worker, who has worked on the rails for 33 years, told James the sale has not benefited railway operations.

"CN Rail will fire my ass if this is broadcast," he told a smiling newsman videotaping his actions.

The worker hurried back to the engine and set off.

Next up, James is expected to release her critique of the Liberals' campaign platform at 1 p.m.