TORONTO (CP) - The war of words in the aboriginal occupation in Caledonia, Ont., escalated Monday amid allegations from a member of the Ontario legislature that Six Nations protesters are intimidating residents, sending anonymous threats and even have links to organized crime.

Conservative member Toby Barrett, whose riding includes the southern Ontario town where aboriginals have occupied a former housing site for six months, said residents - including himself - are afraid for their safety.

Every night, protesters shine headlights into homes and keep residents awake with all-terrain vehicles, Barrett told a news conference.

He said he has received anonymous threats sent to his home telling him to "go back to Europe."

He said many residents, including himself, believe the "chaos and mayhem" of the occupation is being bankrolled by organized crime and fueled by the illegal cigarette trade - an allegation that was vehemently denied by an aboriginal spokeswoman.

When asked directly whether he himself believed organized crime had been somehow financing the occupation, Barrett replied: "I've had enough people tell me that."

"In my view, organized crime makes use of native communities and certain rights and privileges that residents of native communities have," said Barrett, who offered no proof of his allegations.

"There are certain things you can get away with that you could not do in, say, downtown Toronto."

Barrett said he was basing his allegations on a report in an aboriginal newspaper and information from Six Nations police.

He later sent out a release clarifying his remarks, saying he didn't intend to "imply organized crime was behind the occupation in Caledonia."

"I raised questions about a connection due to what I've heard from a native newspaper, Six Nations Police and citizens regarding this issue," Barrett said in a statement.

Aboriginals and the Liberal government alike accused Barrett of fanning the flames of an already-tense situation.

Janie Jameson, spokeswoman for the Six Nations protesters, said linking legitimate protesters with organized crime is just "gossip."

"There's always a continuous attempt to discredit us and our efforts and our cause," she said. "It's been like that from Day 1. It won't have any baring because it is gossip. There is no truth to it whatsoever."

Aboriginals are not intimidating residents, she added.

"We pose no threat," Jameson said. "But there are quite a few residents in Caledonia who do not want to see a peaceful resolution."

David Ramsay, the Liberal minister responsible for aboriginal affairs, accused Barrett of "fear-mongering" and jeopardizing the town's fragile peace.

"For somebody to come in and play politics with this, potentially with people's lives, is totally irresponsible," Ramsay said.

"Everything we've been doing has been to lower the temperature so we can get a long-term solution through negotiation. Being reckless and stirring the pot is only going to lead to trouble."

He said he doubted residents feared for their safety, saying the situation is relatively "calm" in Caledonia.

But resident Michael Manning said things are far from calm in his backyard. Manning, whose home is adjacent to the disputed land, said he's had to live with rock-throwing, fires, the drone of ATVs and the glare of headlights through his windows at night.

The Liberals and the provincial police need to restore law and order in the community, he said, before someone gets seriously hurt.

"There are hotheads on both sides," said Manning, 18. "Us residents never asked for this to happen and did nothing to deserve this . . . We have been stripped of all the rights and we want them back."

Aborginals have occupied the former housing development since February, saying the land was illegally taken from them by the Crown over 200 years ago. Their occupation has been marred by barricades that cut the town in half and violent clashes between protesters and residents.

Last week, negotiations between aboriginals and the Ontario government resumed after the Court of Appeal ruled the Six Nations protesters can stay on the land for at least another month.