Toronto's Pride Parade brings millions of dollars into the Toronto and Ontario economies. (Canadian Press)

A gay member of the Conservative caucus is applauding junior cabinet minister Diane Ablonczy's financial support for Toronto's Pride Week, a decision that put Ablonczy in the hot seat with some social conservatives.

And Senator Nancy Ruth says the MP who publicly criticized Ablonczy is one of only a handful who grumbled about the $400,000 tourism grant at a June caucus meeting.

"I give Ablonczy 100 per cent credit for choosing not politically to discriminate against something Pride Toronto had a legitimate reason to apply for and met all the criteria," Ruth said in an interview Thursday.

"It takes guts not to discriminate when you know there is a faction within your party who isn't going to like it. That takes guts and courage and I admire that."

Ruth was appointed to the Senate as an Independent in 2005 by Liberal Prime Minister Paul Martin, but joined the Conservative caucus a year later.

She is a well-known women's rights activist, one of the founders of the Women's Legal Education and Action Fund [LEAF] and a member of the Order of Canada.

She says she has never felt any awkwardness about the fact she is gay from Prime Minister Stephen Harper or any of his staff.

"It just isn't an issue. I'm first and foremost a women's rights activist."

But Ruth says a small minority in the caucus have made it known to her in subtle ways that they don't approve of her sexual orientation.

"This isn't party specific, I think it's more religion specific or philosophy specific — there are those who don't like gays and don't want them around," said Ruth, who is an ordained United Church minister.

Ablonczy announced the grants under the new Marquee Tourism Events Program at a June caucus meeting. When she mentioned Toronto Pride among the other names, Ruth says, a few MPs made audible sounds of disapproval. But the issue was never discussed, and their indignation was not acknowledged at the time by Harper.

Saskatoon MP Brad Trost told a socially conservative website on Monday that most of the caucus and the Prime Minister's Office were upset about the grant. He also suggested Ablonczy had lost control of the tourism program shortly after the Pride Week announcement.

The government denies that is the case, saying the program was transferred to Industry Minister Tony Clement as had been planned in the past. The senator says she doesn't have information about what really happened.

Clement told reporters travelling with Harper at the G8 meetings in Italy that the Marquee Tourism Events Program is being reviewed, along with many other programs, to determine whether the government is getting value for money.

"For next year, I really can't speculate on who will be applying and where that money will go ... but based on value for money for sure," Clement said Thursday.

Ruth says that Pride Week is not her cup of tea, although she took part in the past when she was a political candidate.

She says the event has both an economic value and a social value.

The event brings in millions of tourism dollars to Toronto and the province, but it also provides a safe, positive venue for gays and lesbians who might not all be used to feeling welcome.

"I know people ... who go down to Toronto Pride because it's a way they can identify from their small village or reserve, or wherever, with a larger community that is bigger than where they are, and that's very important."