Canadians will continue to see parts of the federal government's bureaucracy moved from Ottawa to the outer regions of the country, Prime Minister Paul Martin says.

In an interview with The Guardian, the prime minister said he wants to find a fair balance between keeping a core of support services in the nation's capital and relocating new services and jobs to different regions of the country.

Charlottetown is the only city in the country, outside of Ottawa, that's home to a federal government department headquarters. Veterans Affairs was relocated to the P.E.I. capital in 1983.

"I think you are absolutely right, Veterans Affairs in P.E.I. has been very important as was the transfer of the GST centre to Summerside," Martin said in the interview.

"I think that kind of thing has worked very well and I think that Prince Edward Island is a very good example of how it can work. At the same time, there has to be a balance and that's what we're working towards - a balance between Ottawa and the regions."

Charlottetown Senator Percy Downe has written Martin to urge the prime minister to ensure that whole departments, like Veterans Affairs, are relocated out of Ottawa.

"I believe it is important to examine the idea of relocating full departments to the regions - not just components," Downe wrote.

Downe said there is growing support for the idea of relocating federal government departments outside of Ottawa. It's the second time Downe has written the prime minister on the matter.

He has also raised the issue in the Senate where it has received strong support, he said.

The federal government has already taken steps to decentralize the bureaucracy. It announced recently that the Canadian Tourism Commission will be moved to Vancouver. Martin said that's a prime example that the federal government is prepared to bring jobs to the regions.

"I know you're going to say, 'that's fine, that's a long way from P.E.I.' and that's fair. As the government restructures itself to provide better service, we want to make sure that in fact the way those services are delivered are ways that benefit all regions of country, certainly including P.E.I."