Appearance before the Standing Committee on Indigenous and Northern Affairs (INAN) - Economic Development (December 9, 2024)

Logistics

Date: December 9, 2024

Time: 3:30pm to 7:30pm

Location: Room 415, Wellington Building, 197 Sparks Street

Appearing

3:30 p.m. – 5:30 p.m

5:30 p.m. – 7:30 p.m.

Committee Membership

MP Patrick Weiler (LIB – BC) (Chair)
MP Jaime Battiste (LIB – NS)
MP Ben Carr (LIB – MB)
MP Anna Gainey (LIB – QC)
MP Michael V. McLeod (LIB – NWT)
MP Brendan Hanley (LIB – Y.T.)

MP Jamie Schmale (CPC – ON) (Vice-Chair)
MP Eric Melillo (CPC – ON)
MP Martin Shields (CPC – AB)
MP Bob Zimmer (CPC – BC)

MP Sébastien Lemire (BQ – QC) (Vice-Chair)

MP Lori Idlout (NDP – Nunavut)

Parliamentary Analysis

• MP Patrick Weiler (LIB) (Chair) may ask questions about housing for Indigenous communities, as well as efforts for increased consultation with Indigenous peoples.
• MP Michael V. McLeod (LIB) will likely ask questions that pertain to communities in his riding of the Northwest Territories, including the Indigenous and Northern housing and infrastructure funding gap in communities in the territories. He has previously asked questions related to climate change response and mitigation, including wildfire recovery supports for Indigenous and Northern communities. He also may ask questions related to tuberculosis elimination strategies in Inuit and on-reserve areas, inconsistencies regarding medical travel escorts, and the inability of Métis children with autism to get support from Jordan's Principle. During the previous meeting on Ministerial Priorities he asked about current land claims and self-government negotiations that were underway as well as next steps for Indigenous housing funding.
• MP Brendan Hanley (LIB) may ask questions specific to his riding, Yukon. He may ask about self-governance for Indigenous communities, specifically those in his riding. He may also ask questions on Northern economic development and support for Indigenous-owned businesses. During the previous meeting on Ministerial Priorities he asked about funding commitments for residential school ground searches in his riding of Yukon. He also asked about improvement to the NIHB program, specifically relating to the medical travel component of the program.
• MP Jaime Battiste (LIB), Parliamentary Secretary to the Minister of Crown-Indigenous Relations, has been a strong advocate for First Nations, Métis, and Inuit issues throughout his career. He may ask questions about Jordan's Principle, as well safe drinking water in Indigenous communities. During Minister Hajdu's appearance at OGGO on Indigenous Procurement, he asked about collaboration with Indigenous peoples to determine Indigenous status and community citizenship.
• MP Ben Carr (LIB) may ask questions that pertain to Indigenous communities in his home province (Manitoba). He may also ask about child and family services, as well as the opioid crisis.  During officials' appearance on Supps C, he asked about supports for Indigenous education and investments in Churchill, MB. During the previous meeting on Ministerial Priorities, he asked questions specific to work being done in Manitoba, specifically investments in the revitalizing of the Hudson's Bay building and the redevelopment of Portage Place.
• MP Anna Gainey (LIB) asked about the state of the Canadian High Arctic Research Station during officials' appearance on Supps C. She also asks questions about the implementation of UNDRIP. During the previous meeting on Ministerial Priorities, she focused on commitments under UNDRIP and asked about the importance of removing barriers to education for Indigenous students, specifically in her province of Quebec.
• MP Jamie Schmale (CPC) (Vice-Chair) is also the CPC Critic for Crown-Indigenous Relations and Critic for Indigenous Services. He will likely highlight economic reconciliation in his questions. He may ask questions related to: the department's progress on payments for out-of-court settlements; the Nutrition North Canada Program's targets and timelines; and tie his questions to the carbon tax.  He may seek updates on MMIWG recommendations and a Red Dress Alert, and be critical of how slow the Government has been to act on this; the failure to provide Indigenous communities with support to manage environmental emergencies like floods and wildfires; remaining boil water advisories on reserves; and ISC's failure to provide Indigenous communities with support to manage environmental emergencies like floods and wildfires. During the previous meeting on Ministerial Priorities, he asked about the renewal of funding for Indigenous friendship centres, Indigenous procurement and the Canadian Health Agency.
• MP Eric Melillo (CPC) may ask questions about food insecurity, medical transportation in northern and remote communities, the Grassy Narrows care facility, and infrastructure gaps in Indigenous communities. He may criticize the Nutrition North program and ask what steps are being taken to lower food costs in the North. His questions will likely support an economic reconciliation approach. During the previous meeting on Ministerial Priorities, he asked about First Nations policing and the lack of funding from the Federal government.
• MP Bob Zimmer (CPC) is the CPC Critic for Northern Affairs and Arctic Sovereignty, as well as the Critic for the Canadian Northern Economic Development Agency. He has previously asked for breakdowns of funding for several Specific Claims by community. He may ask questions about the funding for the Nutrition North Canada Program and the need for it to benefit people rather than corporations. He is interested in  Arctic security and defence. He may ask questions regarding boil water advisories in Indigenous communities and cancelled or delayed critical infrastructure projects in Nunavut. During the previous meeting on Ministerial Priorities, he questioned the government's performance in reducing boil water advisories, building houses, and improving affordability in the North.
• MP Martin Shields (CPC) may ask questions about food insecurity and may tie food insecurity to the carbon tax. He may also ask questions on water security and water and wastewater systems. During the previous meeting on Ministerial Priorities, he asked about Indigenous housing and the government's progress on new housing units.
• MP Sébastien Lemire (BQ) (Vice-Chair) is also the BQ critic for Crown-Indigenous Relations and Northern Affairs. He will likely ask questions related to funding for the TRC's Calls to Action, wildfires, water insecurity, and housing. He may ask about the lack of funding for Indigenous issues. During officials' appearance on Main Estimates, he asked about mental heath services available for Indigenous youth, specifically teenagers. He also asked about funding requests for the Yänonhchia' housing initiative, the Indigenous and northern infrastructure gap, as well as Indigenous housing programs and supports. During the previous meeting on Ministerial Priorities, he asked about economic reconciliation and the asked again about the Yänonhchia housing initiative. He also asked what measures are being taken to ensure that Francophone communities are not being discriminated against within Indigenous organizations, as well as through government funding and supports, and First Nations policing.
• MP Lori Idlout (NDP), the critic of Crown-Indigenous Relations and Northern Affairs, will likely ask questions that pertain to her riding in Nunavut. She will likely be critical about the sunsetting of funding for various ISC programs, including ones for mental health and wellness, the legacy of residential schools, Jordan's principle, the Inuit Child First Initiative, and housing, water, and community infrastructure. She will likely highlight the infrastructure gap in Indigenous communities and ask about the correlation between poor housing and health issues, a lack of affordable housing in Nunavut, funding for infrastructure, water infrastructure challenges on reserves, and the low funding for education infrastructures, including calling for the funding of 13 Inuit-language and cultural schools in the near future. She may also ask about health, tuberculosis rates, medical transportation in the North, and the Grassy Narrows care facility. She will likely be critical of the funding for the Nutrition North Canada Program benefiting corporations rather than people in the north. She may ask questions related to reconciliation, including on Bill S-16 (Haida Nation Recognition Act), Red Dress Alert, MMIWG, police-involved Indigenous deaths, and unmarked graves. During the previous meeting on Ministerial Priorities she asked about Nutrition North, Jordan's Principle funding, and the government's lack of cooperation with Indigenous peoples.

Recent INAN studies, reports and government responses

• Bill C-61, An Act respecting water, source water, drinking water, wastewater and related infrastructure on First Nations lands (last meeting on November 25, 2024).
• Appearance of the Member of Parliament for Edmonton Centre (last discussed November 21, 2024)
• Nutrition North Canada (last meeting on May 8, 2024)
• Tax Revenues from Businesses on First Nations Territories (last meeting on June 10, 2024)
• Report 17: Bill S-16, An Act respecting the recognition of the Haida Nation and the Council of the Haida Nation (presented on October 24, 2024)
• Report 15: Main Estimates 2024-2025 (presented on May 30, 2024)
• Report 14: "We Belong to the Land": The Restitution of Land to Indigenous Nations (presented on May 8, 2024)

Recent Correspondence

• Lori Idlout (NDP): November 4, 2024 – Support letter regarding the finalization of the Nunavut Land Use Plan.
• Lori Idlout (NDP): October 28, 2024 – Contaminated Transport Canada Dock polluting Indigenous waters and endangering health.
• Lori Idlout (NDP): October 11, 2024 – Correspondence regarding Tax on Bulk Water – Igloolik, NU Co-Op and Northwest Company Northern Store.
• Lori Idlout (NDP): August 26, 2024 – Elder Care Facility in the Wiikwemkoong Unceded Territory.
• Lori Idlout (NDP): July 29, 2024 – Correspondence regarding funding cuts to finding unmarked graves of Indigenous children who attended residential schools.
• Lori Idlout (NDP): Aril 12, 2024 – Indigenous Class Action Lawsuit Settlement Claims.
• Bob Zimmer (CPC): April 23, 2024 – Letter regarding assistance with searching for historical Indigenous records.
• Eric Melillo (CPC): March 4, 2024 – Tragic fire in Cat Lake First Nation that destroyed their nursing station.
• Lori Idlout (NDP): March 19, 2024 – Auditor General's report regarding housing in First Nations communities.
• Lori Idlout (NDP): January 4, 2024 – Information request on trilateral senior officials committee on housing (Initiated by MINO).

Members OPQs/Petitions

• Jamie Schmale (CPC): November 20, 2024 – Indigenous Business Directory. Response not yet tabled.
• Eric Melillo (CPC): October 9, 2024 – Expenditures related to the cabinet retreat which took place in Halifax, Nova Scotia, from August 25 to 27, 2024. Response sent to PCO.
• Bob Zimmer (CPC): September 25, 2024 – Giant Mine remediation project. Response tabled November 19, 2024.
• Bob Zimmer (CPC): October 17, 2024 – Organizational chart of departments within Northern Affairs Canada. Response sent to PCO.
• Lori Idlout (NDP): September 20, 2024 – Contracts with healthcare agencies to serve rural and remote Indigenous communities at ISC, broken down by fiscal year, since 2017-18. Response tabled November 6, 2024.
• Lori Idlout (NDP): October 1, 2024 – Indigenous Health Equity Fund for fiscal year 2024-25. Response tabled November 19, 2024.
• Lori Idlout (NDP): October 1, 2024 – Contaminated sites and waste sites in Nunavut. Response tabled November 19, 2024.
• Jamie Schmale (CPC): Petition e-4982 – Indigenous Identity Fraud. Certified August 6, 2024.
• Lori Idlout (NDP): Petition e-5164 – Indigenous peoples right to safe drinking water. Open for signature.

In the Media

• "This is fraud": Indigenous leaders sound off on federal procurement program - National | Globalnews.ca
• First Nation issues state of emergency amid growing violence, asks Quebec police to step up | CBC News
• Report calls on Ottawa to launch 20-year probe into missing Indigenous children | Globalnews.ca
• Nunavut gov't takes fight against Inuktut education lawsuit to Supreme Court of Canada | CBC News
• Six Indigenous deaths after interacting with police in last 2 weeks | aptnnews.ca
• Auditor general considering probe into Indigenous procurement program - National | Globalnews.ca
• Ottawa failing to meet Jordan's Principle deadlines for First Nations kids' care most of the time | CBC News
• $349B needed now to close infrastructure gap by 2030, Assembly of First Nations says in report | CBC News

Meeting Proceedings

The meeting is tentatively  scheduled for December 9, 2024.

The Chair will call the meeting to order and provide instructions for the meeting proceedings. They will then introduce the witnesses and invite the Ministers to deliver opening remarks (limit of 5 minutes). This will be followed by a Q&A period (details below).

It is recommended that all speakers speak at a moderate pace and at an appropriate volume to ensure they are heard by the interpreters. All witnesses are asked to mute their microphones unless they are speaking. A new practice that was recently instituted as a measure to protect interpreters from injury, is that when earpieces are not in use by witnesses, that they be placed on the designated white circles installed on the table.

Following the opening remarks, there will be rounds of questions from Committee members (as listed below). The rounds of questioning will repeat when the second panel commences in the second hour.

Departmental Officials appearing as witnesses should avoid making commitments to parliamentarians outside of the meeting's official proceedings. If a Member of Parliament or Senator approaches a witness asking for information, they should politely redirect that request to the Clerk of the Committee, who will then officially liaise with the Department.

Witnesses should be prepared for interruptions and heated exchanges and remain calm and poised while at the table.

Committee members will pose their questions in the following order:

• First round (6 minutes for each Party)
  • Conservative Party of Canada
  • Liberal Party of Canada
  • Bloc Québécois
  • New Democratic Party of Canada
• Second round
  • Conservative Party of Canada (5 minutes)
  • Liberal Party of Canada (5 minutes)
  • Bloc Québécois (2.5 minutes)
  • New Democratic Party of Canada (2.5 minutes)
  • Conservative Party of Canada (5 minutes)
  • Liberal Party of Canada (5 minutes)

The meeting can be watched via ParlVU, however there may be an up to 70-second delay with the webcast.

Other Information for Appearing In-Person

Witnesses should arrive early to allow time for security screening. Screening could take 30 minutes or more for those without a Hill pass.

FNFMA

One way we're doing this is through the First Nations Fiscal Management Act, which supports First Nations in building and strengthening both their communities and economies.

Before this Act was introduced in 2005, First Nations governments did not have access to long-term, affordable capital in the same way other governments do.

Under the Act, the Government of Canada supports the operations of four First Nations-led institutions:

• the First Nations Financial Management Board,
• the First Nations Tax Commission,
• the First Nations Finance Authority,
• and the newly established First Nations Infrastructure Institute.

These Fiscal Institutions have a proven track-record of building First Nations financial management and fiscal capacity, and providing access to capital.

They support First Nations by approving First Nations laws, building capacity, increasing accountability, establishing good governance and providing access to low interest financing from capital markets.

While participation is entirely optional, the work we are doing together with First Nations is making a difference:

• 373 First Nations are currently scheduled to the Act — representing nearly 60% of all First Nations;
• 153 First Nations are exercising property taxation jurisdiction under the Act, collecting approximately $100 million in annual property tax revenue;
• 248 First Nations have had their financial performance certified; and,
• 95 First Nations have accessed over $2.6 billion in loans from the First Nations Finance Authority for infrastructure, housing and economic development projects – with no defaults, I might add.

Last year, we co-developed amendments to the Fiscal Management Act, Bill C-45, with Indigenous partners.

The amendments address some of the barriers to First Nations' economic development. For example, they provide communities with supports and tools to generate revenues from property taxation, and access long-term financing to build infrastructure through the new First Nations Infrastructure Institute.

Projects are underway with the Chippewas of Kettle and Stony Point, Sts'ailes [St-hail-es] and Paq'tnkek [buck-n-keg] First Nations, as well as the Atlantic First Nations Water Authority and the First Nations Health Authority in B.C., to support infrastructure service transfers to Indigenous organizations.

Additions to Reserve

First Nations taking land back is fundamental to unlocking barriers to First Nations economic growth. 

In that sense, getting access to more land is one way First Nations can capitalize on economic opportunities and build wealth. That is why we are redesigning the additions to reserve policy through engagement and co-development with First Nations. I'm also working closely with Minister Hajdu on this.

In August, we announced two important interim changes, and I recently announced another seven. These changes were proposed by the Lands Advisory Board, and have been supported by the AFN and other First Nations experts.

They streamline the process in important ways. For example, one change makes environmental assessments more flexible. Another makes it easier to apply for ATRs. And another refines dispute resolution, so that concerns from negotiations don't slow down reserve creation.

These changes to the process are addressing historical injustices, supporting self-determination and empowering First Nations to lead their own land-related processes.

Another way is for First Nations to become part of the Framework Agreement on First Nation Land Management to govern their own lands and associated economic activities outside of the Indian Act.

While these changes will provide some relief, there is a lot more work to do. A more fundamental overhaul of the additions to reserve policy is underway, to make the process faster and simpler — and we're continuing to work with First Nations on this.

Land Registry

Land registration is also fundamental to seizing economic opportunities. My department is working in partnership with the Lands Advisory Board and the Lands Title Survey Authority of BC to develop a First Nations Lands Registry for Land Code First Nations. 

This will allow First Nations to register interests on their land at the speed of business and improve economic development opportunities. This project is in its developmental stage, but so far, it is a major success and the first ever First Nations lands registrar has been hired.

Specific claims

Another part of advancing economic reconciliation is negotiating compensation for land lost and other past wrongs through the specific claims process.

We have accelerated specific claims resolution. Working in partnership with First Nations, from January 1, 2016, to November 30, 2024, 321 claims have been resolved for close to $12.6 billion in compensation. We are also accepting 95% of claims for negotiation compared to 65% ten years ago. First Nations can use settlements to invest in their communities and economic development priorities.

In October, I travelled to Treaty 5, 6 and 10 territories to announce settling 9 claims, worth almost $1.4 billion. These settlements happened under the strategy for expediting the resolution of agricultural benefits.

As you can see, Mr. Chair, we are making progress.

In the last 5 years, my department has settled an average of $1.7 billion in claims per year with First Nations across Canada.

A study completed by Fiscal Realities Economists estimated that the $1.7 billion in compensation has resulted in:

• Nearly 7,000 jobs,
• $455 million in labour income, and
• $718 million in GDP growth.

This is a significant boost to the First Nations-led economy, and it's having a positive, tangible economic impact in communities.

I met recently with the AFN Chiefs Committee on Lands, Territories and Resources where I provided assurance that this work is a priority for us for the months ahead.

Honouring Canada's legal obligations and properly compensating Indigenous Peoples for what was unlawfully taken or withheld from them is fundamental to advancing the United Nations Declaration on the Rights of Indigenous Peoples.

Conclusion

Mr. Chair, collectively, the supports offered through the First Nations Fiscal Management Act, additions to reserve policy and specific claims process are advancing reconciliation, self-determination and socio-economic development in First Nations.

I know committee members have raised concerns about procurement and the Indigenous Business Directory. As this work is led by Indigenous Services Canada, I will let my colleague, Minister Hajdu, speak to it. However, I will say that a key element of self-determination is being able to define who is Indigenous — and who is not — without government involvement.

To do so, it is important for us to support, and follow the lead of Indigenous Peoples on their paths to self-determination and economic prosperity.

I'm happy to answer any questions.

Meegwetch. Qujannamiik [Koo-ya-na-meek]. Marci. Thank you. Merci.

Key Messages

• Crown-Indigenous Relations and Northern Affairs Canada is committed to fostering economic reconciliation leading to opportunities for Indigenous businesses through the mandatory minimum target of 5% of the dollar value of federal contracts awarded to Indigenous businesses.
• In 2023-24, CIRNAC issued a total of $24M in contracts, of which $2.7M were issued to Indigenous businesses for a result of 11.2%. The Indigenous Benefit Component of the Northern Contaminated Sites Program is estimated at $60M out of a total of $200M for a result of 30%, however, due to reporting constraints these results are not included in official totals. CIRNAC will continue to work with PSPC and TBS on a process to have this work included.
• Contracts awarded to Indigenous businesses include:
  • Research and Development
  • Translation services
  • Professional Services
  • Education and Training Services
  • Computer Equipment
  • Management Consulting
  • Office furniture and furnishings

Background

• The majority of contracts awarded to Indigenous businesses are done using a competitive process through mandatory PSPC supply arrangements and standing offers. These PSPC tools provide the opportunity to issue the solicitation to pre-qualified Indigenous businesses in the stream and category of the services needed.  These businesses are all identified in the Indigenous Business Directory.
• The services provided by these companies were all as per scope identified in the contract and they delivered accordingly.
• When initiating a procurement requirement the Department supports and promotes the participation of Indigenous businesses in contract opportunities by ensuring project authorities have considered Indigenous businesses. 

Key Messages

• Indigenous procurement is a key driver of economic reconciliation. 20 of the 27 Modern Treaties include specific procurement obligations; beyond this, these agreements reflect renewed relationships where mutual objectives can be met through economic partnership.
• Procurement policies are not just about fulfilling the minimum obligations included in the agreements; their objective is to meaningfully address the economic legacies of colonialism on Indigenous peoples and to create opportunities for economic prosperity, self-reliance, and Indigenous business leadership.
• Meeting procurement obligations and objectives in Modern Treaties is a whole-of-government responsibility.

Background

• While the specific procurement obligations, objectives and requirements vary,  they are all aimed at enhancing the economic opportunities for Indigenous peoples and are binding on Canada.
• All federal departments are responsible for remaining aware of, and ensuring they are fulfilling, Modern Treaty obligations, including those relating to procurement.
• The oversight, coordination and guidance, on various aspects of the whole-of-government procurement process are shared between a number of federal departments. CIRNAC is responsible for exercising leadership in relation to the broad implementation of treaties and other agreements with Indigenous peoples at various interdepartmental forums, including:
  • Modern Treaty procurement obligations and objectives, as well as, issues on procurement requirements can be raised at these Implementation tables and are subject to dispute resolution mechanisms like any other Treaty provision.
  • Federal implementation of Modern Treaty procurement requirements can also be reviewed, and issues identified, at the Deputy Ministers' Oversight Committee and the Director Generals Implementation Committee.
• Other means for CIRNAC to support Departments in meeting Modern Treaty obligations including those related to procurement is the Aboriginal and Treaty Rights Information System (ATRIS) which assists procurement officers in determining how to adequately prepare their procurement strategy in Modern Treaty areas. ATRIS is a web-based system intended to provide up-to-date, site-specific information on potential or established Indigenous or treaty rights of Indigenous peoples across Canada. This system can also provide contact information for communities and leadership of Indigenous Peoples in a proposed project area which may assist in assessing local business and labour capacity.
• The Government of Canada has also developed a mandatory, Nunavut-specific procurement policy related to goods, services, leases and construction delivered within or into the Nunavut Settlement Area. The objective of the policy is to increase the participation of Inuit firms competing for government contracts. It provides for Inuit skills training and development as well as preferential contracting mechanisms for Inuit owned and operated businesses and establishes review and oversight mechanisms, including an annual implementation review committee.

Key Messages

• Meaningful, distinctions-based economic reconciliation is consistent with the United Nations Declaration on the Rights of Indigenous Peoples Act (UNDA).
• Effective reconciliation requires ongoing horizontal collaboration across the federal government.  For example:
  • Indigenous Services Canada is the lead on the Government of Canada's Economic Reconciliation Framework.  This Framework has three phases:  a) developing a policy statement; b) distinctions-based strategies; and, c) concrete policy proposals.
  • Where applicable, CIRNAC will support other key initiatives such as Natural Resources Canada's National Benefit-Sharing Framework.  
    
• The Government of Canada is also working with proposals from the National Indigenous Economic Strategy (PDF) (proposed by a large group of partners working in economic development) and the RoadMap Project from the First Nations Financial Management Board.  

Background

• Crown-Indigenous Relations contributes to economic reconciliation via implementing key actions in three main areas:
  • Working in partnership with Indigenous leaders on the efficient operation and support for existing institutions, and the development of potential new Indigenous-led institutions that help build economic, financial and planning capacity in communities as well as increase access to affordable capital (see issue paper on Access to Capital (Financial Institutions) in this binder for more information);
  • Working with FN partners to improve access to land via the redesign of the additions to reserve policy.  Access to more land is a critical element for First Nations to capitalize on economic opportunities and build wealth.
  • The negotiation of  compensation for land lost or other past wrongs via the specific claims process.

Current Status

• A redesigned ATR policy is in development through engagement and co-development with First Nations.
• Options for Specific Claims Reform, including the potential for the development of an independent centre for the resolution of specific claims is also the subject of engagement and co-development with First Nations.

Key Messages

• Modern Treaties and Self-Government Arrangements provide concrete and agreed-upon measures to further economic development. When fully implemented, these agreements are powerful engines for economic reconciliation.
• By clarifying land and resource rights, and recognizing Indigenous jurisdiction in key areas of economic development, Modern Treaties and Self-Government Arrangements enable Indigenous partners to identify and pursue their own economic priorities in a manner that reflects their unique historical and cultural contexts.
• These agreements support Canada in advancing elements of the recommendations made by the Standing Committee on Indigenous and Northern Affairs in its second report on barriers to Indigenous economic development. This includes recommendation 21, on Indigenous participation in the resource extraction industry and the energy sector transition, as well as recommendation 24, on infrastructure funding and engagement in northern and remote Indigenous communities.

Background

• Since 1975, Canada has negotiated and signed 27 Modern Treaties with Indigenous groups in Canada, covering over 40% of Canada's land mass. 18 Modern Treaties contain self-government provisions or associated Self-Government Arrangements. Canada has also negotiated a number of standalone Self-Government Arrangements with Indigenous partners.
• The spirit and intent of  Modern Treaties and Self-Government Arrangements aligns with the reconciliatory intent behind the Committee's recommendations 21 and 24.
• Recommendation 21: In recognizing Indigenous land title and jurisdiction, Modern Treaties and Self-Government Arrangements enable Indigenous Modern Treaty and Self-Governing partners to seize, and derive the full benefits of, resource extraction projects on their land. Additionally, they are able to do so while developing and enforcing their own environmental regulations, to ensure that economic development is pursued in a manner that is reflective of traditional Indigenous beliefs on sustainability and climate responsibility.
  • The Hackel Hill Wind farm in the Yukon, which will power 650 homes and offset up to 115,000 tonnes of greenhouse gas emissions, was developed by the Kwanlin Dün First Nation's development corporation, making it the first 100% Indigenous-owned wind energy project in northern Canada.  
• Recommendation 24: Modern Treaties also support Indigenous Modern Treaty partners in initiating, creating partnerships, investing or otherwise meaningfully participating in infrastructure projects in their communities and the region as a whole; many Modern Treaties outline specific consultation requirements for major projects taking place on Modern Treaty lands.
  • For example, the 11 Yukon Final Agreements (modern treaties) provide for the implementation of Development Assessment Legislation (the Yukon Environmental and Socio-economic Assessment Act) and the subsequent creation of a Development Assessment Board (the Yukon Environmental and Socio-economic Assessment Board), which includes Yukon First Nations representation and is responsible for assessing and evaluating projects that take place in the Yukon, including on Settlement Lands.
• With respect to funding, including for Northern and remote communities: through Canada's Collaborative Self-Government Fiscal Policy, Canada recognizes that reconciliation and self-government, described in Modern Treaties and Self-Government Arrangements , require a renewed fiscal relationship, developed in collaboration with Indigenous self-governments that supports the political, social, economic and cultural development of the Indigenous community. This includes ensuring that infrastructure funding reflects the realities of northern and remote Indigenous communities, as well as the importance of infrastructure in opening opportunities for the economic development of Indigenous communities.
• Modern Treaty and Self-Government implementation is a whole-of-government responsibility, as outlined in Canada's Collaborative Modern Treaty Implementation Policy. Each department has a role to play in ensuring Canada is living up to its Modern Treaty obligations and objectives, including those relating to economic development.

Key Messages

• The First Nations Fiscal Management Act is an opt-in regime that provides First Nations with an  institutional and legislative framework to exercise jurisdiction in the areas of financial management, property taxation, local revenue generation and infrastructure, as well as access to affordable financing on capital markets.
• The Government of Canada supports the operations of the four First Nations-led institutions under this Act: the First Nations Financial Management Board, the First Nations Tax Commission, the First Nations Finance Authority, and the newly established First Nations Infrastructure Institute.
• The First Nations Finance Authority plays a critical role in providing low cost loans to communities that are scheduled to the First Nations Financial Management Act.  To date, they have provided over $2.6 B of loans with no defaults.
• These Fiscal Institutions have a proven track-record of building First Nations financial management and fiscal capacity, and providing access to capital to First Nations. We are committed to supporting this meaningful and successful work. 
• Indigenous Services Canada, thorough the Aboriginal Entrepreneurship works with the National Aboriginal Capital Corporation Association to provide significant resources to support Indigenous entrepreneurs across the country.
• The 2021 launch of the $153M Indigenous Growth Fund was a significant step forward towards the provision of significant affordable capital to Indigenous entrepreneurs in regions where their local Aboriginal Financial Institution has exhausted their loan capital funds.

Background

• The First Nations Fiscal Management Act is an optional First Nations-led regime that provides a legislative and institutional framework for participating First Nations to assert jurisdiction in the areas of financial management, property taxation, local revenue generation and infrastructure. The regime also facilitates access to financing at preferred rates on capital markets for infrastructure and economic development on a similar basis as other levels of government.
• Four First Nations-led institutions operate under the Act: the First Nations Financial Management Board, the First Nations Tax Commission, the First Nations Finance Authority, and the newly established First Nations Infrastructure Institute. The fiscal institutions support First Nations by approving First Nations laws, building capacity, increasing accountability, establishing good governance and providing access to low interest financing from capital markets.
• Since the First Nations Fiscal Management Act came into force in 2006, the regime has produced impressive results: 373 First Nations are currently scheduled to the Act; 153 First Nations are exercising property taxation jurisdiction under the Act, collecting approximately $100 million in annual property tax revenue. In addition, 248 First Nations have had their financial performance certified; and, through the regime, 95 First Nations have accessed over $2.6 billion for infrastructure, housing and economic development projects.
• The Aboriginal Entrepreneurship program administered by ISC was developed to support Indigenous entrepreneurs by providing grants to leverage loans as well as by subsidizing interests rates.  ISC works with the National Aboriginal Capital Corporation Association (NACCA) to provide financial supports to allow Indigenous entrepreneurs to access loans.  They also provide assistance to entrepreneurs to lower interests rates on loans from banks.
• The Indigenous Growth Fund was launched in 2021 to provide a source of affordable capital to Indigenous Entrepreneurs .  The fund was co-developed with NACCA and the BDC and is now managed by a separate Indigenous corporation in partnership with NACCA.  So far this fund has been successful in making more capital available to entrepreneurs in areas where their local Aboriginal Financial Institution has exhausted their own loan capital.

Current Status (CIRNAC)

• The First Nations Fiscal Management Act has produced significant results:
  • 373 First Nations scheduled to the Act;
  • 295 First Nations have a Financial Administration Law;
  • 248 First Nations have received a Financial Performance Certificate;
  • 64 First Nations have achieved Financial Management Systems certification;
  • 153 First Nations have a property tax system under the Act, with an estimated total annual tax revenue under the Act of approximately $100 millon; and,
• Over $2.6 billion in financing has also been accessed by 95 borrowing First Nations for infrastructure and economic development projects.
• Crown-Indigenous Relations and Northern Affairs Canada continues to work closely with the Fiscal Institutions on enhancements to the First Nations Fiscal Management Act, innovative proposals that support First Nations' governance, economic reconciliation and access to financing as well as institutional funding proposals.

Key Messages

• The Government of Canada recognizes the importance of addressing housing and infrastructure needs in Inuit Nunangat, and in Métis, Modern Treaty and Self-Governing First Nations, and northern communities. Since 2016, Crown-Indigenous Relations and Northern Affairs Canada has invested:
  • $2.5 billion to help address critical housing; and,
  • $1.3 billion to address community infrastructure.
• The investments in housing and infrastructure are helping Indigenous and Northern partners to construct, purchase, and renovate homes, including improving energy efficiency; enhancing housing programs and supporting rental assistance; constructing community and cultural facilities; acquiring and developing land for future infrastructure projects; and, investing in training and apprenticeship programs.
• To complement the distinctions-based investments, Crown Indigenous Relations and Northern Affairs Canada is also working with federal, territorial, and provincial partners to support Indigenous and Northern partners in accessing sustainable and safe housing.

Background

• Most recent federal investments supporting infrastructure and housing include:
  • Budget 2021 announced historic investments for Indigenous communities to support critical infrastructure through the Indigenous Community Infrastructure Fund, totalling $4.3 billion over four years. Investments are helping to address immediate infrastructure needs, including multi-purpose community buildings, improved transportation infrastructure, day care facilities, and social housing. This funding sunsets in fiscal year 2024-25.
  • Budget 2022 included $1.6 billion over seven years for dedicated housing investments. This funding will help further address the critical housing needs of Indigenous communities to ensure adequate and affordable housing to achieve better health and socio-economic outcomes.
  • Budget 2024 announced $918 million for Indigenous Housing and Community Infrastructure investments to accelerate work to narrow housing and infrastructure gaps in First Nations, Inuit and Métis communities as follows:
    • $426 million for First Nations on reserve;
    • $62 million for Modern Treaty and Self-Governing First Nations;
    • $370 million for Inuit communities; and,
    • $60 million for Métis communities, including those located in the NWT.
• The Government of Canada has also made dedicated investments in Canada's territorial governments ($200 million) through Budgets 2021 and 2022 to help address their housing and infrastructure needs. These investments ensure that Indigenous and non-Indigenous northerners have access to safe, sustainable and affordable housing.

Current Status

• Since 2016, Inuit have constructed over 626 new housing units, repaired over 469 existing units, enhanced Inuit-led housing programs, and have undertaken critical land acquisition and development work with the direct, distinctions-based investments.
• Since 2018-19, Métis governments helped with the construction or purchase of 1,865 houses; provided downpayment assistance to 2,118 households; renovated 6,524 houses; and provided rent supplements to 10,933 families.
• Modern Treaty and Self-Governing First Nations received funding through Budgets 2021 and 2022 for infrastructure and housing. These were first-of-their-kind investments for Modern Treaty and Self-Governing First Nations who are not part of existing National Housing Strategies. To access these funds, Modern Treaty and Self-Governing First Nations submitted Action Plans identifying their proposed projects in these areas as well as reporting indicators. Crown Indigenous Relations and Northern Affairs Canada will receive updates from Modern Treaty and Self-Governing First Nations partners by the end of these funding initiatives.
• Crown-Indigenous Relations and Northern Affairs Canada is currently working through the Collaborative Fiscal Policy Development process with Modern Treaty and Self-Governing First Nations to develop a second stage life-cycle infrastructure funding model. This model will be based on infrastructure standards prevailing in comparable communities and will support partners who are economically disadvantaged catch up to those standards over time.
• In 2022-23, Crown-Indigenous Relations and Northern Affairs Canada amended fiscal arrangements with 24 Modern Treaty and Self-Government First Nations to implement a lifecycle infrastructure funding approach developed through the Collaborative Fiscal Policy Process. This resulted in $39.8 million in incremental funding for their agreements on an ongoing basis, representing a 154% increase.
• Territorial government investments have focused on new and replacement public housing units, repairs to existing public housing units, making housing stock more energy efficient, and continued investment in people through training and apprenticeship. Results to date include:
  • Delivery of 109 new public housing units;
  • 22 modular housing units were purchased and delivered to communities where new housing projects are underway;
  • remediation initiatives, minor repairs and maintenance projects to existing housing stock and infrastructure facilities; and,
  • 116 major modernization and improvement (repair) projects to sustain and preserve existing public housing stock.
• Crown-Indigenous Relations and Northern Affairs Canada has also established dedicated Intergovernmental Housing Steering Committees for Nunavut and the Northwest Territories to advance solutions and recommendations in response to the critical housing and infrastructure needs.

Key Messages

• First Nations have long had grievances against the Government of Canada for failure to discharge its lawful obligations with respect to pre-1975 treaties and the management of First Nation lands and other assets.
• Since 1973, such grievances have been addressed through the Specific Claims Program, whose objective is to ensure that whenever possible, Canada discharges its lawful obligations to First Nations through the implementation of negotiated settlement agreements, as an alternative to litigation.
• Since 2016, the Government has implemented improvements to the Program, guided by its reconciliation priorities. As a result, the rate of resolution has increased. An average of 39 claims per year have been settled over the last five years, up from an average of 15 claims per year in the previous five years. The proportion of claims accepted for negotiation has also increased from 55% in 2014-15 to 95% in 2022-23. Since 2016, over 300 claims have been resolved for over $12 billion in compensation to First Nations.
• In November 2022, Canada and the Assembly of First Nations launched a process to co-develop reforms to the Specific Claims Policy and Process, including options for the development of an independent Centre for the Resolution of Specific Claims to administer and oversee key aspects of the process.

Ongoing Work and Actions

• CIRNAC and the AFN continue to co-develop options for reform. A joint proposal was made public in June and is used for engagement purposes. Engagement with First Nations on specific claims reforms continues.
• Acceleration measures adopted to date have had success. In 2022-2023, 56 claims were resolved for $3.5 billion in compensation paid to First Nations. This represents a record year in claims resolution.
• In the last 5 years, SCB has settled an average of $1.7 billion in claims per year with First Nations across Canada. Fiscal Realities Economists conducted a study on the economic impacts of these settlements on First Nation communities. Fiscal Realities Economists used past studies in the field, publicly available financial statements from 20 First Nations, reported trust fund objectives, and in-depth interviews with three First Nations. The study estimates that $1.7 billion in compensation to First Nations results in:
  • 6,924 jobs, including 4,548 direct jobs and 2,376 indirect jobs;
  • $455M in labour income, including $304M in direct labour income and $151M in indirect labour income; and
  • $718M in GDP at basic prices, including $472M in direct GDP and $246M in indirect GDP.

Next Steps

• Canada will continue to work with First Nations to accelerate the resolution of specific claims.
• Canada will also continue to work with the Assembly of First Nations and other First Nation partners on the co-development of a reformed specific claims process that meets the aspirations of First Nations and is consistent with the principles enshrined in the United Nations Declaration on the Rights of Indigenous Peoples.

Key Messages

• Barriers to First Nations economic inclusion are caused by factors such as dispossession and lack of control over First Nations lands. First Nations economic reconciliation addresses historical and ongoing economic disparities between First Nations and the rest of Canadian society. It creates equitable economic opportunities, promotes economic self-sufficiency and ensures that First Nations communities can participate fully and fairly in the national economy.
• One of the mechanisms by which the Government of Canada promotes economic reconciliation is by returning lands owed to First Nations under their control through the Additions to Reserve Policy and process.
• CIRNAC is working with First Nation partners to redesign the Additions to Reserve Policy to ensure that land is returned to First Nations in a timely and efficient manner. The redesign represents a significant advancement in the area of economic reconciliation. It is also in line with Canada's priorities, as set out in the UN Declaration and those of First Nation partners. First Nation partners include First Nation rights holders and First Nation national and regional organizations.

Background

• The current Additions to Reserve Policy is complex, time-consuming, risk-averse, and not aligned with First Nations priorities, interests, and governance structures. It can take approximately 2 to 8 years for First Nations to go through the Policy to add land to reserve or create new reserves.
• Budget 2021 provided $43M over three years (reprofiled to four years) to work with First Nation partners and other stakeholders to redesign the Additions to Reserve Policy, with $10.8M to CIRNAC for the redesign and $32.2 million to ISC to accelerate work on existing Additions to Reserve proposals in its inventory. The 2021 budget sunsets on 31 March 2025.
• The redesign of the Policy advances economic reconciliation. A study conducted in 2014 on behalf of the First Nations Tax Commission revealed that the establishment of six selected additions to reserve in urban settings has resulted in the creation of 3,060 jobs on-reserve and 4,328 jobs off-reserve, in addition to approximately 600 seasonal positions. The report also revealed that the investment in urban reserves yielded over a billion dollars of economic benefits for both reserve and off-reserve residents, in addition to millions of dollars of fiscal benefits for First Nations and local governments.
• The redesign is consistent with UNDA Action Plan Measure #5, which outlines CIRNAC's commitment to work with First Nations to redesign the policy. It is also consistent with the response to the May 2024 Fourteenth Report of the House of Commons Standing Committee on Indigenous and Northern Affairs, entitled "We Belong to the Land": The Restitution of Land to Indigenous Nations (the 14th INAN Report). Furthermore, it is in line with the priorities of the Assembly of First Nations and the Lands Advisory Board, which have been mandated by First Nations rights holders to work with Canada to redesign the Additions to Reserve Policy.

Current Status

• CIRNAC has provided approximately $4M in funding 58 First Nation communities and organizations to conduct First Nation-led engagement on Additions to Reserve Policy redesign. CIRNAC received 41 reports from recipients with over 524 recommendations to redesign the policy and process. These reports are being combined into one "What We Heard" report, which will inform a broader long-term transformation of the Additions to Reserve policy and process.
• In the summer of 2024, a Technical Advisory Committee, which includes the National Aboriginal Lands Managers Association, the First Nations Land Management Resources Centre, the Assembly of First Nations, Self-Governing First Nations, CIRNAC and ISC, was established to provide First Nation-led technical advice on the co-development of policy options and the development of a new Additions to Reserve policy and operational guidelines.
• In May 2024, the Lands Advisory Board, through its Resources Centre, suggested nine interim changes to the current Additions to Reserve Policy. Two of the nine interim changed have since been implemented, with ongoing work to implement the remaining seven proposed changes. While these interim changes would streamline the policy and process, a broader transformation is needed to enable First Nations to add land to reserves or create new reserves in a timely and efficient manner. These nine interim changes respond to many of the recommendations made in the 43 reports received from First Nation rights holders and their organizations through the Call for Proposals.
• Next steps:
  • Implement the 7 interim changes to the current Additions to Reserve Policy.
  • Analyze and validate the Call for Proposal reports and draft a final "What We Heard" report.
  • Continue work on the co-development of a broader new policy and operational guidelines.

Program-Level Data

Program / Investment

Additions to Reserves Policy Redesign-Budget 2021

Funding / Performance Indicator Data

$10.8 million (2021-2025) (CIRNAC Funds only)

Key Messages

• In 2016, the Government of Canada committed to direct relationships with the three National Indigenous Organizations through Permanent Bilateral Mechanisms.
• Crown-Indigenous Relations and Northern Affairs Canada collaborates with representatives of the Assembly of First Nations, Inuit Tapiriit Kanatami and the four Inuit Treaty Organizations, and the Métis National Council and its Governing Members through the Permanent Bilateral Mechanisms.
• The Permanent Bilateral Mechanisms focus on, among other things, identifying joint priorities, co-developing policies, and monitoring progress.
• Canada's Collaborative Modern Treaty Implementation Policy established a permanent Intergovernmental Leader's Forum between the Prime Minister, key federal Ministers, and leaders of Indigenous Modern Treaty and Self-Government partners. The forum is similar to the permanent bilateral mechanisms in place with National Indigenous Organizations by providing a venue for direct conversations between leadership on shared priorities.
• Across all three Permanent Bilateral Mechanisms, Crown-Indigenous Relations and Northern Affairs Canada is working with partners to advance distinctions-based Co-Development Principles. The Inuit-Crown Co-Development Principles were the first to be endorsed by leadership at the Inuit-Crown Partnership Committee in December 2022.

Background

• The Assembly of First Nations Permanent Bilateral Mechanism advanced through senior officials meetings in June 2023, December 2023 and April 2024. A Leaders Meeting between Ministers and First Nations leadership was held in June 2024 after a five-year hiatus. It is expected that regular ongoing meetings will follow, pursuant to the Assembly of First Nations-Canada Memorandum of Understanding, including signature of a "letter of understanding" in support of co-development principles and joint priorities. The updated list of Assembly of First Nations-Canada Joint Priorities and co-development principles would be officially endorsed at a future Prime Minister's Summit anticipated in spring 2025.
• In 2023-24, the Inuit-Crown Partnership Committee continued to make progress on 13 priority areas (the Environment and Climate Change priority area is on hold) and associated work plans through Senior Officials meetings held in February, April, and October 2024 and Leaders meetings in May (co-chaired by the Prime Minister) and October 2024. In February 2024, a meeting was held between federal and Inuit senior officials during which a prioritization exercise was undertaken to determine key areas of focus for Senior Officials and Leaders meetings for 2024-25. Key areas of focus agreed upon included: K-12 Education Policy; the Implementation of the Inuit Nunangat Policy; Missing and Murdered Indigenous Women and Girls; and, Health and Wellness – Food Security.
• In 2023-24, the Métis-Crown Permanent Bilateral Mechanism process progressed in moving towards regular meeting cycles; a Summit with the Prime Minister was held in June 2023, followed by a meeting between Ministers and Métis leaders in January 2024. For 2024-25, Crown-Indigenous Relations and Northern Affairs Canada envisioned advancing work with the Métis National Council and the Governing Members on the endorsement and implementation of co-development principles and additional priorities areas under the Permanent Bilateral Mechanism. These additional priorities included health, economic development, emergency management, and primary and secondary education. However, in September 2024, the Métis Nation-Saskatchewan withdrew from the Métis National Council, and in October 2024, the Métis Nation British Columbia withdrew from the Métis National Council's Annual General Assembly and Presidential election. Continued progress with the Métis Nations is currently disaggregated and parties are exploring the path forward.
• To date, there have been two Intergovernmental Leader's Forum meetings. The second and most recent Forum was held in May 2024 and was convened to advance a co-developed agenda that covered nine existing and emerging priority areas. Among the topics were: Bill C-77 - An Act respecting the Commissioner for Modern Treaty Implementation; Bill S-13 - An Act to Amend the Interpretation Act; addressing the toxic illegal drugs crisis; and, Canada's emergency management framework.

Current Status

• While the updated list of Assembly of First Nations-Canada Joint Priorities and co-development principles is not expected to be formally endorsed until early 2025, collaborative work with the Assembly of First Nations will continue in the interim to advance work on the joint priorities themselves.
• Following the Inuit-Crown Partnership Committee Leaders meeting on November 8, 2024, collaborative work continues to advance the implementation of priority areas, namely: K-12 Education Policy; the Implementation of the Inuit Nunangat Policy; Economic Development and Procurement; Health and Wellness – Food Security; and, the Arctic Foreign Policy. The Committee continues to focus on advancing the recommendations outlined in the Evaluation Report "Building a Partnership for Transformational Change" through the Management Advisory Group made up of federal and Inuit senior officials.
• The path forward for the Métis-Crown Permanent Bilateral Mechanism may evolve in light of the recent events concerning the Métis Nation-Saskatchewan and Métis Nation British Columbia. Métis Nation British Columbia will meet with their Chartered Communities in late November 2024 to determine their ongoing status as a governing member of the Métis National Council. Pending the outcome of these meetings, the Métis National Council may hold a presidential election in December 2024.
• Planning is underway for the 2025 Intergovernmental Leader's Forum.

Program-Level Data

Key Messages

• CIRNAC is committed to meeting the statutory obligations from the United Nations Declaration on the Rights of Indigenous Peoples Act (United Nations Declaration Act) and also ensuring the department is equipped to use the United Nations Declaration as an interpretive lens.
• CIRNAC is significantly involved in nearly one-third of the Action Plan Measures in the United Nations Declaration Act Action Plan 2023-2028, and implementation efforts for those Measures are underway.
• CIRNAC has developed tools and processes to support its implementation efforts, including guidelines and a United Nations Declaration consistency assessment tool.

Background

• The United Nations Declaration Act came into force on June 21, 2021, and sets out three key obligations, which are to be carried out in consultation and cooperation with Indigenous Peoples. The Government must:
  • take all measures necessary to ensure the laws of Canada are consistent with the United Nations Declaration (section 5);
  • develop and implement an Action Plan to achieve the objectives of the United Nations Declaration (section 6); and,
  • develop annual reports on progress and submit them to Parliament (section 7).
• Beyond these obligations, the preamble of the United Nations Declaration Act commits Canada to taking effective measures—including legislative, policy and administrative measures—to achieve the objectives of the United Nations Declaration.
• On June 21, 2023, the United Nations Declaration Act Action Plan 2023-28 was publicly released. The Action Plan is a federal road map to support implementation of the United Nations Declaration Act.
• CIRNAC is significantly involved in 55 Action Plan Measures, 44 of which are lead or co-lead by the department. 

Current Status

• CIRNAC has been creating tools and strategies to collect data on the status of each Action Plan Measure the department is involved in to support their timely implementation in advancing the rights of Indigenous Peoples, as defined in the United Nations Declaration. The data collected is supporting CIRNAC to track progress and identify implementation barriers.
• In 2024, CIRNAC integrated a tailored assessment tool into existing processes for submissions to Cabinet committees and for the Budgetary Cycle to support the consistency of all departmental initiatives with the United Nations Declaration.
• The assessment tool supports CIRNAC to ensure that departmental initiatives are undertaken in consultation and cooperation with Indigenous Peoples, and to track implementation of the United Nations Declaration Act.
• As part of the 2023-24 United Nations Declaration Act Annual Progress report, which was tabled in Parliament in June 2024, CIRNAC reported on work to advance 44 Action Plan Measures, including 5 pieces of legislation and 7 regulations.  

Key Messages

• The First Nations Tax Commission (FNTC) and the First Nations Financial Management Board (FNFMB) are key partners in the advancement of First Nations fiscal and financial management jurisdiction.
• The FNTC and FNFMB review and approve fiscal and financial administration laws of First Nations that exercise jurisdiction under the First Nations Fiscal Management Act (FNFMA) and they provide support to First Nations and the Indigenous Services (IS) and Crown-Indigenous Relations (CIR) Ministers for the review of fiscal and 10-year grants financial management by-laws enacted under section 83 of the Indian Act (IA).
• Although Indigenous Services Canada (ISC) and CIR rarely receive requests for ministerial approval of IA section 83 financial administration by-laws that are not related to property taxation or to the eligibility process of the 10-year grants initiative, departmental officials are currently exploring options internally to ensure the timely approval of such by-laws.

Background

• The FNTC and FNFMB review and approve fiscal and financial administration laws of First Nations that exercise jurisdiction under the FNFMA.
• Upon the creation of the ISC and the Crown-Indigenous Relations and Northern Affairs (CIRNA) departments in July 2019,  the Minister of Indigenous Services (IS) became the "Minister" for the purposes of the IA and was empowered to delegate legislative powers like IA section 83 by-law approval to the CIR and the Northern Affairs ministers.
• In May 2020, pursuant to section 14 of the Department of Indigenous Services Act, the Minister of IS delegated the power to approve IA section 83 by-laws to the Minister of CIR. It should be noted that despite the delegation, the Minister of IS can still exercise approval power for section 83 by-laws and accordingly, the Minister of IS continues to approve financial administration by-laws relating to 10-year grant eligibility.
• Pursuant to a 2007 Memorandum of Understanding (MoU), the FNTC provides support to the Minister of CIR for the review of fiscal by-laws related to real property taxation,  property assessments, annual expenditures and annual tax rates enacted by First Nations undersection 83 of the IA. The agreement sets out a direct working relationship with the Minister with no involvement of departmental officials.
• In November 2018, the FNFMB, signed an MoU with the Minister of IS to provide support, advice and opinions to First Nations and the Minister including on the development of IA section 83 financial administration by-laws for 10-year grants eligibility purposes and on the compliance of specific by-laws, financial performance and financial management systems with applicable standards of the Board.
• Both MoUs are silent on IA section 83 financial administration by-laws that are not related to property taxation or to the eligibility process of the 10-year grants initiative and the FNFMB MoU is silent on the examination of by-laws on matters like their conformity with the enabling legislation and the Charter of Rights. The Department of Justice has instead historically provided advice as required to ISC and CIR on these matters.
• Financial management and fiscal law and by-law approvals are time-sensitive.

Current Status

• 153 First Nations have enacted fiscal laws under the FNFMA, collecting  $100 million annually and 24 First Nations have enacted fiscal laws taxing under the IA, collecting $23 million annually.
• 295 First Nations have enacted financial administration laws under the FNFMA.
• Although ISC and CIR rarely receive requests for ministerial approval of IA section 83 financial administration by-laws that are not related to property taxation or to the eligibility process of the 10-year grants initiative, departmental officials are currently exploring options internally to ensure the timely approval of such by-laws.

Key Messages

• The House of Commons Standing Committee on Indigenous and Northern Affairs (INAN) submitted its report entitled Barriers to Indigenous Economic Development in Indigenous Communities on April 25, 2022. The report provided 26 recommendations.
• CIRNAC led the Government Response to the Report, which was tabled in the House of Commons on September 15, 2022. The response sought no new authorities and no new funding.

Background

• While the full Government Response required coordination with and detailed responses from several other Government departments, including the Department of Finance, Justice Canada, Public Services and Procurement Canada, and the Treasury Board of Canada, CIRNAC provided a response to several of the recommendations and has successfully implemented the following that address several major recommendations in the report:
  • The passing of Bill C-45, entitled An Act to amend the First Nations Fiscal Management Act, to make consequential amendments to other Acts, and to make a clarification relating to another Act, which received Royal Assent in June of 2023. The Bill included amendments to establish the First Nations Infrastructure Institute (FNII) as a fourth institution under the First Nations Fiscal Management Act; as well as amendments to modernize and expand the mandates of the First Nations Tax Commission (FNTC) and the First Nations Financial Management Board (FMB) to better reflect the increasing need for their services.
  • The provision of additional funding to support the establishment of FNII ($12.4M over 3 years beginning in 2022-23) and for FMB and FNTC to support their expanded mandates ($54.3M over 5 years beginning in 2022-23).
  • The co-development of legislation with the Lands Advisory Board and the First Nations Land Management Resource Centre to replace the First Nations Land Management Act with the First Nations-led Framework Agreement on First Nation Land Management. The Framework Agreement on First Nation Land Management Act received Royal Assent on December 15, 2022. 

Current Status

• The department has played a significant role in implementing key recommendations of the INAN Barriers to Economic Development report, such as the three mentioned above.
• Access to land is fundamental to increasing economic opportunities. To address this, CIRNAC is working with the AFN, Indigenous Services Canada, the Lands Advisory Board and the National Aboriginal Lands Manager's Association to redesign the additions to reserve policy and process.  So far 9 interim changes to the policy have been introduced which will make the Additions to Reserve process faster and simpler. A more fundamental overhaul of the policy to make major improvements is currently underway.
• Effectively registering interests in land is fundamental to seizing economic opportunities. The Department is working in Partnership with the Lands Advisory Board and the Lands Title Survey Authority of BC to develop a First Nations Lands Registry for Land Code First Nations. This registry will allow First Nations to register interests on their land at the speed of business, greatly improving economic development opportunities.
  • The department is supporting the development of this registry in the amount of $35M.
  • This project is in its developmental stage with a text platform having been developed.  So far it is a major success and the first ever First Nations lands registrar has been hired.  The registry will be fully operational in 2 to 3 years.