Appearance before Senate Committee of the Whole - Bill C-5 (June 17, 2025)

The role of the First Nations Fiscal Institutions in Economic Development

• The First Nations Financial Management Board (FNFMB), First Nations Tax Commission (FNTC) and the First Nations Finance Authority (FNFA) were established nearly 20 years ago under the First Nations Fiscal Management Act  (FNFMA).  The Act was amended in 2023 to create the First Nations Infrastructure Institute.
• These Indigenous-led institutions provide critical services to communities allowing them to assert fiscal jurisdiction through taxation, building financial capacity and managing all aspects of infrastructure planning and development.  The Act also provides an innovative mechanism to provide access to very affordable capital.
• Since 2006, the regime has been very successful with 375 First Nations opting in. Of those, 292 have built significant financial capacity and have enacted Financial Administration Laws. 153 are exercising property taxation powers under the Act generating over $100M in annual revenue for these Nations. Furthermore, 96 First Nations have secured a total of $3.4 billion in financing through the Fist Nations Finance Authority to support infrastructure and economic development projects.
• Many economic development corporations established as part of Indigenous governance structures, particularly across the North, have been able to deliver meaningful results for communities while advancing innovative economic interests.
• As we retool the Canadian economy, we have a great opportunity to build on the success of these institutions by providing further opportunities for them to have an impact.  We are currently examining how these institutions can increase their scope and play a role supporting First Nations communities who want to be involved in projects of national significance.

The role of Indigenous Financial Institutions in Economic Development

• Through the Aboriginal Entrepreneurship Program, Indigenous Services Canada (ISC) supports the National Aboriginal Capital Corporations Association (NACCA) and the Association of Métis Capital Corporations who work with a network of over 50 Indigenous Financial Institutions (IFIs) who provide financial services and loans to Indigenous entrepreneurs in every part of the country.
• Since the 1980s the IFIs network has provided over 50,000 loans totaling $3 billion to businesses owned by First Nations, Métis, and Inuit entrepreneurs. It is estimated that for every $1 million in loans provided by the Indigenous financial institutions, $3.6 million in total GDP and 51 jobs are created.
• There is an opportunity to build on the success of these institutions and further enable entrepreneurs to support and benefit from projects of national significance. NACCA and the Council for the Advancement of Native Development Officers recently announced the Indigenous Defence Supply Chain Pilot, a new pilot program promoting the participation of Indigenous communities and businesses in Canada's defence supply chain.
• My colleague responsible for Indigenous Services Canada (ISC) can give you more in depth information on the IFIs as they fall under her mandate.

If pressed on Additions to Reserve (ATR)

• My Department is responsible for the policy that supports First Nations in expanding their reserve lands through the Additions to Reserve process, which enables greater self-determination in economic planning and development by increasing access to land.
• By facilitating additions to reserves, my Department also helps create opportunities for investments, business, agriculture, and resource development, which generate revenue, employment, and sustainable economic growth for First Nations and surrounding communities.
• Additions to Reserve, especially in urban areas, enable First Nations to access larger markets and collaborate with local governments on infrastructure projects, fostering business growth, partnerships, job creation, and shared economic benefits.

If pressed on the initiative to redesign the ATR Policy

• For decades, First Nations have expressed frustration with the pace at which lands are added to reserves and that many economic opportunities are missed as a result.
• The Government of Canada recognized a comprehensive redesign is needed and is currently co-developing an ATR Policy that will be more efficient and effective, and that will reduce delays and barriers in setting apart lands as reserves.
• Almost three years ago, the Department launched engagement with First Nations and their organizations across the country. Over 930 recommendations were received to inform the new policy.
• In parallel and to help guide the process, my Department established a Technical Advisory Committee formed with representation from the Assembly of First Nations, the First Nations Land Management Resource Centre, the National Aboriginal Lands Managers Association, self-governing First Nations, ISC and Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC).
• The Committee provides technical advice and perspectives to support the development of policy options grounded in recommendations from First Nation-led engagement activities.
• My Department is now working with the Committee to finalize a draft policy based on feedback received through First Nation-led engagement activities. Once complete, the draft will be shared broadly with First Nations and their organizations for further input before the policy is finalized.

The role of Indigenous youth in economic development

• There is an opportunity to support the creation of jobs for Indigenous youth as a means to foster economic independence and sustainable growth for Indigenous communities.
• Indigenous youth are calling on governments to create opportunities to develop and improve skillsets and increase their involvement in decision-making to ensure their needs are met and results are achieved.
• Solutions must account for the barriers and challenges that are unique to Indigenous youth, including intergenerational trauma and systemic racism.

Background

• The FNFMA and institutions provide a legislative framework that builds financial capacity in FN communities, supports low-cost borrowing for economic development and infrastructure projects and provides options for FN to increase their revenue via the collecting of taxes on reserve.  Communities that work with this suite of Indigenous institutions have greatly increased their opportunities for sustainable wealth generation.
• Indigenous Financial Institutions (IFIs) are autonomous, Indigenous-controlled, community-based financial organizations. They provide developmental lending, business financing and support services to First Nations, Métis, and Inuit businesses in all provinces and territories.
• Additions to Reserve (ATR), the process of adding lands to reserves, has long been criticized as inefficient and overly complex, creating barriers to timely land expansion. In response, the Government of Canada launched an initiative to co-develop a redesigned ATR Policy.
• Beginning in January 2022, preliminary engagement sought guidance on how to conduct meaningful consultation aligned with First Nations' priorities. This process led to a call for proposals for First Nation-led engagement activities that generated over 930 recommendations. In summer 2024, a Technical Advisory Committee was established, including representatives from First Nations organizations and government agencies, to provide technical advice grounded in these recommendations.
• Building on this input, the Government of Canada will collaborate with partners to develop an ATR Policy that streamlines the process and offers greater flexibility, better supporting economic development and reflecting First Nations' priorities. Expanding reserve lands can drive wealth creation and economic sustainability by enabling investments in business, tourism, agriculture, and natural resource development—generating jobs and revenue for both First Nation members and surrounding communities. This potential is illustrated by a 2014 study of six urban reserve additions, which demonstrated the significant impact of such expansions by creating over 7,900 jobs on and off reserve and generating more than $1 billion in economic benefits for First Nations and neighboring communities, alongside millions in fiscal benefits for local governments.
• The Indigenous population is the youngest and fastest growing population in Canada between 2016 and 2021 (Census). Among Indigenous youth aged 20-24, 70% had completed high school, in comparison to 91% to their non-Indigenous counterparts. According to the 2021 Census, the employment rate for Indigenous youth was 39.3% and the unemployment rate was 23%, compared with 52.8% and 15.1% for non-Indigenous youth.

If pressed on what tools and supports are being put in place

• Engagement with Indigenous peoples to renew the federal consultation and accommodation guidelines has told us that engagement and involvement in project design from the outset is paramount to advance projects in a timely way.
• Indigenous communities were clear. Early notification allows them time to review project information, mobilize internal capacity, and engage according to their governance protocols. They also noted the importance of capacity support tools.
• Work is also underway to expedite the establishment of new consultation protocols and resource centres for communities who will require them.
  • These tools will help clarify the preferred consultation approaches of communities, as well as providing information and research required regarding implicated communities.
• We are working to modernize and update the Aboriginal and Treaty Rights Information System. This will provide federal officials with more comprehensive and accurate information regarding communities, to better identify who to consult and engage.
• We will continue to listen to Indigenous communities and work to provide them with the tools and resources needed to effectively and meaningfully participate in these processes.

Background

If Pressed on how the legislation will be implemented in relation to Major Projects

• I support my Colleague, the Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs and One Canadian Economy, in advancing the legislation through the Parliamentary process and in working on the development of implementation tools once the Bill is passed.
• I think engagement of Indigenous rights-holders in the implementation process is key. The Indigenous Advisory Council can play a role in this, but complemented by bilateral engagement with Indigenous governments.

If pressed on the federal consultation and accommodation guidelines

• To support federal officials in better fulfilling the duty to consult, work is underway to renew the guidelines that outline the overarching approach to consultation and accommodation for the Government of Canada.
• This work is done through meaningful engagement with Indigenous communities and organizations, with new guidelines to be published in 2026.
• Improving the cultural competency of federal officials was recommended, through on-the-ground learning that reflects each community's unique history, culture, governance, and protocols.
• Consultation and accommodation processes must better reflect the spirit of true nation-to-nation collaboration and partnerships.

If pressed on Free, Prior and Informed Consent

• The renewal of federal consultation guidelines is underway through engagement with Indigenous peoples, and explores free, prior, and informed consent within the legal duty to consult.
• The Government expressed being committed to follow the principle of free, prior, and informed consent; and the Department of Justice continues to lead on the subject more broadly.

Agreements

• We are building lasting relationships with Indigenous partners that promote economic prosperity and social well-being through modern treaties, self-government agreements, and other collaborative arrangements.
• Canada has more than 170 active negotiation tables with over 500 Indigenous groups, supporting Indigenous peoples in realizing their vision of self-determination through the implementation of treaties, self-government and other constructive arrangements.
• Treaties with Indigenous peoples include both historic treaties with First Nations and modern treaties.
  • The Government of Canada recognizes 70 historic treaties in Canada signed between 1701 and 1923.
  • Canada is implementing 30 comprehensive Modern Treaties and Self-Government Arrangements with 34 Indigenous partners, as well as 10 sectoral agreements.
• The Government of Canada is committed to fostering ongoing relationships with modern treaty and self-government partners to fulfill legal obligations and achieve shared goals.

Claims

• Specific claims are historic grievances that First Nations have against the Government of Canada for failing to meet its obligations under pre-1975 Treaties and for breaching lawful obligations in the administration of First Nation lands and other assets. Through the Specific Claims process, Canada can address these historical grievances through negotiation rather than litigation.
• Continuing to make progress on the resolution of specific claims will support reconciliation with Indigenous peoples by demonstrating the Government's commitment to addressing wrongs of the past and to engaging First Nations in strengthening the Canadian federation and economy. Claims settlements can help position First Nations to invest in their communities and in economic development, including in projects of national interest.
• As Minister of Crown-Indigenous Relations I have the responsibility to manage more than 750 specific claims at different stages of the process, including 400 in negotiation.
• 69 claims were settled in 2024-25 for $7 billion in compensation to First Nations. This includes 37 agricultural benefits claims with First Nations in Treaties 4, 5, 6 and 10 for $5.28 billion in compensation.
• A report commissioned by the Department reinforces the broad economic impacts of specific claim settlements. It is estimated that $1.7 billion in settlements creates nearly 7,000 jobs, for $455 million in labour income, and increases Gross Domestic Product by $718 million.

If pressed on economic benefits of negotiation of agreements with Indigenous groups:

• Modern treaties and self-government arrangements serve as a powerful engine for economic prosperity for both Indigenous peoples and all of Canada by providing legal and regulatory stability for investors, enabling greater Indigenous decision making, and promoting greater capacity and economic integration.
• Negotiating with Indigenous groups to advance self-determination and self-sufficiency empowers communities to capitalize on opportunities in key industries, thereby strengthening the Canadian economy and enhancing its global competitiveness.
• As of May 2025:
  • Number of active negotiations: 173, plus 16 Treaty 8 annuities tables
  • Number of modern treaties: 30
  • Number of completed stand-alone self-government agreements: 4
  • Number of completed sectoral agreements and governance agreements (non-treaty): 5
  • Number of completed constructive arrangements: 48

If pressed on the specifics of settling litigation:

• Unresolved Indigenous claims to unceded Aboriginal title and rights create uncertainty over the use and ownership of lands, as well as Crown obligations stemming from those rights.
• Indigenous groups are entitled to choose their preferred forum to resolve their legal issues, and sometimes litigation will be unavoidable. Resolving litigation out of court, however, allows parties to dictate the outcome. This is preferable to court decisions that may constrain problem-solving approaches that promote reconciliation and advance the interests of all parties.
• There are 31 active Aboriginal title cases across Canada—about one-third of which are in British Columbia—and 129 inactive cases spread across all jurisdictions except Nunavut.
• Settling litigation with Indigenous groups benefits the economy in the following ways:
  • Helps resolve disputes, allowing projects and investments to proceed without costly legal hold-ups
  • Builds trust and establishes strong relationships that encourage collaboration on resource development and business ventures
  • Creates stable conditions for economic development
  • Supports reconciliation and social well-being in Indigenous communities by supporting healthier and more prosperous Nations

If pressed on the Arctic and Northern Policy Framework

• The Arctic and Northern Policy Framework was co-developed with Indigenous Peoples and territorial and provincial governments to provide overarching direction to the federal government's activities, priorities and investments in the region.
• Our Government recognizes that more needs to be done to close gaps and fulfil the vision laid out in the Framework- our 2025 platform laid out commitments to do this by investing in Northern infrastructure.
• We are committed to ensure that northern and Arctic perspectives are integrated into federal initiatives, including measures to support northern interests, industries and workers in the face of unjustified US tariffs. 

If pressed on engagement of Northern and Arctic partners in Arctic Sovereignty:

• Northern and Arctic people are at the heart of Canada's identity as a Northern and Arctic nation. They must also be at the heart of planning for the future.
• Our government will deepen collaboration and partnership, by leveraging, and improving on, existing relationships and partnerships, and moving to action.

Addressing the Infrastructure Gap

• Critical infrastructure gaps remain in Indigenous communities in areas such as roads, housing, schools, and communications.
• There are significant economic opportunities that closing the infrastructure gap presents, as was highlighted in the recent Conference Board of Canada Report for the Assembly of First Nations.
• We're seized with the economic benefits that would result from closing this gap, but also the opportunity before us to address long-standing issues within Indigenous communities.
• We must be innovative in our approaches to funding this infrastructure to find opportunities for near-term socio-economic impacts while remaining fiscally responsible.
• We must ensure that the future of Indigenous communities is self-determined by Indigenous peoples themselves.
• I will continue to work with my colleagues, including the Minister of Indigenous Services and the Minister of Northern and Arctic Affairs, to support closing the infrastructure gap in Indigenous communities across this country.

Background

• Budget 2021 included $4.3 billion over 4 years for the Indigenous Community Infrastructure Fund. This distinctions-based fund has been supporting immediate demands, as determined by Indigenous partners for ongoing, new and shovel-ready projects in First Nations, including Indigenous Self-Government and Modern-Treaty partners, Inuit, Métis Nation communities and northern First Nation and northern Métis communities.
• Crown-Indigenous Relations and Northern Affairs Canada has flowed $1.3 billion of the Indigenous Community Infrastructure Fund to Self-Government and Modern-Treaty partners, Inuit Treaty Organizations, Métis partners, and northern Indigenous partners.
• Budget 2024 also committed $918 million for Indigenous housing and infrastructure.
• The Assembly of First Nations and the Conference Board of Canada released new findings highlighting the significant socio-economic benefits of closing the First Nations infrastructure gap in May 2025. Previous analyses confirmed that a federal investment of $349.2 billion over 10 years is needed to close this gap, but that it would support nearly 338,3000 full-year jobs annually, and, over the next seven years, would generate $308.9 billion in GDP, $86.7 billion in government revenues, and $202.7 billion in labour income.
• In 2022, Inuit Tapiriit Kanatami, in collaboration with the four Inuit Treaty Organizations, submitted a report outlining that $55.3 billion over 10 years and $793.7 million annually would be required to support their priority projects to narrow the infrastructure gap in Inuit Nunangat.
• In 2022, the Métis National Council identified immediate infrastructure investments needs in British Columbia, Alberta, Saskatchewan, and Ontario of $2.41 billion over six years, while the Manitoba Métis Federation identified immediate investments needs of $299.2 million over 10 years.