INAN Committee Report
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Economic Opportunity, Financial Transparency, and Shared Responsibility: The Conservative Party of Canada’s Dissenting Report Study of the Default Prevention and Management Policy _______________________________ Cathy McLeod, Member of Parliament for Kamloops – Thompson – Cariboo Arnold Viersen, Member of Parliament for Peace River – Westlock David Yurdiga, Member of Parliament for Fort McMurray – Cold Lake The Conservative Members of the House of Commons’ Standing Committee on Indigenous and Northern Affairs acknowledge the importance of the Committee’s recent study on INAC’s Default Prevention and Management Policy. There are areas in which we agree in the Committee’s report, but there are three specifically in which we have grave concerns. First, the Liberal majority on the Committee failed to recognize the need to develop and promote economic opportunities for First Nations communities, especially those that are in rural or remote locations. These issues were highlighted numerous times by witnesses to the Committee. Mr. Harold Calla, the Executive Chair of the First Nations Financial Management Board, testified on March 23, 2017 that no amount of funds from federal, provincial or territorial governments would solve all issues in Indigenous communities. He stated: I always like to ask: does anybody ever think there's going to be enough transfer funding to take care of the issues? I was in the Senate Committee last year. Housing and infrastructure is between $20 billion and $30 billion. Where is all of that money going to come from if we don't engage the private sector, if we don't engage in business and economic development? Sheila North Wilson, Grand Chief of the Manitoba Keewatinowi Okimakanak Inc., provided the same view in her testimony on March 21, 2017: When we look at the future of my province and much of the country, it is increasingly understood that the greater participation of Indigenous people in this economy is critical to their future economic prosperity. Ensuring the success of Indigenous advancement in the workplace will take major investments on and off reserves. The payoffs for the economy will be in the billions of dollars. Mr. Calla and Grand Chief Wilson are right: the benefits for Indigenous young people in particular, and the country as a whole, cannot be understated. This opportunity can be seized, but only if the federal Government is willing to provide the tools necessary for job growth in communities. One potential avenue is equity partnerships; thirty-one First Nations in British Columbia and Alberta were equity partners in Enbridge’s Northern Gateway Pipeline. Collectively they stood to benefit from more than $2 billion directly from the project. However, the Liberal Government chose not to consult them when shutting down the project, a lost opportunity for jobs, education and long-term benefits for band members, especially young Indigenous people. Given the importance of economic opportunities and jobs for the future benefit of communities, we recommend: That the Government of Canada, in collaboration with First Nations, Indigenous organizations, and private companies, develop the tools to provide economic opportunities for First Nations communities, and for First Nations in urban centres across Canada. Second, it must be stated that Canada’s Indigenous peoples need basic tools to keep their leadership financially accountable. These are the same tools that are available to all other Canadians in provinces, territories and municipalities across the country. As Conservative members of the Committee, we are deeply disappointed that the Liberal majority on the Committee did not recognize the crucial nature of this issue in the report. As testimony to the Committee shows, corruption and mismanagement is one of the contributing factors to a First Nation defaulting. Lorretta Burnstick, a band member and former Chief Financial Officer of Alexander First Nation, told the Committee on April 11, 2017: When I look at the opportunities lost because of corruption and mismanagement, it's heartbreaking. I know that money is not everything, but sound financial management, strong governance, and laws and policies that are enforceable are needed in order to make things run more smoothly in our communities. The Liberal Members chose to ignore grassroots band members who are fighting to see the books in their communities, and thus reduce the possibility of default. Just over a month after taking office, the Minister of Indigenous and Northern Affairs gutted the First Nations Financial Transparency Act by removing the compliance measures. Despite this, the vast majority of First Nations continue to comply with the Act. This is commendable. These leaders have listened to their communities, and are providing members with the tools that keep themselves and their offices accountable and transparent to their own people. On April 6, 2017, Charmaine Stick appeared before the Committee. She is a member of Onion Lake Cree Nation, and has been courageously standing up for financial transparency in her community, a community that has refused to comply with the Financial Transparency Act. In a brief she submitted to the Committee on May 1, 2017, she wrote: I have struggled for years to get answers from our leaders regarding the Onion Lake Cree Nation’s finances. I have read the few documents provided by the band. I have read more detailed documents that have been leaked to me. That reading has raised more questions than answers. I have contacted officials at Indigenous and Northern Affairs, but they’ve been unwilling or unable to provide answers. I have attended band meetings and asked questions of our leaders directly, but they too have failed to provide answers. I have gone on a 13-day hunger strike to demand transparency. I am now partnering with the Canadian Taxpayers Federation to launch a court application to compel my chief and council to publicly provide transparency. I know my experience is different from the stories that you often hear from our leaders. They say they provide documents when requested and answer questions in public meetings. But think about that in the context of the way things work in Ottawa. I watched Question Period in person for the first time after the committee meeting and it was entertaining, but it wouldn’t be good if it were the only source of transparency. A few band meetings a year aren’t enough for First Nations communities. There needs to be clear requirements for transparency and strong standards for accountability. Ms. Stick wrote further: Grassroots people in First Nations communities must have the basic tools of transparency. The federal government must provide those tools through the First Nations Financial Transparency Act. Give the grassroots the tools of transparency and we will strengthen accountability from within First Nations communities. The government is making it a priority to strengthen the nation-to-nation relationship between the Crown and First Nations and it’s important to remember nations are made up of people, and our leaders derive their power from the people. The Conservative Members of the Committee are not alone in our firm belief in the necessity for financial transparency and accountability. Mr. Mike Bossio, the Liberal Member for Hastings — Lennox and Addington, said in Committee on April 6, 2017, “I don't fault the previous government for wanting to try to find transparency and accountability.” Further, Mr. Perry Bellegarde, National Chief of the Assembly of First Nations, told the Committee on April 11, 2017: I totally support transparency and accountability, and it has to be there. If my mom's watching this, she'll say ‘yes’, because she knows what it's like. She wants transparency and accountability. She's 80 years old and she'll tell me if I'm saying something wrong. She wants to make sure those resources are utilized in an effective and efficient way for everyone but with results achieved on the ground. We would like to note that unlike the Financial Transparency Act, the Liberal Government has maintained the current legal framework around marijuana growth, distribution and use in Canada, even though they have now introduced new legislation intended to change that framework. As the Prime Minister said in the House of Commons on April 11, 2017, “Until the House chooses to legalize and control marijuana, the law remains the law.” Similarly, the Minister of Justice and Attorney General told the House on April 10, 2017, “Until cannabis is legal in the country, the law remains the law and should be obeyed.” Given the precedent, recognized by the Liberal Government, that the current law be upheld until it is amended or replaced by the Parliament of Canada, we recommend: That Indigenous and Northern Affairs Canada enforce the compliance measures of the First Nations Financial Transparency Act until such time as a more robust system, developed with First Nations, is put in place to ensure First Nations chiefs and councils are financially accountable and transparent to their communities. It appears the Liberal MPs on the Committee, and the Liberal Government, are unwilling to provide First Nations with the tools they need to keep their own leadership accountable, and prefer a paternalistic, top-down approach where information is maintained – and controlled – by the offices of Indigenous and Northern Affairs in Ottawa. This is shameful. However, we are encouraged by the inclusion of recommendations to provide funding to Indigenous-run organizations that provide financial management training and capacity-building programs. These are necessary steps to improve financial management on-reserve, but transparency for finances must be included as well. Third, Recommendation 3 in the main report states that: That Indigenous and Northern Affairs Canada, in consultation with First Nations, take immediate steps to revise the Default Prevention and Management Policy with the overarching goal of transitioning activities to Indigenous-led institutions; and that interim reforms… develop a new model to finance intervention costs, where Indigenous and Northern Affairs Canada pays the full cost of intervention. We agree that Indigenous and Northern Affairs Canada needs an incentive to better assist First Nations to stay clear of, and get out of, default management. However, First Nations themselves need an incentive for the same reason. Thus, we recommend revising Recommendation 3 to state, That Indigenous and Northern Affairs Canada, in consultation with First Nations, take immediate steps to revise the Default Prevention and Management Policy with the overarching goal of transitioning activities to Indigenous-led institutions; and that interim reforms… develop a cost-sharing model to finance intervention costs, where Indigenous and Northern Affairs Canada share the cost of the intervention with the community. In closing, Conservative Members of the Standing Committee on Indigenous and Northern Affairs are concerned that the recommendations within the main report do not recognize the desire for financial transparency and accountability by grassroots band members; the urging for more job-creating economic opportunities; and the need for a cost-sharing model to finance intervention costs. There are great opportunities in these areas to provide practical tools, and hope, for struggling First Nations in Canada. List of recommendations:
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