Indigenous and Northern Affairs Committee on Dec. 3rd, 2014

[The Chair, Conservative, Chris Warkentin]

Colleagues, I'll call this meeting to order.

This is the 28th meeting of the Standing Committee on Aboriginal Affairs and Northern Development.

We just have one piece of committee business to deal with first.

I'll turn to Ms. Crowder.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Thank you, Mr. Chair.

Mr. Chair, I move:

That, pursuant to Standing Order 108(2), the Committee study the expenditures of the department as they relate to its operations in the fiscal year 2014-15.

[The Chair, Conservative, Chris Warkentin]

Thank you, Ms. Crowder.

(Motion agreed to)

Colleagues, I just have to now suspend for a minute so that we can undertake the televised portion of the committee meeting.

The meeting is suspended.

[The Chair, Conservative, Chris Warkentin]

I'll call the meeting back to order.

As I said, this is the 28th meeting of the Standing Committee on Aboriginal Affairs and Northern Development.

As per the vote of the committee, we have asked the minister to join us for supplementary estimates.

Minister, thank you so much for taking time out of your busy schedule to be with us. We always appreciate that you make time for our committee. We'll turn it over to you for your opening statement and then we will have some questions for you.

We know that we'll have to adjourn a little earlier today, colleagues, because of the votes. The bells will start ringing some time early.

But I understand, Minister, that we have you for approximately one hour, and then we'll have your officials after. Thank you so much. We'll turn it over to you.

[Bernard Valcourt, Conservative, Minister of Aboriginal Affairs and Northern Development]

I'm accompanied by my deputy minister, Colleen Swords, and Paul Thoppil, who's the chief financial officer. All the good stuff is because of me, and when it goes bad it's because of them.

[Some hon. members]

Oh, oh!

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

Mr. Chair, ladies and gentlemen of the committee, I am pleased to be here today to speak to you about Aboriginal Affairs and Northern Development Canada's supplementary estimates (B) for fiscal year 2014-15.

As members of the committee know, my department accesses the funds required to continue delivering on the government's commitment to improve the quality of life for aboriginal people and northerners. Since 2006, our government has been working with our aboriginal partners to remove barriers that are preventing aboriginal people and northerners from developing stronger, healthier and more self-sufficient communities. And while we've made significant progress, we also know there is more work to be done.

The energy sector is but one industry with development opportunities that we could leverage to assist growth for aboriginal communities. In his report, Mr. Eyford, Special Federal Representative on West Coast Energy Infrastructure, highlighted the success that the strategic partnerships initiative has had to help prepare aboriginal communities for economic opportunities.

In response to the recommendations of the Eyford report, our government has expanded the strategic partnerships initiative in order to help aboriginal communities maximize their economic participation in west coast energy developments.

Through Budget 2014, Aboriginal Affairs and Northern Development Canada received new funding of $61 million over 5 years for the strategic partnerships initiative.

As a result the supplementary estimates (B) reflect that $10.5 million will be used to support aboriginal engagement in energy projects as well as economic and business development for the year 2014-15.

Mr. Chair and members, the health and safety of first nation communities being a priority of our government, we have allocated in these supplementary estimates $40.6 million for operation return home for Manitoba interlake flood remediation and settlement. These funds will be used to continue repairing, rebuilding and re-establishing the communities of St. Martin, Dauphin River, Little Saskatchewan, and Pinaymootang First Nation, all of which were affected by severe flooding in 2011.

Together with first nations and the Province of Manitoba, the Government of Canada is working towards a recovery that will see all flood evacuees returned to safe, secure homes or permanent long-term accommodation in strong resilient communities.

In the pursuit of reconciliation, another means of improving the quality of life in aboriginal communities is through the negotiation and conclusion of comprehensive land claims and self-government agreements. I mean, such agreements are key to achieving reconciliation and renewing relationships with aboriginal people in Canada while also unlocking opportunities for economic development benefiting all Canadians. That's why $2.1 million is being allocated through the supplementary estimates to support the implementation of the Sioux Valley Dakota Nation Governance Agreement and the Sioux Valley Dakota Nation Financial Arrangements Agreement.

These agreements will modernize Canada's relationship with the Sioux Valley Dakota Nation and provide the community with the tools and the authority to build a more self-sufficient and prosperous future. It will also harmonize the Sioux Valley Dakota Nation laws on their reserve lands with existing federal and provincial laws within the Canadian constitutional framework.

I want to underline that the Sioux Valley Dakota Nation is the first self-governing first nation in the Prairies.

We also continue to promote reconciliation between aboriginal and non-aboriginal Canadians through continued implementation of the Indian Residential Schools Settlement Agreement.

To that end, $11.9 million has been allocated for continued implementation of the Indian Residential Schools Settlement Agreement to ensure that Canada continues to meet its obligations under the agreement. This funding was re-profiled from 2013-14, primarily for continuing the resolution of claims under the agreement's independent assessment process.

As well, $9.9 million has been allocated for the provision of Canada's remaining relevant documents held at Library and Archives Canada to the Truth and Reconciliation Commission to ensure that Canada meet its obligations under the Indian Residential Schools Settlement Agreement.

As you are no doubt aware, in January 2014, the operating period of the Truth and Reconciliation Commission was extended to June 30, 2015, to allow the commission sufficient time to complete its mandate, including writing its final report and receiving those documents held at Library and Archives Canada.

In speaking to these supplementary estimates, I would also like to address one of many ways we are working to unlock the north's potential, that is, through cutting-edge science and technology research.

Supplementary estimates (B) earmark $38.2 million for the construction of the Canadian High Arctic Research Station, or CHARS, and the implementation of the associated science and technology program. The Canadian High Arctic Research Station is part of the government's integrated northern strategy and will strengthen Canada's leadership in Arctic science, research and innovation.

In order to establish the governance for CHARS, on October 23, we introduced the Canadian High Arctic Research Station Act. This proposed legislation will merge CHARS with the Canadian Polar Commission to create one larger, stronger centre for scientific research in Canada's North—strengthening Canada's position as a world leader in cutting-edge research in the Arctic.

Other key initiatives in the supplementary estimates include, under our northern agenda, $4.9 million “to meet Canada’s implementation obligations for Comprehensive Land Claims Agreements in Yukon...and Quebec”, and $3.4 million “to meet the Government of Canada's obligations under the Northwest Territories Lands and Resources Devolution Agreement”, which you all know came into effect on April 1.

These funds will allow the department to complete work associated with the implementation of the devolution agreement, including the settlement of accounts pertaining to devolved responsibilities, deferrals, undertakings, amendments to environmental measures agreements, and developing a final report that includes lessons learned.

Mr. Chairman, our government believes that all Canadians, regardless of where they live—north or south, east or west, or on or off reserve—should be able to fully participate in our strong Canadian economy.

I will be happy to answer any questions that members of the committee may have pertaining to Aboriginal Affairs and Northern Development Canada's supplementary estimates (B), 2014-15.

Thank you.

[The Chair, Conservative, Chris Warkentin]

Thank you, Minister.

We'll turn to Ms. Crowder for the first seven minutes of questions.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Thanks, Mr. Chair.

I want to begin by thanking the minister for coming, but I also want to acknowledge the new deputy minister, Ms. Swords. Of course, she has been before the committee in the past in another capacity.

Welcome to your new portfolio.

Mr. Minister, I want to start with what in my view seems to be missing from the supplementary estimates (B). My understanding is that under the specific claims legislation, the mandate for review was to have commenced. I don't see any funds allocated for the beginning of that review.

The second thing I don't see in the supplementary estimates (B) is anything related to my understanding, according to a letter by Mr. Justice Slade, that the administrative services were going to be centralized. I would have thought that in the supplementary (B)s there would have been some indication of cost savings as a result of centralizing those administrative services. I understand that they're already under way.

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

Well, as you know, first of all, the core funding we have is sufficient to comply with our obligation under the act to start this review. The work has been started to commence this review, which is mandated by the act, and will be pursued effectively in the next few months.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

There isn't money allocated at this point in time.

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

Well, we have the resources within the department to pursue this, and there was no need to allocate funds in the supplementary estimates (B) to do the review.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Okay. In your speech you mentioned both the importance of negotiation of comprehensive claims in self-government and the fact that there's $4.9 million to meet Canada's implementation obligations for comprehensive land claims agreements.

Is any of that $4.9 million going to be used to implement the Teslin Tlingit administration of justice agreement?

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

The $4.5 million to meet Canada's obligations for comprehensive land claims are for the Yukon, under the umbrella final agreement, $4.6 million, and for Quebec, $260,000. These funds for Yukon will be used on the umbrella final agreement and the Yukon environmental and socio-economic assessment plan, $3.5 million, and there will be $600,000 for the Yukon Land Use Planning Council. The money that is left, the $260,000 left, is for the Cree-Naskapi Commission, which you know reports annually to Canada.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

There is nothing specifically for the implementation of the Teslin Tlingit justice agreement. I understand that there have been lengthy negotiations, and that they really have been stalled for a couple of years.

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

There are no funds in these estimates for that specific one.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Bill S-6 is before the House, and you talked about comprehensive land claims. It isn't specifically mentioned in this, but I understand there was a meeting recently, and in your speech, you talked about the importance of self-government and that relationship. But I understand that in a recent meeting with the Yukon first nations you indicated to them that they were not real governments. I wonder how that jives with what you've said in your speech around the importance of self-government moving forward.

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

Obviously, what was reported to you is incorrect. That is not what I stated. Objection was taken by the Council of Yukon First Nations alleging that one of the amendments was in violation of the umbrella agreement, and that pertains to the premise of the section that allows the minister to devolve or to delegate powers to the Government of Yukon.

The point I made is that, under the umbrella agreement, government is defined as being the Government of Canada or the Government of Yukon, so my point was that this delegation is contemplated under the umbrella agreement and it does not define government as being first nations. Their argument is that, under the umbrella agreement, they should be considered governments, and unfortunately, that was not the deal concluded. The umbrella agreement is clear that government is defined either as Government of Canada or Government of Yukon. I said that, for the purposes of the umbrella agreement, they were not considered and defined as government. That does not mean they are not governments. They are governments, but not under the umbrella agreement, very simply.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

I would think that's a much longer discussion, Mr. Minister, given I would argue that if we're going to negotiate self-government agreements, surely we are talking about a government-to-government relationship.

Just briefly, on the west coast energy development project, can you indicate how first nations have been involved with regard to the set-up of this office, the major projects management office, west?

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

As you know, the office was set up following a recommendation made by Mr. Eyford in his report. Consultations have taken place with stakeholders in B.C. in order to create not only the MPMO, the office, but also to create a tripartite forum where Canada, B.C., and first nations are represented, in order to engage and enter into the necessary dialogue to pursue natural resources development in B.C.

[The Chair, Conservative, Chris Warkentin]

Thank you.

We'll turn to Mr. Strahl now for the next questions.

[Mark Strahl, Conservative, Chilliwack—Fraser Canyon, BC]

Thank you very much, Mr. Chair.

My comments will focus on what is in supplementary estimates (B), not on what is not.

I did want to quickly take a moment to welcome Mr. Barlow to the committee. I'm glad to see that the opposition finally saw fit to allow him to join us as a permanent member. I'm looking forward to working with him as well.

Minister, I wanted to continue on the line of the west coast energy strategy you spoke about, which is in part advanced through the strategic partnerships initiative. It's said here that it's scheduled to receive $10.5 million. Could you explain a little more about what that $10.5 million will be spent on?

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

For the new funding made available to the strategic partnerships initiative, we are working with Natural Resources Canada, Environment Canada, Fisheries and Oceans, and Western Economic Diversification to coordinate support for activities that will advance aboriginal economic participation in west coast energy projects.

Federal investments through the initiative will address the key priorities that were identified by Mr. Eyford in his report, namely, the need for early and ongoing engagement between communities, government, and industry; support for employment and business development; and environmental protection to mitigate concerns regarding the effects of development, as well as fish habitat restoration to encourage sustainable development where development crosses watercourses.

Through economic action plan 2014, the last budget, my department received, as I've said, this $61 million. As an example of what we're doing, an initial-year investment of $300,000 will enable the MPMO's west office to work with first nations to deliver up to eight targeted workshops that will promote an understanding of the oil and gas sector, facilitate information sharing, and build community awareness.

An additional $680,000 has been approved to support the New Relationship Trust, to work with LNG proponents and the Province of B.C. to ensure that first nations have access to skills training that will lead to employment opportunities for aboriginal Canadians. Funding through this initiative, the SPI, also allows us to support aboriginal business and entrepreneurship that is directly related to energy development.

For example, we're providing a little over $113,000 to the Prince George aboriginal business development association to train aboriginal entrepreneurs to establish and develop businesses in order for first nations to actively participate in procurement opportunities related to west coast energy. There are many other activities that I could list, but I guess you get the gist of what we're doing there.

[Mark Strahl, Conservative, Chilliwack—Fraser Canyon, BC]

Right, and I guess that's the goal there. It's right in the title, “partnerships”.

What are the next steps, then, for the department to enhance aboriginal economic participation in those projects? We know that the projects are taking place in the traditional territories of first nations, and they're often employed in great numbers in these projects when they go through. Maybe you could talk about how the department is trying to get them involved economically in those projects.

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

We're committed to working in partnership with first nations to strengthen their engagement in energy projects, with training for jobs and business opportunities, and with a role for them in assessing and managing environmental safety projects. We believe that increasing the participation of first nations in projects is one way of increasing employment and encouraging economic development in first nation communities. That is why we are contributing this $10.5 million to the initiative.

The major project management office, west, based in Vancouver, is helping to facilitate early engagement and ongoing dialogue with key partners to support first nations' long-term economic development through energy projects. We will work together with aboriginal entrepreneurs, small businesses, and communities to take advantage of the economic opportunities where there is the greatest potential for jobs and business development. We will also support aboriginal training and skills development leading to jobs.

We are focused on practical steps to strengthen engagement with first nations on energy projects. As our discussions with first nation leaders move forward we will be making strategic investments to specific initiatives that address community needs.