Debates of Nov. 3rd, 2005

First Nations Oil and Gas and Moneys Management Act

[The Deputy Speaker]

All those in favour of the motion will please say yea.

[Some hon. members]

Yea.

[The Deputy Speaker]

All those opposed will please say nay.

[Some hon. members]

Nay.

[The Deputy Speaker]

In my opinion the yeas have it.

And more than five members having risen:

[The Deputy Speaker]

Call in the members.

And the bells having rung:

[The Deputy Speaker]

The hon. government whip has asked that this vote be deferred until the end of government orders on November 14.

[Karen Redman, Liberal, Kitchener Centre, ON]

Mr. Speaker, discussions have taken place and I believe if you were to seek it, you would find unanimous consent that the report stage vote of C-54 be deemed to have been taken and carried, and we proceed with third reading.

[The Deputy Speaker]

Is there unanimous consent?

[Some hon. members]

Agreed.

(Motion agreed to)

[John Godfrey, Liberal, Minister of State (Infrastructure and Communities)]

moved that the bill be read the third time and passed.

[Larry Bagnell, Liberal, Parliamentary Secretary to the Minister of Natural Resources]

Mr. Speaker, unfortunately, I just received the news that the United States senate has vote 51 to 48 in favour of drilling in theANWR, but that will not stop Canada's fight against that. It is just a lost stage. We are going to keep up our fight.

The bill before us today would make a positive difference in the communities that choose to use it by allowing the first nations to assume complete management and control of their oil and gas revenues. The legislation will ultimately enhance job creation in the expanding oil and gas sector and spur economic activity on reserves. It also has an important second element which will allow first nations who wish to do so, to retrieve moneys held for them in the Consolidated Revenue Fund under the Indian Act.

As part of the transformative agenda to close the gap in the socio-economic conditions between aboriginal people and other Canadians, the government signed a political accord with the Assembly of First Nations at the May 31 policy retreat that underlined a shared commitment to help first nations exercise greater control over their social and economic aspirations. The bill which we call by its acronym, FNOGMMA, is just one of the several initiatives that the government has advanced to meet this goal.

Legislative and regulatory renewal is the key element of the government's commitment to helping first nations develop economic opportunities. The First Nations Oil and Gas and Moneys Management Act is another step in this process, following on the heels of recent legislative successes in this area such as the recent First Nations Fiscal and Statistical Management Act which was given royal assent last March.

Bill C-54 enjoys widespread support. This is a reflection of the importance all parties attach to the active participation of first nations in the development of this legislation with the best interests of their communities at heart. Against this background, I would like to thank my colleagues across the floor for their agreement to consider this legislation expeditiously.

Oil and gas development on first nation reserve lands is currently regulated under the Indian Act and the Indian Oil and Gas Act and its regulations. These regulations were amended in 1995 to reflect the broader first nation involvement in the management of these resources. However, the amendments did not provide for first nations management authority.

The first breakthrough leading to this legislation before us came in 1999 with the passage of the First Nations Land Management Act. That act was the first of a series of flexible sectoral self-government arrangements. It allows for first nations to opt out of the land management provisions of the Indian Act and establish their own land and resource management regimes. However, the First Nations Land Management Act did not extend to the particular needs of surface and sub-surface management of oil and gas resources.

To their credit, three first nations, the White Bear First Nations from Saskatchewan and the Blood Tribe and Siksika Nation from Alberta, began working diligently to fill this gap through a pilot project overseen by a steering committee composed of representatives from Indian Oil and Gas Canada, Indian and Northern Affairs Canada, the Indian Resource Council, and the three first nations chiefs. They have spent the last decade acquiring the skills and knowledge, and building the management capacity to assume the authorities contained in the First Nations Oil and Gas and Moneys Management Act.

It is important to point out that through this exercise the sponsoring first nations have reached a point where they are fully prepared to control their own oil and gas resources. This pilot project gave them the opportunity to both help design this legislation and develop the necessary capacity to implement its provisions. There were several stages and all parties involved learned along the way.

The first stage of co-management involved specific oil and gas training and capacity building exercises to begin to transfer knowledge of first nations where they would jointly approve all the administrative and management decisions with Indian Oil and Gas Canada.

The second phase, enhanced co-management, involved developing a process for transferring control of oil and gas resources to the participating first nations and a more rigorous communications process. This phase involved three review periods and an independent assessment at the end of the phase.

The third and final phase, full management and control, involved the development and implementation of an arrangement for transfer of complete management and control over oil and gas resources from Indian Oil and Gas Canada to the first nations.

A clear benefit of the pilot program was that it was designed to be reflective of and responsive to each community's needs and values.

When this bill was discussed before the Standing Committee on Aboriginal Affairs and Northern Development, the first nation proponents testified that they had developed the bill with their own particular needs and the aspirations of their communities in mind.

There are over 130 first nations across Canada with the potential for oil and gas production and approximately 50 first nations with active petroleum leases or permits. It is my hope that some of these first nations may one day decide to take advantage of the various elements of the legislation, although there is no obligation for any first nation to do so.

I must point out that not all first nations may want or be ready to take advantage of these potential new powers, including those first nations with oil and gas reserves. However, others, even without these resources on their lands, may want to assume the important moneys management authorities contained in this bill, which I will explore more fully in a moment.

I have talked about the basic elements of the bill. Now I would like to be a bit more specific.

We have already talked about the fact that the bill provides first nations with an option to assume control of petroleum resources on reserve lands and related revenues. In order to gain these authorities, first nation governments must first demonstrate their desire to assume such control. They must also be backed by a community vote endorsing their decision to take responsibility over either oil and gas and related revenues management or management of other moneys, or both.

A first nation must take the steps and pass the financial code that is required in this legislation before accessing its oil and gas resources or accessing the money. The financial code will, among other elements, deal with the method of holding money, the manner in which money is to be collected and distributed and to whom it is to be distributed, and it will deal with the resolution of conflicts of interest.

First nations that meet the criteria and opt into the oil and gas provisions of the legislation will acquire a new range of powers and responsibilities. They will have authority to make laws regarding exploration and exploitation of oil and gas. They will assume responsibility for oil and gas management, regulation and enforcement. They will also take over the obligations of Canada with respect to on reserve oil and gas contracts and they will control moneys related to oil and gas activity.

An important aspect of the governance provisions of this bill is that it recognizes the importance of the protection of the environment by including provisions to require first nations, in the development of their laws, to set standards that are at least equal to the requirements of the province in which the reserve is situated and the Canadian Environmental Assessment Act.

The other elements of this legislation have important implications for all first nations, not just those who may have access to oil and gas development. The moneys provisions of the bill before us today provide an alternative to sections 61 to 69 of the Indian Act, which many first nations consider to be overly bureaucratic, archaic and restrictive. Many first nations may want to be able to directly control the Indian moneys that belong to their reserve but which would otherwise be held in the consolidated revenue fund to support governance and broader opportunities for economic development in their communities.

This legislation places decision making with the first nations, allowing them to better respond to the needs at the community level and to tailor their moneys management regime to best meet those needs. If a first nation opts in to the moneys provision of this bill and meets the transfer requirements, their trust moneys will be transferred out of the consolidated revenue fund and will cease to be Indian moneys.

Once transferred, responsibility for such moneys would rest with the first nation and would be non-revocable, but members of the House can rest assured that this is not being forced on all first nations. As I said earlier, only first nations who hold a successful community vote endorsing the decision to take responsibility over the management of their moneys would be able to do so. Communities that do not choose to avail themselves of the money provisions of the bill would retain their moneys in the consolidated revenue fund.

The first nations oil and gas and moneys management act responds to the first nations commitment to work with government to explore new ways to improve the livelihood of their members. The White Bear First Nation, the Blood Tribe and the Siksika Nation have clearly demonstrated their determination by sustaining this initiative over the last decade.

Bill C-54 also reinforces the partnership between the Government of Canada and the first nations by developing legislation that responds to community aspirations to better manage community affairs.

I am proud to be able to represent the government in the House in moving this initiative forward and proud to have the support of so many colleagues in the House in doing so.

For all these reasons, I want to acknowledge the tremendous support this legislation has had from all parties in the House. With this bill we are giving communities that choose to opt in the tools they can use to get on with the job of building stronger communities and a brighter future for their members.

[Jeremy Harrison, Conservative, Churchill River, SK]

Mr. Speaker, I listened with interest to the comments on Bill C-54 by the hon. member opposite. I know that the parliamentary secretary represents Yukon and has in his constituency a fairly significant number of first nations people.

In light of what we have seen over the last week and a half to two weeks in Kashechewan and in the Kwicksutaineuk First Nation, where every single home on the reserve is condemned, I would like the member to comment. We have seen the pictures of the incredible problems in Kashechewan.

I wonder if the member would recognize and admit what we have not seen from the Minister of Indian Affairs: that there are deep and systemic problems faced by first nations across the country.

In my constituency in northern Saskatchewan there are over 100 reserves. I know that Kashechewan and Kwicksutaineuk are not isolated incidents. As for the challenges faced by first nations, by these people who are living in what is literally third world poverty, I know that individuals from other parts of the country were shocked by seeing the pictures of living conditions in Kashechewan.

Quite frankly, the housing conditions and the water conditions are challenges faced by first nations right across the country. I am wondering if we can finally have an admission of that from the government.

[Larry Bagnell, Liberal, Yukon, YT]

Mr. Speaker, I appreciate the hon. member's question and of course always love to talk about my riding so I am glad he mentioned it.

I hope, however, that the member does not fall into the trap that some of us who have been here for a while also fall into, that is, getting off topic. We all agree that there are problems. This legislation addresses a particular problem. Hopefully, at least, the most effective members of Parliament will use their time to deal with the question at hand without getting into other areas.

In this particular case, I will answer the question. In the future, I will have less tolerance for this because we are trying to solve a particular problem. We have a good solution that all parties agree with, I think, so hopefully we can deal with that, but I would be delighted to talk about the question at hand because he mentioned my riding.

In relation to first nations water, it is obviously a basic need and everyone in this House would like it to be dealt with. I am not sure if in the debate so far it has come out that several years ago we put a program in place to audit first nations water all across this country and put in management plans to move that forward.

We have obviously been working on this for a number of years. I think all members of the House would want us to move forward as quickly as possible. I have urged that in the past, so this is nothing new. We have been working on this right across the country. Hopefully we will work faster in some areas where need be so we do not again have the unfortunate situation that we have had.

In relation to my particular riding, which the member asked about, it is a good chance for me to once again let Canadians, members of Parliament and everyone know that we have a unique land claim in Yukon, which has been settled. What that of course gives is a land claim and self-government agreement. I think virtually every member in this House believes that to solve the many problems the member has talked about, the ultimate best solution is to transfer--once again, as it was for centuries--management back to those peoples, who at one time ran their own governments and communities with great success.

We have self-government agreements across the country and that is exactly what we have in the Yukon. My personal opinion is that since we have put them in place there have been dramatic improvements in all the areas the member talked about, including the socio-economic area, because first nations have large governments taking on both the authority and the responsibility for dealing with those problems very successfully in their communities.

All I would ask is that the member opposite and his party, in its present form, be more supportive of such agreements. I know that a previous incarnation voted against this deal. I will not hold that against him. More recently, that party voted against the Tlicho self-government agreement. I think that support would help move these situations forward.

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

Mr. Speaker, I have a question that relates directly to treaty negotiation and the issues around having resources available for first nations people.

In my riding, the Hul'qumi'num treaty group is an unusual position, where there is very little crown land. For example, oil and gas are not present in my riding, and I am sure there are other ridings throughout the country where there is not a large amount of crown land. As we are talking about resources and oil and gas and other resource management, would this bill deal with issues where perhaps there is virtually no public land for first nations to have access to?

[Larry Bagnell, Liberal, Yukon, YT]

Mr. Speaker, that is a fascinating question. I had a discussion with some of our first nations over breakfast this morning about that exact problem.

The quick answer is no. The bill is specifically targeted to one small thing and that is for those first nations, particularly the three that asked for it, to have their oil and gas resources transferred to them and the management. They have had oil and gas for over a decade. This applies to any of the other 120 that want it. The second part is for those, where Indian Affairs has money in the consolidated revenue fund from whatever source, not just oil and gas, who might want to manage it.

As much as I boast about our agreement in Yukon, as the member rightly points out, it was much easier for us because we had all sorts of land that had not heretofore had third party interests. We could make some wonderful deals.

The member has pointed out a structural problem. It will be a great challenge for any government in Canada. When there is no land in Canada, where a third party has not already spoken for it, or not a lot of Crown land available, it will take all the creativity and goodwill of all parties involved to come up with something that will work for everyone. It will take the tremendous goodwill of negotiators in all orders of government, and there are such people across the country. Hopefully, in as many situations as possible, they can come together and come up with something that would work and would provide reasonable benefits for the first nations without infringing unduly on someone else's rights as well.

[Jeremy Harrison, Conservative, Churchill River, SK]

Mr. Speaker, I would like to comment on a couple of the points that were made by the parliamentary secretary.

I would agree that self-government is the way to go. Our party has had that position for quite some time. It was a Conservative government that recognized the inherent right to self-government. It was not the Liberal government or the Liberal Party.

I would put the Conservative record on first nations aboriginal issues up against the Liberal record any day of the week. It was the Conservative Party that signed the treaties in the first place. It was the Conservative Party that recognized the inherent right to self-government. It was the Conservative Party that brought in the treaty land entitlement. It was the Conservative Party that gave first nations the vote in the first place, not the Liberal Party.

I also take issue with the hon. member's comments about the great Liberal plan for water treatment plants, which they have been aggressively pursuing. The plan has been a failure. We have 95 reserves under boil water advisories right now. Seventy-five per cent of first nations have problems with their drinking water. If that is a success, I would hate to see a failure.

[Larry Bagnell, Liberal, Yukon, YT]

Mr. Speaker, I realize the hon. member is new. However, the record on aboriginal affairs is absolutely embarrassing. It is amazing that the member could stand up and talk about it, having recently rejected the Tlicho land claim agreement. Some members, not all, voted against the Westbank agreement. They voted against all Yukon first nations self-government agreements. I am not holding this against the people who were not there and did not vote.

I really think it is disingenuous and embarrassing for members to stand up and try to be the champion for first nations when they know that they voted against many initiatives that have been put forward in the House for first nations.

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, I would like to start off by recognizing the great amount of work that has gone into the drafting of this legislation and the advice that has come from the three first nations. They should be recognized for their leadership. The leaders of the three tribes have taken some flak at home from other treaty nations, but their forward-looking initiatives will pay off very well in the long term.

I would like to recognize the leadership of the White Bear nation in the Moose Mountains in southeastern Saskatchewan, the Blood Tribe and the Siksika First Nation as well. Two of these nations are resident in my riding and I know them very well.

The White Bear First Nation has one of the finest golf courses in Saskatchewan. I had a wonderful opportunity a couple of summers ago to play a round of golf there. There is a wonderful hotel and casino complex for evening entertainment. It is a great place to visit if one has the time.

I am pleased to speak today to Bill C-54, an act to provide first nations the option of managing and regulating oil and gas exploration and of receiving moneys otherwise held for them by Canada. The bill would give the White Bear First Nation, the Blood Tribe and the Siksika First Nation the authority to manage and regulate all their oil and gas resources and moneys currently administered on their behalf by Indian Oil and Gas Canada.

Although these three first nations are currently the only signatories to this, the bill would enable other first nations to similarly access their oil and gas resources and moneys providing they meet the legislative conditions. By doing so, the bill lays the groundwork for true economic independence and autonomy for Canada's first nations.

For generations Canada has recognized the unique situation of its first nations. I might suggest we have not always addressed them, but we have recognized them. Various measures have been taken over the years to improve the economic condition of first nations.

Some may say that past actions to address first nations economic needs have been overly maternalistic. Some may consider too encouraging of a culture of dependence. Others may feel that before autonomy is granted, complete self-sufficiency must be demonstrated. How can a group of people become more self-sufficient by continuing to rely on government funding?

The reality is, the years of allocating government funding has done little to encourage economic growth within Canada's first nations communities. While this approach was thought to be the most effective one, it has not worked. Without direct control over the resources that generate the revenue, true economic independence is not possible.

For all the millions of dollars that go into first nations communities in Canada, there are still many reserves living in abject poverty with a lack of adequate and proper housing and, as has been referred to very eloquently in the papers and in the House as of late, a lack of safe drinking water. There are still reserves with exceedingly high levels of unemployment and critically low levels of education. There are still reserves ripe with social problems and violence.

While this legislation is not a panacea, it is the next logical step in carrying out Canada's commitments to its first nations. It embodies the concept of sustainable development. It puts power in the hands of the resource owners, giving them the autonomy to develop and reap the benefits of economic self-sufficiency. It is a well known fact that the performance and accountability of aboriginal self-government is enhanced when those who receive services contribute to the cost of those services.

Bill C-54 would allow first nations to achieve greater self-reliance and to benefit from improved governance tools. It would provide the means for first nations to create a unique process and framework of laws within which to exercise full control of their oil and gas resources. It also would demonstrate the ability of first nations and the Government of Canada to address the issue of accountability. On this side of the House we put a lot of credence in accountability. That is why we recognize the value in the bill because it does bring accountability. As this relates of course to the self-management of resources, that is the accountability to which we are referring in the bill.

There are five nations within my riding of Macleod including, as I mentioned, two of the signatories to the act, the Blood Tribe and Siksika First Nation. Naturally the legislation is important to me and to my first nations constituents. I am confident that the first nations that have signed on to this act will be very successful and that they will be the example for other first nations to follow.

These two signatories already have embraced some very unique and promising economic initiatives. For example, the Blood Tribe in southern Alberta, which is under the direction and leadership of Chief Charles WeaselHead at this point, already is active in the oil and gas sector. Western Lakota Drilling, an Alberta based company, approached the Blood Band with an offer to partner on a purchase of a drilling rig. The Blood also has been very active in agriculture. Last year, for example, the Blood Tribe entered into an agreement to market their long fibre hay products to Japan and also to other Pacific Rim countries with a multinational corporation.

The Siksika First Nation is in the midst of creating a world class tourism and interpretive centre. The date has not been set, but sometime in January it is my understanding there will be a grand opening for this interpretive centre. This interpretive centre, called the Blackfoot Crossing, is the historic site of the signing of Treaty 7. It is of national and international historical and archeological significance, and I am proud to say that it is in my riding of Macleod. It has been designated as a national heritage site and is recommended also to be a world heritage site. As a matter of interest, if this is successful in its bid, it will put two world heritage sites on the map in the riding of Macleod, another item of which I am quite proud.

It is easy to see how the legislation is a natural progression for both the Blood Tribe and the Siksika First Nation. It gives these first nations the authority to manage both their oil and gas revenues as well as their money.

Statistics show that status Indians living on reserves represent about 61% of the status Indian population in Canada. That translates to 445,436 on reserve status Indians and 285,139 who live off reserve. In addition, the on reserve status Indian population is expected to increase by almost 58% from 2003 to 2021. This compares with an increase of about 12% for the Canadian population as a whole. About 40% of the status Indian population is under the age of 19 compared with 25% for the entire Canadian population.

As we can see from the numbers Canada's aboriginal communities are young and they are experiencing significant population growth. For this reason it is so very important that our aboriginal communities become more self-sufficient.

We need to ensure that our first nations have the capacity now for future economic strength in the Canadian as well as in the global marketplace. Bill C-54 would help achieve this.

I will now talk about the implementation of the act. First, the legislation is entirely voluntary, which is one of the most important features of this. Although three nations are involved in it at this point, it is through voluntary membership that other nations will be encouraged to sign on to this opportunity. Only those first nations who meet the legislative requirements can proceed with joining on to this program. It requires an affirmative vote by any first nation, a referendum of all eligible voters and an approval by a majority of the majority is required.

Accountability is a key consideration as well. Accountability measures will include annual financial statements in accordance with the generally accepted accounting principles of the Canadian Institute of Chartered Accountants. Annual audits of the financial statements, in accordance with the generally accepted auditing standards, will also be required for those first nations choosing to opt in to the legislation.

A lot of other issues come to mind when we talk about the first nations. We have certainly heard a lot about the drinking water issues in Kashechewan and the negligence of the Liberal government in recognizing how dire a situation those people were put into. It is absolutely deplorable that this is actually allowed to happen in this modern age and in our rich country.

In today's newspaper we read again about the United Nations chastizing Canada once again for not resuming talks on a land claim settlement that has been in discussion for some seven years. It is amazing that we let something that serious drag on for so long. The people who inhabit these reserves deserve much more than what the government has been offering them.

I would like to recognize two colleagues of mine who have been very active in working on the legislation and helping to guide it through. Although it is a government bill, we need to recognize that our Indian and Northern Affairs critic has been very instrumental in making sure, before it was ever drafted, that it would actually acquire the support it needed and would address the issues that it was meant to address.

It is also interesting that we are hearing today about troubles within the first nations among their leadership. I would certainly encourage and hope that they can come together in some sort of agreement and be able to attend the first ministers meeting in Kelowna in the near future with a united front to help the government recognize how much it has forgotten about our first nations and how important they are.

I would like to talk a bit more about the two first nations within my riding. I spoke briefly about the Blood Tribe. I have become good friends with Charlie WeaselHead. He has been a wonderful host when I have been invited to the Blood Tribe for visits.

The Blood Tribe is doing something very unique. For many years its farmland has all been leased out to other farmers. This year it has pulled back about 2,500 acres and it is being leased to some of the members of the band. The band has an irrigation project with somewhere in the neighbourhood of, and correct me if I am wrong, over 50 pivot irrigation systems. More and more of these will be under the control of the band itself.

It is only fitting that the band is strengthening its position in agriculture as a way of providing resources to fund the health projects and the education projects that the band wants to put together on its own reserve and Bill C-54 would provide the band with the resources it needs.

I spoke earlier to their partnership on a drilling rig. My understanding is that this drill rig is not very far from being completely paid off, so there will be great profits not only to the company that they are in partnership with but also to the band itself. I applaud the Blood Tribe for its efforts to ensure that it will some day be self-sufficient. I think that is fundamental to its success and its future.

The Siksika Band, which is just east of Calgary on the Bow River where Treaty 7 was signed, had an incredible issue with flooding this past spring. A lot of the houses on the reserve were, if not destroyed, certainly damaged badly. We are still working with the band and helping it to get these houses back in shape.

However I understand those are not the only first nation houses at issue. I heard my colleague talk about some of the ones in northern Saskatchewan and other places. It is a common problem, not only the flooding but the lack of funding and direction from the federal government.

Another colleague of mine from southeastern Saskatchewan, who is part of the White Bear Nation, which is, as I mentioned, another very forward thinking first nation, has played a pivotal role in helping to put this together.

I would like to sum up by saying that this bill reflects 10 years of consultations with first nations and it follows a very successful pilot project. It is time for the aboriginal government to be given the power to raise its own revenues to reduce the cycle of dependency. Bill C-54, in my estimation, would achieve that.

Bill C-54 would build stronger and more self-reliant aboriginal communities. Bill C-54 would enhance the accountability of band councils through requirements to develop and ratify both an oil and gas code and an environmental code. That is something we have not talked much about but there are environmental requirements and very restrictive environmental controls within this.

I think it is pretty clear that I support the bill and I encourage other hon. members to do the same.

[Bernard Cleary, Bloc, Louis-Saint-Laurent, QC]

Mr. Speaker, it gives me great pleasure to speak to Bill C-54, the First Nations Oil and Gas and Moneys Management Act. This bill will open up access to the natural resources and the immeasurable wealth of the first nations’ ancestral lands, allowing the money to be used for our aboriginal nations.

The intent of Bill C-54 is to give first nations the opportunity to manage and regulate oil and gas exploration and exploitation, and to receive the moneys that Canada retains for them. This bill was introduced in the House of Commons on June 1, 2005. It allows for the transfer, to the first nations named therein, of the management and control of the oil and gas resources found on their lands and the payment to the first nations of the moneys held in trust for them by the Crown.

The Bloc Québécois supports this bill. Although not perfect, it will give first nations the tools they need to achieve greater self-sufficiency when they have oil and gas resources on their lands. The first nations who opt to take advantage of the services provided for under this bill will be able to participate more actively in their economy and strengthen their autonomy. The first nations' demands for the authority to manage their own affairs are a matter of interest to the Bloc Québécois. Self-management can be achieved only when a nation controls the levers of its own economy.

The Government of Canada must not use Bill C-54 as a way of evading its fiduciary responsibilities towards the first nations. It bears a responsibility to rectify the inequalities between aboriginals and non-aboriginals.

I am very happy to be able to talk about the importance to a first nation of being able to participate in the economic development of its own territory. We know that the ancestors were always in favour of using their lands for their livelihood and their development. The impact on the life of the communities who are fortunate enough to participate in the development will be huge, in both social and economic terms.

The Bloc Québécois recognizes the aboriginal peoples’ right to self-determination, as I noted in Geneva during a study session of the Commission studying the Declaration on the Rights of Indigenous Peoples.

The role of trustee and the expectations that we should have with regard to the Department of Indian Affairs in the area of economic development will allow us to develop industries drawing on the resources of the territories negotiated.

It is important to remember that the standard of living of aboriginal peoples is much lower than that of non-aboriginals in Canada. The importance of reducing this gap has been noted on many occasions, notably in the throne speech on October 5, 2004.

Many first nations believe that economic development is the key to achieving this goal. However, it is difficult for a first nation that has no control over its lands and resources to achieve this. In her report in November 2003, the Auditor General of Canada pointed out that one of the barriers to economic development resulted from the federal approach to institutional management and development.

This report also stated that “several First Nations consider the department's approach too slow, too short term, and on some occasions, poorly administered”.

A large number of first nations and their organizations have worked diligently toward assuming greater responsibility for their lands and resources. Bill C-49, An Act providing for the ratification and the bringing into effect of the Framework Agreement on First Nations Land Management (First Nations Land Management Act), which received royal assent on June 17, 1999, is a good example of legislation giving participating first nations greater autonomy in the management of their lands. Under that legislation, any first nation may opt out of the land management provisions of the Indian Act and manage its lands using its own land management code. The First Nations Land Management Act, however, does not affect in any way the management of oil and gas resources on first nations lands.

The development of a new financial relationship between the first nations and the Government of Canada has always been the basis for discussions and analyses over the past 20 years or so.

Already in 1983, the Penner report, a report by the House of Commons Special Committee on Indian Self-Government, recommended that the fiscal relationship between the federal government and the first nations be redefined.

In 1996, the final report of the Royal Commission on Aboriginal Peoples also recommended a full review of the fiscal relationship between the federal government and the first nations. The proposed initiative focused on redefining this relationship within a broader context based on first nations self-government. The Tlicho self-government act that we had the honour of passing in this House is an example of this.

Bill C-54 will change the way oil and gas are developed and it will allow first nations which are self-reliant to develop these resources on their own land. To date, first nations have had to comply with the Indian Oil and Gas Act and its regulations, which has not allowed them to manage these resources directly.

The first nations oil and gas management initiative was launched in February 1995. This pilot project provided for the gradual transfer of management and control of oil and gas resources on the land of five first nations: the Blood tribe of Alberta, the Siksika first nation of Alberta, the White Bear first nation of Saskatchewan, the Horse Lake first nation of Alberta, and the Dene first nation of Alberta.

Only the Blood, the Siksika and the White Bear continue to participate in this initiative. The pilot project was directed by a steering committee composed of representatives of Indian and Northern Affairs, Indian Oil and Gas Canada, the participating first nations, and the Indian Claims Commission.

This project was divided in three phases: co-management, enhanced co-management and management and control by first nations. During the first phase, the administrative duties were shared between the first nations and IOGC, and decisions were made jointly.

In the second phase, IOGC maintained its authority and the first nations received the necessary training to perform IOGC functions. The pilot project is now in its final phase. It needs Bill C-54 to pass in order for the powers to be transferred to those first nations meeting the requirements in the legislation.

Bill C-54 will change the way oil and gas are developed and will allow first nations that are self-reliant to develop these resources on their own land. To date, first nations have had to comply with the Indian Oil and Gas Act and its regulations, which has not allowed them to manage these resources directly.

The first nations oil and gas management initiative was launched in February 1995. This pilot project provided for the gradual transfer of management and control of oil and gas resources.

Bill C-54 would allow first nations, that choose to do so, to be excluded from the application of the Indian Oil and Gas Act and its regulations. This act is currently the legislation governing the exploitation and exploration of the oil and gas resources on reserve land. This legislation does not allow first nations to manage the oil and gas resources on their land directly nor does it allow them to develop an appropriate regulatory framework.

However, Bill C-54 would allow any first nation, if it chooses to do so, to create regulations on oil and gas exploration and preservation, on the spending of moneys derived from the exploitation of these resources, and on the protection of the environment.

As for regulations to protect the environment, those established by first nations will have to at least meet the standards of Quebec or the province in which the aboriginal community is located.

As far as management of their finances are concerned, those first nations choosing to come under this new legislative framework will come under different rules as far as “Indian moneys” are concerned. These are currently defined in the Indian Act as all moneys collected, received or held by the federal government for the use and benefit of Indians or bands. For these first nations, the provisions of the Indian Act will no longer apply. They will therefore be able to directly administer the amounts collected rather than letting them be administered by the federal government. As a result, they will be able to make their own choices for investment in their communities instead of letting the Department of Indian Affairs and Northern Development dictate priorities to them. Auditor General Sheila Fraser pointed out in her 2004 report that this department is not doing a good job of administering the billions of dollars intended for the aboriginal communities.

If a first nation does not feel it would be advantageous to come under the new legislative regime, the current standards will continue to apply to it, so it will continue to benefit from the provisions of the Indian Act, including those that apply to the administration of Indian moneys.

Lastly, we wish to point out that the Bloc Québécois has endorsed the core recommendations of the Royal Commission on Aboriginal Peoples. The commission set forth an approach to the concept of self-government based on recognition of aboriginal governments as a level of government with jurisdiction over issues concerned with good governance and the well-being of their people.

Furthermore, the entire report is based on recognition of the aboriginal peoples as self-governing nations occupying a unique place in Canada.

[Sue Barnes, Liberal, Parliamentary Secretary to the Minister of Indian Affairs and Northern Development and Federal Interlocutor for Métis and Non-Status Indians]

Mr. Speaker, I know that my hon. colleague across the floor has a great number of years of experience in his prior life.

This is a new start for these first nations who will have the capacity to take advantage of this legislation. It does necessitate a change in philosophy.

I want the member to tell the House and members of the public about those first nations who are ready to take this step, the health of those first nations and their desire to move forward with a new economic reality. This includes the management of the fiscal resources that will flow from their use of this legislation, which the member knows is optional even though it was piloted by some proponent first nations. If other first nations want to go forward with it, that ability will still be there.

I would like the member to draw upon his experiences and perhaps talk about some of the first nations that are ready to take this historic leap forward.

[Bernard Cleary, Bloc, Louis-Saint-Laurent, QC]

Mr. Speaker, as I mentioned during study at first reading, this bill is a historic moment in the economic development of the aboriginal nations.

It is in fact an accomplishment of which many elders have dreamed for years. These people have always wanted to regain their ancestral lands and benefit from the economic resources there, so that they are not supported forever, but capable of living off the resources that belong to them.

Around these resources of the aboriginal lands, negotiated or ceded back for the nations’ development, shall be built a vision that will help correct many of the social ills on our reserves. We will also be able to put aboriginal youth to work and at least give them a future. This future will be based not on assistance of some kind, but on working the resources that have belonged to them since the dawn of time.

[Jeremy Harrison, Conservative, Churchill River, SK]

Mr. Speaker, the member is a dedicated and diligent member of the aboriginal affairs committee. I know he is very committed to seeing first nations and aboriginal people succeed.

There was very good cooperation among all the parties in pushing the bill through the House and also in working at committee to move it along very quickly.

Earlier we heard the Parliamentary Secretary to the Minister of National Resources assert that the government has been very successful in its water management strategy for first nations. Of course, we have seen Kashechewan and there are 95 reserves currently under boil water advisories. Seventy-five per cent of first nations have problems with their drinking water. The minister himself asserted in question period not that long ago that the government has been very successful in managing the water on first nations. I would beg to differ. Perhaps the hon. member could comment on that.

[Bernard Cleary, Bloc, Louis-Saint-Laurent, QC]

Speaker, it is clear that, at this time, what I consider important is this bill which we are now discussing. As my colleague who is a committee member points out, other issues will have other opportunities for thorough consideration by the committee, and for decisions which I hope can ensure that these problems—such as the water problem—are fully resolved, so that our communities are at least on an equal footing with the general Canadian population.

It is unacceptable that 75% of water systems are not operating under ideal conditions. What I sincerely hope is that the work is done, and I will be watching to see that it is. It is fine to say that it is going well, but that is not true. We will have to make the necessary decisions to ensure that aboriginal people can drink water like the majority of Canadians.

Iran

[Susan Kadis, Liberal, Thornhill, ON]

Mr. Speaker, tomorrows marks the 10th anniversary of the murder of former Israeli prime minister Yitzhak Rabin, a hero who worked courageously toward peace.

Now while many work tirelessly toward carrying his legacy of peace, others like the President of Iran shockingly call for Israel to be wiped off the map.

We cannot dismiss comments by a president as a rhetorical exercise disconnected from policy. We cannot repeat the mistakes of the past.

I call on our government to ask the Iranian representative in Ottawa to clarify Iranian foreign policy vis-à-vis Israel and find out in writing whether Iran is bent on the destruction of a UN member as a matter of policy.