Bill C-54 (Historical)

First Nations Oil and Gas and Moneys Management Act

An Act to provide first nations with the option of managing and regulating oil and gas exploration and exploitation and of receiving moneys otherwise held for them by Canada

The purpose of this enactment is to enable any first nation subject to the Indian Act, if it chooses to do so, to assume the direct management and regulation of oil and gas exploration and exploitation currently carried out on its behalf by Indian Oil and Gas Canada. It would also allow any first nation to receive and manage moneys that are derived from any source on reserve lands and that would otherwise be retained or collected, and managed on its behalf, by the Minister of Indian Affairs and Northern Development. The decision to do so, in either case, would be made in a referendum conducted among eligible members of the first nation.

First Nations Oil and Gas and Moneys Management Act

[Ed Komarnicki, Conservative, Souris—Moose Mountain, SK]

Mr. Speaker, with respect to Bill C-54, first of all I would like to acknowledge the critical role that Chief Brian Standingready and the White Bear First Nation have played and continue to play in the self-government of White Bear in particular and the first nations in general.

White Bear First Nation, the Blood Tribe and the Siksika First Nation were all part of a pilot project with respect to the co-management of oil and gas on their reserve land as early as 1994. I am proud to say that White Bear is within my constituency. They were the forerunners in the establishment and passage of an act to provide for real property taxation powers which involved a series of different structural organizations and changes that they put together.

The driving force behind that piece of legislation, as in this one, was the economic development of reserves and the improvement of the quality of life. It provided the ability to raise capital and generate revenue. It was an initial step in self-government, in being in charge of one's destiny and being responsible for one's own economic development.

At that time, I said that it was a good step but that there was a much larger journey that must be taken for the first nations to truly arrive at self-government. As Bruce Standingready of the White Bear First Nation put it, “You can only eat an elephant one bite at a time”. Chief Brian Standingready of the White Bear First Nation put it quite correctly when he stated, “If you don't have the jurisdiction, you don't have the ability to make decisions”. With respect to this legislation, he indicated, “This new enabling legislation is recognizing our inherent rights to make our own laws in regard to managing and controlling our oil and gas revenue derived from these sources”.

The bottom line is that not only should first nations have the legislative means to address issues facing first nations on the reserves, but they should also have the financial means to do so. The White Bear First Nation is willing and eager to take charge of its own destiny and to participate in the development and use of its natural resources to better the life of its people

On the reserve there are many basic issues that need to be addressed: housing, infrastructure, water, sewer and electricity. It is important, however, that a good foundation be laid by the legislation to ensure the future success of first nations initiatives.

I support this legislation, as does my party. There are some important features and principles in place that will help in success. They relate to the transfer of moneys held on behalf of first nations and the transfer of the management and regulation of oil and gas exploration and a host of activities related to it.

Let me speak of some of the important features. There is an oil and gas code that provides for accountability of the council to first nations for the management and regulation of exploration and exploitation and the establishment of a procedure for disclosing and addressing conflicts of interest of members of council.

The legislation provides for a financial code, specifying the mode of holding oil and gas moneys, either by deposit in a financial institution or payment to a trust of which the first nation is settlor and sole beneficiary. It prescribes the conditions governing subsequent changes from one mode to another.

The legislation also provides for the manner of expending moneys. It provides for accountability. It addresses procedures for disclosing, as I said, and for addressing conflicts of interests. It also requires that books of account be maintained and annual financial statements be prepared in accordance with generally accepted accounting principles. I think these are all good and proper safeguards.

I am somewhat disappointed that the proposed legislation fails to specifically and in advance set out some generic, boilerplate, basic prerequisites that one would expect to find in a trust agreement, not only in terms of the fiduciary duty of the trustees but the specific objects of the trust and the method of spending approval.

However, the legislation does provide for a vote where a majority of those present, not less than 25%, would approve any of the procedures or codes outlined. That in itself provides some safeguards.

Having said that, I see great potential for the first nations, White Bear in particular, in the transfer of moneys and oil and gas rights by giving them an opportunity to chart their own destiny. It seems to me that education, skills training in jobs in various sectors, and management of various forms of business will be a way of ensuring economic prosperity and an acceptable level of quality of life.

There is much to be gained from oil and gas management. As the preamble of the bill states, first nations are able to assume control of their oil and gas industry.

What does that mean in practical terms? It means that first nations can enter into petroleum and natural gas leases, surface leases, easements, rights of way and rights of entry. They can participate in the extraction of oil and gas, in exploration, in production and storage, in distribution and even in processing or refining. There are many associated activities, such as surveying, mapping, test drilling, pipelining and all other related activities that will provide an opportunity for employment.

The White Bear First Nation has experienced some of this in its involvement with Tri Link Resources. It gives it an opportunity to receive a royalty on production and even to participate in oil production. Moneys raised can be placed back into production or used to help the community. It is a great opportunity to create employment, to encourage education and to be trained and employed in the oil industry.

A good example of that was articulated in an article dated May 29, 2000, prepared by Wayne Dunn & Associates, titled, “Experiences and Thoughts on Indigenous Business and Economic Development”. The article, although somewhat dated, provides a little bit of history that the White Bear First Nation has experienced. The article states:

Since White Bear began working with Tri Link, a number of First Nation members have been trained and employed in the oil industry. Tri Link hired two university graduates from White Bear to work in their Calgary office as a petroleum land administration assistant. A summer student was hired to work out of their Kipling office to gain environmental and production experience.

Two White Bear members work out of [White Bear's] office and two members work as Petroleum Land Administrators with the White Bear Pilot Project. These individuals all attended the Southern Alberta Institute of Technology for training sponsored by the White Bear First Nation and received certificates as Petroleum Land Administrators.

Many White Bear First Nation members have gained training and experience in the oil industry thanks to WBOG. So far approximately 38 members have been trained and employed by drilling rigs that are working for Tri Link and four have been trained and are working as contract battery operators. Recently four White Bear members were trained and certified as heavy equipment operators in a program jointly sponsored between Tri Link and the First Nation-run Kakakaway Learning Centre. In the past, the Kakakaway Learning Centre and Tri Link have teamed up to offer training to 30 individuals in the areas of chainsaw certification, chainsaw instructors certification and entry level training such as first aid, CPR and H2S Alive.

As well, the agreement provides White Bear companies and private contractors with the opportunity to bid for services required by Tri Link such as surface lease construction, pipeline construction, seismic line clearing, well site reclamation, trucking, well site maintenance and drilling and service contracting. As a result, seven new businesses have developed on the White Bear First Nation creating new employment opportunities and on-the-job work experience for many First Nation members. These activities have provided over 90 First Nation people with short or long-term employment”.

Part of that in the bill allows this to continue and to be expanded as they take control and management of their own resources. The bottom line in all of this was best stated by Chief Brian Standingready when he said that he “believes it is important that the first nation focuses on helping their people, rather than making profits”. “The oil”, he said, “won't be here forever, our people are our priority. We have to respect the land, our heritage sites, the environment. We always consider the future generations and ask what this is doing for them”.

White Bear in particular has been developing its governance structure in a number of ways. It operates White Bear Lake Resort, the Bear Claw Casino and works in an integrated and cooperative manner with the community of Carlyle, Saskatchewan. With the passing of this legislation, I see the role only increasing into the future. I think it is a good step and is going in the right direction.

I am looking forward to the White Bear First Nation continuing to lead by example, in its industrial expansion and in its involvement in various activities on the reserve, in upgrading the skills of the various participants, in taking part in business, in bringing back some prosperity and putting itself in a position and a place where it can look after some of the very basic needs that it finds facing its community.

[Ethel Blondin-Andrew, Liberal, Minister of State (Northern Development)]

Mr. Speaker, I am pleased to rise in the House today to speak to this legislation.

Serving the public here in the House of Commons is a wild and wonderful experience. I have just come from the Commonwealth Room where I met with the Métis of Alberta. If there ever was a group that was impacted by resources in their region it is that group. They felt such empowerment from the legislation they put together in terms of the Métis settlement. It will enable them to create wealth and opportunities for employment for themselves. This speaks loudly in support of Bill C-54. This legislation is necessary, empowering and definitive.

The Métis were here today to announce the opening of an office in Ottawa. This will further empower them to achieve and enact the provisions of their settlement.

Bill C-54, the first nations oil and gas and moneys management act, will equip first nations that choose to participate with vital tools to create good jobs, stimulate economic activity and improve the quality of life in their communities.

I would also like to share some of the successes of my first nations constituents in oil and gas development north of 60. It is not doom and gloom. People have different interpretations on how expropriation works. The reality is that every democratic government does not have expropriation as the first step. It is something that is done after having exhausted every other possibility.

I like to be positive about these things. I think this is a wonderful piece of legislation. I am really into empowering our people to create their own wealth and to be self-sustaining. Bill C-54 does that. It makes the rules quite clear, which is a good thing.

First and foremost, this legislation was designed to respond to the specific needs of the three sponsoring first nations, the White Bear First Nation, the Blood Tribe and the Siksika First Nation, which were directly involved with the first nations oil and gas pilot project launched in 1994. Not every pilot project ends in legislation. Obviously a lot of success was gleaned from that pilot project.

I would like to take this opportunity to recognize the efforts of the sponsoring first nations and the great success that has already been achieved over the past decade. Their commitment to working in partnership with Canada to develop this legislation is honoured as we help them to reach their goals.

Bill C-54 builds on the excellent progress the government has made through several recent initiatives, including the Canada-aboriginal peoples round table, the policy retreat, and the upcoming historic first ministers meeting. It builds on the commitments made in recent Speeches from the Throne, budgets, land claims and self-government agreements. We have achieved some major milestones with our partners in the aboriginal community across the country.

This legislation provides two related but distinct authorities for first nations. First, it provides communities that opt in with the authority to gain complete control and management over their oil and gas resources, creating jobs in the expanding oil and gas sector. Second, it provides these communities with the authority to gain complete control over the management of their moneys held by Canada on their behalf, allowing them to respond to emerging economic opportunities. Therein lies the challenge. First nations are not always in a situation to do that, but in this case we are heading in the right direction. I believe this will be very helpful.

A first nation that chooses to opt for the legislation can opt in to either the oil and gas provisions or the money provisions or both.

Economic development on reserve and strengthening communities continue to be priorities of the government. I am pleased to note that first nations communities both north and south of 60 will be able to take advantage of the opportunities afforded under the moneys management provisions of the legislation.

However, the oil and gas provisions do not apply in the north because oil and gas development is presently governed by a distinct legislative and regulatory framework. South of 60, FNOGMMA as Bill C-54 is known, would remove several levels of federal oversight and offer to first nations the same benefits that many northern communities are already enjoying in managing their own resources. In fact equity participation is a huge part of that. That is something I just gleaned from a recent trip to St. Petersburg, Russia to attend an oil and gas symposium. All circumpolar indigenous peoples have the aspiration to be involved in managing the resources that are in their region, and any of the resource development activity that takes place.

Extensive efforts have been made and continue to be made in the north to negotiate land claim and self-government agreements to respond to first nations' and Inuit people's desire to manage their political and social affairs and to advance economic development and self-sufficiency. That is the goal of every government at all levels.

Regarding oil and gas development and management, the land claim and self-government agreements enable resource development in the north. They clarify land and resource ownership rights, which are of vital importance to investors. These agreements have created conditions for sustainable economic and social development, providing a land base, opportunities for economic development and modern institutions of government to secure a higher standard of living and quality of life for all northern and first nations people.

Consider for instance the Inuvialuit whose land claim was finalized more than two decades ago. Since then the Inuvialuit have secured valuable partnerships with several companies and have launched dozens of businesses. These partnerships and businesses generate revenues that help pay for physical and social infrastructure in Inuvialuit communities and create jobs and training opportunities. They create hope and a vision of prosperity for the people in that region, or at least participating in the wealth that is being created in that area.

By facilitating the success of resource projects, land claim and self-government agreements also have a significant impact on Canada's economy. The economic benefits of large scale resource development projects are felt across the country. Never let it be said that people are not trying to achieve important milestones in going ahead with these projects. Anyone who says to the contrary is wrong.

Land claim settlements and self-government agreements are just one way to ensure first nations and Inuit peoples have the tools needed to assist in fostering business partnerships between industry and aboriginal groups. FNOGMMA provides first nations with similar tools and will also be of tremendous benefit, as we have seen from the northern experience.

Although Bill C-54 describes a somewhat different path than the land claims settlement or self-government approach, it is designed to enable first nations to achieve many of the same goals, such as fostering prosperity and strengthening communities. With the passage of this legislation, first nations that vote to come under its provisions will have more tools available to them as they seek to be more self-sufficient and better able to take charge of their economies. What more could we want for people of any part of this country?

The management authority that this legislation provides will help create jobs in the oil and gas sector, as well as in the many spinoff businesses and all of the value added that result, helping first nations improve their members' quality of life and standard of living. This is a goal shared by all members of this House, I am sure, and all Canadians.

Every community has the right to decide for itself whether it wants to take advantage of this legislation. It simply provides the three sponsoring first nations, and any other first nations in similar situations that choose to opt in, with the authority to assume control of their oil and gas and related revenues, and to assume control of moneys held on their behalf by the Crown.

In effect, Bill C-54 will enable first nations communities to participate in the oil and gas sector and to access moneys held in trust. With these powers, first nations will become more engaged in the economy and better able to implement projects that will improve social and economic infrastructure in their communities, as we have witnessed in land claim settlements and self-government agreements.

If we consider the example of the Inuvialuit or, more recently, the Tlicho, the Labrador Inuit, the Westbank First Nation and even the Kwanlin Dün self-government agreement signed in February of this year, we can see where Bill C-54 might lead. We can see improvements in the transportation networks and in health care and educational facilities. We can see post-secondary scholarships, youth centres and assisted living residences for seniors. For the first time in generations, we can see young people looking forward to bright futures.

In the end, this is what Bill C-54 is all about: enabling first nations to assume greater control of their social and economic destinies. It is about ensuring that first nations have the access to the tools they need to improve the quality of life in their communities.

It is through these types of arrangements, whether they are land claim settlements, self-government agreements or initiatives such as FNOGMMA that ways are found to forge a lasting partnership between first nations and Canada which will set us on a new path toward prosperity.

In my area, we are proposing to build a pipeline that is 1,200 miles long, all along the Mackenzie route. We have achieved significant milestones to move that along. These are not easy things. It is this type of legislation south of 60 that will enable our friends, relatives, people in the south and neighbours to be part of what is happening in their backyard. That is so important. For too long, aboriginal people have been sitting back and waiting for arrangements to evolve. That is not going to happen.

This bill will help that. This is the work of first nations people. They did the pilot project that actually enabled them to come up with this legislation. They are responsible for this. This is a very good piece of legislation. We should support it.

We believe the empowerment of our people is a singular objective of every first nation in Canada. I want to appeal to the members of the House to support this wholeheartedly.

[Jim Prentice, Conservative, Calgary North Centre, AB]

Mr. Speaker, I rise today with pleasure to speak to Bill C-54, the first nations oil and gas and moneys management act. This is a piece of legislation that my party is pleased and proud to support.

In a sense this legislation follows upon Bill C-20, the first nations fiscal and statistical institutions legislation that was passed earlier this year. This legislation, taken together with the earlier legislation and, I believe, legislation that will follow, represents very important steps in this country toward self-government. I will address my comments to that.

This legislation is important for all first nations in Canada, but it is of specific importance to and follows upon the very hard work of three first nations in particular: the Blood Tribe of Alberta, the White Bear First Nation of Saskatchewan, and the Siksika Blackfoot First Nation of Alberta. These three first nations have worked together with the Government of Canada for 11 years in the pursuit of this legislation.

It is worth pausing to bear in mind that in the case of White Bear, Treaty No. 4 between the Crown and the White Bear First Nation was executed in 1875. This legislation is coming forward 130 years later. It has taken us 130 years to create this self-government initiative. With regard to the Blood and Siksika first nations, Treaty No. 7 was signed in 1877. In that context it has been 128 years since the treaties were executed. This is a very important historic step we are taking.

The Conservative Party is speaking in favour of this legislation. The position of the Conservative Party in respect of self-government was clearly enunciated by the members of our party at our policy convention this past March in Montreal. The policy position of the party is as follows:

The Indian Act (and related legislation) should be replaced by a modern legislative framework which provides for the devolution of full legal and democratic responsibility to [aboriginal Canadians] for their own affairs within the overall constitutional framework of our federal state.

Such legislative reform should be pursued following full consultation with First Nations, with the objective of achieving a full and complete devolution of democratic authority that is consistent with the devolution of other decision making responsibility within our federal system.

[Aboriginal Canadians], like other Canadians, are entitled to enjoy democratic control over their own affairs within a legislative context that ensures certainty, stability, respect for the rule of law and which balances collective and individual responsibility. [Aboriginal] communities must have the flexibility to determine for themselves whether and how free market principles, such as individual property ownership, should apply to reserve lands.

[This devolution] should be accomplished in a manner which takes into account the cultural and linguistic diversity of Canada's First Nations. Within the context of the Canadian Constitution, we should be prepared to make flexible accommodations for the protection of language and culture within self-government agreements.

The initiative that is before the House today is described in some circles as sectoral self-government. Some time ago one of Canada's national newspapers published an opinion piece which I recall was written by Phil Fontaine, the national chief of the Assembly of First Nations. In that article there were a number of matters raised by National Chief Fontaine with which I wholeheartedly agree.

Canada is a modern, full-fledged federal democratic state. It is a state in which all citizens must bear equally the responsibilities and the privileges of citizenship.

Aboriginal Canadians are entitled, indeed expected, to share in the governance of Canada. If our aboriginal peoples are to be equal citizens also bearing the hopes and the dreams of this country on their shoulders, then they must bear equally the responsibilities of governing this land. Concurrently, they must enjoy the full benefits of Canadian citizenship including control over their own affairs, including the protection of the Charter of Rights and Freedoms.

As Chief Fontaine observed, as I recall in that article, aboriginal people will only be self-sufficient, and free and able to rely upon themselves if they are free and able to make their own choices because reliance upon the choices of others is a denial of the status of citizenship.

Earlier this week I had the privilege to meet with a number of first nation leaders. I have spoken with Chief Strater Crowfoot who is one of the architects of this legislation and who has fought many years for it. I have spoken with Jim Boucher, the Chief of the Fort McKay First Nation and other chiefs as well.

In particular I reflect upon the comments of Chief Boucher of the Fort McKay First Nation who pointed out that in his view those aboriginal communities which are strong, vibrant and building wonderful economic and strong cultural opportunity, and a high quality of life for their citizens are those in which people have the confidence that comes from accessing their own resources. That is what is so important about this legislation.

Bill C-54 before the House points out in the preamble that this legislation is optional. This is legislation which first nations can either opt into or not. As the title of the bill says, it is “An Act to provide first nations with the option of managing and regulating oil and gas exploration and exploitation and of receiving moneys otherwise held for them by Canada”.

This is legislation which first nations will be expected and required to make a decision about. The subject matter of the legislation is very broad, providing first nations with extensive control over all matters relating to control of their own oil and gas and their own money. In particular, the definition of exploitation in relation to oil and gas in the legislation includes its extraction, production, storage, distribution, processing, refinery and use.

The definition of exploration includes all things which are ancillary to exploration. Of course, oil and gas money includes all of the money derived by first nations from their oil and gas assets as well as other money which is held by the Government of Canada to the account of the first nation in question.

It is important to point out that this legislation has been well thought out. It has been developed in a manner which is consistent with the principles of fundamental justice. It contains precautionary measures, balancing measures which I will speak to.

First, the procedural protection for first nations citizens is very extensive. Oil and gas assets can only be transferred from the Government of Canada to the first nation if the procedures set out in clause 6 of the legislation are followed which specifically requires a council of the first nation by resolution to invoke the process. Similarly, if a first nation wishes to access its own money, it requires the initiation by a decision of the council of the first nation either to access money which will be collected in the future or money which is currently held in trust for the first nation.

Before any first nations are entitled to access their own oil and gas they are required, pursuant to subclause 10(1) of the legislation, to pass an oil and gas code. That code is defined in the legislation. It contains extensive mechanisms to protect the process for amending the code itself, accountability mechanisms, mechanisms to disclose any conflicts of interest, and in addition, under subclause 10(2), first nations are also required to pass a financial code.

Stated simply, no aboriginal community can access its own oil and gas resources until such time as it has taken the legislative steps that are required by the Government of Canada in this legislation to be invoked.

Similarly, no first nation is entitled to access its own money on the terms of its own trust conditions and indentures unless it has passed the financial code. The financial code must deal with the method of holding money, the form of the trust, the nature of the trustees, the manner in which money is to be collected and distributed, and to whom it is to be distributed, and also dealing with the resolution of conflicts of interest.

It is important in examining this legislation to consider that the legislation does contain protection both for aboriginal Canadians but also for others such as third party interests who have an interest at the present time in oil and gas activities on aboriginal reserves or aboriginal assets.

We not only have the oil and gas code and the financial code, but there is a clear prohibition that the council members of the first nation are not allowed to serve as trustees in a trust. They do not meet the qualifying requirements to be trustees and therefore are not able to serve in that capacity.

Clause 14 of the legislation also contains specific bonding requirements, so that the people who do serve as trustees need to meet the requirements of the provincial trustee legislation such that they are reliable people, properly secured and properly bonded if they are to be entrusted with aboriginal moneys.

Clause 24 of the legislation is quite important because in the context of the transition toward this kind of sectoral self-government, the protection of existing contract holders, people who have currently a contract or an expectation from the Government of Canada, are quite important. Clause 24 provides that oil and gas laws that come into force on a first nations transfer date may not impair the rights or interests of the contract holder under a contract as signed by clause 23. So, in effect the oil and gas contracts that are in place today are transferred from the Government of Canada to the first nation. The first nation must by law honour those obligations.

It is also important in considering this type of legislation to address the extent to which the position of the Crown has been protected. This is consistent with the Samson decision, but the legislation actually could not be clearer. After the oil and gas assets are transferred to an aboriginal community, a first nation, subclause 27(3) of the legislation provides as follows:

Her Majesty is not liable, as the holder of title to reserve lands or to oil and gas found in those lands, in respect of any damage occasioned by oil and gas exploration or exploitation under this Act.

It carries on in clause 28:

Subject to section 27, this Act does not affect the liability of Her Majesty or a first nation for any act or omission occurring before the first nation’s transfer date.

Therefore, the effect of this is clear. Any claims or disputes that might exist between a first nation and the Government of Canada relating to the management of aboriginal oil and gas are not affected but on a go-forward basis, the communities that accept responsibility for the governance of their own assets are responsible themselves for the governance of those assets and the Crown is not exposed to liability for any decision making. Nor is the Crown exposed to any liability if a first nation decides of their own volition to pursue these remedies.

The mechanisms are equally clear with respect to money. Subclause 32(2) provides that:

Following the payment of moneys out of the Consolidated Revenue Fund into an account or a trust under section 30 or 31, Her Majesty is not liable for the payment or the management of those moneys.

Again, making it very clear that if a first nation decides that it is going to assume responsibility for its own financial decision making, the management of its own money, henceforth on a go-forward basis, the Government of Canada is no longer responsible for any of the decision making that is made by that first nation.

This is consistent with the principles of self-government because if first nations are going to accept responsibility for these assets and these moneys and benefit from the upside, they will be responsible as well for any decisions that are made which do not over time prove to be happy ones, if I could say that.

In light of the significant consequences of a first nation therefore invoking the legislation, it is important that we look at the process by which a first nation is able to invoke the legislation. The ratification procedures are set out in the statute and specifically, the majority of the majority has to approve if a first nation is going to opt into the legislation.

A majority of the eligible voters on the reserve must show up to vote and the majority of those who vote must be in favour. It is a provision known as the majority of the majority and it means that once a majority of a majority is on side, that is essentially approval, the Government of Canada can then pursue the devolution of responsibility.

It is also important that we have regard to the constitutional framework in Canada, the federal legislative constitutional jurisdiction, because self-government will not work in this country unless there is a respect for the distribution of powers between the federal and provincial governments. We are essentially overlaying on top of the existing federal distribution of powers a legislative framework for self-government in a sectoral sense.

The legislation does deal with that. Clause 34 outlines very clearly the circumstances in which a first nation has the right to pass legislation. Clause 35 is very important. It allows for the passage of laws and says: “to the extent that those laws are not in relation to matters coming within the exclusive jurisdiction of a provincial legislature”. Clause 36 protects areas of federal jurisdiction. In a sense we have a clear attempt to ensure that the self-government legislation respects provincial and federal jurisdictions and that we do not have unacceptable overlaps.

It is also important that one of the hallmarks by which we judge the legislation is the extent to which it protects the environment. I would point out clause 37 of the legislation where environmental assessments are mandatory. The legislation specifically provides that in the context of the oil and gas code that the first nation develops, the provincial environmental legislation must be adhered to and first nations must pursue environmental assessments if they are to exploit oil and gas resources on their own land. Once again there has been a recognition and an attempt to protect the environment.

It may seem to be a small point, but this is a difficulty that exists elsewhere in Canada. The legislation specifically preserves the right of the federal Crown, if necessary, to expropriate an interest. Pursuant to the legislation, the federal Crown has reserved its right, in circumstances that are in the overall public interest, to step in and actually expropriate an interest if that is needed.

I raise this as a very important point because there are other jurisdictions in the country where there are now, because of the failure of the government to address this in a proper way, issues about whether the federal government has in fact vacated its jurisdiction to ever act in the public interest on first nation lands. Clearly, if we are going to have constitutional workability in the country, paramount authority must rest with this Parliament, with the Government of Canada, and we must have the capacity preserved to act.

Finally, the legislation is also consistent with the Federal Court decision on the Terry Buffalo case which is a court decision of some importance in this country. It was a decision for billions of dollars where the Samson Indian Band sued the Government of Canada claiming that its oil and gas assets had been mismanaged over a period of 30 years.

Last year the judge in that case issued a decision calling upon the Government of Canada to deliver those assets to the first nation and he stipulated a process that the government and the first nation would have to follow to ensure that there was procedural protection. The legislation is in fact quite consistent with the Samson case.

For all of those reasons, I will conclude by saying that this is an important step forward. It is extremely important self-government legislation and of obvious importance in western Canada but applicable throughout the country. It is consistent with our party's position and we are pleased to support it.

[David Smith, Liberal, Pontiac, QC]

Mr. Speaker, I am pleased to speak today in support of Bill C-54, which will have numerous positive benefits for the first nations who have been involved in the pilot project and the drafting of the legislation.

When the participating first nations began this process nearly ten years ago, the White Bear nation, the Blood tribe, and the Siksika nation shared the same overall goal: to create employment and new economic prospects for the members of their communities and thereby build a better future for their children. They realized that in order to achieve that goal they needed to begin by honing their knowledge and then develop their capacity to assume responsibility for the economic development of their lands. Throughout the entire process they never lost sight of their ultimate goal: to benefit more fully from oil and gas operations by taking charge of the management of these resources and thereby to provide their communities with a better life.

The time has come for these three sponsoring nations to reap the rewards for their efforts. Passage of this legislation will provide a level playing field so that first nations with oil and gas resources will be able to reap the benefits of the growing prospects of that sector of the economy. Direct participation in the energy sector will become a possibility for them for the first time.

The White Bear First Nations, Blood Tribe and Siksika First Nation have worked with the federal government to develop this sectoral self-government legislative initiative which would enable interested first nations to assume jurisdiction and control of their oil and gas and related revenues, as well as the moneys held in trust by the Crown, to better meet the priorities and aspirations of their people.

Hon. members must know that this initiative has been jointly developed by the three sponsoring first nations. This initiative was developed from A to Z by the people closest to the challenges and the solutions. The proposed legislation respecting the management of the oil and gas and moneys of first nations will be implemented by the very people who developed it and who stand to benefit the most from it.

Once the bill is passed, subject to a favourable vote by their members, the first nations will assume control of the management of the oil and gas moneys and will be able to take advantage of development opportunities throughout the industry, from the exploration stage to the final sale.

They will also be able to do this on their own lands, where jobs and wealth will be created for all the members of their communities to enjoy. A strengthened economy will eventually translate into an improved quality of life not only for this generation but also for future generations.

In the long term, this legislative initiative will ensure that first nations children and young people have good opportunities for the future and for self-sufficiency. They will not feel compelled to leave their communities to find work, seeing as more work will be available where they live, on reserve lands. Moreover, they will take pride in being able to provide for themselves and will enjoy the fringe benefits that come with good jobs, productive people and healthy communities.

What is more, they will see the advantages of partnerships. They will realize that projects created and undertaken in the community and then developed jointly with the Government of Canada can substantially improve the governance of their communities. The fact is that this bill, drawn up after many years of negotiations and cooperation with Canada, provides tangible evidence of strengthened relations between the two levels of government.

And this is only a start. Given North America's appetite for energy resources, the opportunities for exploiting these resources on first nations land will only increase. The growth of this sector will provide a major stimulus to social and economic development on the reserves, which could then provide a solid basis for other industries and businesses.

The three sponsoring first nations are prepared now to assume their responsibilities, and other first nations have expressed their interest in doing the same. There are more than 130 first nations capable of exploiting oil and gas and about 50 that have active oil leases or licences. Over the next few decades, some of these first nations may adopt the proposed legislation.

That is another advantage of this bill. It is entirely voluntary. First nations can decide to take advantage of all the provisions in the bill or just some of them. Every community is entitled to decide for itself whether or not it wants to benefit from this legislation. It was designed to meet the needs of the sponsoring first nations and does not force any first nation to adopt it or prevent other first nations from suggesting alternatives. It just gives first nations that opt to adopt it some new tools for achieving their goals of building solid economies that create wealth and better prospects for their members.

And these are not the only advantages. The bill will also benefit industry because companies will be able henceforth to go directly to the decision-makers for quick decisions on the exploitation of resources. There will also be some direct benefits for governments in the form of new revenues from the increased production of oil and gas. These revenues will increase the funds spent on social programs to meet the needs of first nations communities.

Ultimately, all Canadians will benefit from the fact that self-sufficient and autonomous first nations will be better able to overcome the socio-economic challenges they have faced for so long. Now they will be able to improve the quality of life of their members.

It is extremely important for these groups and for all Canadians that the House pass this bill.

Thanks to the lessons learned and the skills and knowledge acquired over the years, the sponsoring first nations now want their long-term goal to become reality. They want to begin generating all the social and economic benefits for their peoples and their communities that oil and gas development will support.

It is important for people in every community with natural resources to have the opportunity, like other Canadians, to meet their own needs and create this sense of belonging and renewal that is so important to communities on first nations reserves.

This long-cherished goal and dream are in our hands. Let us be fair to the White Bear first nations, the Blood tribe and the Siksika nation—and all Canadians—and pass this good bill so that these people, like each and every one of us, can reach new heights and be proud of where they live.

Business of the House

[Tony Valeri, Liberal, Leader of the Government in the House of Commons]

Mr. Speaker, I understand from the member's question that he was obviously not at the last opposition House leaders' meeting where the entire agenda up to December 15 was laid out, including the seven opposition days to which he has referred.

In terms of background, I might also suggest to the hon. member that back in 1973 when there was a minority Parliament, the House opened on January 4 and all seven opposition days were held between March 5 and March 26. Back in 1979, when the House opened on October 9, opposition days started November 6. Opposition days clearly are the purview of the government to schedule. We have scheduled all of them for the opposition parties.

The House will continue this afternoon with the second reading of Bill C-54, the first nations oil and gas bill, followed by second reading of Bill S-38, respecting trade in spirits, and report stage and third reading of Bill C-28, the food and drugs bill.

Tomorrow we will begin with Bill C-28 and if it is completed, we will proceed with second reading of Bill S-37, respecting the Hague Convention and Bill S-36, respecting diamonds.

Next week is the Thanksgiving break week and I wish all hon. members a very happy Thanksgiving.

When the House returns on October 17, we will consider second reading of Bill C-63, respecting the registration of political parties, followed by report stage and third reading of Bill C-49, the human trafficking bill, second reading of Bill C-65, the street racing bill, Bill C-64, the vehicle registration legislation, and report stage of Bill C-37, the do not call bill.

As the week continues, we will add to the list reference to committee before second reading of Bill C-50, respecting the cruelty to animals, Bill C-44, the transportation legislation, Bill C-47, respecting Air Canada, the reference before second reading of Bill C-46, the correctional services bill, and by the end of the week we hope to begin debate on the energy and surplus bills that are being introduced this week. There is also ongoing discussions about a take note debate that week.

As members can see, there is a heavy agenda and important legislation. As I said and as I laid out to the opposition House leaders at our previous meeting, in the post-Remembrance Day segment of this sitting, we will consider the business of supply and we hope to be in a position to deal with the final stages of many of these very important bills before the end of the year.

First Nations Oil and Gas and Moneys Management Act

[Pat Martin, NDP, Winnipeg Centre, MB]

It is stolen right out from under their feet.

We will allow foreign corporations to come in and drill for that oil. We give them billions of dollars per year of exploration grants to extract that oil, pay the government a royalty, loot the profits and take them offshore, whether it is Exxon or whatever. However, the very people who for thousands of years have lived on top of that oil are allowed a lifetime lump sum payment of $15,000 per person. It does not even buy a pickup truck, never mind provide for that family. That is the status quo we are dealing with here. That is the Canadian legacy of first nations oil and gas management up to this date. It has been a legacy of theft and exploitation.

Sharing in the land and resources was exactly what the signators to the treaties thought they were doing. They view reserves a little differently than we do. We view an Indian reserve as where we cluster all the first nations people together and make them live there. When we read the treaties literally, they view what they signed to mean that they are willing to share all their traditional territories, all of Canada, except for the reserve which they have the exclusive control over. They are perfectly willing to share the land, the wealth and the resources of the rest of Canada.

We did not see it that way. We view the treaties like this. We will take most of the reserve and give them the bit that is left. They live on top of that and anything that is found underneath it, whether it is lead, zinc, silver, molybdenum, gold, is ours. They have no right to benefit from that except as specifically outlined by the minister in his paternalistic benevolence.

Incrementally, as aboriginal leaders have learned the rules of the game, and just when they learn them the rules seemed to change on them, leaders like Strater Crowfoot and the other representatives of these three first nations have seen what is necessary to finally negotiate a way to at least have some control over their own what they call Indian moneys.

I will point out what the bill do. The status quo is that Indian moneys were held in trust for first nations and may be used only for the first nations, but at the direction and control of the minister. In other words, Indians could do nothing with their own money without the minister's rubber stamp and to make application. In this sense, the Indian moneys regime is interfered with. Sections 61 to 69 of the Indian act govern the management of Indian moneys. Indian moneys are either capital moneys which are derived from the sale of a first nation's surrendered lands, or capital assets, or revenue moneys which include all moneys other than capital.

In 1912 the Blackfoot were duped in an effort to try and elevate the standards of living conditions of their people. The Siksika, the Blackfoot, sold about half of its reserve for $1.2 million. Now in 1912 it made it the richest tribe in western Canada. It bought new houses, with regular interest payments and other services. By the end of World War II that money was gone and it had little to show for their wealth except for a smaller reserve. The population had doubled. This is the type of exercise that we saw which was simply detrimental to the well-being of aboriginal people. However, we can see where the leadership would be tempted to try to do something to cope with the social conditions of their community.

With regard to Indian moneys, they are held by the crown and “expended only for the benefit of the Indians or the bands for whose use the moneys are being held”. It is within the governor in council's choice to determine whether any purpose where the moneys used are for the benefit of the band. The minister has the absolute power in relation to the management of band moneys.

What we propose in Bill C-54 will hopefully allow three phases in this idea. The pilot project that took place to establish this first nations oil and gas management initiative dealt with co-management, enhanced co-management and management and control of the money.

During the first phase, duties and decision making about the administration of the money was shared with the first nation. During the second phase, first nations were given training to develop their administrative capacity in dealing with the application of this money.

The pilot project is currently in its final phase, which requires the passing of the legislation which will allow the transfer of authority to first nations provided they meet the limitations and the requirements of this legislation.

We will support the bill because we support a fairer distribution of the wealth of the land and resources occupied in the traditional territory of first nations as the only hope for a meaningful progress in terms of economic development and elevating the standards of living and social conditions for first nations people.

[Pat Martin, NDP, Winnipeg Centre, MB]

Mr. Speaker, I am very pleased, on behalf of the New Democratic Party, to speak to Bill C-54, the first nations oil and gas and moneys management bill.

Let me say at the outset that it is my policy personally, and I believe I can speak for the NDP caucus, that when legislation dealing with aboriginal issues is asked for, developed by and driven by first nations, my party will not stand in the way, in any way shape or form, to that legislation coming to fruition. We will support Bill C-54 and we recognize and pay tribute to the patience and perseverance of the architects of the bill who, for the past 10 years, have done the necessary development of the bill and have it put into the form in which we find it today.

The bill goes to the core of what is wrong with this nation's treatment of aboriginal people and its relationship with aboriginal people. In a happy vein, it makes some progress toward what is wrong, but let me state clearly at the front that the bill is about the share and control of land and resources. Frankly, if aboriginal people and first nations were given a greater share and a greater control of the land and resources on their reserves and in their traditional territory, we would not see the abject poverty and the third world conditions that are so endemic in the aboriginal population.

As my colleague from Halifax said, we would not need the bill if we would only get our minds around the fact that the treaties that we signed in days gone by were all about a sharing of the resources and the wealth of this great nation. Somehow that aspect of the treaty process has been put aside and has been gathering dust. It has never been honoured and aboriginal people only make progress in terms of sharing of land and resources when they fight it through the Supreme Court of Canada.

In most of the recent rulings of the Supreme Court pertaining to first nations sharing in land and resources, first nations have won. The Supreme Court has found the Government of Canada to be wrong, that it was not fulfilling its contractual obligations under the treaties and not fulfilling its fiduciary obligations under the Indian Act. We have been deliberately and systematically denying first nations their rightful share in the land and resources. That is the basic context within which I will make my remarks today.

The bill is about oil and gas reserves. Imagine being an aboriginal person living in Alberta for the past 2,000, 3,000, 5,000, 7,000 years and, by some happy coincidence, oil is struck under our feet. The most valuable commodity in the world, by non-aboriginal culture and European western standards, is unearthed in abundance under our feet. We should be like Jed Clampett and The Beverly Hillbillies story because untold wealth should be our legacy, not abject poverty.

Instead, because of the structure of the Indian Act and because of the attitude of us colonizing the population, there has been no sharing of that bounty. In fact, it is only with the enactment of Bill C-54 that we will see for the first time an actual transfer of authority, control and management of the oil and gas on first nations land to first nations.

I will go through some of the status quo to compare the current situation to what is being contemplated by the bill in order to illustrate this point. Let me say for the record that the prime proponents of the bill, the three first nations that have come together to ask for this initiative, are the Siksika First Nation, led by Chief Strater Crowfoot in this context; the White Bear First Nation of Saskatchewan, which will be represented by Councillor Clarence Nokahoot at the committee when the bill gets there; and the Blood Tribe, which will be represented by Councillor Kirby Manyfingers.

I think it would be useful in the context of this debate to back up a little bit and recognize and acknowledge who we are dealing with. I come from the prairies so I know the name Crowfoot as a name of myth and legend on the Canadian prairies. Chief Strater Crowfoot is the direct descendant of Crowfoot, one of the greatest leaders and statesmen of Canadian history. Crowfoot was born as a Blood Indian, many would be interested to know, along the banks of the Belly River in 1830. As a child he was actually given the name Shot-Close.

We should point out that names among first nations in this part of the world were considered living and evolving things to be passed on to those who earned that category. After his father was killed, Shot-Close was adopted by the Blackfoot. Most people associate Crowfoot with the Blackfoot and they gave him the name, Bear Ghost. He earned the most prestigious name, Isapo-muxika or Crowfoot in the Blackfoot language, from an act of bravery during an attack and raid on the Crowfoot camp.

I think this bit of history is important so we can capture the gravity, weight and import of what we are doing today. This is not just an administrative detail. This is the manifestation of great patience, leadership and administrative skills by an acknowledged leader of the Blackfoot Nation. I think we would all benefit by knowing more about the Crowfoot name.

After an outbreak of smallpox that decimated the Blackfoot in 1869, Crowfoot became the chief. During his years as chief, Crowfoot became famous as an influential peacemaker throughout those tumultuous times where they were being faced by what today would be viewed as an alien invasion, invading forces of strange people, us. We were interrupting thousands of years of development of his people in that area. Crowfoot became known for keeping his young men from making raids and showing leniency in dealing with his enemies, a courtesy that was not afforded by us toward his people in fact.

He formed a close relationship with a missionary, Albert Lacombe, a man well known in our Canadian history books, who he actually rescued from a Cree attack. Early in the 1870s he made peace with the Cree and in fact adopted a young Cree, which is another name that all people in the House will recognize, Poundmaker. Chief Poundmaker was the adopted son of Crowfoot, just as Crowfoot was the adopted son of the Blackfoot.

Crowfoot had a keen intellect and even while the buffalo were still plentiful, Crowfoot saw a bleak future for his people. His famous quote is, “We all see that the day is coming when the buffalo will all be killed and we shall have nothing more to live on”. How interesting it is that 130 years later his direct descendant, Chief Strater Crowfoot, is dealing with taking care of the interests of his people and looking for an economic future, some livelihood because there has been an interruption in the 100 years preceding where first nations in that region have been without a means to control and dictate their own destiny.

Crowfoot remained a man of great dignity and compassion throughout a series of his own illness and personal sorrow and in watching their livelihood diminish. It was said that he captured the imagination of almost everyone who met him. After eight of his twelve children had died, he heard that his adopted son Poundmaker had been convicted of treason. This was after the raid on the abandoned Fort Battleford.

When Poundmaker occupied the abandoned fort at Battleford, he was in fact charged with treason, treated as an enemy and put in prison. Crowfoot wrote to his son, Poundmaker, saying, “I have such a feeling of lonesomeness, of seeing my children die every year, and if I hear that you are dead I will have no more reason for living”. The sadness was profound and there is a very well known song and poem on Crowfoot's lament.

He had been a warrior, a peacemaker, an orator, a diplomat and a leader and he brought great honour to the name of Crowfoot, as it still rings throughout the prairies today.

I go through that bit of interesting history because Chief Strater Crowfoot, who we deal with today, has come to the House of Commons, to Parliament, to ask that we consider the speedy passage of this bill on behalf of the people he represents. In the interests of fairness, righting historic wrongs and enabling people to proceed with economic development that will lead his people from poverty to bridge that gap to the mainstream population, this type of enabling legislation is absolutely necessary.

I should point out some of the history of the treatment of oil and gas royalties and first nations people up until the advent of this bill. Let me give one case study, a very brief analysis of how aboriginal people have been left out of the enormous benefit of the resources found in that part of the world until recently.

This is a source from a book called The Future Petroleum Provinces of Canada . It has done a case study of one reserve that struck oil. The Indian Act specifically bars aboriginal people from having any share in the resources, other than sand, gravel, clay, silt and mud. If gold, petroleum, rubies or anything of any value is discovered on their land, they have no right to it. If there is mud, clay, sand or dirt on their reserve, they are allowed to go forth and proceed with economic development in that capacity. There is a limit to how much mud one can sell.

In the case of oil, here is the breakdown for the benefit of this case study reserve. We will call it reserve X, but it is a real reserve, with a population 3,000. The potential reserve of the oil on the property is 19.3 million barrels. The natural gas on the reserve is 93 billion cubic feet. Reserve of oil per capita is 6,400 barrels. Not to go through all these details, let me get down to the bottom here. After all these formulas and calculations about the royalty value per person on reserve X, the one-time lump sum cash payment per person was $15,000. They are sitting on a wealth of oil and their families and children are living in abject poverty with no prospects, no hope of economic development because it is not allowed under the Indian Act. They are at the mercy of the minister for everything they do. He has absolute control over their destiny. They are sitting on this pool of black gold and their share is a one-time lump sum payment of $15,000.

[Lloyd St. Amand, Liberal, Brant, ON]

Mr. Speaker, allow me to thank the member opposite for his thoughtful, even historical, analysis of Bill C-54. The member has been a valuable member of the aboriginal affairs committee.

He will be aware, as he indicated, of the relatively poor standard of living that is the case for so many First Nations communities in our country. He made that point vividly. He also will be aware that the provisions of Bill C-54 are optional for First Nations communities.

I am wondering, with his extensive knowledge in this area, if he wishes to share with the House his own thoughts, perhaps even his estimate, as to how many of the approximately 600 aboriginal communities in Canada may in fact opt in to the provisions or workings of Bill C-54.

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

Mr. Speaker, it is a honour for me to take part in today's debate. This is a day that all aboriginals in Canada will remember, because once and for all, I hope, we will be able to enjoy the financial spinoffs generated by the resources on our ancestral lands.

The First Nations Oil and Gas and Moneys Management Act provides us with the opportunity to solve our social problems. In fact, the income that we will reap from these lands may mean that we will be able invest additional funds in order to try to heal the social ills from which our people are suffering.

So, this is a great day for us all. For those like myself who had the opportunity to negotiate on behalf of aboriginal groups, October 6 will be a day when everything we have been seeking for the past 25 years is within our grasp.

I want to acknowledge the work done the government, which demonstrated respect by ensuring that aboriginals can one day live off the resources on their own ancestral lands. The resources on these lands will help us feel much prouder, since we will no longer feel as if we are at the government's mercy. Ultimately, we will benefit from the legacy our ancestors left us.

Bill C-54 is designed to enable first nations to manage and regulate oil and gas exploration and exploitation and to receive the money that is currently retained by Canada. This bill will allow the transfer to designated first nations of the management and control of oil and gas resources on their lands, and the payment to first nations of amounts held in trust by the Crown.

It is important to remind ourselves here that, in Canada, aboriginal people have a lower quality of life than non-aboriginal people, and to stress the importance of bridging this gap, as mentioned on many occasions, including in the October 5, 2004 Speech from the Throne.

To achieve this goals, many first nations consider that economic development is required. But that is a tall order for a first nation with no control over its lands and resources. In her November 2003 report, the Auditor General of Canada wrote that one of the barriers to economic development stemmed from the federal government's approach to institutional management and development. She also reported at the time that, according to many first nations, the process put in place by the department is too slow. It is designed for the short term and is sometimes poorly administered.

A large number of first nations and their organizations have worked diligently toward assuming greater responsibility for their lands and resources. 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.

Back in 1983, the report of the Special Committee on Indian Self-Government, the Penner report, already recommended that the financial relationship between the Government of Canada and the first nations be redefined.

In 1996, the final report of the Royal Commission on Aboriginal Peoples recommended a full review of the financial 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 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 on the land of five first nations.

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.

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 the 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 exploitation, on the spending of moneys derived from the exploitation of these resources, and on the protection of the environment.

As for rules for protecting the environment, those set up 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 Her Majesty 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.

In closing, we wish to reiterate that the Bloc Québécois endorses the key recommendations of the Royal Commission on Aboriginal Peoples, which set out an approach to self-government built on the recognition of Aboriginal governments as a level of government with jurisdiction over questions concerning governance and the welfare of their people. The entire report was based on recognition of the aboriginal peoples as independent nations occupying a unique place within Canada.

I would emphasize in closing that aboriginal resources have always represented boundless wealth to the peoples, and that the aboriginal peoples have always been close to the earth. They have, in fact, always wanted to use that wealth in exactly the same way as any people has a right to do.

Today we are recognizing that possibility. It is my hope that more aboriginal groups will have the pleasure of including these clauses within their agreement of self-government.

[Jeremy Harrison, Conservative, Churchill River, SK]

Mr. Speaker, my colleague from Regina—Lumsden—Lake Centre made a very good presentation on this bill.

It is a real pleasure for me to rise on behalf of my constituents of Desnethé—Missinippi—Churchill River, in northern Saskatchewan, to speak on Bill C-54, the first nations oil and gas and moneys management act, a bill which we are supportive of and which we feel moves in the right direction.

The purpose of this bill is to enable three first nations, the White Bear, the Blood tribe and the Siksika, to assume the direct management and regulation of their oil and gas resource moneys, currently administered on their behalf by Indian Oil and Gas Canada. The bill would will permit other first nations to similarly access their oil and gas resources and moneys provided they meet the legislative conditions.

These three first nations have entered into a series of agreements with the Government of Canada for the co-management of oil and gas in their reserve lands. Their pilot project began in 1994 and resulted from a proposal from the Indian Resource Council to transfer full management and control from IOGC to first nations by 2005. The pilot project was a success. Legislation is now required and we now have Bill C-54.

The bill would require an affirmative vote by any first nation, a referendum of all eligible voters, and approval by “a majority of the majority” would be required, a provision that I think is quite worthwhile and will reflect well in first nations across the country.

The bill would ensure that the federal government would not be liable “in respect of the exercise of powers by a first nation in relation to oil and gas exploration or exploitation” or “for the payment of the management of those moneys” extracted from the consolidated revenue fund. The federal government would also not be liable “in respect of any damage occasioned by oil and gas exploration or exploitation” under this bill.

Accountability measures would occur in the form of an annual preparation of financial statements in accordance with the generally accepted accounting principles of the Canadian Institute of Chartered Accountants, as well as an annual audit of the financial statements in accordance with the generally accepted auditing standards.

One thing I would like to emphasize is the collaborative nature of the discussions, the legislation and the aboriginal affairs and northern development committee, of which I am the vice-chair. We have had that collaboration in this Parliament. Each party has worked together, I think, and has worked for what we see as being the benefit of first nations right across the country.

I think everybody recognizes that the current state of affairs has to change and that our first nations deserve better. They deserve better than the Indian Act. They deserve better than the paternalistic attitude that we have seen from Ottawa for the past 150 years on this file.

We need self-government. We need our first nations, our aboriginal peoples, to be running their own affairs rather than having their affairs run from Ottawa by bureaucrats in office towers. This is something that we no longer want to see happening. In my constituency, where I have nearly 30 first nations and over 100 separate reserves, this is the attitude that I see and hear. Chiefs, councillors and individuals living on reserve no longer want to have their lives run from Ottawa. They do not want to have rules dictated to them by Ottawa with very little input from them, from their people. That is not the way that we want to go.

One of the real benefits or positives about this bill is that we would have power resources, moneys, that are now going to be more directly controlled by the first nations that are responsible for them. I think that is a positive thing.

Regarding the self-government file, we are very supportive of moves in this direction. I think that our critic, the member for Calgary Centre-North, has laid out a very forward-looking document. Our party voted on it and it is a policy of this party, a very forward-looking statement on what we see as the future of self-government, with first nations managing their own affairs and running their own lives. I think this is the direction we have to move in.

Just recently, the member for Calgary Centre-North and I met with the tribal chief, Richard Gladue, and also with a number of other chiefs and senior officials from the Meadow Lake Tribal Council, which is based in my hometown of Meadow Lake in my riding. The Meadow Lake Tribal Council is blazing the path in negotiating a self-government agreement, not just for an individual first nation but for an entire tribal council of nine first nations. It is going to be the first agreement of its kind. My understanding is that the handshake agreement will be completed fairly quickly and that ratification will be moving forward in the fairly near future, meaning within eight months to a year.

This is an agreement that has been many, many years in the making. Negotiations have gone on for over a decade, I believe. I think it is a positive step. It is a direction that we want to move in, a direction that the Conservative Party supports. I have seen the presentation from the representatives and chief of the Meadow Lake Tribal Council a number of times. It is a very positive thing and a direction that we do want to go in. We have made it clear that we are supportive of this initiative.

Another positive portion of this bill is the voluntary nature of this legislation, which we have seen in prior acts, whereby first nations can decide, after a referendum from their membership consulting with each member of the first nation, whether they want to be part of this, whether it be this legislation or the previous bill that was brought forward, the financial management act. This is a trend we have seen developing, largely because of mistakes made by previous governments whereby legislation was forced upon first nations whether they wanted it or not. It is a trend that we have seen developing over the last five or six years and I think it is a positive trend.

Of course we cannot go down this path for all government legislation. No one would be supportive of having the Criminal Code apply only if one decides to opt in, but for bills such as this, which directly affect first nations in varying stages of development, I think this is the direction that we will be moving toward in the future.

As an example, a Conservative Party government would introduce a first nations land ownership act, whereby land would actually be transferred to and owned by the first nation in question, rather than having the current situation in which the land is owned by the federal government, with all that comes along with the land being owned by the federal government, including an immense bureaucracy in regard to whether land can be used in certain ways by first nations people.

That is something we would bring forward, whereby first nations would actually own their own land. I think a lot of people find it astonishing that right now first nations do not own their own land, that individuals on reserve, for instance, cannot own their houses. The houses ultimately are owned by the Government of Canada. We want to move in the direction where individuals can actually have access to owning their own homes, to things that other Canadians take for granted. It is astounding that the only place in Canada where someone is not allowed to own property and a home is on reserve. If we want to talk about paternalism, this is an example of it: the government owns everything. It is astounding.

The bill could have a fairly significant impact on my constituency in northern Saskatchewan, an area where the tar sands actually extend into northern Saskatchewan. There is currently not a lot of development going on there, as development now is focused on the Fort McMurray area, of course, but eventually there will be development of the tar sands in northern Saskatchewan as well as northern Alberta. This will have an impact, because much of the area is covered by land that could potentially be owned by first nations, as some of it is right now. I think it is a positive sign that we are moving in this direction and allowing those first nations the possibility of owning their resources if the oil and gas in that area are developed.

I have another example of how it will affect my riding. We have had a long struggle to build a road connecting the Fort McMurray area to Saskatchewan. The people of La Loche actually physically built the road from La Loche on the Saskatchewan side to the border and the road stopped there. It stopped at the border. They call it the road to nowhere.

Forty kilometres had to be built from the Alberta side to connect northern Saskatchewan to northern Alberta and we finally did it after incredible effort. I made it my number one priority as a member of Parliament to have this road completed. We finally got an announcement and the road will be completed. That is positive and something that could very well lead toward this act being applicable in northern Saskatchewan.

[Tom Lukiwski, Conservative, Regina—Lumsden—Lake Centre, SK]

Mr. Speaker, I support Bill C-54, which is important legislation as I mentioned in my remarks to the parliamentary secretary.

I come from Saskatchewan and although I do not have any reserves in my home riding, I live on native land. My house is on a portion of land that is controlled by six Indian bands. I am quite familiar with many of their projects, including a golf course which they operate, plans for expansion of the golf club and plans to one day perhaps apply for a casino licence.

The one difficulty the bands have in my small area of the world is the lack of funding for the expansion of some of their planned projects. In previous years a lot of funding came from the federal government, but there were always strings attached, which is normal between any level of government and first nations people or any stakeholder that goes to the government for financial assistance. That in itself has always caused some problems. Rather than being accountable to themselves, first nations people were accountable to the federal government and in many respects dependent upon the federal government for their funding.

I will be splitting my time, Mr. Speaker, with the member for Desnethé--Missinippi--Churchill River.

I believe it is important for first nations in all their activities and in their pursuit of their economic development plans, dreams and aspirations to have control of their own destiny. One critical way to have control over their own destiny is to have control over their own revenue. This legislation would allow first nations, if they wished, to fully control and manage the revenue from their own oil and gas.

As the parliamentary secretary mentioned, this is not to say that all first nations people will take advantage of the legislation. Some may still wish to fall under the purview of the federal government and have their oil and gas revenues controlled by it. I would hope that most first nations people would take the revenues produced from oil and gas on their land and administer it, manage it and use it themselves.

By my records, the White Bear reserve would be earning at current oil prices approximately $32 million per year gross revenue. That is an incredible amount of money. Currently, that money is managed by IOGC, but I believe first nations people on the White Bear reserve could manage it more effectively than any federal government agency. Aboriginals and first nations people on White Bear reserve are looking forward to the challenges that will come with this legislation being enacted.

Let us make no mistake about it. I truly believe and anticipate that there will be challenges. There will be problems. There will be growing pains, but that is to be expected. Any time that we move toward the ultimate goal of self-government for first nations people, there will be hiccups along the way.

However, I think it would be remiss of us as parliamentarians and of any other level of government to suggest that we should not pursue the ultimate goal of allowing first nations people their goal of self-government. I think it is absolutely critical. I think it is something in which all of us on both sides of the House and in all four corners of the House need to take an active part, that is, assisting first nations people with their ultimate goal of self-government.

Therefore, again I suggest that this piece of legislation is an extremely important first step, a small but very important first step toward achieving the goal of aboriginal and first nations self-government.

I hope, however, that what comes as a result of the legislation and what comes as a result of first nations people being able to control and manage their own oil and gas revenues is that there are no other impediments or drawbacks imposed upon them from the federal government. We have seen this before when it comes to the ownership and management of natural resources, not necessarily directly with respect to first nations people, but certainly with jurisdictional management, accountability and ownership of oil and gas revenues.

I can again point to my home province of Saskatchewan, where we have been in a long and ongoing discussion, debate and, some would suggest, fight with the federal government over oil and gas revenues. I refer specifically to the ongoing battle our province has with the federal government on equalization payments.

Currently, as hon. members might know, Saskatchewan is considered a have province, but for many years prior to this we were considered a have not province and have been recipients of oil and gas revenues through equalization payments. The problem is that even though Saskatchewan has generated significant wealth over the past number of years through oil and gas revenues, the clawback system that the federal government has imposed upon our province literally makes it almost, at best, revenue neutral.

In other words, Saskatchewan has been clawed back anywhere from 90¢ on every dollar to $1.25 on every dollar for the amount of oil and gas revenues we generate. By conservative estimates, and I note that is small-c conservative, Mr. Speaker, over the past decade Saskatchewan would have received an additional $4 billion to $5 billion in revenue had the federal government not clawed back, through the equalization formula, all of the revenue that we have generated.

In fact, if Saskatchewan had a proper, fair and just equalization formula right now, at today's oil prices Saskatchewan would be receiving, by my calculations, anywhere between $800 million and $1.5 billion in additional revenue each and every year. Of course we do not have that agreement, and even though this legislation looks attractive and is something I would very actively and vocally support, I would hope that down the line there will be no other impediments placed upon first nations people by the federal government.

I would encourage and certainly urge all members across the floor to take that into consideration and to take that message to the minister and to the Prime Minister, to give some guarantees to first nations people that they will not at some point in the future be burdened by the same clawbacks, by the same impediments from the federal government on the ownership, management and control of all of their oil and gas revenues. If members opposite can guarantee me that, I will certainly endorse the bill.

[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, the bill before us today is an important step forward in addressing the unacceptable socio-economic gap that separates so many First Nations people from other Canadians. It would help to ensure that First Nation communities that choose to opt into this legislation would have access to the bounty their lands have to offer and a greater share of Canada's prosperity.

The legislation would provide First Nations with the opportunity to manage and regulate their oil and gas resources, as well as collect and manage future revenues flowing from them.

As well, the legislation would allow First Nations to decide whether to exercise full authority over the management of their moneys derived from activities on reserve and currently held for them in trust in the consolidated revenue funds.

I would like to underscore the important work undertaken by the White Bear, Blood Tribe and Siksika First Nations, which initiated this process to take over the management and control of their oil, gas and moneys, and worked with Canada to develop this enabling legislation to achieve this goal.

In the last five years, over 900 wells were drilled on First Nation lands. Last year alone, industry invested $76 million in drilling on First Nation lands, with over 250 new wells drilled on 37 reserves.

In 2003-04, Indian Oil and Gas Canada administered over 3,500 active surface and subsurface agreements on 70 Indian reserves. The revenues collected on behalf of First Nations were valued in the $200 million range.

When the Prime Minister has spoken about his concerns for aboriginal advancement, he has made it very clear that our government believes aboriginal people in Canada must participate fully in all that Canada has to offer, with greater economic self-reliance and an ever-improving quality of life that naturally follows.

In outlining the strategy to achieve that goal, he underscored the need for more successful aboriginal businesses, more economic development and greater self-sufficiency.

At the historic policy retreat this past May, the government re-confirmed that commitment and that is exactly what this bill helps achieve in the goal and the movement forward.

What it means is that the First Nations that choose to take advantage of this new legislation will be able to play a key role in Canada's booming oil sector, creating jobs, spin-off businesses and increased opportunities for both social and economic development.

Let me give some of the history that has led to this achievement. In 1994, the Indian Resource Council, an organization that supports First Nations in their efforts to attain management and control of oil and natural gas resources, came forward with a proposal for a pilot project.

The Indian Resource Council is a stand alone First Nations owned and operated agency representing over 130 First Nations with oil and gas interests. The objective of the council's pilot project was to transfer full management and control from Indian Oil and Gas Canada to those interested First Nations.

A steering committee composed of representatives from Indian Oil and Gas Canada, the Indian Resource Council, as well as the chiefs of the pilot project First Nations, was struck to oversee the project.

Over the course of the next decade, the White Bear, Blood Tribe and Siksika First Nations moved through a succession of capacity building exercises to gain the skills and knowledge required to assume the full management and responsibility over oil and gas development on their own reserve lands.

There were several stages: first, the joint administrative and management processes; then building capacity through enhanced training; and, more importantly I guess, developing individual communication processes incorporating First Nations' values and beliefs to inform band members, as well as industry and government, to ensure that these activities would be reflective of, and responsive to, each community's needs and values. We should never stray from that premise because it is important to success.

These First Nations from Alberta and Saskatchewan have been partners at ever step in this decade long process. They have worked side by side with departmental officials. It has been quite a team. They have been directly involved in both designing this bill and developing the necessary capacity to implement its progressive provisions. They have identified the problems that need to be addressed and devised the solutions that work for their communities.

It is very important to repeat that the legislation does not oblige any First Nation to opt into any or any part of the bill. Each community can determine by referendum whether to use the legislation. Neither does it in any way create a requirement or preclude other First Nations from bringing forward other options.

Finally, and importantly for many First Nations, the non-derogation clause in the bill makes it very clear that it is not the goal of the legislation to abrogate or derogate from aboriginal or treaty rights protected by the Constitution and that should an infringement to those rights be found to arise from the application of its provisions, the government would have to justify that infringement.

There might be some aspects of the bill that will appeal to some First Nations but not to others. As the bill's name implies, the legislation covers both oil and gas issues, as well as money management. Let me explain the distinction.

At the moment there is no legislation that recognizes the possibility of First Nations assuming control over their Indian moneys which are currently held in trust by the Crown in the consolidated revenue fund as stipulated by the Indian Act. The bill before us today would provide First Nations with a legislative vehicle to exercise full authority over their moneys otherwise held by the Crown.

Even if they are not involved in managing oil and gas development, communities could access the moneys derived from activities on their reserve to support other aspects of self-government and broader opportunities for economic development. With the legislation, the First Nations can choose to take advantage of either the oil and gas elements of the legislation, just the moneys management option, both elements or, if they so choose, they could stay exactly as they are today. It will be up to the individual community to make that determination, not us as a government but each community at the development stage that they currently are or hope to achieve.

The first three First Nations leading this initiative would be able to seize opportunities throughout the oil and gas sector, from initial exploration to exploitation and extraction. Quality employment opportunities, whether directly in the oil patch or in one of the myriad associated businesses, means stronger, healthier communities that offer hope and opportunity to community members.

We all know, any of us who have been involved in this work over the years, that hope is an important aspect. Giving someone the dignity of a job and a possible future that is better than at present is very important and crucial.

I want to point out that none of the provisions contained in the bill can be used by a First Nation government without the consent of its own members. Both on and off reserve members would be able to participate in any referendum held to gain community consent for a First Nation to opt into the legislation, whether in respect of oil and gas, moneys or both.

Let me explain more precisely what Bill C-54 would do and what First Nations that opt in to this legislation may expect.

First, they will be considered legal entities for the purposes of the act and, as such, will be required to maintain accounts, prepare financial statements and have those financial statements audited in accordance with generally accepted accounting principles. These First Nations will also be accountable to their membership to disclose the management and administration of First Nations oil and gas activities and moneys under their care.

The community's members would have options available to ensure this accountability. I want to add for the record that the bill would not affect the application of the Canadian Environmental Assessment Act, the Canadian Environmental Protection Act and the Species at Risk Act.

From my perspective as Parliamentary Secretary to the Minister of Indian Affairs and Northern Development, there is another benefit that may be less tangible but I think it is equally important and we should put it on the table. The First Nations oil and gas and moneys management act represents a fundamental change in the way we interact with First Nation governments.

In the case of this legislation, a strong relationship has been built with the three partners, White Bear, Blood Tribe and Siksika First Nations, over the last 10 years as we have worked in a partnership. We have learned how our activities can complement each other. We have seen that committed partners can achieve meaningful process and progress in advancing their shared quest to build a better future for aboriginal First Nations people.

That is something the Government of Canada is committed to seeing more of in the future. With this legislation our priority is to ensure that, after nearly a decade of hard work and dedication, the White Bear, the Blood Tribe and the Siksika First Nations are able to reap the rewards of their efforts to gain the skills required to create stronger and more prosperous communities. In doing so, they have obviously opened the door for other interested First Nations to come to the table and work with us and their own communities to move forward in a similar manner.

It is now up to us as parliamentarians. I know there have been ongoing discussions with the parties in the House. I think those have been very beneficial and cooperative discussions. We hope to ensure that First Nations governments have the tools they require to better meet the needs and aspirations of their people.

I am counting on and hopeful of the support of my hon. colleagues from all parties in the House. My discussions to date seem quite helpful and hopeful.

Before I end my speech by saying that I want us to help make this possible, I want to thank my colleagues in the House who have contributed to helping us reach this point today. Everyone knows that a minority government is difficult and in a minority Parliament we have had the cooperation on the most of part from all of my colleagues from all of the parties to advance First Nations.

I believe the members of the committee and of the House generally are committed to moving First Nations efforts forward. I personally appreciate that and I know the First Nations will tell members that themselves.

[Raymond Chan, Liberal, for the Minister of Indian Affairs and Northern Development and Federal Interlocutor for Métis and Non-Status Indians]

moved that Bill C-54, An Act to provide First Nations with the option of managing and regulating oil and gas exploration and exploitation and of receiving moneys otherwise held for them by Canada, be read the second time and referred to a committee.

Business of the House

[Tony Valeri, Liberal, Leader of the Government in the House of Commons]

Mr. Speaker, I would like to lay out the business for the next week.

We will continue this afternoon with Bill C-55, which is the wage earner protection program. Then we will proceed to the second reading of Bill C-57, the financial institutions bill, followed by second reading of Bill C-54, which is the first nations oil and gas and moneys management act.

Tomorrow we will consider report stage and, if possible, third reading of Bill C-25 respecting Radarsat. I understand as well that there are some ongoing discussions about the disposal of Bill C-63, amending the Canada Elections Act. We would also like to deal with Bill S-38 respecting the spirits trade and Bill S-31 respecting autoroute 30.

On Monday we propose to commence report stage of Bill C-11, which is the whistleblower bill. We would like to give this bill priority all week in the hope of completing all of the remaining stages.

We would then return to any business left over from this week and, if there is time, begin consideration of Bill C-44, the transport bill; Bill C-28, the food and drug legislation; Bill S-37, respecting the Hague convention; Bill S-36, the diamonds bill; and Bill C-52, the fisheries bill.

With respect to the business of supply during the present period, Mr. Speaker, I will reconfirm that you confirmed to the House that there will be seven allotted days during this period. In response directly to the opposition House leader's question, as per our discussion at the House leader's meeting this past Tuesday, we understood we would schedule the supply days after the Thanksgiving break.

In any event, it will be a topic that I look forward to discussing with House leaders at our meeting this coming Tuesday, so that we can in fact schedule all the required opposition days.

First Nations Oil and Gas and Moneys Management Act

[Ethel Blondin-Andrew, Liberal, for the Minister of Indian Affairs and Northern Development and Federal Interlocutor for Métis and Non-Status Indians]

moved for leave to introduce Bill C-54, an act to provide first nations with the option of managing and regulating oil and gas exploration and exploitation and of receiving moneys otherwise held for them by Canada.

(Motions deemed adopted, bill read the first time and printed)