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.

[Chief Delbert Wapass, Thunderchild First Nation]

Thank you very much.

[Witness speaks in Cree]

I want to say good afternoon to members of the esteemed standing committee. Thank you for inviting the Indian Resource Council to testify on Bill C-262. I have made this trip on behalf of the Indian Resource Council, and not on behalf of Thunderchild.

My name is Delbert Wapass. I'm the Chief of Thunderchild First Nation from Saskatchewan. We are located in the heart of oil and gas country, Lloydminster, on the Alberta-Saskatchewan border.

The Indian Resource Council is a national advocacy organization of chiefs. Our mandate is to represent resource-based first nations by ensuring that their oil and gas resources are managed in their best interests. We work with Canada through Indian Oil and Gas Canada, IOGC, and with industry to ensure that our people participate fully in the energy sector and that we derive maximum benefit from these resources.

On behalf of IRC, we are pleased to share our perspectives as you study Bill C-262.

First, we note and recognize that we are making our submission on unceded Anishinaabe lands.

We acknowledge the Honourable Romeo Saganash, member of Parliament, who is championing Bill C-262, which requires the laws of Canada to be in harmony with the United Nations Declaration on the Rights of Indigenous Peoples. The IRC is pleased to support Mr. Saganash's private member's bill and his recommendation for the adoption and implementation of UNDRIP into Canadian law.

We also acknowledge the work of the Truth and Reconciliation Commission of Canada, the recommendations of which, among those of many others, have placed UNDRIP in the spotlight of our discussion today.

We also appreciate the best efforts of the Government of Canada, especially those of the Prime Minister, to make UNDRIP a priority in the context of Canada's reconciliation with the indigenous peoples. The Prime Minister, on many occasions, has reiterated this commitment, and especially with his concise statement that “the Government of Canada is committed to a renewed relationship with Indigenous Peoples, based on the recognition of rights, respect, co-operation, and partnership.” We take these words to heart and believe that Bill C-262 embodies and gives life to these words.

When the Minister of Indigenous and Northern Affairs, the Hon. Carolyn Bennett, delivered a speech at the United Nations Permanent Forum on Indigenous Issues at the United Nations Headquarters in New York on April 25, 2017, she too made that statement.

In direct response to the declaration, the Prime Minister has mandated the Minister of Justice and Attorney General of Canada to chair a working group to review all federal laws and policies related to indigenous peoples to reverse the colonial paternalistic approaches. This is about breathing life into section 35 of Canada's Constitution, which formally entrenches the rights of indigenous peoples in Canadian law, and yet which, for far too long, has not been lived up to.

IRC is here today to support these proposals and sentiments and to formally express our support for Bill C-262 and the Prime Minister's responses to UNDRIP, including an internal legal review, and the adoption and implementation of Bill C-262 with its main goal of developing and implementing a national action plan.

Bill C-262 is a new approach to first nations issues. When enacted into law it will advance the process of Canada's framework for reconciliation. IRC recognizes that this federal legislation is needed to reject the colonial structures that continue to oppress the indigenous peoples of this land and to replace these structures with new frameworks that are based on reconciliation.

Further, IRC wants to state clearly that any new legislation must be consistent with Canada's duties and roles, which include fiduciary duties and the historical trust obligations of the crown with respect to first nations lands and resources.

The metaphor of braiding international, domestic, and indigenous laws is relevant to many indigenous traditions in Canada, as stated by some indigenous academics and professionals. The braiding of sweetgrass indicates strength and the drawing together of power and healing. A braid is a single object consisting of many fibres and separate strands. It does not gain its strength from any single fibre that runs its entire length, but from the many fibres woven together. Imagining a process of braiding together strands of constitutional, international, and indigenous law allows one to see the possibilities of reconciliation from different angles and perspectives, and thereby to begin to reimagine what a nation-to-nation relationship, justly encompassing these different legal traditions, might mean.

This is a fitting metaphor for what is contemplated by Bill C-262. It has been 10 years since UNDRIP was adopted by the United Nations on September 13, 2007. It is the right time for Canada to end the debate. Pass and enact Bill C-262.

As highlighted in the United Nations Permanent Forum on Indigenous Issues document, the UNDRIP confirms the right of indigenous peoples to self-determination and recognizes subsistence rights to lands, territories, and resources. The IRC submits that first nation oil and gas producers and other first nations with the potential to produce oil and gas want to achieve self-determination by asserting their jurisdiction, and want their subsistence rights to lands, territories, and resources recognized in Canadian law.

Bill C-262 purports to provide such assurance. Our organization has been an active participant in developing oil and gas legislation that impacts first nations across Canada. It is our intention to develop our own institutional structures that will shift control of oil and gas from Canada and IOGC. This would be a true exercise of sovereignty and self-determination, as contemplated by UNDRIP and Bill C-262.

In 2005, IRC appeared as a witness before the Standing Committee on Aboriginal and Northern Development for its study of Bill C-54, FNOGMMA. In 2009, we appeared again at the standing committee for its study of Bill C-5, An Act to Amend the Indian Oil and Gas Act. In 2009, IRC appeared as a witness before the Senate Standing Committee on Aboriginal Peoples for its study on that same bill, Bill C-5. Presently, in 2018, IRC continues to do joint work with INAC and IOGC.

If this committee decides to proceed with Bill C-262, IRC is willing to share our experience and offer to work jointly with INAC to develop a national action plan to achieve the objectives of UNDRIP, and ensure that the fiduciary and historical trust obligations for first nation lands and resources are protected. Self-determination and indigenous sovereignty can be implemented in practice by UNDRIP through the implementation of free, prior, and informed consent. Critics of free, prior, and informed consent are concerned about the definition of this concept. Some have equated it to a veto. We at IRC have no such apprehensions. We know that we have rights and title to our land. Canadians courts, including the Supreme Court, did not create these rights; they merely confirmed the existence of these rights. UNDRIP did the same thing by confirming our rights, which existed long before we were colonized.

Free, prior, and informed consent is a tool that can be used to ensure respectful and meaningful consultation with indigenous people whenever and wherever their rights are being impacted. It is another tool for reconciliation.

[Witness speaks in Cree]

Thank you.

Business of the House

[The Speaker]

I am sure the House is glad to hear the news, but I do not think it is a point of order.

(Bill C-53. On the Order: Government Orders:)

November 16, 2005--The Minister of Justice--Consideration at report stage and second reading of Bill C-53, An Act to Amend the Criminal Code (proceeds of crime) and the Controlled Drugs and Substances Act and to make consequential amendments to another Act, as reported by the Standing Committee on Justice, Human Rights, Public Safety and Emergency Preparedness, without amendment.

(Bill concurred in at report stage, read a third time and passed)

(Bill C-54. On the Order: Government Orders:)

November 3, 2005--Resuming consideration of the motion of the Minister of Indian Affairs and Northern Development 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 third time and passed.

(Bill read the third time and passed)

(Bill C-55. On the Order: Government Orders:)

October 5, 2005--Minister of Industry--An Act to establish the Wage Earner Protection Program Act, to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act and to make consequential amendments to other Acts.

(Bill concurred in at report stage, read the third time and passed)

(Bill C-66. On the Order: Government Orders:)

November 1, 2005--Resuming consideration of the motion of the Minister of Finance that Bill C-66, An Act to authorize payments to provide assistance in relation to energy costs, housing energy consumption and public transit infrastructure, and to make consequential amendments to certain Acts, be now read a second time and referred to the Standing Committee on Finance.

(Bill read a second time, referred to and reported from committee without amendment, concurred in at report stage, read the third time and passed)

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

Mr. Speaker, I think you would find unanimous consent for the following. I move:

That Bill C-53 be deemed to have been concurred in at report stage and read a third time and passed on division;

That Bill C-54 be deemed to have been read a third time and passed on division;

That Bill C-55 be deemed to have been reported from the committee with the following amendments presented by the government:

That Bill C-55, in clause 131, be amended by replacing line 41 on page 127 with the following:

as provided in this section or under the laws of the

That Bill C-55, in clause 131, be amended by adding after line 11 on page 129 the following:

(8) For greater certainty, any collective agreement that the company and the bargaining agent have not agreed to revise remains in force, and the court shall not alter its terms.

and that the said bill be deemed to have been concurred in at report stage and read a third time and passed on division;

That Bill C-66 be deemed to have been read a second time, referred to and reported from committee without amendment, concurred in at report stage and read a third time and passed on division.

First Nations Commercial and Industrial Development Act

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

Mr. Speaker, I acknowledge the fine work my colleague has done in advancing the cause of first nations, not only the first nations in his riding but elsewhere.

I was a little saddened to hear that comment. This legislation is being dealt with in a non-partisan way, as my learned friend points out. I wish to point out for the record that this Parliament has perhaps been unique because an enormous amount of legislation has arrived at Parliament from the doorsteps of first nations, not legislation developed by the Government of Canada but legislation developed by first nations.

I speak of Bill C-54, the oil and gas legislation that was brought to the House, developed by the first nations themselves; Bill C-71, which we are speaking to today, again developed by first nations; and Bill C-20, the fiscal and management package legislation, also developed by first nations.

All the legislation has been brought to the House and it has been moved through the House expeditiously, with a minimum of partisanship. There has been no partisanship from any of the opposition parties on any of the legislation. That needs to be pointed out because there is an attempt being made right now to suggest that somehow Parliament has blocked the advancement of aboriginal Canadians or that Parliament has not been in favour of the legislation that has been brought forward to improve their economic and social conditions.

Parliament can be very proud of the work it has done. The Indian affairs committee can be very proud of the work it has been done over the course of the last 18 months. There is, at this point, not a single piece of aboriginal legislation backlogged in the House. The opposition parties have not blocked any legislation that the Government of Canada has brought forward on aboriginal Canadians. Therefore, to somehow suggest that the opposition parties are being partisan is unfair in the extreme.

This legislation was brought to the House by the government today. The opposition parties are indicating their willingness to have it moved expeditiously through the House of Commons before any election takes place. At the end of the day, Canadians will be the judge of who is responsible for many of the difficulties and grievances that we see in aboriginal communities. It has not been the opposition parties.

I congratulate the proponents of this legislation, who are in Ottawa today, and they have our support.

[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, a primary goal of the Prime Minister and the government is to close the gap in socio-economic conditions between first nations peoples and other Canadians.

The bill, the first nations commercial and industrial development act, FNCIDA, would allow first nations to participate more actively in the Canadian economy and to access engines of economic development.

In working toward fulfilling this goal, the government signed an accord with the Assembly of First Nations at the May 31, 2005 policy retreat, which underlined a shared commitment to helping first nations exercise greater control over their social and economic aspirations.

The government is committed to working with first nations to build stronger indigenous economies leading to greater economic independence.

The legislation represents a bold step forward in the partnership between the federal government and first nations. It builds on the success of previous legislation in this area, the First Nations Land Management Act and the proposed first nations oil and gas and moneys management act, Bill C-54, which is currently before the House.

This bill, like these two legislative initiatives, will give first nations who opt into the legislation the confidence that comes from accessing and developing the resources on their own lands. As such, it represents a very powerful tool to build economic opportunity and improve the quality of life on reserves.

First nations across Canada are considering development opportunities that will improve economic and social conditions on their own reserves. For example, Fort McKay First Nation in northern Alberta is pursuing over a billion dollar oil sands development to be developed by and with Shell Canada Limited. The oil sands in general represent enormous economic opportunity for all Canadians, including first nations like For McKay. Billions of dollars of investment will be flowing into the oil sands in the next few years. We know this and first nations want to be players and participants.

The investment in Fort McKay would create unprecedented job and revenue growth, along with vast opportunities and quality of life and social and cultural development on reserve and employment opportunities in the region. We are very pleased to move forward on this.

For these types of projects to proceed on reserves, first nations need effective regulatory regimes and existing federal legislation currently does not provide the authority to establish them, creating a regulatory barrier or gap.

The Constitution Act, 1867, gives Parliament exclusive authority in respect of “land reserve for the Indians”. Also, the Indian Act, the Canadian Environment Assessment Act, the Canadian Environment Protection Act and other federal legislation were never intended to provide a complete federal land regime on reserve. In her 2003 report, the Auditor General found that regulatory barriers like this are one of the main impediments to first nations economic development.

Therefore the government has responded to these concerns and is making legislative and regulatory renewal a priority. FNCIDA is an important part of this legislative and regulatory renewal and is designed to remove barriers to first nations economic development. This legislation is also consistent with the government's smart regulation initiative.

In its 2004 report, the external advisory committee on smart regulation recommended that the federal government “accelerate its agenda to modernize the regulatory regime in first nations communities and address regulatory gaps that inhibit the development of commercial and industrial projects on reserve land”.

For companies that were considering locating major commercial and industrial projects on reserve, like the multi-billion dollar oil sands development at Fort McKay, the bill would provide the authority to establish regulatory frameworks to address regulatory gaps, offering certainty and transparency for industry proponents and tearing down this barrier to economic growth.

First nations themselves have asked the federal government to help them attract and facilitate economic development on their lands by providing a framework like FNCIDA, which would enable the federal government to regulate large scale complex commercial and industrial projects. I can attest to the fact that the leaders on these reserves, who are the proponents of the bill, are capable, willing, able and anxious to get on with this legislation.

FNCIDA would allow the federal government to replicate provincial laws and regulations to apply to these projects on reserve. This would ensure that as first nations and investors or industry at large move ahead with these major projects, they are regulated in a fashion similar to similar projects off reserve. It would give the added benefit of stability for investors and developers as they deal with the same provincial regulatory regime that they already know and understand. It makes sense.

How does FNCIDA work? Consideration of regulation under FNCIDA for a specific project would be triggered when a first nation itself passes a band council resolution requesting regulations related to a specific project on the reserve, not a generalized project but a very specific major development project. Next, the federal government would conduct an analysis prior to making a final decision on whether to proceed with the development of regulations for the project.

If the regulations are to proceed for the project, the Government of Canada would in most cases seek an agreement regarding the administration and enforcement of the regulations with the province and the first nation. An indication of support from first nation members for the project and the use of regulations under FNCIDA would also be required. Typically, this support would be shown through a community vote.

First nations are leading this initiative. Five partnering first nations have passed band council resolutions in support of this legislation and have been eloquently advocating the initiative in other first nations communities. They have done so because, as we know, they are the best advocates for their proposals.

The five partnering first nations are Squamish Nation in British Columbia, Carry the Kettle First Nation in Saskatchewan, Fort William First Nation in Ontario, and Tsuu T'ina Nation and Fort McKay First Nation in Alberta. They have been assisted, with other partnering first nations, in getting the message across the country. I know that they have written at least twice to all the chiefs across the nation to carry the message to every province and every first nation. I have seen letters showing this.

A resolution of support for the legislation has been received from the Atlantic Policy Congress of First Nations. As well, there have been letters of support from the Uchucklesaht Tribe and the Skeetchestn Indian Band of British Columbia.

In addition, the government has been actively engaged in discussions with several provinces, particularly Alberta and Ontario, where first nations are actively advancing specific projects. In committee, we heard from an Alberta official that Alberta is particularly responsive to this particular proposal, as others would be.

There are active engagements with officials in other provinces, particularly in Alberta and Ontario, as I have mentioned, where first nations currently are advancing specific projects. Officials in both of these provinces have expressed support for a federal approach that would create as much regulatory compatibility as possible for on and off reserve commercial and industrial projects. They are very willing to discuss provincial involvement in monitoring and enforcing regulations for specific projects.

More recently, Saskatchewan and British Columbia officials have also expressed interest in this legislation. It is very much expected that other provinces will develop greater interest in the proposed legislation as first nations and industry partners begin to advance projects in their jurisdiction. Representatives of the oil and gas industry have also indicated strong support for this bill.

By moving forward this important piece of legislation, the government is demonstrating its commitment to work in partnership with first nations communities toward the goal of improved social and economic conditions. I must underscore how necessary this is for economic and social development on reserves. One is a partner with the other. We cannot get the increased viability of a community, the wealth of its culture and the enhancement of services to the people on reserves if there is not a land base to give the economic base. Then they can be a full partner and take it from the initial exploration or exploitation to the delivery.

Across this country, there are very fine leadership examples of first nations that are ready. This is what we are enabling. We all know that there are other first nations, places and communities across this country that have their challenges. They have different needs at this time, but some will be ready at a later stage and some first nations are ready now. As a government, we have to work with all levels of readiness and we have to facilitate. That is what the first ministers meeting next week will do, on some levels, but right now we also cannot forget and leave behind all of this important legislation that we need to move forward for the advancement of economic opportunity.

I encourage all members of this House to move this piece of legislation forward by the end of the day. I think that would be extremely positive.

Business of the House

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

Mr. Speaker, we will continue this afternoon with the opposition motion.

On Tuesday, November 22 and Thursday, November 24, we will have allotted days. The opposition House leaders are in fact considering a special House order to expedite Bill C-53, Bill C-54, Bill C-55 and Bill C-66 through all stages with a recorded vote at third reading. I hope we can come to an agreement on that special House order and proceed in that fashion.

If we cannot agree on that special order, then tomorrow we will begin with reference before second reading of Bill C-71, the first nations commercial bill; report stage of Bill S-37, respecting the Hague convention; second reading of Bill S-36, the rough diamonds bill; and reference before second reading of Bill C-72, the bill amending the DNA legislation. We will continue with this business next week, adding the report stage of Bill C-57, the financial governance bill, and other unfinished items.

With respect to the comment about the Chamber of Commerce, it is very clear, and I said this earlier, that Bill C-66 and the ways and means motion are in fact confidence motions. Although I am not sure I should do this, I am taking at the hon. member's word the public statements that in fact those members do support Bill C-66 and the ways and means motion with respect to taxes. Given his comment, I guess I should reconsider and speak to him once again since his party has flip-flopped on a number of occasions.

With respect to prorogation, I have to say that this rumour created by the Conservative Party was merely to keep the NDP in line with its confidence motion that it will put forward in the coming weeks.

Privilege

[Borys Wrzesnewskyj, Liberal, Etobicoke Centre, ON]

Mr. Speaker, it was interesting to hear my colleague from the NDP say that his party was not entering into an alliance, an unholy alliance, with the Conservative ideologues and the Quebec separatists. So I am just curious what in fact this is. Is this a political ménage à trois? It is a pretty scary thought.

More interesting, the member mentioned that in the spring they were not allying with the Liberals, but in fact were helping to govern to ensure that very important legislation would get passed. We have some 30-odd bills on the order paper that, if there is a non-confidence motion, will not get passed. Following that logic, I would assume the NDP is now saying that these are not important bills for the people of Canada.

What sort of bills are these? There is Bill C-66, the energy relief bill, which would provide relief in January for people on fixed incomes, our seniors and families on low incomes. It would fall to the side. Does his party not feel that is important legislation? There is Bill C-69, the agricultural marketing programs act bill; or Bill C-64, the vehicle identification bill or, as some would call it, the Chuck Cadman bill. It would unfortunately fall by the wayside. There is Bill C-16, the impaired driving bill and Bill C-54, the oil and gas exploration bill. I am sure that the members opposite from Alberta will be happy to see that one fall by the wayside. There is Bill C-11, the whistleblower protection bill, and Bill S-39, the sex offender database bill. Which of these bills does the member feel is not important enough to be passed?

Business of the House

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

Mr. Speaker, this afternoon, we will continue the debate at third reading of Bill C-54, the first nations resources bill.

When this is complete, we will consider reference before second reading of Bill C-50, respecting cruelty to animals. I expect that this business will carry over to tomorrow. We will then add to the list second reading of Bill S-36, respecting diamonds and second reading of Bill C-44, the transport bill.

When the House resumes on November 14, we will return to second reading of Bill C-68, the Pacific gateway bill; Bill C-66, the energy bill; and Bill C-67, the surpluses legislation.

We will also then return to any business from this week that is unfinished and if time permits, consider second reading of Bill C-61, the marine bill.

November 15 and November 17, as the hon. member across the way would have known weeks ago had he been at the House leaders meeting, will be allotted days. On Tuesday evening, November 15, we will have a take note debate on the Canadian mission in Afghanistan.

Accordingly, I will propose the required motion pursuant to Standing Order 53.1(1). I move:

That a debate pursuant to Standing Order 53.1 take place on Tuesday, November 15 on the subject of Canada's military mission in Afghanistan.

First Nations Oil and Gas and Moneys Management Act

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[Ted Menzies, Conservative, Macleod, AB]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[Jeremy Harrison, Conservative, Churchill River, SK]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Business of the House

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

Mr. Speaker, the hon. member, unfortunately, takes the opportunity every Thursday to ask the same question, knowing the answer will be exactly the same because it is factual.

The opposition days will begin the week of November 14, and I indicated that some weeks ago to the opposition House leaders. At that point, I thought the matter had been dealt with and that we would focus on the agenda, which is important to Canadians.

We will continue with the second reading of Bill C-67, which is the surpluses bill. Should this be completed, we would then return to the second reading debate of Bill C-66, the energy legislation. We do not sit on Friday. On Monday we will commence the second reading debate of Bill C-68, respecting the Pacific Gateway. We will give priority to these bills over the next week.

On Tuesday evening there will be a take note debate on cross-border Internet drugs.

If debates on the major bills that I have referred to are completed by late next week, we will then turn to report stage of Bill S-38, respecting the spirits trade, second reading of Bill C-47, the Air Canada bill, Bill C-50, respecting cruelty to animals, second reading of Bill C-44, the transport legislation, second reading of Bill C-61, the marine bill, reference before second reading of Bill C-46, the correctional services bill, report stage of Bill C-54, the first nations resources bill and other bills that will perhaps come back from committee that we would like to get into the House for further debate.

In order to bring about that take note debate on Tuesday, I move:

That a debate pursuant to Standing Order 53.1 take place on Tuesday, November 1 on the subject of cross-border Internet drugs.

Committees of the House

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

Mr. Speaker, I have the honour to present, in both official languages, the sixth report of the Standing Committee on Aboriginal Affairs and Northern Development.

The committee has studied 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. The committee has agreed to report Bill C-54 without amendment.

First Nations Oil and Gas and Moneys Management Act

[Mario Silva, Liberal, Davenport, ON]

Mr. Speaker, it gives me great pleasure to speak to the bill at second reading.

One of the countless good reasons to support Bill C-54, the first nations oil and gas and moneys management act, is the fact that three first nations, which are directly involved, the White Bear First Nation from Saskatchewan, the Blood Tribe and Siksika Nation from Alberta, have taken the necessary steps to prepare their communities for the new responsibilities participation in this legislation would bring.

As a result of 10 years of hard work and dedication building capacity in their communities, these three first nations are now ready to assume control over the management of oil and gas resources on their land.

Working closely with federal officials and Indian and Northern Affairs Canada, the White Bear, Blood Tribe and Siksika Nation entered into a pilot project back in 1994. It would see them move to full first nations control of oil and gas resources and related revenues on their lands and the management of first nations' moneys as envisioned in the sectoral self-government legislation before us today.

To appreciate this progress we need to know a little history behind it. This work began through a pilot project initiated by the Indian Resource Council. The council is a stand alone, first nation-owned and operated agency representing over 130 first nations with oil and gas interests. It provides a mechanism for first nations to become involved in the planning, policy development and strategic direction of Indian and Oil Gas Canada, a special operating agency of Indian and Northern Affairs Canada.

The three first nations, White Bear, Blood Tribe and Siksika, entered into the pilot project so they could one day assume responsibility for the management of oil and gas resources on their lands.

In phase 1 of the project, they entered into a co-management agreement with Indian Oil and Gas Canada. Co-management involved specific oil and gas training as well as capacity building exercises. After three years of co-management capacity building, the three first nations were ready to move on to phase 2 in 2000. This phase involved continuing the joint administrative and management processes begun in the earlier phase. It also equipped the first nations with the necessary knowledge to jointly approve all administrative and management decisions with Indian Oil and Gas Canada.

However it went further: developing a process to transfer control of oil and gas resources to the participating first nations. This stage also required building capacity through enhanced training. Equally critical, it entailed developing individual communication processes incorporating first nations values and beliefs to inform community members as well as industry and government.

This latter point is extremely important as we recognize that any initiatives undertaken to support first nations development must conform to the values of the first nations people affected.

In mid-2001 the three first nations entered into discussions on a framework proposal that served as the launching point for work leading to the current legislation. At this time, the first nations, which initially began this capacity building exercise, are ready to move on to the final phase of this process.

As part of this legislation, first nations choose to control the moneys derived from oil and gas activity when they choose to manage their oil and gas, or moneys in the consolidated revenue fund held by the Crown on their behalf. Opting into one or both parts of this legislation can ensure first nation governments have the tools needed to better manage their community affairs.

Bill C-54 encompasses all of these objectives for the first nations that want to opt into its provisions. There is no obligation for any first nation to take advantage of the bill.

A first nation would be able to choose whether it wishes to assume control of oil and gas resources on reserve and related revenues, assume control of moneys held in the consolidated revenue fund or both. It would be up to community members to decide.

The bill before us is a tribute to the first nations that have shown determination and the desire to acquire the skills needed to manage their own resources and moneys.

This past weekend I was pleased to participate in a first nations event in my riding of Davenport. Consistent with the aims of the bill, I witnessed the desire of first nations to manage their own future and to honour the long, rich and vibrant first nations legacy in this country.

After 10 years of hard work and dedication, the White Bear First Nation, Blood Tribe and the Siksika Nation are now ready to fully assume the roles and responsibilities for which they have been preparing for more than a decade. Should their communities decide to participate in the legislation, the sectoral self-government legislation would enable the White Bear First Nation, Blood Tribe and the Siksika Nation to assume full authority for decision making in relation to oil and gas activities and the revenues generated as a result.

It is now our responsibility to transfer the necessary authorities. I urge all hon. members of the House to support the legislation and to ensure this progress is fully realized.

[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)

Supply

[Judy Wasylycia-Leis, NDP, Winnipeg North, MB]

Mr. Speaker, I rise to address a very critical issue in Canada today and a very complex one too. I wish we were not here today debating this particular amendment because I do not find it particularly satisfactory to the dilemma we find ourselves in.

However, it may be the only way in which we can register our concern and opposition with the government, and the way it has botched a critical matter in Canada today.

We are almost at a crisis point in this country in terms of our federal-provincial relations. I have been in political life for close to 20 years. I have never seen such a divisive situation, such a sour situation with many different agendas competing for attention. I have never seen so much backstabbing and so little leadership to bring parties together to build a strong nation.

I have travelled the country with the finance committee on fiscal imbalance. I have had a chance to see just how deep those divisions are and what angst exists in provinces right across this country. I cannot emphasize enough the seriousness of the situation today in terms of our nationhood, in terms of our ability to build a stronger nation, to keep the federation in place, and to address competing interests between the provinces, the territories and the federal government.

I am worried about how this situation will unfold in the next short while. I have not seen any leadership from the government. I have not seen any leadership from the finance minister, the Prime Minister, or any of his colleagues. I feel nothing but gloom and despair as I see events unfold and feel somewhat helpless about this tragic situation. If I, as an elected member of this place, feel helpless, just imagine how Canadians must feel watching the news day in and day out and wondering what this country is coming to.

We are debating today one of the most fundamental concepts for this nation as a whole, for the preservation of national unity, and for describing our unique identity. Yet, we have heard neither a satisfactory answer from the government nor a clear cut proposal from the official opposition.

As I said at the outset, we may support the motion. It may be the only way by which we can register our opposition to the government which continues to act as if it had a majority and continues to ignore the voices of parliamentarians and the wishes of Canadians. It may be our only way to force the government to address some inequities in the system that it has created. I think in particular of the Minister of Finance's own province of Saskatchewan and the way it has been treated over the course of the last several months vis-à-vis the side deals that the government has embarked upon.

Equalization is about who we are as a nation. It is the glue that holds this country together. Equalization is part of the financial foundation of our social programs. It is part of the collective commitment that we all make to solidarity and social cohesion.

It is a program and a concept that is so important to Canada that it is entrenched in the Constitution. It is a program that has a long, proud history and it must be remembered and revisited at this critical moment if we are ever to find our way through these deep divisions and these dark days.

I do not need to remind the House that we have had equalization since 1957 for the provinces and 1958 for the territories and how it has formed an integral part of our national effort to ensure some semblance of equality across our diverse regions, provinces and territories.

Equalization aims at ensuring roughly comparable services with roughly comparable taxation levels through good economic times and bad. It symbolizes, at the macro intergovernmental level, the positive role that government can and must play in redistributing wealth so all may prosper. As I said, it is so fundamental to the fabric of Canada that in 1982 it was entrenched in the Constitution.

If equalization is so fundamental to the country, why are we here today dealing with a motion that essentially is running around trying to pick up the pieces of the equalization process? Why are we dealing with a motion from a political party that has no more interest in pursuing the notion of equalization than it has of pursuing equality for women?

I do not need to remind members how much this concept has been held in disrepute by members of the Conservative Party and before that members of the Reform Party. I do not think we need to go over the whole history, except to remind ourselves that inherent in the position advanced by the Conservatives in the House today is the notion that somehow equalization is bad because it saps energy and vitality and takes away incentive to overcome the odds and prosper without due regard for the structural issues at the heart of any difficulties a province or a region might face, without any understanding of the historical accidents that occur, which is really the placement of oil and gas reserves and other natural resources. It has nothing to do with the strength of a province such as Alberta with its ability to overcome all odds. It has to do with an accident of history where those reserves are placed.

It is like trying to get through to that party the concept of equality of condition for all individuals. The Conservative Party has no understanding of what it means to help put in place those programs and supports that ensure equality of condition. The Conservatives seem to think that all that has to be done is let people loose and they will do it on their own. They will overcome all odds and difficulties and do not need to have a government that worries about a national child care program, a health program, an education support system, a housing program, an environmental protection program, a transportation program or a social assistance program. The Conservatives do not have any understanding of those programs.

Therefore we obviously approach this debate with a great deal of reservation. If and when we support the motion it will be with a great deal of reservation. It will be because we are left with a government that refuses to exercise its leadership and prevent the kind of dismantling of the country that we are seeing all around us.

Why are we trying to pick up the pieces here in this way? We do not have to look very far. We only have to look to the government benches. The Liberal government bears responsibility for this mess in so many ways.

It was the Liberals, under the current Prime Minister at the financial helm, who brought in the vicious cutbacks of the mid-1990s, which sent transfers for health care, post-secondary education and social services into a tailspin, that has spawned an ongoing series of crises over federal-provincial funding arrangements that continue to this day and goes to the heart of my presentation today.

We are not dealing with a situation that has been fixed by the Liberals. We are dealing with some band-aids, a patchwork of systems, a set of boutique programs over here and some pilot projects over there, to try to deal with the kinds of crises the government has created with its single-minded focus on dealing with the deficit back in 1993, as opposed to balancing the need to restore some balance in the fiscal situation of government while not neglecting the human deficit.

Yes, it was the Liberals and their transfer cuts that downloaded more financial responsibility on to the provinces that added to equalization pressures as the only life raft within sight through which to recover provincial stability. It was the Liberals who followed the Conservative dictum of backing out of their government responsibilities to develop an energy strategy for Canada that has led even more directly to today's debate.

Such a strategy is the proper context for today's discussion but, under the Liberals, the strategy does not exist. During their entire regime, fully conscious of the changes that signing free trade agreements has brought to our energy picture, the Liberals have done nothing. Selling off Petro-Canada for them is an energy strategy.

Even worse, for their entire regime they have also been aware of the energy implications of climate change and the need to act on Kyoto. Again, they have done nothing to build an effective energy strategy for the future sustainability of our economy and our planet, or even to work out these vital issues with the provinces and territories.

As my leader, the member for Toronto--Danforth, wrote in a communication with the premier of Newfoundland and Labrador almost a year ago, Canada needs a national energy strategy that not only corrects such fiscal imbalances regarding resource extraction but also best positions our country for a future under the Kyoto protocol and beyond.

The government has been dithering with a capital D and that dithering has become the Liberal trademark, the real branding of the government. Wherever else we have seen it over the last few days, weeks and months, whether we are talking about the sponsorship scandal and the Gomery file, the budget and its commitment to deal with social infrastructure and urban needs, or any number of issues before us today, that dithering has extended to the whole equalization process as well.

It was the Liberals in 1982 who brought in a system of basing equalization payments on only five provinces' economic performance, Quebec, Ontario, Manitoba, Saskatchewan and B.C., instead of ten. It has created problems over the years but the Liberals have avoided the type of meaningful negotiations with the provinces that could have reached a more lasting solution.

A make do, buy some time agreement in 1999, was an opportunity to move forward, but no. What did we get? We got more dithering. The fundamental issue was so low on the Liberal priority list that by the time the deadline was approaching in late 2003 so little had been done that the Liberals had to introduce Bill C-54 as an interim measure just to ensure that the whole equalization process did not grind to a halt along with equalization payments.

When that died, to enable the Liberals to create an event out of their leadership change, they had to follow up last February with Bill C-18 to essentially buy another year of time.

However, that was not at all necessary. All the provinces, interestingly, at that point in time were in agreement as to the route forward to get equalization back on track with a full 10-province rating system and an all inclusive calculating method. I have the document here and I hope the Minister of Finance refreshes his memory with this important contribution dated September 2003, a paper entitled, “Strengthening the Equalization Program: Perspective of the Finance Ministersof the Provinces and Territories”.

Just a couple of years ago the provinces were in agreement on a proposal that would have dealt with some inherent problems in our equalization system. It would have put us on a solid footing for ensuring that the program continued over the next five years on a fair basis and in a reasonable way. The proposal called for a 10-province standard and the inclusion of all revenues, including non-renewable energy resources. It would have worked and it would have had the support of all the provinces. It would have dealt with some inherent inequalities. It also would have, by its existence, prevented the government from making the foolish mistake it did by not pursuing a good plan and then ending up making side deals with Newfoundland and Nova Scotia.

I believe the Liberals apparently were not interested in actually negotiating a solution. Instead, they came back to the provinces in October with a take it or leave it deal, another Liberal trademark by the way, to which the provinces and territories reluctantly agreed despite some obvious flaws. They put a pot of money on the table and told the provinces that it was theirs to basically do with as they wanted. The Liberals then set up another committee to study a longer process and a panel for which there are deep concerns right now about who is on it, what work it will do and when it will report.

Immediately the Liberals became embroiled in side deals. If we fast forward, today we are being asked to formally recognize side deals as the new way of doing equalization. It is obvious that the Liberal deal from last October began to unravel before the ink was even dry on the page. The danger is that the whole valued equalization process may unravel with it as both have and have not provinces have heightened, not lowered, their dissatisfaction levels. The dilemma should be really no surprise to Canadians. Balkanization has become the Liberal password.

We have watched the Liberal government's consistent abdication of the use of national standards or the national programs that have been part of the great tradition that has built Canada. The current Liberal government seems only qualified to dismantle programs and measures such as equalization.

Social cohesion seems to run counter to the Liberal vision and the corporate interests it represents. Equalization is the fault line in the neo-Liberal agenda in Canada where Liberal cuts and downsizing government services meet government's role as the major agent of equality and the redistribution of wealth head on.

Of course Saskatchewan and other provinces want to protect their future economic stability. They recognize the volatility of the commodity market. Unfortunately, the Liberals have not acted. They have stood by as spectators while our economy has shifted once again back toward a dependence on oil, gas and other commodity exports to the United States.

The Liberal dithering and inaction is stunning to its extent and that is why we end up in this dilemma in the House today debating a motion that is less than satisfactory but one that may be the only way to make the government listen to the provinces, deal with the present concerns and inequalities, as in the case of Saskatchewan, and begin now to put in place a formula that is based on the 10-province standard inclusive of all revenues.