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First Nations Financial Transparency Act

An Act to enhance the financial accountability and transparency of First Nations

This bill is from the 41st Parliament, 1st session, which ended in September 2013.

Sponsor

John Duncan  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

This enactment enhances the financial accountability and transparency of First Nations.

Similar bills

C-575 (40th Parliament, 3rd session) First Nations Financial Transparency Act

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-27s:

C-27 (2022) Digital Charter Implementation Act, 2022
C-27 (2021) Law Appropriation Act No. 1, 2021-22
C-27 (2016) An Act to amend the Pension Benefits Standards Act, 1985
C-27 (2014) Law Veterans Hiring Act

Votes

Nov. 27, 2012 Passed That the Bill be now read a third time and do pass.
Nov. 26, 2012 Passed That Bill C-27, An Act to enhance the financial accountability and transparency of First Nations, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
Nov. 26, 2012 Failed That Bill C-27 be amended by deleting Clause 13.
Nov. 26, 2012 Failed That Bill C-27 be amended by deleting Clause 11.
Nov. 26, 2012 Failed That Bill C-27 be amended by deleting Clause 1.
Nov. 22, 2012 Passed That, in relation to Bill C-27, An Act to enhance the financial accountability and transparency of First Nations, not more than one further sitting day shall be allotted to the consideration at report stage of the Bill and one sitting day shall be allotted to the consideration at third reading stage of the said Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at report stage and on the day allotted to the consideration at third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the Bill then under consideration shall be put forthwith and successively without further debate or amendment.
June 21, 2012 Passed That the Bill be now read a second time and referred to the Standing Committee on Aboriginal Affairs and Northern Development.

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 1 p.m.

Conservative

Chris Warkentin Conservative Peace River, AB

Mr. Speaker, the absolute imperative in the bill would be that first nations members would have access to this information. What my hon. colleague knows, as anybody in the House does, is that it is not just our constituents who often look at our spending as the national government or as individual members of Parliament, but it is also the media that from time to time play a responsible role in helping bring attention to mismanagement.

I know the hon. member and his colleagues often run outside to the media to disclose pieces of information that they think are important for Canadians to find out about. In the same way that individual members should have access to this information, also should the information be made available to local media, including many first nations outlets such as APTN and other organizations that would draw attention to the spending of individual first nations.

We already have examples of where this information is being disclosed and where this information and process are being lauded by the media and by investors generally. The information needs to be available to demonstrate that there is full accountability and transparency and that these folks undertake the things that most Canadians would expect.

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 1 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, transparency and accountability are very important principles. There is no question about that. We will find that within the first nations leaderships or aboriginal communities as a whole, that sense and desire for accountability and transparency is there and it is very real. In his comments, the member made reference to some of the hearings of his committee where members reflected on the importance of accountability and transparency from within our aboriginal community.

However, we need to put this thing in the perspective of how this bill is before us today, as opposed to capitalizing on that interest within our first nations to ensure transparency and accountability and working with them and maybe even enabling those leaders to come forward and assist in putting together the legislation. Therefore, it is not Ottawa imposing something, as if we are giving the impression that the aboriginal community is resisting but Ottawa is forcing when that is not necessarily the case.

There are a lot people within our first nations community who want and desire, but they have a role to play, not just to provide comment on but to enable them to provide direct input in the making of this legislation. Would the member agree?

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 1 p.m.

Conservative

Chris Warkentin Conservative Peace River, AB

Mr. Speaker, my colleague is absolutely right. It is grassroots first nations people who are demanding this legislation. They have been bringing their ideas forward. Over the last seven years, I have heard from first nations community members who are desperate for this information. They have asked for some kind of legal framework so they can access this information. The member is absolutely right that it is grassroots first nations from across the country that have demanded this legislation. They are the folks who have advocated for it and are supportive of it for that reason.

The hon. member may have left some confusion. Let me be clear. There are first nations in the country that are operating absolutely wonderfully. They are disclosing all of the information that would be expected. However, there are some communities that lag behind and it is for those members that we have to see the legislation move forward.

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 1 p.m.

Conservative

Kevin Sorenson Conservative Crowfoot, AB

Mr. Speaker, I thank my colleague from northern Alberta for helping us understand this issue much better. I also applaud him for the work he does as chair of the committee.

One thing has just crossed my mind. Canada plays a significant role around the world in helping other governments fight corruption. A former colleague of ours, John Williams the head of GOPAC, travels the world encouraging governments to fight corruption. When there is more transparency, there is less corruption. Even the perception that they may be something untoward going on, in the light it may show that it may or may not be. When we travel around other countries, we are often asked about certain cases in Canada.

Does my colleague think this legislation will help? Could my colleague provide an example of how we have improved in Canada and how other levels of government have improved transparency?

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 1:05 p.m.

Conservative

Chris Warkentin Conservative Peace River, AB

Mr. Speaker, Canada has absolutely been noted internationally for being a transparent nation. That is why the expertise of Canadians and former members of Parliament like John is being solicited in other places. Other nations recognize that transparency and accountability are linked and what is also linked to these two imperatives is economic development and prosperity for whole nations.

There are issues within some first nations communities which really reduce the ability for economic development to take root and for communities to prosper. Our committee travelled from coast to coast and met with some of the most prosperous first nations in Canada today. We have some great examples of prosperous communities. When we asked them what the fundamentals were for getting first nations out of poverty and doing incredibly, every community told us that the first thing that was absolutely essential was trust within the community and full transparency about what went on so every community member would be is aware of that and second to make that information public so outside investors would flock to the community.

In terms of building prosperous communities, this is the first step. I join with my colleague in saying this is important for all nations, including our first nations.

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 1:05 p.m.

Conservative

Rod Bruinooge Conservative Winnipeg South, MB

Mr. Speaker, I also want to congratulate the member. He has put in many years working on first nations and aboriginal issues not only as chair of the committee now, but previously in many different roles on that committee and others.

Would the member expand a bit further on some of the testimony that he heard at committee? We have heard many examples. He may have heard some of the testimony of Chief Darcy Bear from the Dakota First Nation and how he viewed these changes as being so important to the economic development of his community. I am sure there are probably many other examples that my colleague could reference from first nations leaders who have called for this.

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 1:05 p.m.

Conservative

Chris Warkentin Conservative Peace River, AB

Mr. Speaker, I have great respect for my hon. colleague. He has standing as a leader within the communities he comes from. Many first nations young people look to my colleague as an inspiration.

Unlike my colleague from Churchill, who dismissed my first nations colleague some time ago, I will not. I recognize that my colleague plays an important role in this House. He also plays an important role in his constituency, as well as being an inspiration to first nations people across this country, so I commend him for his work to develop more accountability and transparency for first nations.

He is in good company, because people like Chief Darcy Bear talk about the important work in building up a community. He said that transparency and accountability are actually foundational to building a prosperous community.

My colleague and others continue to lead the way and have demonstrated that things can change if there is a commitment to do it, as Chief Darcy Bear indicated, as did chiefs across this country as well as my hon. colleague.

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 1:05 p.m.

NDP

Pierre Nantel NDP Longueuil—Pierre-Boucher, QC

Mr. Speaker, by way of reminder, every four years, like every member country of the United Nations, Canada undergoes a review of its human rights record and we receive comments from our peers. So it is strange to hear the hon. members talk about transparency and international reputation.

Let me continue. The most recent review, called the Universal Periodic Review, took place in 2009. You just have to read it to see that the same comments come up time and time again from various member countries about first nations' living conditions, about the situation of aboriginal women and girls, about access to education and drinking water. It is appalling.

As UN member countries are condemning this very embarrassing situation on the international diplomatic stage, the Government of Canada's response is to require first nations to provide receipts for per diem allowances. We detect some unease from the members opposite from time to time, perhaps even some remorse—and frankly I hope such is the case—in the face of mistakes that are theirs alone, such as their inability to manage the political, economic and humanitarian problems that aboriginal peoples are experiencing.

Such a feeling of remorse would be appropriate after the release of the Auditor General's report in 2011, a report that followed 16 other audit reports that, for the most part, have remained on the shelf gathering dust. That report from the Auditor General pointed out that the basic standard of living of first nations is getting consistently worse. The report described an ongoing deterioration that future generations will pay for.

By basic standard of living, we mean access to healthy food, to housing and to drinking water. We in Canada live in a G8 country. I cannot take this anymore. This is a shame that we can no longer keep to ourselves, let alone forget. The whole world is now aware of this unbelievable situation. The Attawapiskat tragedy, which is now known around the world, is also a tragedy, a liability, a disgrace for all Canadians. This chamber holds 308 people who are responsible for it, for we surely are. We are parliamentarians and it is in our power to ensure that Canada is not considered by the international media—as the hon. member suggested earlier—as a country that puts up with this absolutely obscene poverty.

I really hope some hon. members are uncomfortable, because this is about humanity and responsibility. We are all responsible for the countless mistakes of the last centuries and the last decades. Today, however, government members, including those here with us today, must acknowledge their responsibility for the fact that, in recent years, the living conditions of first nations have not been given the absolute priority they deserve. As Sheila Fraser emphasized, that very neglect is one of the factors that led to Attawapiskat.

Accepting this responsibility does not mean dumping it onto others, and certainly not onto the first nations themselves. Let us not make the victims into the villains.

My thanks to my colleague who is reminding me that I have to tell you that I will be sharing my time with the hon. member for Joliette.

Instead of accepting the recommendations of the UN and the Auditor General, instead of recognizing that this is a serious problem, though one we can solve, government members, by introducing and passing Bill C-27, are choosing to put the blame onto aboriginal communities under the guise of requiring a transparency that their own ministers have difficulty observing, to say the least.

Instead of reading the multitude of reports, produced both in Canada and internationally, on the situation in first nations, the government is grabbing onto some old information fished up by a lobby group—about one administrator's salary in one community—and making it into a bill that it thinks is worthy of being a government program. An incident blown out of proportion by media in search of a scandal—not that there is any shortage of scandals here—becomes a policy of the Government of Canada. As a way to govern a country, that would be funny if the consequences were not so unfortunate.

The requirements in this bill are useless, because they already exist in a useful, adequate form. They are harmful because they impose a heavy burden on communities that few other jurisdictions have to bear.

They leave the bitter taste of colonialism in the mouth, just like the Indian Act. Where is the meaningful consultation and co-operation with first nations? Why is there none? Of course, it is because the government is doing this for their own good, as it has always done.

When you read this bill, you see paternalism on every line. The minister gets the power to withhold funds from communities, funds that are necessary to improve the standard of living of the people living there. What is more, anyone, from the community or not, has the right to go to Superior Court to ask that a community disclose its financial statements. Communities are also required to publish those financial statements online, though only half of aboriginal homes have an Internet connection.

As for families whose income is below the poverty line, the vast majority of which still live on reserves, 36% of these households have Internet access. We have to wonder who this measure is intended for. Is it really to ensure that the first nations are more transparent and accountable to their members? Or is it to make it easier for researchers at Sun News to find scandals in aboriginal communities?

This bill is a yet another way to divert attention. They are on the hunt for corrupt band leaders—the ultimate caricature—to hide the mistakes of this government and its predecessors.

What is most shocking in all of this is that audit powers already exist without the need for new legislation. The first nations already have a number of obligations to disclose financial information pursuant to the Indian Act—what a great title—and pursuant to a series of related laws and regulations.

The Governor in Council already has the power to allow the first nations to manage their revenues. He can issue regulations to make this permission effective. The Indian Bands Revenue Moneys Regulations already requires a yearly audit of the financial statements and for the Auditor General's report to be posted in conspicuous places.

Once again, the funding agreements that the department signs with each first nation already include all kinds of requirements, including the salaries of elected and unelected officials, their fees and travel expenses. It is all examined by an independent auditor. Most existing funding agreements are conditional on the delivery of this audited data, with the involvement of the department, if necessary. Furthermore, these days, the department's focus is on prevention and ongoing sustainability, instead of departmental intervention.

In her 2011 report, which looks at the 16 previous reports, the Auditor General stated that the reporting requirements on communities have been too burdensome in recent years. In 2002, the Auditor General formally recommended that the federal government—careful, this will be difficult—“consult with first nations”, to review reporting requirements to determine information needs.

Do we truly need this information?

At the time, the federal government required some 200 annual reports from aboriginal communities, a good number of which were thrown in the recycling bin before being looked at. In 2010, the federal government was still requiring tens of thousands of annual reports, and that number continues to increase.

Today, the government is proposing to expand this huge operation of collecting and producing data, contrary to every recommendation made in the past 10 years.

This zeal, this enthusiasm for audits—which we should consider passing on to the riding office of the President of the Treasury Board the next time he organizes an international summit—is not limited to first nations' activities and services. It extends to the entities deemed to be under its control, such as partnerships, enterprises, associations, projects and organizations, which often receive no federal funding and which we have no business auditing or regulating.

This requirement will create serious problems for the competitiveness of these entities, which are not public organizations but will be subject to public audits. If an enterprise is managed by a first nation—even though it does not receive a dime of the first nation's federal funding—the government will force the enterprise to disclose the details of its finances on the Internet, to the delight of its competitors, who will expect nothing less.

By creating this disadvantage for first nation enterprises, the government is creating an economic climate that is not conducive to the creation of jobs and initiatives, or the economic development of aboriginal communities.

Partisanship aside, I would like to invite my colleagues opposite, who have adopted the mantra of economic development and job creation, to reconsider this measure, which ignores the different types of first nations' initiatives.

I respectfully point out that this type of measure jeopardizes jobs in a depressed economic area. I am not saying, especially as the member for Longueuil—Pierre-Boucher, that I can be considered an expert on aboriginal affairs. However, like many of my fellow Canadians, I listen to the media, I read the papers, and I am aware of the inequality that greatly troubles most Canadians.

Our relationship with the first nations is dysfunctional. It needs help. It is as though the government is trying to make us fill out a form to prove that we have health insurance when we are at the emergency department.

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 1:15 p.m.

NDP

Pierre-Luc Dusseault NDP Sherbrooke, QC

Mr. Speaker, I am very pleased to have the opportunity to ask my colleague a question about this issue. I do not have many aboriginal communities in my urban riding of Sherbrooke either. However, I can speak from the perspective of a Canadian observing the Conservatives' interaction with communities. I get the impression that their arguments are reinforcing stereotypes about aboriginal communities even though we know that the vast majority of these communities manage their information very responsibly.

Does he think that the Conservatives are reinforcing stereotypes about aboriginal communities?

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 1:15 p.m.

NDP

Pierre Nantel NDP Longueuil—Pierre-Boucher, QC

Mr. Speaker, I thank my colleague for his very good question.

Personally, that is what worries me the most. I think that Canada, as a country, has a fundamental and significant relationship with the first nations, but that the government keeps putting off discussions about this issue. We need to ensure that our relationship with the people who have given us so much is as healthy as possible. This brings to mind words from a song by Chloé Sainte-Marie in which she recites names taken from aboriginal languages, names that Canadians from east to west use every day.

We have a duty to improve the relationship, and I do not believe that this kind of "government to the rescue" bill will accomplish that.

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 1:20 p.m.

NDP

Jean Rousseau NDP Compton—Stanstead, QC

Mr. Speaker, I would like to congratulate my colleague from Longueuil—Pierre-Boucher on his excellent speech.

I am always surprised at the Grand Canyon-like gulf between our point of view and the government's regarding our relationship with aboriginal peoples. It is unbelievable. Members opposite denigrated proud advocates of aboriginal rights on this side of the House who fight every day alongside first nations and chiefs.

I would like my colleague to explain why there is such a great divide between our point of view and that of the Conservative government with respect to this bill, which is incredibly paternalistic and will only make relations among the Canadian government, the Canadian people and aboriginal peoples more bitter.

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 1:20 p.m.

NDP

Pierre Nantel NDP Longueuil—Pierre-Boucher, QC

Mr. Speaker, I would like to thank the hon. member for Compton—Stanstead for his good question.

It is indeed like a whole other world. It seems that we have a different world view. I see very little benefit in these rules on the financial transparency of first nations. It seems that the members opposite are giving priority to a notion that they appear to be fascinated with and that is authority.

We also felt this with regard to various legal matters. The rehabilitation of criminals is not something that really interests the Conservatives, so more prisons have to be built. They seem to think that taking a hard line will work, when there is so much injustice. In fact, I was just thinking that, in their world, a glass or at least a bottle of orange juice actually does cost $16.

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 1:20 p.m.

NDP

Tarik Brahmi NDP Saint-Jean, QC

Mr. Speaker, I truly appreciated the hon. member for Longueuil—Pierre-Boucher's zeal and passion.

I would like him to speak specifically about how this is a double contradiction from the Conservative government. We have seen it with different bills. The government always talks about reducing red tape and reducing unnecessary costs and administrative work. This is a double contradiction because the Conservatives also say that they want to improve the competitiveness of companies.

What does my colleague think about this bill, which goes against improving the competitiveness of first-nations-related companies and requires them to disclose strategic business information?

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 1:20 p.m.

NDP

Pierre Nantel NDP Longueuil—Pierre-Boucher, QC

Mr. Speaker, I would like to thank the hon. member for Saint-Jean for his very relevant question.

It is indeed a contradiction. Everyone here agrees that we must celebrate the success of businesses and initiatives that lead to the creation of jobs and wealth. We cannot help but be concerned about the impact this will have on different budding ideas that communities may have. I am thinking of a vineyard in British Columbia that is doing very well.

I hope that there will not be any impact on the success of this type of business.

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 1:20 p.m.

NDP

Francine Raynault NDP Joliette, QC

Mr. Speaker, for the past few months, I have been working very closely with the Manawan Atikamekw community in my riding to help it resolve a very difficult situation.

Like all reserves, Manawan has serious problems that will not be fixed with the wave of a magic wand. I could talk from now until morning about the needs of the first nations that I have heard from.

However, I wish to use my time wisely, so suffice it to say that what they truly do not need is Bill C-27. First nations do not want it and really do not need it because it is unjust, useless and contradictory. The Conservative government is so obsessed with its ideological agenda and so bound by its narrow-mindedness that I am tempted to believe it does not understand how unjust this bill is.

In January 2012, the Prime Minister said that he wanted to work with first nations during the Crown-first nations gathering. How can he unilaterally impose such a despicable bill mere months after making that statement? Either he is incompetent or he is ignorant.

The dictionary defines “co-operation” as “the act of co-operating, of participating with others in a task”. For the benefit of the hon. members opposite, here is the definition of “other”: “separate in identity or distinct in kind”. Clearly, alas, the Conservatives understand neither of those two words. So, for their information and for the general edification of all, here is the definition of “coercion”: “to force or constrain”, as in the sentence: “Bill C-27 is introduced in a spirit of coercion and with no regard for co-operation”.

Let me be perfectly clear, I am in favour of transparency. But, since this bill claims to be strengthening it for the first nations' benefit, why does the government make it possible for any Canadian to take advantage of it? The bill allows anyone to get up any fine morning and say that, since aboriginal people are bound by legislation, let us ask for an order that allows us to see their salaries. At that point, it is no longer transparency, it is prying.

To understand the government's action, we have to realize that Bill C-27 comes from Bill C-575, which grew out of a spurious story from the Canadian Taxpayers Federation. It is fine to listen to civil society lobby groups, but you also have to be honest enough to look at the facts before giving in to oversimplification.

This bill would never have seen the light of day without the endless repetition of the erroneous information that first nations' chiefs make more than the Prime Minister. That malicious rumour, racist in the strength with which it was spread, morphed into a bill with no regard to the facts: the average salary of a chief is $60,000 and councillors earn around $30,000. That is nothing to get into a panic about.

I imagine that actual facts about first nations have little importance in the eyes of the Conservatives, just like facts about climate change and the state of this country's democracy. When they are asked questions, all they do is trot out the same meaningless comments, like an old broken record.

If this bill served any purpose whatsoever, we could agree that we need to review how to implement it. But that is not the case. Bill C-27 is completely useless—as useless as the earth is round, as truly as ice melts, unless of course, its real purpose is to harm first nations. That would not be surprising, since that is precisely what the Canadian government has been trying to do since it was created in 1867.

Bill C-27 is calling on first nations to be even more accountable. They are already accountable to Aboriginal Affairs and Northern Development Canada. Is there any point to producing reports that no one reads? No.

It is a fact that the documents produced by this legislation will serve no practical purpose. The reason is quite simple: the public service has no interest in the documents that are already produced. First nations are already sufficiently accountable and the government must stop treating them like children.

Among the needs of aboriginal people are things like education, health care, food, housing, social services and clean drinking water. Bill C-27 must be considered in light of the Auditor General's conclusions in June 2011. The AG reminded us that despite the repeated audits recommending many reforms over the past decade, the government has failed miserably to address the worsening living conditions of first nation members. However, I suppose that will not mean much to a government that is currently being taken to court by its Auditor General.

Once again, this would all seem like a pathetic joke if Bill C-27 at least had any consistency. However, this bill is so poorly put together that it is hardly worth mentioning.

Since coming to power, the Conservative government has done its utmost to steer clear of transparency. It no longer answers journalists' questions, no longer provides information to the Auditor General, and it has cut important audit positions. Then, it dares to ask first nations to do more than other Canadians, when they have neither the expertise nor the means to complete so much paperwork.

This bill is so contradictory that it even breaks other laws. Can we truly allow a bill to trample other laws so easily? Or will the Conservatives perhaps tell us that aboriginal peoples do not have the same rights as others?

I know that we are repeating ourselves, but I think what we have to say is worth repeating again and again. Although the stated objective of Bill C-27 is to enhance the transparency of first nations members, its scope is much broader because it requires the financial statements to be put up on first nations' and the AANDC websites, and permits anyone, not just a first nations member, to ask a superior court to disclose financial statements and salaries.

I will say it again: Bill C-27 is unfair, useless and contradictory. But given that we can say the same thing about the government, I do not expect it to change its mind. Therefore, I have this to say to my aboriginal sisters and brothers: the NDP will work with you to improve your self-governance and to help solve problems that are really affecting you.