First Nations Financial Transparency Act

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

This bill was last introduced in 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 often publishes better independent summaries.

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

Elsewhere

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

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 / 10:45 a.m.
See context

NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, before I launch into my speech, there are a couple of points that the parliamentary secretary raised that I have to comment on. First of all, part of the problem the House is facing is that the Conservative government fails to recognize a government-to-government relationship. That is a fundamental principle underlying the opposition to this particular piece of legislation.

The member talked about consultation. However, if the Conservatives truly support the UN Declaration on the Rights of Indigenous Peoples, which they claim they do, they would look at section 19 that talks about free, prior and informed consent. First nations from coast to coast to coast are saying there has not been free, prior and informed consent on this piece of legislation.

There is another point around this. I would absolutely agree, everyone in the House agrees and first nations agree, that there does need to be accountability and transparency. However, it is how it happens that is critical to this conversation. We have seen the government, once again, unilaterally impose its vision of what accountability and transparency looks like.

The parliamentary secretary quoted a 2010 resolution from the Assembly of First Nations. I want to quote from a paper from 2006, where the Assembly of First Nations was calling on the Conservative government to work with first nations from coast to coast to coast in developing this kind of accountability and transparency. The Assembly of First Nations had a detailed position paper, which also included the suggestion that:

[First nations-led and first nations-specific institutions] will be needed, as First Nation citizens must be empowered to hold both their local governments and the Government of Canada to account. Such institutions include an Ombudsperson's office, so that individuals have a trusted venue to pursue accountability concerns outside of either the local or federal governments. They would also include a First Nations Auditor General who could both provide ongoing advice to assist FN governments in providing accountability and, at the same time, improve accountability by exposing problems and recommending solutions.

In 2006, first nations had a solution to deal with this. Six years later, we do not have to be dealing with a piece of legislation that is being unilaterally imposed by the Conservative government.

I am not going to go over the full details of the bill because we have now spoken about it a number of times in the House. However, the bill would essentially require audited annual consolidated financial statements; a separate annual schedule of remuneration which would include what is paid to the first nations, and any entity controlled by the first nations, its chief and each of its councillors; an auditor's written report respecting the consolidated financial statements; and an auditor's report respecting the schedule of remuneration.

Also, as members have already pointed out, there are some punishments if there is a failure by the first nation to comply, such that any first nation member may apply for a court order to the Superior Court; any person, including the minister, may apply for a court order to the Superior Court; and, the minister may develop an appropriate action plan to remedy the breach, which could include withholding funds or terminating a funding agreement.

I neglected to say at the outset that we will continue to oppose the bill rigorously. We did propose a number of amendments to try to improve the bill, including deleting some of the more egregious clauses, but those amendments were not supported.

In an article from iPolitics entitled “...the government's hollow embrace of transparency” the author says that “...its call for greater financial disclosure rings hollow coming from a government which is failing the transparency test itself”. Of course, it was welcomed to hear the parliamentary secretary talk about embracing the one rule for all. Perhaps the government will now cough up details on some of these following items that have been identified.

The article goes on to say:

Unfortunately, back in Ottawa, the federal government is also proving to be far more opaque than accountable.

In 2011...the interim auditor general, blasted the Conservatives for spending on the 2010 G8/G20 summit. Quoted in the National Post, [he] said: “Rules were broken. Lawyers could have an interesting debate as to whether any laws were broken.” [He] criticized the government for having no supporting documentation for the selection of 32 projects in the [gazebo] riding.

In 2012, Auditor General Michael Ferguson took the government to task over its failure to disclose the true cost of purchasing 65 F-35 fighter jets. According to Ferguson, the cost of acquiring the planes over their 20-year life cycle was not $15 billion, as the government claimed, but $25 billion.

That estimate was closer to one made in 2011 by Parliamentary Budget Officer Kevin Page. After Ferguson's report, Page told CBC Radio’s Evan Solomon that it appeared that one set of books was available inside the Department of National Defense, while another was presented publicly by the government “for communication purposes.”..

Page, of course, made more headlines this week when he filed a reference application with the Federal Court of Canada to gain access to details of the federal government's austerity measures, which have so far been denied to his office.

This is the context we are working in. On the one hand, the government is saying to first nations chiefs and councils that they must be more accountable than almost any other government in the country. On the other hand, it will not produce basic fundamental documents to tell the Canadian public how it is spending its money. It seems to me that this inconsistency needs to be addressed before we move forward with Bill C-27.

I want to quote a law professor. I know many will be interested in this because she is not just a law professor, but former chief Judith Sayers. She is the national aboriginal economic development chair and the assistant professor of business and law at the University of Victoria. Also, she was formerly a chief of her nation. Therefore, she has a very good grasp of the situation that is facing first nations.

In her letter to the standing committee of November 20, 2012, she says:

To ensure First Nations members get copies of financial statements, provisions to do that could be placed into these funding agreements between AANCD and the First Nation.

She is proposing a solution instead of Bill C-27. She is proposing that this clause be inserted into these agreements. She also said:

There could also be a process put in place that if a First Nation did not provide their members with Financial Statements within 120 days of the year end, that the members could go to the auditor’s office and receive copies. The First Nation would be required to put this in the letter of engagement with the auditor and compensate the auditor for costs of making copies of the audit. Legislation is not required to do this when agreements have dictated First Nation/AANDC fiscal relationships and this can continue to be the tool that can accomplish this.

She goes on to say that passing the law to make first nations provide their financial statements to their members is “not a step toward self governing Nations nor does it make them accountable, it only makes them compliant”. This is a key point because the government continues to claim that there will be a miracle that will occur when first nations are required to post their consolidated financial statements, that all of a sudden economic development will occur and there will be lots of accountability. That is simply not the case.

Ms. Sayers goes on to say that part of the problem with the bill is that it is not just money from the federal government, but from the first nations own source revenues, such as grants from organizations, provincial governments and any other entities.

The Federal Government does not have jurisdiction over moneys received from other sources and cannot compel the First Nation to be providing this information to the public.

She is outlining a legislative authority regarding providing financial statements and legal entities to the public. She says:

It is my submission that the federal government does not have authority to legislate with respect to any corporation, society or other legal body incorporated under provincial laws to provide financial statements to members of the First Nation and more problematically, to the public at large.

Then she quotes section 91(24) of the Constitution Act, which gives authority to the federal government over Indians and lands reserved for Indians.

The proposed Bill C-27 claims authority over an “entity” which means a corporation or a partnership, a Joint Venture of any other unincorporated association or organization. Any “entity” that is incorporated under provincial laws whether it is a Corporations Act or Societies act or Cooperative becomes a legal entity, an entity that cannot be considered an “Indian” over which the federal government has no jurisdiction.

That is an important point because the government is now stepping into territory that many first nations feel they have absolutely no authority over. She continues:

If First Nations are incorporating their businesses using provincial law as most do, the Federal government cannot then override the provisions of the provincial law.

Provincial Laws do not require that financial statements go to anyone other than the Directors and Shareholders of the corporation. In BC shareholders access to financial information is subject to the terms and conditions of what is set out in the articles of incorporation of the company. So in the instance where the members are shareholders, or have a trustee that holds the shares for them, the financial statements will be available to the members to see by virtue of provincial law.

It would be my submission that the Federal Government cannot define consolidated financial statements of the First Nation as “those of any entity that it controls that are presented as those of a single economic entity” if those entities are a legally incorporated society/corporation/cooperative, partnership, joint venture under provincial law.

I reiterate the fact that the government is now requiring the chiefs and councils to provide any income from these entities and that these entities would be aggregated in the consolidated financial statement. This associate professor of law is claiming that it is overstepping its jurisdiction.

In her conclusion, Ms. Sayers says:

I respectfully submit to this committee that Bill C-27 is not needed and if it does proceed to law, must be fully overhauled to narrow it to areas where the federal government has jurisdiction. First Nations will be challenging this legislation in court regarding this issue and since AANDC spends more than any other federal department on legal fees, this does not seem like a desirable course of action.

That is an opinion that the legislation is not required and oversteps federal jurisdiction.

I want to make a couple points about the testimony in the committee meeting of Wednesday, October 24, of Mr. Harold Calla, the chair of the First Nations Financial Management Board. He raised a point about audits, which is important. He says:

First of all, an audit is a look at history. It's a reactive statement, and it's not designed to be proactive in informing and supporting future decisions. While an audit is a necessary and important part of the overall financial management system, there are many other elements of a financial management system that should not be lost in this discussion.

All orders of government are accountable. Within the federal system, the need for an increased emphasis on oversight within budgeting and forecasting has been recognized as a best practice with the establishment of a parliamentary budget officer. This is an example of an evolving world and perspective of what practices and standards should become as part of the overall financial management system. Good financial management practices should not be defined solely by political objectives. Good financial management should be driven by the needs of all stakeholders and should inform them.

In the case of first nations, this should include the financial results of the transaction activity it undertakes for the delivery of programs and services that a first nation is mandated to deliver. Although an audit does contain notes, these notes are generally a clarification of financial facts. An audit does not make qualitative observations or recommendations, nor does it give a clear indication of future direction.

Mr. Calla went on to talk about an annual report. As he has pointed out, a consolidated financial statement is a retrospective. It talks about the money that has been spent in a bunch of different categories, but does not talk about the results that have been achieved with that expenditure of money. The government claims that it will open up economic opportunities, but that kind of analysis must be done about where money is spent and what results are achieved in order to get that financial snapshot.

One of the issues absent in the bill, and has been absent largely in the discussion, is what kinds of resources the federal government is providing to first nations in order to help them with capacity building. We have recently seen cuts to tribal councils and other aboriginal organizations, which are the very organizations that provide some of the capacity building and support. On the one hand, first nations would be required to do something in addition to what they already do. On the other hand, the government has cut the very services and program supports that could help them develop the economic capacity, which everybody knows is a step toward lifting first nations out of poverty.

Mr. Calla further says:

The purpose of measures that support financial reporting or being accountable and transparent should create confidence in all stakeholder groups in the financial...capacity of the entity and give an indication of their fiscal capacity. It is always better when stakeholder groups, in this case our communities, are able to establish the accountability and transparency framework that they wish to establish for their community...

It is best if communities pass their own laws and agree to independent oversight by third parties. This is the concept developed by the First Nations Fiscal and Statistical Management Act, and it is currently being explored by 58 of the approximately 100 first nations that have become scheduled under the act.

Once again, there are first nations that do an exemplary job and there are organizations that support this.

I want to quote Jean Paul from the Membertou First Nation who attended the same meeting. He says:

All the information required by the new act is already being provided by the first nations in Canada to AANDC, as per their existing funding agreements over years and decades. Only last year the issue was pushed to the forefront, and now a bill will require all first nations to comply or...AANDC will release the information, and as a last resort, all funding will be stopped.

Mr. Paul raises the question about whether anybody has examined the implications of taking funding away when many first nations are delivering essential services to their communities, which include water, housing, education and so on. That question also has not been addressed.

In an email from AFOA Canada, which again provides support to the financial officer, it says:

Having said all this, the overriding issue here is that only by stating the words “First Nations” within the proposed Bill C-27 and defining these words as per the Indian Act, the government is signaling out a specific group of Canadians. This is of concern because of the increased financial level of reporting and accountability required which includes the schedule of salaries, honoraria, travel and other remuneration. More is being asked of First Nations than other groups of Canadians. If First Nations are not recognized as governments, why are we even comparing them to other governments? And even if they were recognized as Governments in legislation (which they are not), there is a higher standard required upon First Nations within this Bill.

It is interesting because the parliamentary secretary and others have talked about the fact that this is the same standard that is applied to everybody. I will quote from the conflict of interest code for members of the House of Commons. Although we do have to declare if we have an interest or if we receive remuneration from another organization, under the content of our disclosure, it says “the source and nature, but not the value, of the income, assets and liabilities referred to in the Member’s statement filed under section 20”.

When it comes to contracts or subcontracts, it describes the subject matter and nature. It says, “The following shall not be set out in the summary: a source of income of less than $10,000 during the 12 months before the relevant date”. Once again we have a situation where first nations will be asked to report in a way that members of the House of Commons are not asked to report.

In an analysis that the Assembly of First Nations did on Bill C-27, it indicated that there were several provincial governments in Canada that did not have the same kind of reporting requirements.

Nova Scotia's summaries of expenses of ministers are located at the Legislative Library for public viewing. The Government of Northwest Territories only publishes travel expenses of ministers and does not require salary disclosure of elected officials or senior public servants. Neither Yukon nor Prince Edward Island disclose salaries of elected officials.

The claim that first nations would have to comply with what every other level of government in Canada does is simply not true.

There have been issues raised around privacy. When the privacy commissioner came to the aboriginal affairs committee on October 31, she raised four key questions that needed to be answered. One was the measure demonstrably necessary to meet a specific need? Two was it likely to be effective in meeting that need? Three was the loss of privacy proportional to the need? Four was there less a privacy invasive way of achieving the same end?

This is a serious matter because we are asking first nations chiefs and councils to report in a way that many other entities are not required to report. Those four fundamental questions around privacy were never effectively dealt with. It was outside the scope for the privacy commissioner to make comments on particular legislation before the aboriginal affairs committee, but those are very serious issues that need to be addressed.

The fact that there has not been an appropriate consultation, that there are some serious questions that the consolidated financial statement, by including entities that are band owned, oversteps the authority of the government, that the privacy issues have not yet been adequately addressed and that the issues around the capacity building are not addressed in helping first nations ensure that they have the capacity to provide this information to their members, none of these issues are addressed adequately. Based on this, the New Democrats will oppose the bill at third reading.

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 10:40 a.m.
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Conservative

David Wilks Conservative Kootenay—Columbia, BC

Mr. Speaker, could the parliamentary secretary clarify for the House when first nation chiefs and councillors would begin disclosing their salaries and expenses if Bill C-27 is approved?

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 10:35 a.m.
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Conservative

Greg Rickford Conservative Kenora, ON

Mr. Speaker, I appreciate and respect the hon. member's contributions to this debate and all of the work that we do at committee. Nonetheless, I am interested in the evolving narrative from the other side.

Here is what we have heard so far as the bill has come through. One member for the NDP has said there should be one rule for all. Bill C-27 actually takes us in that direction. It makes a level playing field for constituents in first nation communities, as would exist in other communities in other jurisdictions.

Second, another member of the NDP said that government is about decision-making and emphasized the ability and right of a given community to participate in that. Having access to financial documents allows community members to exercise their participation in the decisions their elected officials are making.

Now the current member has just said and recognized that this is not an onerous exercise, since they already produce these documents. Indeed, it is not a redundant exercise; it simply means that they have to post the documents on an accessible website or be able to supply them to a community member on request.

We have these three approaches coming from the NDP. We are encouraged that their signals are strong and that they agree with the central tenets of and practical implementation issues regarding the bill. We look forward to today's vote so that we can move forward and send the bill to the other place.

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 10:15 a.m.
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Kenora Ontario

Conservative

Greg Rickford ConservativeParliamentary Secretary to the Minister of Aboriginal Affairs and Northern Development

Mr. Speaker, thank you for this opportunity on behalf of the constituents of the great Kenora riding to speak, hopefully, for the last time to this piece of legislation before it moves on to the other place and receives royal assent.

I am proud to rise today to once again explain the need for Bill C-27 and to talk about its many benefits.

Before I do, as a member of the Standing Committee on Aboriginal Affairs and Northern Development, I want to thank all those who appeared before the committee during recent hearings. Their contributions have made this legislation better and stronger.

The committee heard from a number of witnesses, both aboriginal and non-aboriginal, who spoke to the need for Bill C-27. They recognized that increased transparency and accountability will empower first nation members and their governments.

As do all Canadians, first nation community members want assurances that public funds are being used to improve their communities. They expect and deserve sound management practices from their elected leadership, as well as access to the information necessary to ensure that these leaders are acting in their best interests and priorities. Bill C-27 simply puts in place the same types of rules with respect to financial transparency that already apply to other levels of government in Canada. Why should first nations expect or have anything less?

Further, publicly accessible information will also boost investor confidence and create a better business environment for private sector investment on reserve. This will inevitably lead to increased economic opportunities that will help to create the conditions for healthier and more self-sufficient first nation communities.

Chief Darcy Bear of the Whitecap Dakota First Nation said it best when he stated:

You drive through my community, you'll see all the paved roads, paved streets, the good quality of life that my people, my members enjoy.... That's what good accountability brings to a community.

It is worth noting that the bill is entirely consistent with the resolution passed by first nation leadership at the Assembly of First Nations' Special Chiefs Assembly in December of 2010, where the chiefs committed to “Choose to lead by example and demonstrate to other orders of government processes for accountability”, which included:

Itemizing and publicly disclosing salaries, honoraria and expenses associated with the operations of Chief & Council;

Ensuring information about community finances and decision-making is easily accessible, and available via the internet where applicable.

That sounds a lot like the wording, spirit and intent of the bill.

Currently, there is no legislative requirement for transparency and accountability from first nation leadership. Under current funding agreements, first nation community members can ask for band-related financial information from their elected leaders, but there is no legislated obligation on the part of the administration to release it. We know that many first nations are already making their financial information public voluntarily. We appreciate that. I think it goes to reducing the amount of suspicion and political turmoil at the community level. However, not all first nation communities are doing this.

When individuals are refused information from their band council they often come to the Department of Aboriginal Affairs and Northern Development Canada to ask for the information to be released to them, as we have heard from various witnesses appearing before the standing committee. Some regional offices of the department receive as many as 25 to 30 informal requests each year from first nation members seeking this basic information, which would be readily available to any other constituent or any other Canadian in any other jurisdiction

At committee Phyllis Sutherland, president of the Peguis Accountability Coalition, told committee members about her community. They were unable to access salary and other financial information about their elected band officials. She in fact cited several cases where members were subject to intimidation. She insisted that this type of intimidation must stop and that those in power must be held accountable.

Similar concerns were raised in testimony by Joseph Quesnel, a policy analyst with the Frontier Centre for Public Policy. He presented research data culled from the Aboriginal Governance Index developed by the centre, which revealed that 77% of the first nation members surveyed agreed that salary information for elected officials should be made public and be accessible. However, 25% say this information is not available to their band members.

In addition to the requests for documents, the department also receives allegations and complaints regarding potential mismanagement or the misappropriation of band funds and remuneration of its elected officials. Since January 2011, there have been 1,450 such complaints.

The important point is not how many requests the department receives each year for salary information—although there are many—it is the fact that from this government’s perspective, even one request is one too many. Members must go to the department for information that should be coming directly from their own first nation. The minister would prefer not to be involved in issues that should be resolved by the community itself.

Bill C-27 removes the minister from the equation by ensuring this financial information is easily accessible to everyone who wants it. It creates a direct line of accountability between first nation leaders and their members.

The concern about accountability extends beyond government and first nation members to investors who might be deterred by a lack of reliable financial data. Bill C-27 would help address this problem by requiring first nation governments to publish annual audited consolidated financial statements, as well as a schedule of chiefs' and councillors' salaries, remunerations and expenses. Clear and consistent publication under Bill C-27 would provide potential investors with a snapshot of a community's financial situation and may lead to further opportunities for partnership and investment.

There has been misinformation spread about the bill by the opposition who opposes our government's efforts to support economic growth, investment and job creation through more accountable and transparent government. I would like to take this opportunity to clear up the misconceptions and explain what Bill C-27 would do.

First, the legislation would not set salary levels for chiefs and councillors. It would remain the first nation's responsibility to set the appropriate level of remuneration for its elected officials. The proposed act would simply ensure that financial information is disclosed to the public. This would provide band members with the information they need to hold their leadership to account. They can then use that information to determine whether funds are being spent for the benefit of the community and whether compensation levels are reasonable and appropriate.

Second, I want to make clear that the act would not require individual businesses owned by the band to publish their detailed financial statements. Rather, Bill C-27 would only require the publication of the first nation's audited consolidated financial statements. These financial statements would include any entities that, according to generally accepted accounting principles or GAP, are to be consolidated with the first nation in its financial statements, including most band-owned businesses. However, information relating to government business enterprises would be highly aggregated and would not be revealing any details that would undermine the competitiveness of their businesses.

I want to underline that this is a standard accounting principle. This rule applies to all other government-owned businesses across Canada. We are not asking anything different of first nation communities than we do of any other business or community in Canada.

As members of Parliament, we all fully disclose our salaries and special allowances to the public, as required by the Parliament of Canada Act and the Salaries Act. Not only that, but the Federal Accountability Act of 2006 has also increased the public's access to information about its government's activities and those of its members. Anyone interested in any of this data can find it without even asking. Similar laws are in place at the provincial and territorial level and most of those governments have adopted legislation requiring municipal governments to make these documents public as well.

Equally important, there is nothing in this legislation that would create any additional paperwork for first nation governments. They already produce consolidated financial statements each year, which are audited by independent accredited professional auditors. It is a requirement of their funding agreements with Aboriginal Affairs and Northern Development Canada.

The legislation simply ensures that some of the critical documents which are already submitted to the department as part of a first nation’s funding agreement are made publicly available. This bill does not ask for anything new, except greater transparency to members.

To be clear, all that Bill C-27 would do is to require first nation governments to meet the same standards. They are the only governments in Canada that do not currently provide this basic level of information to the public, and this bill would fill that legislative gap.

As members can see, we are not proposing radical measures, nor are they onerous in terms of their additional reporting requirements. We have made every effort to make it easy for first nations to comply with this law.

It has been pointed out, for example, that not all first nations have websites. However, the bill fully addresses this point. A first nation will not be required to have its own website as a result of the legislation. If a first nation is not able to publish the information electronically itself, it can ask another organization it is a member of to post it on the community's behalf. Alternatively, the first nation could ask Aboriginal Affairs and Northern Development Canada to post the information on its behalf.

Of course, it is important to recognize that having these documents published on a website does not fulfill a first nation government's obligation to make copies of financial statements available to its members. Again, many of them already do this by either distributing printed copies to households or making information available in band offices. We heard at committee instances of where a number of communities actually host a forum, somewhat akin to an annual general assembly of its members, where they review these documents.

I also want to reinforce that there have been numerous opportunities to discuss and improve this legislation, first in the context of private member's Bill C-575 introduced in the previous Parliament, and now in the context of Bill C-27.

Over the course of the committee's review of the bill, we heard concerns about how certain sectors of the text might be interpreted. These concerns focused on the language of the bill in two key areas: first, the need to report information relating to remuneration and reimbursement of expenses separately; and second, the treatment of band-controlled entities. I am pleased to say that we have listened to the concerns raised by first nations and have introduced amendments to clarify the relevant language of the bill to address these concerns. That is a process that took place at committee.

With respect to the reporting of remuneration and expenses, the original text of the bill combined the concepts of salaries and expenses into a single definition of remuneration. Although it was not the intention of the bill, we heard from witnesses that this could be interpreted to suggest that these two amounts could be reported and disclosed to the public as one aggregate figure. To make things clearer and for greater certainty, the amendments split these two concepts into two separate definitions for the purposes of the legislation, and the schedule of remuneration has been re-named in the text of the bill to “schedule of remuneration and expenses”.

As it relates to the treatment of band-owned businesses, the intention of the bill has always been to put into legislation the same practices with respect to the treatment of band entities as are currently in place in the funding agreements. We believe it is important for the users of financial statements, especially first nation members, to see summary statements that capture the activities of their government and elected officials.

The entities to be included and the manner in which their financial information is presented will be determined by the standards set out by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants. This will ensure that the standards applying to businesses owned by other governments in Canada will also apply to first nation governments in precisely the same way.

The government worked hard to find language that strikes a balance between the need for precision and certainty in legislative drafting and complex accounting concepts. At committee we adopted an amended definition of consolidated financial statements that makes these points clear. These improvements resulted in some other small amendments but do not detract from the original intent of the bill. The only thing that has changed is the wording, which has been adjusted for clarity, greater certainty and to eliminate any confusion.

First nations people have been waiting a long time for the measures proposed in Bill C-27. They should not be asked to wait any longer for this bill to come into effect.

It was first introduced on November 23, 2011, and there has been ample time devoted to discussing views and concerns regarding this legislation. It was debated for almost six hours during second reading debate before being referred to committee, which met seven times to study and discuss Bill C-27.

During that time the committee heard from 21 witnesses from 13 different organizations. These witnesses came from a variety of organizations including the Assembly of First Nations, the Canadian Taxpayers Federation, the Aboriginal Financial Officers Association of Canada, and representatives from individual first nations communities.

During report stage, the House spent over six hours of debate on this bill. The NDP has had no less than 20 speakers, yet we heard no new issues raised by the opposition in all that time. In fact, one thing that we did hear was one member from across the way saying that he wanted to see one rule for all. It is great news that a member from the NDP would say that, because that is exactly what this bill strives to accomplish.

For this legislation to apply in the next fiscal year, it must come into force on or before March 31, 2013. This legislation is long overdue and will bring first nation governments in line with virtually all other governments in Canada. Our government believes that first nations people have waited long enough. We think this legislation should apply to the next fiscal year, 2013-14. This means that the publication of first nations' financial statements and salaries and expenses could occur as early as July 2014.

I am very proud of this legislation. I believe firmly that first nations deserve and expect the same level of transparency and accountability as all Canadians. The first nations financial transparency act would make that happen.

Bill C-27 will also reassure potential investors that they can safely enter into joint financial agreements, joint ventures and business undertakings with first nations. The resulting jobs and economic growth will contribute to social and economic improvements in the lives, the livelihoods and the communities of first nation members.

In short, Bill C-27 is a landmark bill that is worthy of the support of all parties. I urge all members of the House to give it their full support and vote unanimously in support of this bill.

First Nations Financial Transparency ActGovernment Orders

November 27th, 2012 / 10:15 a.m.
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Conservative

Gary Goodyear Conservative Cambridge, ON

First Nations Financial Transparency ActGovernment Orders

November 26th, 2012 / 6:30 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

It being 6:30 p.m., the House will now proceed to the taking of the deferred recorded divisions on the motions at the report stage of Bill C-27.

Call in the members.

The House resumed from November 23 consideration of Bill C-27, An Act to enhance the financial accountability and transparency of First Nations, as reported, and of the motions in Group No. 1.

First Nations Financial Transparency ActGovernment Orders

November 23rd, 2012 / 1 p.m.
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Calgary Centre-North Alberta

Conservative

Michelle Rempel ConservativeParliamentary Secretary to the Minister of the Environment

Mr. Speaker, it is always an honour to rise in the House and today it is an honour to rise to debate Bill C-27, the first nations financial transparency act.

Over the last six years, our government has consistently demonstrated our commitment to creating the conditions for a healthier, more self-sufficient aboriginal communities. Fundamental to achieving that are strong, stable and accountable first nations governments. Bill C-27 would strengthen first nations governance by increasing accountability and transparency, giving first nations community members the information they need to make informed choices about their leadership.

Bill C-27 complements Bill S-6, the first nations elections act, which we introduced in December 2011. Together, these pieces of proposed legislation demonstrate democratic practices and would empower first nations people.

First nations residents expect to know how funds are being spent in their communities. Like all Canadians, they want assurance that these funds are being used to improve their quality of life. Bill C-27 would improve their access to the financial statements of their governments and provide information on the salaries and expenses of their elected officials.

Indeed, democracy depends on citizens being able to call their leaders to account and ensure they represent the community's best interests.

Currently, community members may ask for financial information related to their band but unless their leaders choose to release it, it can be difficult for them to access the information required to make informed decisions about their leadership and the direction of their community. There are still community members who have no other option but to contact the Department of Aboriginal Affairs and Northern Development each year seeking assistance in obtaining this information.

A real or perceived lack of transparency and accountability from first nation leaders can also erode investor confidence and impede a community's ability to take full advantage of economic development opportunities. Ultimately, this delays or can destroy job opportunities and economic progress for the first nation and its members.

I also point out that parliamentarians already have a duty to inform Canadian taxpayers of how their tax dollars are spent, including for first nations.

A question was raised during the second reading debate of the bill on whether public disclosure of financial statements of band-owned businesses would undermine their competitiveness. It is important to note that Bill C-27 would not require each individual business owned by the band to publish its detailed financial statements. Instead, it is only the consolidated financial statements of the first nation that are covered under the proposed legislation. Some of my colleagues, in their speeches in the House today, have reiterated this point. These statements would not, in most cases, reveal any proprietary information that would undermine their competitiveness. There seems to be some misunderstanding on this. I understand that during the committee stage amendments were made to clarify these concerns.

Members of first nations are ultimately the owners of any businesses owned by the band and they have a right to know the financial position of those businesses, just as other Canadians have the right to know about businesses owned by other levels of government. The bill would ensure that this occurs.

Although some first nation-owned businesses may have concerns about providing financial information to the public, it is important to point out that these reporting rules are not our rules but the rules set out by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants. In other words, these are the exact same rules that apply to businesses owned in other governments in Canada. To be absolutely clear, the proposed legislation would not create any additional paperwork for first nation governments. They already produce audited financial statements each year as a requirement for their funding agreements with the department, and this bill would not require anything new in that regard.

Similarly, what we are asking of chiefs and councillors is no more than what we ask of ourselves as parliamentarians. For example, the Government of Canada posts its financial statements on the Internet and each of us, as members of Parliament, now disclose our salaries and special allowances to the public as required under the Parliament of Canada Act and the Salaries Act.

Furthermore, Canadians can easily find all of these facts and figures, and much more, since we introduced the Federal Accountability Act. This act has also increased the public's access to information about government activities and spending.

Provincial and territorial governments have adopted similar practices and the vast majority of them have legislation that requires municipal governments to make these documents public, as well. In addition, some provinces, such as Manitoba and Ontario, have extended beyond the legislature to require public sector bodies to disclose the public amount of compensation it pays to its employees over a certain threshold.

In short, under the Indian Act, first nation governments are the only governments in Canada that do not currently have a legislated requirement to make basic financial information public. Again, the bill would address this gap.

Some have noted that not all first nations have websites. This came up in debate in the House today. This is true, and Bill C-27 addresses this point. A first nation will not be required to have its own website as a result of the bill. If a first nation were not able to publish the information electronically, it could ask another organization to post it on the community's behalf. Alternatively, the first nation could ask the department to post the information on its behalf. However, we should be clear that having these documents published on a website does not fulfill a first nation government's obligation to make copies of financial statements available to its members.

Many first nations members do not have easy access to the Internet, a fact the department is also addressing through its connectivity efforts. As a result, first nations will need to continue to find ways to make this information available to their members who do not have Internet access. Many already do this by distributing printed copies to households, or making the information available in readily accessible locations in the community, including band offices.

As I mentioned at the outset, the department receives many requests each year for assistance in obtaining basic financial information from their own first nations government. Enhancing the accountability of band councils more directly to its members would be achieved by making more tools available to its individuals.

All that the bill changes is that first nations government will now join other Canadian governments in sharing basic financial information with its members and other Canadians. Once passed, the bill would also help assure potential investors that they could safely enter into joint financial agreements and business undertakings with first nations. This could and should contribute to social and economic improvements in the lives and livelihoods of first nations members.

I know members will agree that Bill C-27 is a necessary step for empowering and improving the lives of first nations members, and I urge all members of this House to vote in favour of the bill.

I will close with some of the statements I have heard in the House today. There has been some implication that requiring transparency that is similar to other levels of government is somehow paternalistic. I would disagree with that characterization. It is very positive for the bill to undertake the step of moving first nations members in the same direction as other levels of government when it comes to the transparency in the disclosure of financial records to its members and to other Canadians.

I want to note that the proposed legislation is asking that first nations use generally accepted accounting principles, which is consistent with expectations of governments from all other levels. We are not trying to prescribe salaries or the spending habits of first nations communities with Bill C-27. It is simply to move the financial reporting requirements and transparency requirements into alignment with other levels of government across this country.

First Nations Financial Transparency ActGovernment Orders

November 23rd, 2012 / 1 p.m.
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NDP

Mike Sullivan NDP York South—Weston, ON

Mr. Speaker, Bill C-27 is part of a pattern of paternalistic and prescribed regulations on first nations that may in fact be leading toward assimilation. However, it also highlights for all Canadians the problems in first nation communities, such as the lack of housing and the fact that women whose marriages break up will lose their ability to live in their first nation because there are not enough places for them to live.

The government is doing virtually nothing to correct the 85,000 spaces that are missing in first nation communities.

First Nations Financial Transparency ActGovernment Orders

November 23rd, 2012 / 12:45 p.m.
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NDP

Mike Sullivan NDP York South—Weston, ON

Mr. Speaker, Bill C-27 is part of a pattern that I have noticed as a non-first nations person here in the House of policies and practices of the government that are paternalistic, punishing and somewhat prejudicial. This pattern is quite disturbing to me as a non-first nations person in that the government should actually be protecting and enhancing the first nations people of this country rather than punishing them.

The genesis of the bill, as I understand it, was a report from the Canadian Taxpayers Federation about the remuneration received by a band chief, or maybe other band chiefs, that was in excess of what we pay the Prime Minister. There are lots of corporations in this country that pay significantly in excess of what the Prime Minister makes. Whether a band has the resources to be able to pay its chiefs appropriately is not something that we should concern ourselves with unless there is some evidence of fraud or of other nefarious means. That is not the case here. There was no indication and no expectation on the part of the band that the chief was being paid in some manner that was inappropriate.

Indeed, the bill does not even touch on the appropriateness of compensation. It does not provide any guidance as to what would be a conflict of interest or what would be a conflict in terms of remuneration. Instead, it seems to punish the bands that are providing many financial statements already by making them provide even more by increasing the reporting requirements in an extreme way. That, again, seems to be a punishment for bands, perhaps for having spent so much on their chiefs.

In terms of it being paternalistic, once again we see that the government will not consult with the first nations themselves but instead prescribe for the first nations what they must do. We have heard time and time again in the House and from first nations themselves that what they want is be free to run their own affairs and, where the government provides some money, they want to be consulted. By the word “consult” we mean consent. We do not mean just spend a few dollars and bring a few people in to talk. We actually mean that the bands should give consent where there are major changes to how the government provides its services to them and the relationship between the Canadian government and the governments of the first nations people.

It gets even more paternalistic when the government says that if bands do not follow its rules it will hold back money. I cannot for the life of me understand why the government would do that to a band, to punish the children of the band perhaps if the money is for education, or to punish the mothers of the band perhaps if the money is for food or shelter. Why on earth are we punishing these people for the actions of a few? We have tried at committee to move significant amendments to the bill to deal with those issues that have been raised with us by the first nations and the issues that we can plainly read in the text of the bill, and yet every one of those amendments have been rejected by the government. As is the case in almost all the bills before Parliament, there is no attempt to be co-operative or consultative with the other parties in the House. The government does it all on its own.

The bill is punishing to the first nations because, in many circumstances, it would require the proprietary business information be released to the public. We are not talking, as the member for Scarborough Centre suggested, about ensuring that band members have this information. In fact, the requirement is that the information be made completely public and, when it is made public, if it is proprietary information, it puts the band at a disadvantage. It is punishing the band.

Some of these bands have been quite successful in creating businesses and trying to lift some of their members out of the extreme poverty in which we often find Canadian first nation members. The government's reaction is to punish them for doing that by making them release proprietary information in their financial statements that would put them at a disadvantage to non-first nation businesses in Canada and elsewhere. That is just wrong. We should not be putting first nations people at a disadvantage.

When we talk about proprietary information, the thing that I find most ironic is that when a freedom of information request is made of the government, most often the excuse that it gives when turning down the release of information, whether it is financial or otherwise, is that it is proprietary information and protected by the privacy of the dealings with another business or entity. Yet first nations are not given the same ability to protect their information. Instead, they are being told they must disclose it or the government will step in and withhold money.

I believe the government has fallen 30 places in the world's rankings in terms of freedom of information requests. Yet it is telling first nations they have to release information. The government is not practising what it preaches. As we know, the government's accountability is always in question when the Parliamentary Budget Officer has to take the government to court in order to get information released. Yet the way the government treats first nations is to say that if they do not release information, it will withhold their education money or money for housing or food.

There are some who have spoken at committee about the punishing nature of the required information. John Paul from the Membertou First Nation on October 24 stated:

In addition to what we do publicly, our first nation community must also still comply with all the detailed reporting requirements as decreed by the Aboriginal Affairs and Northern Development Canada reporting handbook, developed by AANDC alone, as per the conditions of the five-year multi-year funding agreement that we have signed with AANDC. The time my staff has to spend to complete these obligations is significant and is done at our own first nation's cost.

The government does not help with any of this.

These reporting requirements and the need for documentation seem to have increased, even though a few years ago the Conservative government committed to an improved funding relationship. The continual and increasing reporting burden on our first nation must be addressed.

We are going in the opposite direction with the bill. We are creating a greater burden and more funding requirements, and there is no additional money to provide for it.

In terms of the policies of paternalism and some would say even prejudice toward the first nations, I am reminded of the comments of the Prime Minister when the Attawapiskat First Nation crisis came to our attention last fall. His knee-jerk reaction was to say, “We gave them lots of money. Where did they spend it?”

That was not the problem. The problem was not that the government gave them lots of money, it was that the government did not give them enough money. It has frozen their funding at 2% raises since 2000, first by the Liberal government and continued by the Conservative government, when their population is increasing at a greater rate than that and the inflation rate in Canada is higher than that on many occasions. Every year that funding arrangement stays in place, first nations fall further and further behind.

We are told that 85,000 new homes need to be built on first nation reserves. The Conservatives bragged yesterday about how it built 16,000 houses since 2005, which we should remind them was money that Jack Layton got out of the Paul Martin government to create new housing. In fact, the Conservatives voted against providing money for housing. Native North Americans in Canada are 85,000 houses short and yet the government is going ahead without providing any new housing infrastructure money for first nations. It is frozen at 2%.

As far as education goes and as far as we can tell, the first nations who must report on this money now are being paid half of what other Canadian children receive in terms of education dollar spending. In some cases this paternalistic attitude toward the first nation education system is such that when a first nation is given space to have a school, the government deducts the value of that space from the money it gives the first nation for education, even though it did not cost anyone anything. It is shameful that the government—

First Nations Financial Transparency ActGovernment Orders

November 23rd, 2012 / 12:35 p.m.
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Conservative

Roxanne James Conservative Scarborough Centre, ON

Mr. Speaker, I am very pleased to rise today to speak to Bill C-27, and specifically to speak about the need for Bill C-27 as a way of re-establishing basic lines of accountability between a first nations chief and council and its members.

I begin by referring to a statement made by the Assembly of First Nations, which referred to this bill as “tinkering”. In a document prepared for the Special Chiefs Assembly held in December 2011, it said:

...federal led tinkering around the edges of the Indian Act with legislation that addresses aspects of core governance is not the answer. It will not provide long-term governance certainty and stability for our Nations.

Is this bill nothing more than tinkering with the Indian Act? Absolutely not. The Indian Act is silent on transparency and accountability. There is not a word in the Indian Act that deals with the preparation of financial statements and ensuring they are accessible to the public. The Indian Act is certainly not modern legislation that supports first nations governments. This is why the first nations financial transparency act is so needed.

To be clear, this bill would change the status quo. It would provide long-term governance, certainty and stability. The status quo as it relates to financial transparency is that there are currently no statutes or regulations to outline the financial transparency requirements for first nations governments or to guide the setting of salaries for chiefs and councillors. To the extent that there are any rules anywhere that require first nations to make their financial information available to their own people, it is not in that law, but in the funding agreements with the Department of Aboriginal Affairs and Northern Development. In accordance with provisions of these agreements, first nations governments are required to provide the department with audited consolidated financial statements and a schedule of remuneration and expenses for all elected officials. However, it is also a provision of these agreements that the statements be made available to the first nations members in their own communities. These agreements do not stipulate the manner or timing for disclosure. As a result, some individuals have found it quite difficult to access these documents. The practices within individual first nations communities vary widely. Some communities may not consistently disclose financial statements or information concerning salary and expenses while others distribute the information to members or post it on community websites.

This bill would change all of this. It would indeed change the status quo for first nations communities. Under the proposed legislation, each first nation would need to make its audited consolidated financial statements available to its members, as well as to publish them on a website. The information found in the audited consolidated financial statements relates to the major activities undertaken by the particular first nation being audited and details how the first nation expended its moneys. The statement with respect to what information is provided in these statements would be determined by the generally accepted accounting principles. Information that would be disclosed in the schedules to the financial statements include the salaries, wages, commissions, bonuses, fees, honorariums, dividends and any other monetary or non-monetary benefit that chiefs or councillors are receiving. The expenses of first nations leadership, such as transportation, accommodation, meals and hospitality would also be included. Chiefs and councillors would also be required to disclose remuneration paid to them by any entity controlled by the first nation. This would reflect current practice, as first nations are already required to report the remuneration and expenses, in separate categories, paid to the chief and councillors as part of their agreements under the funding agreement with the Department of Aboriginal Affairs and Northern Development Canada.

The Minister of Aboriginal Affairs and Northern Development would be required to publish the audited consolidated financial statement and schedule of remuneration, when received, for each first nation on the Aboriginal Affairs and Northern Development Canada website. This would ensure the information would be available and accessible at all times, and by everyone. The department already publishes on its website a document entitled “Schedule of Federal Funding” for each first nation as a result of the Federal Accountability Act. The bill would require first nations and the department to publish the audited consolidated financial statements and schedules on their websites, as well as remunerations and expenses of first nations to which the legislation would apply. If a first nation failed to do so, anyone, including the minister, could ask a court to require a band council to publish it.

The bill would not only empower first nation members but it would also change the status quo in another fundamental area.

Currently, when first nations members raise questions or concerns about the non-disclosure of financial statements or remuneration and expenses for chiefs and council members, Aboriginal Affairs and Northern Development Canada encourages them to raise these issues directly with their chief and council, respecting the principles of local community accountability.

If the department becomes aware of a situation where a first nation member cannot gain access to his or her community's financial statements, the department will work with the first nation government to ensure that the information is released. If efforts to have a first nation government release the statements to a member are unsuccessful, the department releases the financial statements or schedule of remuneration and expenses directly to the member.

Not only does this place the minister in a difficult position between the first nation council and its members, it makes no sense to require individual first nation members to have to appeal to the minister just for access to basic financial information relating to their own community that they should be able to get from their own band.

Bill C-27 would create a direct relationship with a clear line of responsibility, accountability and transparency between council and first nations members. The bill would underscore the fact that first nations governments are accountable to their own communities for the decisions they make, in addition to being accountable to taxpayers for the funds that they receive.

The bill would change the status quo by finally putting in place the same rules with respect to financial transparency that apply to other governments in Canada to first nations governments. The bill would provide long-term governance certainty and stability by creating a direct line of accountability between a first nation and its chief and council for access to basic financial information and for the decisions that led to the information that those documents contain.

It is worth noting, too, that the bill would achieve this without increasing the already significant reporting burden on first nation governments. Because the preparation of these documents is already a condition of their funding agreements, there are no new reports required. The bill proposes to place the same requirements in legislation with the only additional requirement being that some of the information already prepared for the department is posted on a website, maintained by the first nation or on its behalf, and on the department's website as well.

I know that members will agree that Bill C-27 is a necessary step forward in empowering and improving the lives of first nations members.

First Nations Financial Transparency ActGovernment Orders

November 23rd, 2012 / 12:30 p.m.
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NDP

Rathika Sitsabaiesan NDP Scarborough—Rouge River, ON

Mr. Speaker, I am intrigued. I sit on the immigration committee and we have had a chance to look at Bill C-45. The creation of electronic travel authority and the details of how the ETA would be created, the criteria for qualifying, et cetera, were not going to be in the legislation. They would be in the regulations, which of course can be changed very easily by a minister.

Why is it that, in Bill C-27, the government seems to feel it needs to put into legislation the details of the disclosure requirements for chiefs? First nations communities and chiefs have audited financial statements. New Democrats believe the audited statements should first be presented to the first nations communities. We do not need legislation to control what they do. It could be a requirement of the funding arrangements that each of the communities signs.

I would ask my hon. colleague to comment on that.

First Nations Financial Transparency ActGovernment Orders

November 23rd, 2012 / 12:20 p.m.
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Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

Mr. Speaker, I am pleased to rise in the House today to debate Bill C-27.

According to the Conservative majority, the purpose of this bill is to make first nations' finances more transparent by requiring first nations to disclose various pieces of information.

I must begin by pointing out to the House the irony in this situation: the Conservative government lacks transparency in many areas and has no problem criticizing the Parliamentary Budget Officer when he confirms their lack of transparency.

The Conservatives also hid information that the Chief Electoral Officer had requested when the robocall scandal came to light. They hide their destructive environmental policies in mammoth bills like the budget bill voted on last June. They deceived Canadians on the real cost of the F-35 and they misled Canadians during the election. At the time, they said they would not raise the age of eligibility for old age security, yet they raised it from 65 to 67 just a few months later.

Now the Conservatives are introducing a bill that suggests that first nations are not being transparent. This is ironic, coming from a government that is not very transparent itself.

Before preaching to others and imposing such conditions, the Conservatives should start by looking in the mirror.

Transparency is always a good thing when it comes to public funds. Canadians deserve to have their money well spent, and they deserve to have all the necessary means to know what governments are doing with that money. We must speak out against any misuse of public funds at every level of government.

This is also true for first nations, which deserve to have the funding they are given properly managed and used to develop their community. Like everywhere else, the money is sometimes mismanaged, and it is the members of these communities who suffer for it.

This bill could stigmatize first nations by giving Canadians the impression that aboriginal reserves mismanage their resources and must be put under trusteeship by Ottawa. That is insulting and disrespectful to aboriginal communities, which were not even consulted before the bill was drafted.

I would like to specify that, although it is possible that some communities mismanage their resources, this type of problem is not limited to first nations communities. Many municipalities and governments—federal and provincial—have done a shoddy job of managing public funds. We have seen this frequently in Quebec since the beginning of the Charbonneau commission. Such practices must be stopped at all levels.

We believe that public funds must be managed in a transparent manner. However, imposing transparency, as the Conservatives are trying to do today, is insulting and reminiscent of colonial times. The Conservatives are forgetting that they have a constitutional duty to consult the first nations before making changes to laws that affect them.

However, as they have been in the habit of doing since they won a majority, the Conservatives are acting unilaterally, as though the other levels of government did not exist. The Conservatives are not even trying to examine the amendments proposed by the opposition or even hold consultations with regard to their own amendments. In short, this government is continuing to turn a deaf ear.

The paternalism of this bill is also of great concern. The first nations should have the same amount of freedom as the provinces and municipalities to manage themselves as they wish.

When the federal government sends the provinces equalization cheques, does it tell them how to do their accounting? The provinces pass their own laws, and we have confidence in their justice system.

With Bill C-27, we are acting as though the first nations belonged to the federal government. We are acting as though the first nations needed to be put under trusteeship, as though they were unable to take care of themselves.

Can we require that first nations communities be transparent toward their members? Likely. However, do we need a bill that tells them exactly how to do that?

Aboriginal communities do not all operate in the same way and do not all have the same resources.

By unilaterally passing a bill that will tell them exactly what to do, we will be imposing an administrative burden that will cause problems for many of them. For example, why force first nations to have a website where the public can consult the documents this bill requires, when some of them do not even have drinking water?

For a community of 200 people, for example, being forced to maintain a community website is an unjustifiable burden, especially since the Conservative government is not offering any financial compensation. Disclosing certain information to all Canadians can also cause problems for first nations businesses, which will be put at a competitive disadvantage, as the member for St. Paul's described.

As I mentioned earlier, this bill puts a huge administrative burden on aboriginal communities that have limited means. The first nations already provide at least 168 separate financial reports to the four main federal departments and agencies—Human Resources and Skills Development Canada, the CMHC, Aboriginal Affairs and Northern Development Canada, and Health Canada. The administrative burden imposed on the first nations is excessive, and the government is not doing anything to help them with this bill. Their resources are limited, so let us help them by reducing their spending on the administrative documents we force them to produce.

The Conservatives must stop treating the provinces and first nations with contempt. Not only does the Conservative government break our laws and frequently waste taxpayers' money, but it goes so far as to lecture others and to try to control them. A first step for the Conservatives would be to achieve transparency by providing documents in a timely manner when asked to do so by Elections Canada and the Parliamentary Budget Officer. And the Conservatives should consult the provinces and the first nations when considering changes that affect them.

The Liberal Party is not the only one saying it: the Supreme Court of Canada ruled that the federal and the provincial governments have an obligation to consult aboriginal peoples before making decisions that affect their rights, and that they must respond to their concerns.

So why impose this kind of legislation without consultation?

Canadians are afraid of this obsession with control. The provinces no longer have a say. The Conservatives have decided to cut transfers and services, and to increase provincial costs with complete disregard for the principles of federalism. Even the premier of Quebec, a sovereignist, was surprised and disappointed that the Prime Minister of Canada is not attending the meeting of the Council of the Federation in Halifax. We know that we have a serious problem when even a separatist seems to take Canadian federalism more seriously than the Prime Minister of Canada.

Today, the government is treating the first nations in the same way by unilaterally imposing its conditions. For the Prime Minister to have such control over his caucus that he forces them to read texts prepared by his office is one thing. But to have such contempt for Canadian federalism that he passes the costs on to the province and the aboriginal communities is, quite frankly, an insult to Canadians.

We must put an end to paternalism and the colonial mentality towards first nations. We must treat them like partners in our federation. The first nations are not government agencies; they are not the property of the federal government. The Conservatives must negotiate with the first nations in order to find common ground rather than being confrontational. The Conservative government must face the facts, reconsider its approach and take into account the opposition's concerns.

To that end, the Conservatives should vote with the Liberal Party against this bad bill, and they should go back to the drawing board.

First Nations Financial Transparency ActGovernment Orders

November 23rd, 2012 / 12:20 p.m.
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Conservative

David Wilks Conservative Kootenay—Columbia, BC

Mr. Speaker, I can reassure the member that all members on this side are very upfront with regard to what they spend. I am sure all of the ministers would be very certain of that.

Having said that, the most important bill here today is Bill C-27, which will ensure that people on reserve can understand what their chiefs and councillors receive each year through remuneration.

First Nations Financial Transparency ActGovernment Orders

November 23rd, 2012 / 12:15 p.m.
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Conservative

David Wilks Conservative Kootenay—Columbia, BC

Mr. Speaker, we should focus on Bill C-27, which would ensure that councillors and chiefs throughout Canada, from coast to coast to coast, would be open to their constituents.