Thank you, Madam Chair.
Honourable members of the committee, thank you for providing me, as chairman of the First Nations Lands Advisory Board, this opportunity to respond to Bill S-2.
The Lands Advisory Board is very supportive of aboriginal communities addressing the topic of matrimonial real property on their reserve lands. This topic has been a critical component of the Framework Agreement on First Nation Land Management from the beginning. In fact, to ensure that everyone would be aware of this opportunity for law-making with respect to matrimonial real property rights, we added clauses 5.4(a) to 5.4(f) in our framework agreement.
The Lands Advisory Board has more than 10 years of experience actively dealing with law-making for matrimonial real property rights on reserve. For example, since 2001, the board assisted 23 operational first nations in completing their matrimonial real property laws, 14 other operational first nations with drafting their matrimonial real property laws, and 30 developmental first nations with planning for their matrimonial real property laws once they have ratified their land codes.
The framework agreement signatories include the only first nations in Canada who presently have laws dealing with matrimonial real property on reserve that are enforceable in the courts. Furthermore, the framework agreement is the only existing mechanism that provides the signatory first nations with the opportunity to address matrimonial real property rights in unique ways, consistent with their own community policies and traditions. I can use as an example communities that choose not use the certificate of possession system as set out in the Indian Act. They must accommodate their own traditions and not someone else's view of what their traditions and customs ought to be.
I anticipate that the framework agreement signatories will be unaffected by the proposed legislation since most, and hopefully all, of our first nations will have their matrimonial real property laws in effect within three years after royal assent is given to Bill S-2.
The Lands Advisory Board is, nevertheless, concerned about the potential impact of the proposed legislation on the 68 first nations that are presently waiting to become signatories to the framework agreement, and the other communities across Canada. They are very likely to be caught up by Bill S-2 before they have the opportunity to sign the framework agreement.
Based on the Lands Advisory Board's experience and success with matrimonial real property laws under the framework agreement, we would make the following observations concerning Bill S-2.
With respect, the provisional federal laws will apply, by default, to most first nations, due to the challenges entailed in developing their matrimonial real property laws. Successful enactment of these laws by framework agreement signatories has invariably been the culmination of a multi-year, community-driven, consensus-building process addressing values, principles, practices, and procedures related to the governance and management of rights and interests in reserve lands.
Successful enactment of these laws by framework agreement first nations has always been a community-led priority and has required significant external legal and technical advisory support. It is unrealistic to assume that those first nations for whom land governance and management has not been given a priority will be able to expedite development of their own custom matrimonial real property laws in time to be exempt from the provisional federal rules. Community leadership will be sorely challenged in attempting to build a consensus reconciling their matrimonial real property laws and community customs with provincial laws of general application that also come into play in the event of separation and divorce. We know this can be done, but it takes time.
The complexities of these laws on reserves include the need to address and resolve a host of other local governance issues related, for example, to the appropriate balance between individual and collective rights, claims of rights to reside on reserve, housing policy, and distinctions between individual, common, and estate lands. Bill S-2 makes no provision to compensate first nations for the extensive and unavoidable legal and administrative costs entailed in development, enactment, and administration of their own, unique first nation matrimonial real property laws. This lack of resourcing will be fatal to the efforts of many communities to enact their own matrimonial real property laws. Essentially, Bill S-2 is not about community governance at all, because of this forced imposition.
Provinces may be reluctant to participate in adjudication under the provisional federal rules. Through experience with the Lands Advisory Board and the framework agreement, first nations have found provincial governments to be uninterested in assuming any roles with respect to monitoring, dispute resolution, and/or enforcement with respect to first nation land laws generally. Provincial governments cite concerns related to lack of capacity to accommodate the current workload of their judicial systems, uncompensated costs they would incur, and the risk of attracting liability. Bill S-2 does not address, much less resolve, these issues.
The impact of Bill S-2 may be much more extensive than has been anticipated. Canada appears to be working on the assumption that the primary focus of cases subject to the legislation will be a small subset of the 100,000 dwelling units on reserve for which formal land tenure arrangements are in place, pursuant to sections 20, 28(2), 53, or 58 of the Indian Act.
However, the provisional federal rules proposed in Bill S-2 open the door for provincial judges to interpret the definition of a family home, and for the subsequent accumulation of a body of case law that may interpret these laws very differently and more expansively than intended. The definition of a right or interest in a family home on reserve could well be extended through case law to include the right to occupy band-owned housing, which would have implications for housing policies and perhaps financial costs to first nations.
If this were to happen, many more cases could be anticipated. A provincial court could attach a monetary value to the right to occupy band-owned housing, free of rent or other charges, for the rest of the life expectancy of the occupants. The net present value of this stream of housing benefits, calculated like the net present value of an annuity, could amount to several hundred thousand dollars per family home, which would have to be paid to the departing spouse. In many cases, the alternatives of sale or sublease of the property would not generate the funds necessary to meet the award. Such precedents would create significant liabilities to be borne by either the first nation member spouse who retains the family home, or more likely in practical terms, by the first nation.
Based on the Lands Advisory Board's experience and success with the framework agreement, we respectfully suggest that the committee consider the following recommendations regarding Bill S-2.
I have six recommendations. Given the timeframe I will list the headings, and I'm certainly prepared during the answer period to go into more detail, Madam Chair, if that's proper.
The first recommendation, remove the mandatory timeframe and make Bill S-2 optional. The second recommendation, address first nations' jurisdictional concerns. The third recommendation, identify resources for first nations. The fourth recommendation, provide for a transitional first nations mandated agency to support communities. The fifth recommendation, apply the principles of proportionality and reasonableness. The sixth recommendation, respect freedom of contract.
Madam Chair, thank you very much. I wish I had more time to elaborate further, but perhaps I can during question period. I'm certainly going to be assisted by my very experienced colleagues here.