Bill C-45

An Act to amend the First Nations Fiscal Management Act, to make consequential amendments to other Acts, and to make a clarification relating to another Act

This enactment amends the First Nations Fiscal Management Act to expand and modernize the mandates of the First Nations Tax Commission and the First Nations Financial Management Board in order to better reflect their current and future activities.
The enactment also establishes a First Nations Infrastructure Institute that will provide First Nations and other interested Indigenous groups and organizations with tools and support, including with respect to best practices, to implement and manage their infrastructure. It also provides First Nations named in the schedule to the First Nations Fiscal Management Act with the power to make laws to regulate services provided by or on behalf of the First Nations.
The enactment also aims to improve the functioning of that Act, including by integrating the content of the Financing Secured by Other Revenues Regulations , by combining into a single fund the debt reserve fund for financing secured by property tax revenues and the debt reserve fund for financing secured by other revenues and by simplifying the way certain Indigenous groups participate in pooled-borrowing.
Finally, the enactment makes consequential amendments to the Access to Information Act and to the Privacy Act and includes a clarification that addresses a transitional administrative oversight that followed the establishment in 2019 of the Department of Crown-Indigenous Relations and Northern Affairs and the Department of Indigenous Services.

[The Speaker, Liberal, Anthony Rota]

I have the honour to inform the House that a communication has been received as follows:

Rideau Hall

Ottawa

June 19, 2023

Mr. Speaker,

I have the honour to inform you that the Right Honourable Mary May Simon, Governor General of Canada, signified royal assent by written declaration to the bills listed in the Schedule to this letter on the 19th day of June, 2023, at 11:47 a.m.

Yours sincerely,

Christine MacIntyre

Deputy Secretary to the Governor General

The schedule indicates the bills assented to were Bill S-246, An Act respecting Lebanese Heritage Month; Bill C-41, An Act to amend the Criminal Code and to make consequential amendments to other Acts; Bill C-13, An Act to amend the Official Languages Act, to enact the Use of French in Federally Regulated Private Businesses Act and to make related amendments to other Acts; and Bill C-45, An Act to amend the First Nations Fiscal Management Act, to make consequential amendments to other Acts, and to make a clarification relating to another Act

Sitting Resumed

[Claude DeBellefeuille, Bloc, Salaberry—Suroît, QC]

Madam Speaker, I am pleased to rise and speak this evening—although I must say the hour is late, almost 9 p.m.—to join the debate on Bill C‑47.

Before I start, I would like to take a few minutes to voice my heartfelt support for residents of the north shore and Abitibi who have been fighting severe forest fires for several days now. This is a disastrous situation.

I know that the member for Manicouagan and the member for Abitibi—Baie-James—Nunavik—Eeyou are on site. They are there for their constituents and represent them well. They have been visiting emergency shelters and showing their solidarity by being actively involved with their constituents and the authorities. The teamwork has been outstanding. Our hearts go out to the people of the north shore and Abitibi.

Tonight, my colleague from Abitibi-Témiscamingue will rise to speak during the emergency debate on forest fires. He will then travel back home to be with his constituents as well, so he can offer them his full support and be there for them in these difficult times.

Of course, I also offer my condolences to the family grieving the loss of loved ones who drowned during a fishing accident in Portneuf‑sur‑Mer. This is yet another tragedy for north shore residents. My heart goes out to the family, the children's parents and those who perished.

Before talking specifically about Bill C-47, I would like to say how impressive the House's work record is. A small headline in the newspapers caught my eye last week. It said that the opposition was toxic and that nothing was getting done in the House. I found that amusing, because I was thinking that we have been working very hard and many government bills have been passed. I think it is worth listing them very quickly to demonstrate that, when it comes right down to it, if parliamentarians work together and respect all the legislative stages, they succeed in getting important bills passed.

I am only going to mention the government's bills. Since the 44th Parliament began, the two Houses have passed bills C‑2, C‑3, C‑4, C‑5, C‑6, C‑8 and C‑10, as well as Bill C‑11, the online streaming bill. My colleague from Drummond's work on this bill earned the government's praise. We worked hard to pass this bill, which is so important to Quebec and to our broadcasting artists and technicians.

We also passed bills C‑12, C‑14, C‑15, C‑16, C‑19, C‑24, C‑25, C‑28, C‑30, C‑31, C‑32, C‑36 and C‑39, which is the important act on medical assistance in dying, and bills C‑43, C‑44 and C‑46.

We are currently awaiting royal assent for Bill C‑9. Bill C‑22 will soon return to the House as well. This is an important bill on the disability benefit.

We are also examining Bill C‑13, currently in the Senate and soon expected to return to the House. Bill C‑18, on which my colleague from Drummond worked exceedingly hard, is also in the Senate. Lastly, I would mention bills C‑21, C‑29 and C‑45.

I do not know whether my colleagues agree with me, but I think that Parliament has been busy and that the government has gotten many of its bills passed by the House of Commons. Before the Liberals say that the opposition is toxic, they should remember that many of those bills were passed by the majority of members in the House.

I wanted to point that out because I was rather insulted to be told that my behaviour, as a member of the opposition, was toxic and was preventing the work of the House from moving forward. In my opinion, that is completely false. We have the government's record when it comes to getting its bills passed. The government is doing quite well in that regard.

We have now come to Bill C-47. We began this huge debate on the budget implementation bill this morning and will continue to debate it until Wednesday. It is a very large, very long bill that sets out a lot of budgetary measures that will be implemented after the bill is passed.

I have no doubt that, by the end of the sitting on June 23, the House will pass Bill C‑47 in time for the summer break.

What could this bill have included that is not in there? For three years, the Bloc Québécois and several other members in the House have been saying that there is nothing for seniors. I was saying earlier to my assistant that, in my riding of Salaberry—Suroît, we speak at every meeting about the decline in seniors' purchasing power. I am constantly being approached by seniors who tell me—

First Nations Fiscal Management Act

[The Deputy Speaker, Conservative, Chris d'Entremont]

There being no further members rising, pursuant to an order made earlier today, Bill C-45, an act to amend the First Nations Fiscal Management Act, to make consequential amendments to other acts, and to make a clarification relating to another act is deemed read a third time and passed.

(Bill read the third time and passed)

[Lori Idlout, NDP, Nunavut, NU]

Uqaqtittiji, I am very pleased to rise to speak to Bill C-45, an act to amend the First Nations Fiscal Management Act and to make consequential amendments to other acts.

As the indigenous critic for and on behalf of the New Democrats, I say that we are very pleased to show our support for the passing of Bill C-45. I share my gratitude with Harold Calla, executive chair at the First Nations Financial Management Board; Manny Jules, chief commissioner of the First Nations Tax Commission; Ernie Daniels, president and chief executive officer of the First Nations Finance Authority; and Grant Christoff, general counsel at the First Nations Infrastructure Institute. The leadership they have shown is very important for the advancement of first nations, and their acknowledgement is well deserved.

We have heard from other parties that this is about economic freedom and about creating economic independence. That is not solely what it is for me. If there were true reconciliation and true economic independence, Inuit, first nations and Métis would be able to thrive off the land based on their expertise and knowledge of the land. If it were truly about reconciliation, indigenous peoples would have free, prior and informed consent right at the beginning of the free entry system, and indigenous peoples' questions would be appropriately responded to during consultations at the environmental assessment phases. Only if indigenous peoples' standards were met would any development on lands be allowed to happen, knowing that it would include benefiting indigenous peoples and not only the private sector. That is what economic reconciliation would look like.

What Bill C-45 would do is open doors for first nations that wish to use the same powers that municipalities all over Canada do. It would open up ways for first nations, tribal councils, modern treaty nations and self-governing groups that have opted in to build their administrative, financial and governance capacity through the risk-managed support of the First Nations Financial Management Board. It is so that first nations can make decisions about and seek supports for infrastructure developments.

Bill C-45 would create an indigenous-led first nations infrastructure institute. First nations opting in to the first nations infrastructure institute would see the doors open for them to make decisions about owning, building and maintaining infrastructure in their communities. Bill C-45 is sorely needed because of the years of Liberal and Conservative governments' failures to properly invest in first nations and their infrastructure needs. To date, it is reported that first nations now experience a staggering infrastructure gap of at least $30 billion.

Since my election and since becoming the indigenous critic for the New Democrats, whenever I meet with first nations, Métis and Inuit, including and especially my constituents in Nunavut, I hear frequently what the infrastructure needs are. First nations have decades-long water advisories, mercury poisoning, few to no health and well-being treatment centres, and school and, especially, housing needs that fall well below the investments people see and hear about in the rest of Canada. Since the government continues to fail in meeting the most basic infrastructure needs, my hope is that the passage of Bill C-45 would make those improvements. First nations would see significant gains. If there were schools in first nations communities like Kluane First Nation in the Yukon, for which it has been asking for years, this bill would not be necessary.

Bill C-45 would not absolve government's responsibilities to uphold treaty rights. It would not absolve government's responsibilities to ensure reconciliation.

Amendments to the current and other acts would include, among others, better supports for first nations seeking to create local revenue laws beyond real property taxation, strengthening the education and capacity supports available currently, supporting local revenue-based service agreements, and offering advice to self-governing first nations and other levels of government.

Bill C-45 would expand and modernize the First Nations Financial Management Board's mandate by completing the 2018 expansion of services and certification standards for new client segments, including tribal councils, and treaty and self-governing groups. It would also provide monitoring and review services.

It would create a full-time position on the First Nations Financial Management Board, establish a national indigenous-led organization under the First Nations Fiscal Management Act to achieve better and more sustainable infrastructure outcomes for first nations, expand law-making powers allowing first nations to make laws respecting the provision of services and to regulate, prohibit and impose requirements in respect of those services on reserve lands.

First nations would be given more authority and enforcement powers to ensure compliance with their local revenue and service laws. The bill would combine the fund supported by other revenues with the fund supported by local revenues. It clarifies that only borrowing members with outstanding loans could be called upon to replenish the fund in circumstances that it has used.

I repeat that this is not about economic reconciliation. First nations, Inuit and Métis were self-governing before colonialism. Through their self-governance, indigenous peoples had laws and management regimes that protected the wildlife and environment. Indigenous peoples respected important relationships with the land and with each other.

While colonial and genocidal policies continue, Inuit, first nations and Métis continue on a path of reconciliation. That relationship with the government is not reciprocal, not to the extent that will advance indigenous peoples' health and well-being.

Bill C-45 is a step to give powers to first nations to make choices and act without federal government assistance. As such, New Democrats support Bill C-45. New Democrats will continue to advocate for reconciliation that is meaningful to Inuit, first nations and Métis.

[Jaime Battiste, Liberal, Sydney—Victoria, NS]

Mr. Speaker, the hon. member for Nunavut sits with me on the Standing Committee on Indigenous and Northern Affairs and is a very important member of that committee.

I agree with her fully that this does not release the government in terms of its fiduciary obligations to first nations communities. What this gives to communities are tools to get outside of the Indian Act. One of the shirts that I often see when I go to powwows with my son is a shirt that says “Burn sage, sweetgrass and the Indian Act”.

What our government is doing is pivoting from the Indian Act to giving communities options they can opt out of, fully with their own systems, fully with their own autonomy. Our eventual goal is to make sure that we focus on the valuable work that we need to do and the UNDRIP Act, and to make sure that all government departments are consistent with that.

I would like to thank the member for her hard work in making sure that we got Bill C-45 where it is today.

[Lori Idlout, NDP, Nunavut, NU]

Uqaqtittiji, I do enjoy working with the hon. member at the indigenous and northern affairs committee.

Regarding Bill C-45, as first nations begin to move toward financial independence, it does not mean that governments are alleviated from their obligations to meet the needs of first nations communities. I wonder if the member agrees with me that while we move toward that, governments will always have obligations to meet the needs of first nations communities.

[Jaime Battiste, Liberal, Sydney—Victoria, NS]

Mr. Speaker, as I said, the First Nations Finance Authority was a game-changer for the Membertou community. This allowed the first nations to refinance, freeing up funds to reinvest in business development, and the results have been fantastic. They include an $8.2-million elementary school, a 90-lot housing development, and a $9.5-million highway interchange that allowed access to future commercial development on land owned by Membertou. From this, members of the first nation went on to build the Membertou Sport and Wellness Centre, one of the largest sporting venues on Cape Breton Island, and the Lanes at Membertou, 16 lanes of bowling with state-of-the-art technology.

Perhaps Membertou's greatest feat was the acquisition of the Clearwater fishery. If anyone had told me that the largest economic and commercial investment in Cape Breton would come during my first years of being an MP, I would have said they were joking with me. However, the $1-billion acquisition of Clearwater, with six other first nations, which were all part of the First Nations Finance Authority, was a game-changer for those communities.

The Membertou Development Corporation is now home to 12 corporate entities. This is in keeping with the remarkable success the Membertou First Nation has had in recent years. Membertou received certification from the International Organization for Standardization, ISO, in 2002, becoming the first indigenous organization to do so in Canada and leading the way for others.

With the support of first nations institutions under the First Nations Fiscal Management Act, incredible change is possible. I want to acknowledge the hard work, dedication and persistence of Membertou's chief, council and their staff.

Moving back to Bill C-45, passing this proposed legislation would allow us to create those differences in other communities, create those successes in first nations communities across Canada, enhance the act and further support first nations communities as they rebuild their nations and advance self-determination.

I encourage all members of this House to join me in supporting this bill and in supporting the first nations institutions under the act, which co-developed the amendments and which are creating such important change for so many indigenous communities across Canada by supporting self-determination and economic reconciliation.

Wela'lioq.

[Jaime Battiste, Liberal, Parliamentary Secretary to the Minister of Crown-Indigenous Relations]

Mr. Speaker, kwe. Tansi. Hello. Bonjour.

Before I begin, I would like to acknowledge that Canada's Parliament is located on the unceded traditional territory of the Algonquin Anishinabe people.

I am pleased to have the opportunity today to speak to the First Nations Fiscal Management Act. I would like to recognize the Minister of Crown-Indigenous Relations for his work on this piece of legislation. I would also like to thank my colleagues on INAN, the indigenous and northern affairs committee, for their careful consideration and study of the bill.

The proposed amendments in Bill C-45 align with the April 2020 report of our committee entitled “Barriers to Economic Development in Indigenous Communities”. We worked collaboratively to achieve the recommendations in that report to champion the economic reconciliation and self-determination by unanimously supporting Bill C-45. Before I continue, I would like to acknowledge the members of that committee for the great work they did and the collaborative work we have done in making sure we passed it with urgency.

Most of all, I would like to recognize the chairs of the first nations-led institutions that put forward the proposed changes to the act and co-developed Bill C-45 with our government. I thank Harold Calla, executive chair of the First Nations Financial Management Board; Manny Jules, chief commissioner of the First Nations Tax Commission; Ernie Daniels, president of the First Nations Finance Authority; as well as Allan Claxton and Jason Calla of the First Nations Infrastructure Institute development board.

The First Nations Fiscal Management Act is an optional piece of legislation, with 348 signatories, and it is an alternative to the Indian Act regime. It is important to key in on the word “optional” because the stakeholders have told us that it is always important to give indigenous communities the choice. They deserve that choice when it comes to their affairs. It is consistent with what we have passed with the UNDRIP Act.

With this act, first nations can assert their jurisdiction in the areas of financial management, taxation and access to capital markets. Bill C-45 was co-developed with the first nations institutions under the act, and responds to what first nations have called for, to improve and expand the current services available under the act, and to establish the First Nations Infrastructure Institute.

Some of these proposed legislative amendments are as follows: modernize and expand the mandates of the tax commission and the financial management board respectively to better reflect the increasing needs for their services; allow the tax commission, the financial management board and the proposed infrastructure institute to collect and analyze data; and establish for the first time ever a First Nations Infrastructure Institute as a national indigenous-led organization that would support first nations scheduled to the act, as well as indigenous organizations and groups, to achieve better and more sustainable infrastructure outcomes. It would very much create a centre of excellence for indigenous infrastructure across Canada, whether dealing with wastewater or greening community buildings.

I would like to provide members with an example of the type of great work the First Nations Financial Management Board can support.

In my riding about 10 years ago, the Membertou first nation in Cape Breton received the board's first-ever financial systems certification, which provided the community with access to long-term, affordable capital to the first nations financial authority. I am not over-exaggerating when I say that this was a game changer for that community and the region of Cape Breton. It allowed the first nations to refinance, freeing up funds to reinvest in business developments. The results have been fantastic. They include an $8.2-million elementary school, a 90-lot housing development and a $9.5-million highway interchange that allows access to future commercial developments on land owned by the Membertou.

From this—

[Mary Ng, Liberal, Markham—Thornhill, ON]

moved that Bill C-45, An Act to amend the First Nations Fiscal Management Act, to make consequential amendments to other Acts, and to make a clarification relating to another Act, be read the third time and passed.

[The Speaker, Liberal, Anthony Rota]

Pursuant to order made earlier today, the House will now proceed to the consideration of Bill C-45 at third reading stage.

Business of the House

[Mark Gerretsen, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons (Senate)]

Madam Speaker, there have been discussions among the parties and if you seek it, I believe you will find unanimous consent for the following motion:

That, notwithstanding any standing order, special order or usual practice of the House,

(a) Bill C-45, An Act to amend the First Nations Fiscal Management Act, to make consequential amendments to other Acts, and to make a clarification relating to another Act, be disposed of as follows:

(i) the bill be deemed concurred in at report stage, as amended, upon the adoption of this order;

(ii) the bill be ordered for consideration at the third reading stage later today after the taking of the deferred recorded divisions,

(iii) when the bill is take up at the third reading stage, one member of each recognized party be allowed to speak for not more than 10 minutes followed by five minutes for questions and comments,

(iv) at the conclusion of the time provided for this debate or when no member rises to speak, whichever is earlier, the bill shall be deemed read a third time and passed; and

(b) the order adopted earlier today under the provisions of Standing Order 78(3) still apply to the proceedings on Bill S-5, An Act to amend the Canadian Environmental Protection Act, 1999, to make related amendments to the Food and Drugs Act and to repeal the Perfluorooctane Sulfonate Virtual Elimination Act, and that today's proceedings on the bill count as the further sitting day allotted for debate at report stage.

Indigenous and Northern Affairs

[Jenica Atwin, Liberal, Fredericton, NB]

Mr. Speaker, I have the honour to present, in both official languages, the seventh report of the Standing Committee on Indigenous and Northern Affairs, in relation to Bill C-45, an act to amend the First Nations Fiscal Management Act, to make consequential amendments to other acts, and to make a clarification relating to another act.

The committee has studied the bill and has decided to report the bill back to the House with amendments.

[Jaime Battiste, Liberal, Sydney—Victoria, NS]

Okay.

Madam Chair, we would like that Bill C-45, in clause 52, be amended by replacing, in the French version, lines 36 and 37 on page 46 with the following:

l’emportent sur les dispositions incompatibles d’un texte législatif sur les recettes locales ou d’un texte législatif pris en vertu du paragraphe 97(1) d’une première nation.

[Jaime Battiste, Liberal, Sydney—Victoria, NS]

Madam Chair, the Bloc is going to have to forgive my French on this.

I move that Bill C-45 in clause 43 be amended by replacing, in the French version, line 1 on page 37 with the following:

113b)(i), révoquer pour un motif suffisant un conseiller mentionné au para-

Did the interpreters get that, Madam Gill? Was that not so bad?

[The Chair, Liberal, Jenica Atwin]

Welcome to meeting number 63 of the Standing Committee on Indigenous and Northern Affairs.

We acknowledge that this meeting is taking place on the unceded territory of the Algonquin and Anishinaabe peoples.

Today's meeting is taking place in a hybrid format, pursuant to the House order of Thursday, June 23, 2022. Members are participating in person, in the room, and remotely using the Zoom application.

The proceedings will be made available via the House of Commons website. Just so that you are aware, the webcast will always show the person speaking rather than the entire committee.

Before speaking, please wait until I recognize you by name.

A reminder that all comments by members and witnesses should be addressed through the chair.

When speaking, please speak slowly and clearly. When you're not speaking, your mike should be on mute, particularly those of us online today.

Pursuant to the order of reference of Wednesday, May 3, 2023, we will be begin clause-by-clause consideration of Bill C-45, an act to amend the First Nations Fiscal Management Act, to make consequential amendments to other acts, and to make a clarification relating to another act.

I will note that we have witnesses in the room for our reference.

We have with us today, from the Department of Crown-Indigenous Relations and Northern Affairs, Philippe Bertrand, manager; Christopher Duschenes, director general, indigenous institutions and governance modernization; Andrea Dixon, senior policy officer; Karine Tremblay, senior policy analyst; and from the Department of Justice, Andrew Ouchterlony, legal counsel.

Before we begin our clause-by-clause consideration, I do want to mention that there is a possibility of a vote that may interrupt our proceedings. We will suspend at that time. We could be finished at that time, but we will have to wait and see. I will be as clear and as slow as possible, but we certainly want to be diligent with our time, so I will begin.

I would like to provide members of the committee with some instructions and with a few comments on how the committee will proceed with the clause-by-clause considerations of Bill C-45.

As the name indicates, this is an examination of all the clauses in the order in which they appear in the bill. I will call each clause successively, and each clause is subject to debate and to a vote. If there are amendments to the clause in question, I will recognize the member proposing it, who may explain it. The amendment will then be open for debate. When no further members wish to intervene, the amendment will be voted on. Amendments will be considered in the order in which they appear in the bill and in the package each member received from the clerk. Members should note that new amendments must be submitted in writing to the clerk of the committee. The chair will go slowly to allow all members to follow the proceedings properly.

Amendments have been given an alphanumeric number in the top right corner to indicate which party submitted them. There is no need for a seconder to move an amendment. Once moved, you will need unanimous consent to withdraw it. During debate on an amendment, members are permitted to move subamendments. These subamendments must be submitted in writing. They do not require the approval of the mover of the amendment. Only one subamendment may be considered at a time. That subamendment cannot be amended. When a subamendment is moved to an amendment, it is voted on first. Then, another subamendment may be voted on, or the committee may consider the main amendment and vote on it.

Once every clause has been voted on, the committee will consider and vote on the title and the bill itself. If amendments are adopted, an order to reprint the bill may be required so that the House has a proper copy for use at report stage. Finally, the committee will have to order the chair to report the bill to the House. That report contains only the text of adopted amendments as well as an indication of any deleted clauses.

Are we ready to begin? Okay.

I would like to note for the committee that there are no amendments submitted to clauses 1 to 26. I ask for unanimous consent to group them for a vote.