Thank you, Mr. Chair.
Our submission is called “Transforming the Relationship—Sustainable Fiscal Transfers for First Nations”.
First nations citizens have not enjoyed the same level of service as is provided to Canadians by municipal, provincial, and federal governments. The machinery of fiscal governance, therefore, needs to be transformed in order to be reflective of the core Canadian values of equity and opportunity.
Furthermore, a commitment to accountability requires stable, predictable, and fair funding practices between Canada and first nations. Current funding relationships disadvantage first nations and really undermine their ability to plan, predict, and effectively oversee critical service areas. First nations funding enjoys no statutory guarantee and is subject to policy change and annual reallocation.
Therefore, a new funding framework for allocating resources needs to be adopted that will enable first nations to exercise full jurisdiction over priority areas—most notably, in our example, education. First nations systems—and I would emphasize the word “systems”—are needed to effectively deliver services and to fulfill responsibilities.
A key piece of any reforms will be to generate standards to which funding must be matched. A new funding relationship must also reflect the spirit and intent of treaties and must also be a mechanism to ensure parity with provincial funding rates, reflecting the real cost of delivering services. We would submit that the way to implement this is by providing incentives by which communities and systems would leverage additional resources against service standards.
These measures would constitute a reorientation to accountable and sustainable funding for first nations governments, who would then in turn have all the tools to deliver effective services and in turn would be fully accountable to their citizens.
In the example of education and in terms of dealing with the issue of equity in education funding, the federal government provides education funding for students at $2,000 less per student on average than for other Canadian students. Moreover, education for first nations is the only education funding in the country that is not statutorily based but again is subject to policy change and internal reallocations.
In the 2010 Speech from the Throne, the federal government committed to working hand in hand with first nations to reform and strengthen education and to support student success and provide greater hope and opportunity. This we certainly look forward to with a great deal of hope and anticipation. However, to strengthen first nations education, first nations education systems, including second- and third-level supports, are essential, and these could be at the sub-regional and regional levels or at the treaty level. These are essential characteristics of what would be a modern first nations education approach.
The development of new education systems must include a new funding relationship based on legislation that will enable greater planning and stability and will maximize performance and outcomes. It's important to note, though, that first nations education systems will require stable and adequately resourced infrastructures, which include things that we take for granted, such as libraries and gymnasiums, technology, special education programming, and access to high-quality staffing. We would say that first nations developed language instruction is a key part of this system.
In summary, AFN has made approximately ten years of pre-budget submissions. For this one, we would highlight the following priority areas.
The first is first nations education. For the development of a first nations education system in concert with the federal government to close the gap in funding, we estimate—although pending some joint work with Indian and Northern Affairs and with provincial jurisdictions—annual investments of $304 million for INAC's elementary and secondary education program and approximately $495 for post-secondary education.
Concerning first nations infrastructure, due to deferrals and based upon the 2% cap we feel, and information shows, that additional investments of about one billion dollars are required to address housing and water systems backlogs, including $200 million, which has been noted by the Parliamentary Budget Officer, for new schools and capital maintenance.
An additional $376 million is needed to address some of the shortfalls in the non-insured health benefits program, and an additional $125 million over three years is required to have the Aboriginal Healing Foundation continue until the end of the Truth and Reconciliation Commission.
Lastly, I would note the emerging need for emergency capacity for emergencies and natural disasters.
Thank you.