Evidence of meeting #184 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was proposed.
A recording is available from Parliament.
6:25 p.m.
Liberal
The Chair Liberal Wayne Easter
If there are no further questions, then thank you.
We are turning to division 19, the addition of lands to reserves and reserve creation act.
Ms. Waters.
6:25 p.m.
Susan Waters Director General, Lands and Environmental Management Branch, Lands and Economic Development, Department of Indian Affairs and Northern Development
Good afternoon.
I'm pleased to provide you with an overview of the legislative proposal to enact the addition of lands to reserves and reserve creation act, clauses 675 to 685 of the budget implementation act.
This is an act to facilitate the setting apart of lands as reserves for the use and benefit of first nations. First, I will provide some brief context for the legislation.
Land is core to the identity of indigenous people. It is their greatest asset and provides the foundations for first nations to contribute to their own self-determination and self-sufficiency through community and economic development. Additions to reserves and reserve creation are part of the Government of Canada's overall efforts to help advance reconciliation from historical practices and honour commitments.
There are currently over 8.8 million acres of reserve land in Canada. Canada's historical practices of administering reserve land under the Indian Act and non-fulfillment of treaty obligations have left first nations with thousands of legacy land issues, including boundary disputes, environmental contamination and unexploded ordnance from military activity.
Over four million acres of reserve land is still owed to first nations, stemming from legal obligations in historical treaties and settlement agreements. Land requirements are also increasing to accommodate community population growth, demand for new housing and public infrastructure.
First nations are progressively interested in adding on to reserves to take advantage of economic development opportunities, in particular in urban areas. The current process of adding land to reserve is complex and time-consuming, with many additions to reserve taking over five years to process.
The proposed legislation is largely administrative in nature and has been called upon by first nations leaders and organizations such as the Assembly of First Nations, the National Aboriginal Lands Managers Association and the National Indigenous Economic Development Board. It also follows feedback from engagements with first nations communities and organizations, leading up to and following the release of the 2016 policy on additions to reserve, in response to the need for additional tools and improvements to streamline the additions to reserve and the reserve creation process. In addition, the proposal reflects recommendations made by the Senate and House standing committees' reports.
Specifically, the changes propose to extend the same benefits that are currently only available in the prairie provinces to all first nations in Canada, for all types of reserve creation or addition to reserve proposals. The proposed changes are part of a number of actions the government is taking to support first nations' efforts to increase their reserve land base. This includes the adoption of the additions to reserve policy in 2016. These changes include repealing the Manitoba, Alberta and Saskatchewan claim settlements implementation acts, and consolidating them into one piece of legislation that would be extended nationally. The proposed legislation would incorporate the best aspects of these acts into national legislation.
The legislation would also authorize all additions to reserve to be approved by ministerial order, rather than Governor in Council, which will result in more timely decisions. It will also better facilitate economic development on reserve land by enabling first nations to designate or zone the land prior to transfer, therefore facilitating the transfer of third party interest through leases or permits prior to lands being added.
The proposed legislation will also authorize the minister to sign off on all statutory easements granted under the Indian Act that it required to address third party interests such as hydro utilities and pipelines that are related to an addition to reserve, rather than having these go to Governor in Council.
The minister will also be able to sign off on voluntary land exchanges in relation to corresponding additions to reserve. The ability to prepare paperwork before reserve creation, which is a lengthy and complex process, and the shortening of the decision-making process will provide access to economically viable lands and resources to first nations in a more efficient manner. As a result, the proposed legislation will better facilitate economic development on reserve land, allowing first nations to operate at the speed of business.
Thank you.
6:30 p.m.
Northumberland—Peterborough South, Lib.
Thank you very much.
You talked about the shortening of the process and the fact that this is now a ministerial sign-off rather than a Governor in Council sign-off.
I know these things can take years. Do you have any sense of what effect this will have in months or years?
6:30 p.m.
Director General, Lands and Environmental Management Branch, Lands and Economic Development, Department of Indian Affairs and Northern Development
The estimated time for that particular improvement to the legislation can be from about six weeks to three or four months, depending on Treasury Board's schedule and required steps that need to be completed. It's primarily jockeying with a very full schedule, and also the timelines that we try to line up with.
When there is proposed activity on the lands, it is critical for us to be able to work with our first nation to prepare the lands in advance. That is where the real time saving occurs. Currently, a first nation must wait for the land to be added, and then go through the zoning process. That involves a vote by all committee members, and it can take 18 months or so for that process to be completed.
6:35 p.m.
Liberal
The Chair Liberal Wayne Easter
Is there anyone else?
Are there any implications on other departments in some of these decisions when it's just done by ministerial order?
The reason you go to executive council is that each cabinet minister or executive council member has their own area, and if you don't talk about a lot of decisions generally.... We all know that this place operates in silos. Sometimes when one minister makes a decision, it affects another minister's area.
I really find it a little strange that executive council is not making this decision, because in the whole cabinet, there will be others for whom maybe the decision implicates some things in their area of jurisdiction.
Is there any thought to that? Are there any problems here?
6:35 p.m.
Director General, Lands and Environmental Management Branch, Lands and Economic Development, Department of Indian Affairs and Northern Development
Currently, 80% of additions to reserve are approved by ministerial order, given that the majority are being processed in Manitoba and Saskatchewan, which currently benefit from the claim settlement legislation that allows for it.
Without the legislation, the addition to reserve is done through the royal prerogative. That's why it has to go to order in council. It's just a matter of it being legislated and the minister being provided the authority. When the previous prairie province settlement legislation was introduced, there was always the intent to broaden the application across the country.
With respect to the application to other ministers, we work closely with Natural Resources Canada, with the surveyor general branch, because they are responsible for surveying the land. That's a very technical requirement that is done well in advance of any addition to reserve proposal, and I wouldn't see there being any concern on behalf of the minister with respect to these changes.
6:35 p.m.
Liberal
The Chair Liberal Wayne Easter
There are no further questions. Thank you very much.
On division 13, the Export and Import Permits Act, we have Ms. Funtek from Global Affairs. As well, from Justice, we have Ms. Ranger; and from Finance, Ms. Govier.
The floor is yours.
6:35 p.m.
Michèle Govier Senior Director, Trade Rules, International Trade and Finance Branch, Department of Finance
I'll just give an overview of a change to the Export and Import Permits Act. It's in clause 415 of the budget implementation act.
The Export and Import Permits Act, or EIPA, provides the Minister of Foreign Affairs with the authority to control the import and export of goods through permit requirements. The Minister of Foreign Affairs currently has the authority to determine import access quantities, to determine a method for allocating those quantities, and to issue allocations for goods included on the import control list for the purpose of implementing an intergovernmental arrangement or commitment.
The budget implementation act, 2018, no. 2, includes one amendment to the EIPA to add an additional authority under which the Minister of Foreign Affairs may determine import access quantities in order to allocate those quantities. The additional authority would be for goods added to the import control list for facilitating the implementation of certain trade actions taken under the customs tariff that may require the use of import permits. This includes safeguard measures that are used in exceptional circumstances to respond to import surges that may harm Canadian producers and workers, and trade measures that respond to actions taken by other countries that adversely affect Canadian trade. This amendment will allow the Government of Canada to administer such trade actions in a more predictable manner that will contribute to market stability.
6:40 p.m.
Liberal
Francesco Sorbara Liberal Vaughan—Woodbridge, ON
Thank you, Mr. Chair.
Does this still pertain to part 4, division 13?
6:40 p.m.
Senior Director, Trade Rules, International Trade and Finance Branch, Department of Finance
Yes.
6:40 p.m.
Liberal
Francesco Sorbara Liberal Vaughan—Woodbridge, ON
Obviously, we live in a time where our government has put in steel safeguards and we need to be nimble. This change in the Export and Import Permits Act provides for this nimbleness.
Am I reading this correctly, if I speak to various stakeholders back in my riding of Vaughan—Woodbridge?
6:40 p.m.
Senior Director, Trade Rules, International Trade and Finance Branch, Department of Finance
Yes, that's correct.
We have provisional safeguards currently in place on certain steel products. In consultations that we held ahead of imposing those safeguards, this was identified by stakeholders—both those asking for the safeguards to be imposed and those who had some concerns. They were interested in seeing whether they could be allocated. We didn't have the legislative authorities at the time, so this initiative will ensure that we do so. The safeguards in place right now are provisional in nature, but if we move to imposing final safeguards that are longer term, we would have this ability to allocate.
6:40 p.m.
Liberal
Francesco Sorbara Liberal Vaughan—Woodbridge, ON
I'm not sure if you can or cannot explain it, but just for clarification, has it always been under the purview of the Minister of Foreign Affairs rather than the Minister of International Trade, or the finance minister? Is there a convention for that?
6:40 p.m.
Katharine Funtek Executive Director, Trade Controls Policy, Department of Foreign Affairs, Trade and Development
Yes. The minister for the Export and Import Permits Act is the Minister of Foreign Affairs. There's generally an exchange of letters between the Minister of Foreign Affairs and the Minister of International Trade—or currently, the Minister of International Trade Diversification—which would allow the Minister of International Trade to take on some of the authorities under the act. The minister under the act is the Minister of Foreign Affairs.
6:40 p.m.
Liberal
Francesco Sorbara Liberal Vaughan—Woodbridge, ON
I have one follow-up question. In terms of the timeliness of this change—I want to just call it an amendment—how much more quickly can the process be done if there is an import surge or, for example, a dumping of certain products? Does this speed up the process for the minister to act exponentially more quickly?
6:40 p.m.
Senior Director, Trade Rules, International Trade and Finance Branch, Department of Finance
It doesn't change the ability of the minister to act, in terms of imposing a safeguard, because those are actually contained in the customs tariff. This is aiming to say that if we do impose a safeguard and it's in the form of a tariff rate quota, it gives the authority to the Minister of Foreign Affairs to be able to allocate that quota. It's really giving a new authority that's not there now.
6:40 p.m.
Liberal
6:40 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Thank you.
I'm interested in the change. What does this change that didn't exist before?
Secondly, what is the application of something like the Magnitsky act, in terms of making any sort of government intervention for human rights violations abroad? Is the scope larger than what is written here?
First, what do we have now? As I read through this, I don't get a real sense of what the change is.
6:40 p.m.
Executive Director, Trade Controls Policy, Department of Foreign Affairs, Trade and Development
Currently under the Export and Import Permits Act....
Let me step back for just a minute. Governor in Council can put goods on the import control list for a variety of purposes. It can be to support supply management, to implement a free trade agreement, that sort of thing.
The act also gives the minister under the act, the Minister of Foreign Affairs, the ability to allocate certain goods for which she has determined an access quantity. That's with reference to the purpose of implementing an intergovernmental arrangement or commitment. A free trade agreement like CETA, for example, is something where the minister has the authority to determine access quantities, which is generally the negotiated quantity. Once she has done that, she then has the ability to determine how to allocate those quantities, and then to issue allocations and permits for those quantities. That is the only purpose right now under the act for which the minister can determine an allocation method and issue allocations.
What this does, as my colleague mentioned earlier, is add an additional purpose for which she can do that. That's under a separate subsection of the act, which is subsection 5(6) of the act, and that's to implement certain actions that are taken under the customs tariff.
Essentially what it means, as my colleague mentioned, is that currently we have the provisional safeguards. The only means of administering those is by way of the issuance of permits on a first-come, first-served basis. Many stakeholders feel that is not conducive to orderly import marketing. Most of them, whether they are in favour of the safeguard, or are not necessarily in favour of the safeguard but are subject to it, would like to have greater transparency and predictability in terms of how those safeguards are administered. They are, therefore, pushing for the minister to have the ability to allocate the quantities under the safeguards.
6:45 p.m.
Senior Director, Trade Rules, International Trade and Finance Branch, Department of Finance
On the second part of the question, the elements within the customs tariff that are now included here.... I mentioned the safeguards. I mentioned where we're responding to the trade actions of another country. It can also be situations around where we have preferential treatment for developing countries, or where we unilaterally undertake certain tariff things.
It doesn't cover things like the Magnitsky act, which I'm not that familiar with, but I know it's not one of them that we're covering. It's just a few of these different situations where trade measures may be imposed or modified under the customs tariff.