Thank you very much.
Honourable members, good afternoon. My name is Manny Jules, and I am the chief commissioner of the First Nations Tax Commission, one of three institutions created by the First Nations Fiscal Management Act, or FMA. I was also chief of the Tk'emlúps Indian Band from 1984 to 2000.
Thank you for this opportunity to address this committee. I have previously appeared before this committee to promote the FMA as a model for legislating first nations back into the federation and the Canadian economy.
The FMA model has worked. Today there are more than 300 first nations successfully using the FMA. They are developing their economies; providing improved services and infrastructure, including clean water; and building better relations with neighbouring governments.
Today I wish to discuss how we can build on this by expanding the first nations management act. Our plan will be to help indigenous economies recover. It will bring services and infrastructure up to Canadian standards. It will demonstrate the commitment to real reconciliation.
Past pandemics became opportunities for colonization and to legislate indigenous peoples out of the economy and federation. They were used as justification to take away our title and fiscal powers. They reduced us to dependents and wards of the state. But we are resilient. We have learned from our history. This time we were ready.
On March 24, the FMA institutions wrote to warn the federal government of the impending health and economic crisis facing our communities. On April 9, we followed up with a second letter, providing an estimate of the value of these impacts and proposing a recovery strategy. We advised that the impact on our economies would be devastating. We estimated that our governments and businesses could lose billions of dollars and thousands of jobs. Sadly, so far, we have been right.
We presented the government with an economic strategy to save emerging first nation economies that included practical proposals to help maintain services when revenues collapse. The government's economic response to our proposal was mixed. As measures were rolled out over the spring and summer, some of our proposals were supported and others were not.
An indigenous recovery strategy based on the proven success of the FMA framework will enhance the overall Canadian economic recovery. In that regard, we recommend the following measures for budget 2021.
First, expand the First Nations Fiscal Management Act to include our proposed first nations infrastructure institute, which, once operational, will speed up the development of our infrastructure and ensure that we get more bang for the buck. We estimate that, by building a legislative base and standards, we can start building first nations infrastructure up to five times faster than under the current regulatory framework.
Second, monetize existing federal infrastructure transfers so that more infrastructure can be built sooner. This is the most cost-effective way to provide stimulus. At the current interest rates, $150 million over 10 years can provide $1.3 billion in shovel-ready infrastructure now instead of over the next 10 years.
Third, expand indigenous fiscal powers to include sales, resources, tobacco, cannabis, excise and income, or taksis. We are the most transfer-dependent governments in Canada. Less than 5% of our government revenues come from our taxes. This is why most first nations have poor infrastructure and services, and why this infrastructure deteriorates more quickly.
Fourth, expand the mandates of the FMA institutions so they can provide more support to all interested indigenous governments and organizations.
Fifth, practically implement article 28(1) of UNDRIP and close the $172 billion indigenous credit gap with an indigenous land title registry.
The incredible success of the FMA has proven that optional, first nation-led legislation works and that first nation institutions are key to this success. First nations want to know that their institutional support will always be there no matter what economic path they choose going forward.
This indigenous recovery strategy as proposed will provide the foundation for a stronger indigenous investment climate. It will mean that we will have the same opportunities to participate in the national recovery strategy as all other Canadians.
I know that this committee in the past has strongly supported the fiscal management act and the work of the FMA institutions. I hope we can again count on the support of the members of this committee for these modest recommendations to expand the FMA, strengthen the institutions and provide first nations with the fiscal tools they will need to recover from COVID-19.
However, hope alone is not enough. We cannot let this pandemic leave another generation behind. Our chance to deliver change is now. Thank you.