I'll try to be brief.
That comment needs to be put in the context of the three-streams approach that the federal government takes as an approach to all indigenous things. Three streams—FNMI, or “distinctions-based”, however you want to call it—necessarily elides the existence of urban indigenous communities in engaging exclusively, at an official or formal level, or quasi-exclusively with only the “representative” organizations.
It becomes very difficult for urban indigenous concerns and legitimate demands to be advanced from a policy perspective and then to actually get any kind of traction around implementation. The fact that it doesn't get mentioned is a continuation of the erasure of urban indigenous realities across Canada.
Does that answer your question?