Evidence of meeting #16 for Indigenous and Northern Affairs in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was process.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Sara Filbee  Assistant Deputy Minister, Lands and Economic Development, Department of Indian Affairs and Northern Development
Martin Egan  Director, Lands Branch, Department of Indian Affairs and Northern Development
Paul Fauteux  Director General, Lands Branch, Department of Indian Affairs and Northern Development
Clerk of the Committee  Mr. Graeme Truelove

9:40 a.m.

Director, Lands Branch, Department of Indian Affairs and Northern Development

Martin Egan

Again, it's site specific. If there are children going to the school, then there would have to be some kind of tuition agreement.

9:40 a.m.

Liberal

Mauril Bélanger Liberal Ottawa—Vanier, ON

No, I understand. I'm talking about taxes now, property taxes.

9:40 a.m.

Director, Lands Branch, Department of Indian Affairs and Northern Development

Martin Egan

Property taxes would cease, as we know them.

9:40 a.m.

Liberal

Mauril Bélanger Liberal Ottawa—Vanier, ON

Interesting. What about businesses that are on the property? Are they subjected to taxes?

9:40 a.m.

Director, Lands Branch, Department of Indian Affairs and Northern Development

Martin Egan

The first nation would have the ability to put a tax bylaw in place so that it would be--

9:40 a.m.

Liberal

Mauril Bélanger Liberal Ottawa—Vanier, ON

But are they subjected to federal and provincial taxes?

9:40 a.m.

Director, Lands Branch, Department of Indian Affairs and Northern Development

Martin Egan

Again, it's a site-specific situation. If it's a first nations person, some tax exemptions would potentially come into play, but businesses in general would have to pay taxes.

9:40 a.m.

Liberal

Mauril Bélanger Liberal Ottawa—Vanier, ON

Could it be conceivable that in a municipality--whichever, Calgary or Ottawa, for that matter--a piece of land becomes part of a reserve, and businesses or an office building locate on that property. Is it subjected? The business owns that, whether it's aboriginal or not. What is the tax treatment of that business?

9:40 a.m.

Assistant Deputy Minister, Lands and Economic Development, Department of Indian Affairs and Northern Development

Sara Filbee

We're not absolutely sure, so if you don't mind, we'll get a written response to your question with respect to the actual tax treatment. We can guess, but I'd much prefer to get back to you with accurate--

9:40 a.m.

Liberal

Mauril Bélanger Liberal Ottawa—Vanier, ON

That's good. Not guessing is good, thank you.

Do I have some time left?

9:40 a.m.

Conservative

The Chair Conservative Bruce Stanton

You're still good for another minute, Mr. Bélanger. How about that?

9:40 a.m.

Liberal

Mauril Bélanger Liberal Ottawa—Vanier, ON

Wow, a minute. I won't even get time to ask my question, so I'll save it for the next round.

One minute is an eternity.

9:40 a.m.

Conservative

The Chair Conservative Bruce Stanton

All right.

Now we'll go to Mr. Albrecht for all of five minutes.

9:40 a.m.

Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

Thank you, Mr. Chair. I'll try to follow up in that same vein.

In the statement talking about the municipal governments, I think when you were explaining it in response to a previous question, you said that Saskatchewan has a 21 times--

9:40 a.m.

A witness

It's 22.5.

9:40 a.m.

Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

So will you explain that again to me? Saskatchewan has 22.5 and Manitoba has 5 what, and for how long?

9:40 a.m.

Director, Lands Branch, Department of Indian Affairs and Northern Development

Martin Egan

If a first nation chooses land in a rural municipality in Saskatchewan, under the Saskatchewan framework agreement there is a pot of money that the municipal government would then be reimbursed or compensated for out of that pot. If the annual tax bill was $1,000, they would get 22.5 times that as a one-time payment.

9:45 a.m.

Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

One time, so it's not each year.

9:45 a.m.

Director, Lands Branch, Department of Indian Affairs and Northern Development

Martin Egan

No, and in Manitoba it would be five, so you can see there's an incentive for the municipal governments to play ball a little bit more in Saskatchewan than--

9:45 a.m.

Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

Then in terms of ongoing services that are supplied, that would be done on an arrangement--

9:45 a.m.

Director, Lands Branch, Department of Indian Affairs and Northern Development

Martin Egan

On a fee for service.

9:45 a.m.

Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

--between the first nations people and the municipal government.

9:45 a.m.

Director General, Lands Branch, Department of Indian Affairs and Northern Development

Paul Fauteux

And that's ongoing.

9:45 a.m.

Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

So it's like taxes, but it's an agreed-upon, negotiated fee for the services that are provided. Is that accurate?

9:45 a.m.

Director, Lands Branch, Department of Indian Affairs and Northern Development

Martin Egan

Yes, it is.