Indigenous and Northern Affairs Committee on May 29th, 2014

[The Chair, Conservative, Chris Warkentin]

Colleagues, we'll call this meeting to order. This is the 26th meeting of the Standing Committee on Aboriginal Affairs and Northern Development.

Today we have the minister with us. Pursuant to Standing Order 81(4), we are reviewing the main estimates, as well as supplementary estimates for 2014-15.

Minister, we want to thank you for being with us today. We do appreciate your taking time out of your busy schedule to meet with us yet again.

Minister, we'll turn it over to you for your opening statement, and then we'll probably have some questions for you.

[Bernard Valcourt, Conservative, Minister of Aboriginal Affairs and Northern Development]

Mr. Chair, thank you for inviting me to outline the main estimates for fiscal year 2014-2015 of my department, Aboriginal Affairs and Northern Development Canada, and to discuss the 2014-2015 supplementary estimates (A).

As the committee members know, the main estimates support the government's request for Parliament's approval of expenditures that were already planned in Canada's Economic Action Plan 2013 or in previous decisions.

Through these main and supplementary estimates, the department accesses the funds required to continue delivering on our government's commitment to put in place the conditions for stronger, healthier and more self-sufficient first nations communities.

In addition to ongoing spending on the department's various programs and policy areas, this year's main estimates include a significant $473 million increase for the continued implementation of Justice at Last: Specific Claims Action Plan, of which $450 million is earmarked to pay out negotiated settlement agreements and awards of the Specific Claims Tribunal, while $23 million is set aside to support the assessment and negotiation of specific claims.

This is a direct result of the action that our government has taken to achieve fair and timely resolution for first nations specific claims. As you probably all know, it was our government that announced the Justice at Last initiative in 2007, in order to improve and speed up the claims resolution process for the benefit of all Canadians.

We have seen real progress. We have reduced the backlog of claims under assessments and settled over 100 specific claims through out-of-court, negotiated settlements totalling over $2 billion.

I'm pleased also to note, Mr. Chairman and members, that the supplementary estimates (A) renewed funding for the comprehensive claim and self-government negotiations across Canada which had sunsetted in the last fiscal year. At the same time, in addition to making progress on claims settlements, we continue to promote reconciliation between aboriginal and non-aboriginal Canadians.

In that same vein, I'm happy to report that the operating period of the Truth and Reconciliation Commission has been extended to June 30, 2015. I was speaking with Mr. Justice Sinclair this morning. This will give the commission the necessary time to fulfill its mandate, including completing its final report, holding a final event, receiving the rest of the documents held at Library and Archives Canada, helping set up the permanent national research centre in Winnipeg, and winding down its operations. We have allocated $3.5 million in transfers through supplementary estimates (A) to the Truth and Reconciliation Commission so it can complete this work.

This decision to extend the operating period by a year reinforces our government's commitment to achieve a fair and lasting resolution to the legacy of Indian residential schools, which lies at the heart of reconciliation and the renewal of the relationship between aboriginal people and all Canadians.

Mr. Chair, these estimates also reinforce our government's commitment to improve the quality of life of aboriginal people and northerners.

For example, through supplementary estimate (A), we are accessing $136.3 million of the funding for the first year of the renewal of the first nations water and waste-water action plan. This funding will provide for the continuation of our strategy to protect the health and safety of first nation residents and ensure that they have the same access to clean drinking water as all other Canadians.

Since 2006 our government has spent roughly $3 billion to help communities manage their water and waste water infrastructure and in related public health activities. New investments, like the ones I just outlined, build on the concrete action our government has already taken to improve water and waste-water infrastructure.

In addition to the funding in the supplementary estimates (A) for the first nations water and waste-water action plan, the supplementary estimates also earmark $127.7 million for the assessment, management, and remediation of federal contaminated sites, again reflecting our government's commitment to health and safety and the protection of the environment as top priorities.

The last major item in supplementary estimates (A) is funding for the first nations land management regime, which you all know gives first nations more control over their own land and resources, and supports first nations through the developmental and operational phases of the first nations land management regime. To cover the incremental costs associated with an increase of entrants in the first nations land management regime, $6 million has been allocated for the expansion of the regime. We have seen that first nations operating under the land management regime have witnessed a dramatic increase in new business. We see this all across the country. This funding will help these first nations further down the path away from the Indian Act and toward a more prosperous and self-sufficient future.

Last, the supplementary estimates earmark $4.6 million of new funding for aboriginal groups who are parties to the final devolution agreement, as per the Northwest Territories Lands and Resources Devolution Agreement. We signed this historic agreement in June 2013. It gives northerners greater control over their land and resources, all the while unlocking the economic potential of the region by modernizing the existing regulatory regime. This will strengthen environmental stewardship and protection and ensure that the Northwest Territories remains an attractive place to live, work, and invest.

The funding requested through these main estimates and supplementary estimates (A) demonstrates that we are taking concrete steps to address the needs of aboriginal people and northerners, and making real progress in that area. These estimates, which themselves are what we request from the Canadian taxpayer, enable us to make significant progress.

Mr. Chair, I am proud of our government's record on improving the lives of first nations, and indeed all aboriginal people in Canada, and I believe these estimates go a long way to enable us to make this progress.

I will now do my best to answer any questions that members of the committee may have pertaining to these main estimates or supplementary estimates (A).

Thank you.

[The Chair, Conservative, Chris Warkentin]

Thank you, Minister.

We'll turn to Ms. Crowder for the first round of questions.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Mr. Chair, let me know when I have used up five minutes, because I'm going to turn the last two minutes over to Ms. Hughes.

Thank you, Minister, for coming before the committee. I appreciate your time today. Most of my comments are going to focus on the main estimates.

On page 34, in the plans and priorities document, it shows elementary and secondary education and planned spending for the coming fiscal year. Given the recent collapse of the negotiations around Bill C-33 and government statements around a commitment to put in future funding, what plans do you have to address the gap between what first nations on reserve receive versus provincial governments, since those schools are clearly underfunded?

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

To be clear, since 2006 this government has invested over $10 billion to support elementary and secondary education for approximately 117,500 first nations students living on reserve. In addition, during that same period, to March 2012 anyway, the Government of Canada invested approximately $720 million for 429 education facility projects.

With regard to the estimates, as you can see, further to the agreement we had reached with the AFN and further to our commitment that resources would accompany the reform of an education system, which we know is failing far too many first nations students, there was a commitment of close to $2 billion, which was reflected in the 2014 action plan, the budget, and is also in the estimates.

The largest part, over $1.4 billion, is statutory funding. To get statutory funding you need a statute. We just got a decision, made a few days ago by the AFN, that they would not honour the agreement we had reached with them, so that statutory funding obviously cannot follow because we have no statute. Right now we are assessing the situation to see what the next step will be.

In the meantime, the funding will continue—

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

I'd like to move on, Minister, thank you.

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

—as proposed—

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Thank you.

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

—in the—

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

I don't want you to talk out my time. I only have a few minutes.

I have another question on the urban aboriginal strategy.

As you well know, the urban aboriginal strategy has significantly changed. I looked at the report on plans and priorities and departmental performance, and under the program there is a lot of total allocation. It says that planned spending is unknown at this time.

I know that friendship centres are anxiously waiting for those funds to flow. I wonder if the department could indicate exactly when friendship centres could expect to see this funding, and when the criteria for this funding will be released.

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

As you know, the two new programs both have the same objective of focusing on collaboration to increase aboriginal participation in the economy—the urban partnerships program and the community capacity support program. You referred to the National Association of Friendship Centres. It will be engaged in delivering the community capacity support, which is $22 million of programming, and also a portion of the urban partnerships, $20 million. The department for its part will administer the remaining portion of $10 million under urban partnerships.

As to the timing, the work is ongoing. My understanding at this stage, and I stand to be corrected by my deputy, is that the national association is already assessing projects that have been submitted by different groups across the country.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

I'll hold that until the department—I want to make sure that Ms. Hughes gets her question in.

[The Chair, Conservative, Chris Warkentin]

Ms. Hughes.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Thank you very much.

Contrary to what you indicated, that the government is improving the lives of first nations and other aboriginal people in Canada, many don't feel that way, Mr. Valcourt.

When we are looking at the first nations in Ontario—this is an example of your comment—they are saying that they are seeing the national child benefit reinvestment fund cut by 50%. The program is used to fund child nutrition programs and food banks, to help parents pay for child care, to fund parenting programs and drop-in centres, to fund home-to-work transition supports that reduce barriers to employment and also to provide training opportunities. As you see, it's quite varied and it helps.

I know we had a discussion in the House about this program, but it's important to raise the issue because of how much support it gives. It was heavily relied upon.

In one way it appears as though unemployed youth on reserves are being lifted on the one hand but then suppressed on the other. I wonder what the minister is planning to do to cover the shortfall that these cuts will create, Mr. Chair, and who and what will be picking up the slack.

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

I guess that everything is in the eye of the beholder, but the fact of the matter—

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Fifty per cent.

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

—as we explained to you, is that in terms of the priority, a shared priority with first nations all across Ontario, we are using Ontario Works to ensure that first nation youth in those communities can acquire the skills to get into the labour market and earn a decent living. That is a priority that has been identified.

As we've explained to you, the national child benefit reinvestment initiative is not a statutory program. It is a program that would use the excess of what is not required for income assistance, and although the program remains, yes, there will be less funding. It is cut by half at the regional level because investing in skills acquisition by first nations youth is a priority.

You must also acknowledge that there are other national federal programs that put money directly into the parents' pockets to address those needs that are partially met by the national child benefit reinvestment program.

[The Chair, Conservative, Chris Warkentin]

We go to Mr. Strahl for the next questions.

[Mark Strahl, Conservative, Chilliwack—Fraser Canyon, BC]

Thank you, Minister, for your comments.

I want to concentrate on the Northwest Territories becoming the second territory after Yukon to take over management of its land and resource responsibilities, the final major step in the territories' devolution process following the passage of Bill C-15, the Northwest Territories Devolution Act. That's obviously a significant milestone for the NWT and a key element of our government's northern strategy. It served as a result of our government's proactive and collaborative approach in working with our territorial and aboriginal partners. A few of us on this committee travelled to Yellowknife to hear directly from northerners, and we were pleased to play a part in doing that. We've heard very positive responses from Premier McLeod and other stakeholders in the NWT.

I see in the supplementary estimates (A) the government is allocating $4.6 million to fulfill our obligations to the Government of the Northwest Territories and to fund aboriginal groups.

Can you give us an update on what steps have been taken since the implementation date of April 1 to implement the Northwest Territories devolution agreement?

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

Sure.

As you know, the vast majority of the activities and commitments outlined in the devolution agreement were successfully implemented in the lead-up to the transfer, which was on April 1, 2014. However, as part of the closing process leading up to the transfer date, Canada and the Government of the Northwest Territories entered into a number of deferral and undertaking agreements. These range from completing financial transfers and operational accounts to amending a number of consequential agreements, such as interim measures, water, and environmental agreements.

The devolution agreement itself also has a number of post-transfer-date commitments that need to be implemented, such as the circulation of a final list of inventory. Since April 1, several of these outstanding commitments have already been completed, including the transfer of securities, amendments to the interim measures agreement between the Northwest Territories government and the Métis nation, and finalization of the inventory of sites. As you mentioned, our government is also transferring funds to the Government of the Northwest Territories in order to ensure that aboriginal groups continue to receive funding after the devolution process.

Canada and the Government of the Northwest Territories are in the process of establishing a joint management framework to oversee the implementation of the remaining undertaking and deferral agreements over the course of this fiscal year. Of the money that you referred to, the $8.7 million appearing in the supplementary estimates (A), $4.1 million is a reallocation of existing funding within my department that will be provided to the Government of the Northwest Territories for devolved programs and obligations, with the remaining $4.6 million to cover obligations for ongoing funding to the aboriginal groups I referred to earlier.

[Mark Strahl, Conservative, Chilliwack—Fraser Canyon, BC]

One of the things we heard from witnesses when we did travel to the NWT was that devolution would bring greater prosperity to northerners, allowing them to finally share in the benefits provided by resource development. Supplementary estimates (A) allocate funds to ensure that aboriginal groups are receiving adequate funding from the Government of the Northwest Territories.

Could you share with the committee some concrete examples of how aboriginals will directly benefit from the implementation of the devolution agreement?

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

I thank you for the question. That's why he is such a good parliamentary secretary, Mr. Chair.

The Northwest Territories devolution agreement provides northerners with the same opportunity to benefit from their own lands and resources that Canadians living in provinces have.

Indeed, we have only to look at the territory right next door, Yukon, which has prospered and flourished since the implementation of its devolution agreement over a decade ago. Devolution, as you know, puts decision-making in the hands of those most affected by decisions: northerners. It fosters regulatory efficiency and provides the territories with more control over their economy.

Our bureaucrats in Ottawa do a good job, but northerners do a better job on their own terrain.

The Northwest Territories is a region blessed with a remarkable abundance of natural resources. This is part of the reason the Conference Board of Canada is predicting that the GDP of the territory will nearly double by the year 2020 to $9.6 billion.

Devolution also provides for the political development of the territories, and it fosters stronger relationships between the first nations, the Métis, the Inuit, and the governments.

This funding will allow our government to meet its obligations to the NWT and to the aboriginal groups, and it will ensure that this good relationship continues to prosper.

[Mark Strahl, Conservative, Chilliwack—Fraser Canyon, BC]

Very quickly, Minister, I see that $136 million is allocated to the first nations water and waste-water action plan. Perhaps you could give us an update on what that funding in the supplementary estimates (A) will be used for.

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

Since 2006 the total federal investment in first nations water and waste-water infrastructure has been approximately $3 billion. These funds have been targeted and committed to ensure that first nations can have on-reserve water systems and waste-water systems that are comparable to what Canadians in all other municipalities have and much too often take for granted.

As I said, we have made a serious investment, and through these estimates, as you see, we are going to continue investing to support these major capital water and waste-water projects throughout the nation.

To date, there have been 198 major capital projects and waste-water projects in 173 first nation communities where this has been accomplished. These funds will allow us to continue and, of course, to build on the Safe Drinking Water for First Nations Act, which received royal assent on November 1, 2013.

For the first time, with the full participation of the residents of first nations communities and the provinces, enforceable standards to protect the health and safety of first nation residents will be developed. These funds will be used to pursue that objective.

[The Chair, Conservative, Chris Warkentin]

Thank you, Minister.

We'll turn to Ms. Sgro now for the next questions.