Indigenous and Northern Affairs Committee on Nov. 17th, 2025

[Rebecca Chartrand, Liberal, Churchill—Keewatinook Aski, MB]

Thank you, MP Lavack.

Are you speaking specifically about the Nunavut devolution?

[Ginette Lavack, Liberal, St. Boniface—St. Vital, MB]

Yes.

[Rebecca Chartrand, Liberal, Churchill—Keewatinook Aski, MB]

Okay, great. Thanks.

Yes, it's a very exciting initiative because it is the largest transfer of land in Canada. I understand that it was signed in 2024. We're looking to hand over by April 1, 2027. We know that there is an election happening right now. We are waiting to see the results of that, so we can continue moving forward with that.

We're also recognizing that we need a strong human resource plan, so there is a transitional HR strategy in place. That's going to ensure that the federal government works with territorial governments along with NTI. We want to ensure that we're investing heavily in supports to ensure that the people from the north are ready to manage the lands and the resources. It only makes sense to ensure that we're moving in that direction.

We're focusing on capacity building. I think we're on track with that and we'll see what happens after the election to keep us moving forward in that direction.

[Ginette Lavack, Liberal, St. Boniface—St. Vital, MB]

Thank you.

[The Chair, Liberal, Terry Sheehan]

As agreed upon by the committee, we welcome MP Lori Idlout from the north.

You have five minutes for both questions and answers.

[Lori Idlout, NDP, Nunavut, NU]

[Member spoke in Inuktitut]

[English]

First of all, thank you to the committee for including me in this important study.

My first question will be for Minister Chartrand.

I had written to you on August 11 regarding the draft Nunavut land use plan. I had also written a letter to then-minister Vandal asking when it will be signed off on.

Given that there's such a huge focus on expediting everything, when will you expedite the signing off of the Nunavut land use plan?

[Rebecca Chartrand, Liberal, Churchill—Keewatinook Aski, MB]

Thank you, MP Idlout, for that question.

I do want to inform you that we've actually been trying to get a meeting with you. We've sent several requests to your email to sit and discuss. This is one of the issues or topics that we were looking to connect with you on, so it's actually nice to see you here today and to bring this up.

As I mentioned earlier, all three parties have agreed: the Government of Nunavut, NTI and Canada. We are waiting, post election, to follow through on the Nunavut land use plan.

We also recognize that we want to ensure that we continue to fulfill our obligations on the Nunavut land use plan, so we continue to fund the implementation, ensuring that all the major projects comply with article 11 of the Nunavut agreement. As you know, this requires the land use planning to protect Inuit rights, the environment and community well-being.

[Lori Idlout, NDP, Nunavut, NU]

I'm sorry, I don't have enough time. I do need to interrupt you.

My team has tried to meet with you, as well. I'm not avoiding you. I need to clarify that. We have been trying to meet with you. There have been changes to my schedule, but I'm glad to hear that this is a priority and that you will try to work with the two other partners to make sure that it is signed off. It's been a draft since 2021.

On the Arctic infrastructure fund I wonder if you could describe what the process will be to make sure a good percentage of that goes to Nunavut, given that it is the highest cost for anything and given that everything is a sealift, with most things having to be flown in.

How much of that $1 billion over five years will go to Nunavut?

[Rebecca Chartrand, Liberal, Churchill—Keewatinook Aski, MB]

You're talking specifically about the $1-billion Arctic infrastructure fund. If you look at the major projects as the national projects of interest—

[Lori Idlout, NDP, Nunavut, NU]

I asked a very specific question. How much of that will go to Nunavut?

I only have a few minutes and I have questions that I'd like to ask Minister Alty as well.

[Rebecca Chartrand, Liberal, Churchill—Keewatinook Aski, MB]

My understanding is there's a set amount that is already.... There will be an application fee for, I believe, about $400 million of that. The process for that will be defined.

I don't know if my colleagues have any other details.

[Lori Idlout, NDP, Nunavut, NU]

Thank you so much.

Minister Alty, in the 2024 fall economic statement, there was a commitment of $4.1 million to go to Fisheries and Oceans Canada so that a small craft harbour in Arctic Bay could be created. I wonder if you could give me an update on what's happening with that small craft harbour. It was a condition of the Tallurutiup Imanga, Arctic Bay signing off on the IIBA, and we have yet to hear what's going on with that.

[Rebecca Alty, Liberal, Northwest Territories, NT]

That is a DFO lead, but I'd be happy to talk to my colleague Minister Thompson and get back to you. I know that when I was in Iqaluit on Thursday, the president of NTI also raised it to make sure that the project was still advancing. From my understanding, it is, but I'd be happy to confirm and get more details for you.

[Lori Idlout, NDP, Nunavut, NU]

Thank you so much.

I have another question for you. It's similar to what my colleague Morin was asking regarding “cows and plows”, the specific claims. I see that in 2023 an expedited resolution strategy was developed. Can you give an update on that, please?

[Rebecca Alty, Liberal, Northwest Territories, NT]

Yes. We did have an expedited process. If I could find it in my notes, I'd tell you exactly how many were completed and how many are left to do. I'd be happy to provide that information to you via email.

It is a good process, having the framework. As a result of having the framework, the process was expedited.

We have 72 remaining from 128. We've completed 56. There is a variety of reasons. For some, the nations haven't come forward to start the process.

[The Chair, Liberal, Terry Sheehan]

Thank you very much, Minister, and thank you, Lori.

That brings us to the end of our first panel.

Ministers and staff, thank you very much. Meegwetch.

We'll suspend while we change to the second panel.

[The Chair, Liberal, Terry Sheehan]

Welcome back.

Now, for the second hour, we have the Honourable Mandy Gull-Masty, Minister of Indigenous Services. Welcome, Minister.

Joining the minister is Michelle Kovacevic, associate deputy minister. We also have Nelson Barbosa, director general, community infrastructure branch; Richard Goodyear, chief financial officer; and other staff as needed.

Without further ado, Minister, you have five minutes to address the committee. Welcome.

[Mandy Gull-Masty, Liberal, Minister of Indigenous Services]

Waachiyeh. Meesuuyeh. Kwe kwe. Ullukkut. Tansi. Bonjour.

[Witness spoke in East Cree and provided the following translation:]

Greetings everyone. I want to thank you all for inviting me to come today.

[English]

Thank you, Chair, and thank you to the members of this committee for the invitation to be here today and to speak on a very important subject—how budget 2025 is going to continue to build on our important work with indigenous partners and to ensure that we are delivering results for first nations, Inuit and Métis.

The 2025 budget will protect essential services, invest in future projects and—crucially—support indigenous solutions.

We're spending less to invest more in people, communities and infrastructure.

Budget 2025 is about how we're going to build Canada strong. That includes indigenous people.

Investments at Indigenous Services Canada are really about the core of our work. We know that clean water, safe housing and services for children and family in indigenous communities are very important. We know that budget 2025 also continues to build on progress by committing $2.3 billion over three years, starting in 2026-27, to renew the first nations water and waste water enhancement program. It's going to support 800 projects. This is going to help communities upgrade systems, continue to train operators, build capacity at the local level and prevent new advisories.

Since 2016, there have been 1,545 water and waste water projects that have been supported in 595 communities, meeting the needs of nearly half a million people. Clean water is fundamental to health and dignity. We've made real progress, but we know that the work isn't finished. Until every community has lasting access to safe drinking water, we will continue on our commitment.

Housing and infrastructure are also areas where we've made progress, but additional work is required to meet the needs of these files. Safe, dignified housing isn't just about a building or a home. It's also about health, stability and the ability to thrive in one's community.

In the 2025 budget, we allocated $2.8 billion for indigenous housing in urban, rural and northern communities, and over $3 billion for indigenous infrastructure.

We're also investing in roads, schools, health care centres and energy infrastructure.

These projects are led by the communities because this respects their culture and they're designed to last. They address local priorities and, above all, support well‑being in the long term.

In 2016, my department invested $16.77 billion in infrastructure projects. That's over 13,000 projects that have been supported, and over half are already completed. This means things like new homes, new classrooms and new clinics have been built by and for first nations communities.

Now in this budget we're also exploring surety bonding and monetizing federal transfers to help first nations contractors access bonding to grow their businesses and lead their own builds. This also means there's opportunity for projects to be driven by local expertise and to keep economic benefits and employment within the community.

We're also seeing meaningful change in child and family services. We continue to support indigenous governments as they take back control of these critical services. Under the act, first nations, Inuit and Métis children have seen a commitment of over $2.7 billion to support indigenous laws and models of care. This work keeps children connected to their families, their language and their nations. It also helps communities heal from the harms of the past and build a stronger future.

We're also looking to the future.

The 2025 budget proposes legislation to make Canada's national school food program permanent.

Starting in 2029‑30, it sets out $216.6 million a year, including $47.5 million for Indigenous Services Canada.

This means that more indigenous children will have healthy meals at school and will be able to learn better.

To support indigenous youth obtaining employment, budget 2025 also includes a strategy that will provide jobs and training and support mentorship, transportation and mental health counselling for up to 20,000 young people each year.

We want to put indigenous children, families and essential services first. This new government is innovating to better serve Canadians and indigenous people by improving efficiency and coordination across departments.

The federal government has a distinct duty to indigenous people. That's why our priority in 2025 is to protect critical services, including water, housing and infrastructure in communities and to ensure that any changes made will strengthen delivery of service.

We're taking the time to co‑develop solutions in order to improve services in the long term.

During this work, the services will continue without interruption.

We've made significant progress, but we are not done yet. This budget is a building block towards indigenous-led solutions, reconciliation and a future in which every indigenous child grows up with clean water, a safe home and a strong sense of belonging. We must all work together to ensure that we attain that important goal.

[Witness spoke in East Cree and provided the following translation:]

Thank you all for allowing me to be here.

[English]

Thank you.

[The Chair, Liberal, Terry Sheehan]

Thank you, Minister.

Our first round will be a six-minute round for questions and answers.

Billy, you go first, please.

[Billy Morin, Conservative, Edmonton Northwest, AB]

Thank you, Mr. Chair, and thank you, Minister, for coming today.

In some of latest news out of the Senate, Bill S-2 is going through now. Bill S-2 is contemplated to add roughly 3,000 status Indian first nations people across Canada. However, amendments that are being contemplated could mean that hundreds of thousands of indigenous people would be added to the status list overnight. I think there are some complications in that. I think there needs to be more consultation.

What's your position on Bill S-2 and where it's at in the Senate right now? The implications on the budget could be immense.

[Mandy Gull-Masty, Liberal, Abitibi—Baie-James—Nunavik—Eeyou, QC]

It is a really important bill. The bill was established to look at enfranchisement of 3,500 members.

It's important to look at what the target of the bill was. Bill S-2 is there to address those individuals who had to give up their status through enfranchisement, sometimes under duress.

Giving up status and termination of status through the second generation cut-off are two different things. That is why I think there needs to be additional work with community and with leadership. We do have the duty to consult. We have to respect rights holders and have them be part of the solutions that need to be determined for second generation cut-off. It is an extremely complex and multi-faceted solution that sometimes has to be applied very individually at the community level.

I believe that having a one-solution approach for all of Canada would be very harmful to the process. That's why I want to ensure that we uphold the duty to commit and work directly with communities and have them determine what the steps are and how they intend to address second generation cut-off.

I think we can also innovate and go beyond in this space. I think it's important for communities to have authority over their membership lists.

How can we come to that conclusion? I'm very open to working with them. I'm—

[Billy Morin, Conservative, Edmonton Northwest, AB]

Thank you, Minister.

Going back to the budget that's just been submitted, you mentioned that consultation is very important to first nations. Each budget will affect treaty rights and will affect things that are going forward.

On the budget with the $2.3 billion in cuts to ISC that are being contemplated, which nations did you consult with in regard to those cuts, and when did you do it within the last six months?

[Mandy Gull-Masty, Liberal, Abitibi—Baie-James—Nunavik—Eeyou, QC]

We at ISC participated in the 15% reduction exercise that was asked of every department. We felt that the impact at ISC was going to be extensive, which is why in our approach we worked with the Minister of Finance and the Prime Minister, who took the decision to protect the budget. The cost-efficiency exercise that looks at the 2% is not a $2.3-billion cut. It is actually going to be an internal exercise of looking at what can we do with reduction of operations, what can we do in terms of looking at the programs that have come to end of life, and what can we do to enhance and modernize efficiencies in our department to offer a better service.

A lot of the work that we did this summer was spent speaking to communities and one-on-one engagements. We also want to acknowledge that many groups did submit pre-budget requests and we wanted to have discussions on different topics across the country. They varied greatly. It was a very thorough, enlightening experience for me to hear directly from a great many different leaders. The figures for the 2% are actually ranging more around $490 million. We are going to ensure that in the second part of our exercise we're really looking at where those targets are going to be to enhance efficiency, at where are we going to modernize, what does it mean in terms of accommodating service delivery in a digital process, how can we reach those communities that have that capacity and how can we build a new mechanism.

[Billy Morin, Conservative, Edmonton Northwest, AB]

Thanks, Minister. I'm just running out of time, so I want to get as many questions in as possible.

I know you've been asked this before, but the budget also shows forecasts into the future and shows zeros on the table for reconciliation many years to come. Do you think it's fair that first nations that want to get their fiscal house in order are unable to and are feeling uncertainty and anxiety when they see zeros across the board? Do you think it's fair that they don't get to plan multi-year budgets based on what they're seeing out of ISC?

[Mandy Gull-Masty, Liberal, Abitibi—Baie-James—Nunavik—Eeyou, QC]

I want to address this chart that's included in the budget book. I think there was a lot of confusion and misunderstanding on what it meant. There are dollars booked for this year. The lines that indicate zeros are not cuts. They are not the 2%. They are also not financial commitments. What they reflect is the work that we're going to do in the next step, which is to engage communities to ask them what are they looking for in terms of the next round of investments to identify outcomes that are specific to them. I think what's really important for people to understand is that at ISC not only are we trying to innovate and reflect the process of offering a better service, but we want to ensure that we're working with partners to meet them in the place that they are so they're able—