Mr. Speaker, I rise to address the House on second reading of Bill C-19, the first nations statistical and management act. I am pleased to be bringing such an important bill before the House at this time.
The proposed legislation is first nations initiated. Its development has been first nations led and the institutions it would create would be first nations controlled. At the same time, Bill C-19 is fully consistent with the government's Speech from the Throne commitments.
I believe hon. members on both sides of the House would agree we all want to improve the quality of life in first nations communities. Some progress has been made over the past 20 years, but we need to do much more and we need to do it now.
This drives all of the decisions and actions of the Department of Indian Affairs and Northern Development. The status quo is not acceptable.
Whether we are talking about education, or economic development, about land claims, or governance, about housing, or social programs, we believe that improving the quality of life for first nations people must be a guiding principle for all that we do.
This principle is supported by the Prime Minister and hon. members on this side of the House. Aboriginal issues are at the forefront of our policy agenda, and we are committed to real and concrete change.
The fact of the matter is that the government is proposing fundamental changes in the relationship between Canada and first nations, changes that would help level the playing field for first nations governments and encourage investment in first nations communities.
We believe that in the long term addressing the concerns of first nations is not just a matter of money, but of greater control by first nations people over their own lives and their own communities.
Bill C-19 fits well with this approach. We have taken a number of steps over the past year to begin removing barriers to first nations economic progress, self-reliance and self-government so that first nations can play their full part in the life of this country.
For example, we have opened up the First Nations Land Management Act, designed so that first nations could opt out of the land management sections of the Indian Act. We are taking steps to make that possible for a larger number of first nations across the country.
First nations want greater freedom to manage their lands, natural resources and revenues in ways that work best for them. We agree that this is an important and necessary step toward self-government.
First nations need to be able to control their lands to attract investment, break the cycle of poverty, create hope and build better lives in stronger communities.
In addition, the government reinstated the proposed specific claims resolution act in the House in October. The current process for resolving specific claims tends to be adversarial, time consuming, costly and seen to favour government.
We need to replace it with one that is more efficient and more fair. Toward this end, the proposed specific claims resolution act would establish a new independent claims centre that would have two components, a commission to facilitate negotiations and a tribunal to resolve disputes. This would help us to avoid litigation, resolve claims and historic grievances more quickly, and remove an enormous barrier to economic development.
Also, in October the government reinstated the proposed first nations governance act, which would enable first nations to access the fundamental governance tools needed to pursue economic development and create healthy communities.
By restoring first nations decision-making authority and encouraging the development of first nations designed governance codes, the first nations governance act would shorten the distance to our ultimate goal and the goal of first nations, self government.
By strengthening the accountability of first nations governments it would improve conditions for economic and social development.
These three initiatives are building blocks for our new relationship with first nations people. The fourth pillar of Canada's strategy to work with first nations toward self-government and economic self-sufficiency is the legislation before us today, Bill C-19.
Under the Indian Act first nations communities were denied the powers that other governments in Canada take for granted, powers that help to build businesses, roads, water systems and communities. This bill would restore those powers.
Rather than wait for government, first nations leaders took it upon themselves to address these gaps in fiscal powers and institutional support. They have devoted an enormous amount of time and energy to developing this initiative.
Many months ago they turned to our government for support in establishing their legal foundation. This is particularly important as first nations seek to attract investors and business development.
This is the purpose of Bill C-19. The government recognizes the merits and importance of the proposed first nations fiscal and statistical management act. We have worked with first nations to formalize their proposals and now we are fulfilling our part by introducing the legislation to support their implementation.
I would like to quickly review the key elements of this proposed legislation. Once hon. members examine the goals and objectives of Bill C-19, I am confident that first nations and the government will receive their full support.
As a first step, the real property taxation powers of first nations will be removed from section 83 of the Indian Act and the proposed first nations fiscal and statistical management act, Bill C-19, will define these powers in much more detail than does the Indian Act.
It also features provisions for property assessment, rate setting and budget based expenditure systems that continue first nations provincial property tax harmony while reconciling the interests of first nation governments and those of their taxpayers.
Bill C-19 also provides for the evolution of the existing Indian taxation advisory board into the first nations tax commission. This body will assume what is currently part of the minister's role in approving the growing number of real property tax bylaws being developed by first nations across Canada.
Under Bill C-19 local ratepayers would be assured of a much larger role in policy development and an improved system for hearing appeals and resolving disputes than is currently the case.
This proposed legislation will also clarify certain borrowing powers of first nations and create a first nations finance authority. Through the work of this institution, first nations, like other local governments in Canada, will have access to bond markets to raise long term private capital to finance the construction of roads, sewers, water and other types of infrastructure.
I am pleased to advise hon. members that this first nations finance authority was originally modelled on the municipal finance authority of British Columbia, which has for 30 years had experience and a triple-A credit rating. The proposal has been endorsed by major bond underwriters and credit raters and is expected to raise $120 million in private capital over its first five years of operation.
The third fiscal institution that will be created by Bill C-19 is the first nations financial management board. Its role will be to enhance the financial management capacity of first nations by establishing financial standards, promoting capacity development and ensuring that the rigorous systems and assessment services are in place necessary to maintain the confidence of markets.
We are confident that many first nations, particularly the 90 or so that already have taxation systems in place, will be quick to opt into the borrowing regime and other services. Others may take more time and still others may decline this opportunity outright as participation in this new initiative will be completely optional.
Finally, Bill C-19 would provide for the establishment of the first nations statistical institute to fill the gap in reliable data and well-targeted analysis on first nations populations, economic growth and other matters. Good quality information is needed to support first nations decision making both at the national and local level.
Toward this end the statistical institute will work with first nations, federal departments, Statistics Canada and provincial statistical agencies to help first nations meet their information needs while at the same time building the shared data required to support effective first nations-Canada development activities.
As the House can see, each of these institutions, the tax commission, the finance authority, the financial management board and the first nations statistical institute, has a unique, independent and professional role. Together these institutions will provide the right tools needed to foster a business friendly environment, investor confidence, economic growth and sound governance.
The proposed Bill C-19 will help bring participating first nations into the economic mainstream by giving them the practical tools already used by other governments. It will help to ensure that first nation real property tax, financing, financial management and statistical systems are harmonized with those of other governments. It will provide better representation and more certainty for on-reserve ratepayers and a better return to the community as a whole from the tax dollars raised.
In the longer term the institutions that will be created by Bill C-19 will become the backbone for a first nations public service. Certainly they will support the practical work that needs to be done and assist first nations with a new way of doing business.
As I noted at the outset, the proposed first nations fiscal and statistical management act is a first nations solution. It was developed through the national table on fiscal relations, a body established three years ago as a consultative forum between the Assembly of First Nations and the Government of Canada. Our government has worked closely with first nations leaders in drafting Bill C-19. We have also shared the proposed legislation with first nations communities across Canada over the past few months and their feedback has helped strengthen the bill.
I am confident Bill C-19 will have the support of many first nations leaders and communities in Canada. Likewise, provinces have expressed the view that it opens the door for more co-operative efforts at the local and regional levels. Key players in Canada's financial markets, like the Royal Bank of Canada, Dominion Bond Rating Service and Moody's Investor Service, have also provided valuable input on the structure and operation of these institutions.
The proposed legislation responds in part to the Speech from the Throne commitment to work with aboriginal people to strengthen their business expertise, administrative practices and infrastructure.
I want to conclude my remarks with this thought. Economic development is the road ahead. This is the path that must be travelled by first nations to improve their quality of life. Many first nations have begun this journey but have encountered obstacles. We can help them to remove them. In order to seize control of their own economic future, first nations do not need to have their hands held but they cannot succeed with their hands tied.
These initiatives in the area of fiscal management are aimed at untying those hands. I would ask hon. members to keep that in mind and I know that this will help them realize that Bill C-19 deserves their support.