Mr. Speaker, I too rise today in support of Bill C-23, the first nations fiscal and statistical management act.
This important legislation will provide first nation peoples with access to the tools they need to increase their participation in our economy. Under the provisions of Bill C-23, as I think my colleague has mentioned, first nations will gain access to the financial instruments and mechanisms used by municipal governments to raise capital and secure investment. With this capacity, first nations will be able to realize their dreams of self-sufficiency and prosperity.
The impetus for this legislation originates with first nation leaders from across the country. For many years, residents of aboriginal and first nation communities have had difficulty accessing the mainstream economy. First nation communities have struggled to raise capital needed to develop on-reserve infrastructure.
To address these issues, Bill C-23 will establish four distinct yet complementary institutions: a financial authority, a tax commission, a financial management board, and a statistical institute.
Once these institutions are in place, first nations will have many of the practical tools long enjoyed by other governments, such as the ability to borrow money at competitive rates, to develop effective real property tax systems, and to ensure that the interests of taxpayers are adequately represented. First nations that choose to participate in these institutions will also be able to increase financial management capacity and improve long term planning through greater use of accurate and current statistical information, the very things that my municipality and other municipalities have. In short, first nation communities will exercise greater control over their economic and social destinies. Real choices will exist.
Solid infrastructure is fundamental to the health and sustainability of every community in Canada. It is the reason why we have invested so heavily over the past seven years in municipal infrastructure. This government has had successive waves of, in my case, Canada-Ontario infrastructure programs, which have made a real difference in my community and in other communities across the country. Transportation links, water and sewage treatment facilities and other components of modern infrastructure are absolutely essential to economic growth. Local governments across Canada have long funded infrastructure projects through low interest, long term loans. Lenders were keen on these investments because of the legal, political and social stability of such governments.
However, and sadly, first nation band councils do not enjoy the same legal status as local governments. As a result, these councils are often charged prohibitively expensive transaction costs and interest rates. Administrative burdens and lengthy approval processes often delay the start of projects, leading to additional costs. The combined effort of these impediments is that few first nations can afford to undertake capital projects, the capital projects that, I will state again, are important to the health and social services of communities.
Several years ago, thanks to the leadership of Westbank First Nation, one of the most progressive and prosperous aboriginal communities in Canada, a new financial instrument was created. The First Nations Finance Authority Incorporated, or FNFA Inc., enabled member communities to pool their resources.
As the number of first nations participating in FNFA Inc. grew, so did the feasibility of issuing debentures to access longer term money at lower interest rates. The concept attracted the support of a key partner, the Municipal Finance Authority of British Columbia. That authority has 30 years' experience and a triple-A credit rating.
Bill C-23 provides the legal framework for first nations to fully participate in the bond markets. The legislation establishes the First Nations Finance Authority, FNFA. The FNFA will enable first nations to raise private capital at preferred rates to build roads and undertake other capital infrastructure projects such as roads, bridges, sewers and water systems. In a process similar to the one used by local governments, a participating first nation can scrutinize a portion of its long term revenues such as those generated by real property taxes.
Analysts estimate that by scrutinizing the real property tax revenues of interested first nations, approximately $125 million in debt financing could be raised within just five years. An investment of this magnitude in this specific time period would have a significant impact on the communities of participating first nations, communities that are ready to go and want to offer important opportunities to their constituent members.
The ability to generate property tax revenue is a crucial part of a community's financial stability. A growing number of first nations have collected these taxes since the Indian Act was amended in the 1980s. Tax revenues have enabled band councils to provide services, build infrastructure and create jobs and businesses.
Bill C-23 will establish the first nations tax commission, or FNTC, to facilitate the establishment of property tax regimes by band councils who choose to do so under this bill.
The FNTC will develop the standards which underlie the first nations property tax system and which are needed to effectively balance community and ratepayer interests. Dispute resolution and law approval processes will be established. The net result of these actions will be a secure and stable fiscal environment, something that all of us need in each of our municipalities, in each of our communities.
As the Prime Minister has said so many times, strong communities develop a strong nation. That is what we are achieving with Bill C-23.
For this environment to thrive over the long term, it is imperative that first nations have adequate financial management standards and procedures in place. Lenders must have a clear and accurate picture of the fiscal health of borrowers. Independent assessments must be readily available.
The first nations financial management board, or FMB, will help to meet these requirements. There are two components of the FMB's mandate. The first focuses on first nations that collect property tax and seek to borrow against these revenues. The FMB will certify financial management systems, practices and standards and monitor the performance of these first nations. The FMB will be able to intervene promptly and decisively when needed.
Under the second part of the mandate, the FMB will provide a range of professional services to first nations. The FMB will assist with research in advocacy, policy and capacity development, along with financial management, reporting and standards. These activities will help first nation communities to make the very most of their financial resources.
As part of building to a better future, first nations need to have accurate and current statistical information as a basis for informed decision making. Unfortunately, to date, the quality, consistency and accuracy of statistical systems in first nation communities are very inconsistent. There is a very great lack of accurate and current statistical information.
The fourth institution included in Bill C-23 will address this specific issue. The first nations statistical institute, or FNSI, will create a common database of information accessible by all first nations. The database will provide first nation leaders with the accurate information they need to make sound decisions; predictability, accountability and transparency.
I believe that the tools available through Bill C-23 will help to close the considerable gaps that exist between aboriginal and non-aboriginal communities across this country. By providing institutional support and embedding rigorous standards, the legislation prescribes a balanced approach to long term financial health for first nations. Clearly, all Canadians stand to benefit, particularly our first nation peoples, who are ready to go and are tired of seeing economic opportunities pass them by.
I urge all hon. colleagues to lend their support to this bill. This is a set of four very important tools for first nation communities. These tools will make sure that they can participate fully in our Canadian economy. They will make sure that first nations have the opportunity to be who they want to be in terms of economic progress and opportunity so that kids do have a real future and better economic success.