Mr. Speaker, unfortunately, I just received the news that the United States senate has vote 51 to 48 in favour of drilling in theANWR, but that will not stop Canada's fight against that. It is just a lost stage. We are going to keep up our fight.
The bill before us today would make a positive difference in the communities that choose to use it by allowing the first nations to assume complete management and control of their oil and gas revenues. The legislation will ultimately enhance job creation in the expanding oil and gas sector and spur economic activity on reserves. It also has an important second element which will allow first nations who wish to do so, to retrieve moneys held for them in the Consolidated Revenue Fund under the Indian Act.
As part of the transformative agenda to close the gap in the socio-economic conditions between aboriginal people and other Canadians, the government signed a political accord with the Assembly of First Nations at the May 31 policy retreat that underlined a shared commitment to help first nations exercise greater control over their social and economic aspirations. The bill which we call by its acronym, FNOGMMA, is just one of the several initiatives that the government has advanced to meet this goal.
Legislative and regulatory renewal is the key element of the government's commitment to helping first nations develop economic opportunities. The First Nations Oil and Gas and Moneys Management Act is another step in this process, following on the heels of recent legislative successes in this area such as the recent First Nations Fiscal and Statistical Management Act which was given royal assent last March.
Bill C-54 enjoys widespread support. This is a reflection of the importance all parties attach to the active participation of first nations in the development of this legislation with the best interests of their communities at heart. Against this background, I would like to thank my colleagues across the floor for their agreement to consider this legislation expeditiously.
Oil and gas development on first nation reserve lands is currently regulated under the Indian Act and the Indian Oil and Gas Act and its regulations. These regulations were amended in 1995 to reflect the broader first nation involvement in the management of these resources. However, the amendments did not provide for first nations management authority.
The first breakthrough leading to this legislation before us came in 1999 with the passage of the First Nations Land Management Act. That act was the first of a series of flexible sectoral self-government arrangements. It allows for first nations to opt out of the land management provisions of the Indian Act and establish their own land and resource management regimes. However, the First Nations Land Management Act did not extend to the particular needs of surface and sub-surface management of oil and gas resources.
To their credit, three first nations, the White Bear First Nations from Saskatchewan and the Blood Tribe and Siksika Nation from Alberta, began working diligently to fill this gap through a pilot project overseen by a steering committee composed of representatives from Indian Oil and Gas Canada, Indian and Northern Affairs Canada, the Indian Resource Council, and the three first nations chiefs. They have spent the last decade acquiring the skills and knowledge, and building the management capacity to assume the authorities contained in the First Nations Oil and Gas and Moneys Management Act.
It is important to point out that through this exercise the sponsoring first nations have reached a point where they are fully prepared to control their own oil and gas resources. This pilot project gave them the opportunity to both help design this legislation and develop the necessary capacity to implement its provisions. There were several stages and all parties involved learned along the way.
The first stage of co-management involved specific oil and gas training and capacity building exercises to begin to transfer knowledge of first nations where they would jointly approve all the administrative and management decisions with Indian Oil and Gas Canada.
The second phase, enhanced co-management, involved developing a process for transferring control of oil and gas resources to the participating first nations and a more rigorous communications process. This phase involved three review periods and an independent assessment at the end of the phase.
The third and final phase, full management and control, involved the development and implementation of an arrangement for transfer of complete management and control over oil and gas resources from Indian Oil and Gas Canada to the first nations.
A clear benefit of the pilot program was that it was designed to be reflective of and responsive to each community's needs and values.
When this bill was discussed before the Standing Committee on Aboriginal Affairs and Northern Development, the first nation proponents testified that they had developed the bill with their own particular needs and the aspirations of their communities in mind.
There are over 130 first nations across Canada with the potential for oil and gas production and approximately 50 first nations with active petroleum leases or permits. It is my hope that some of these first nations may one day decide to take advantage of the various elements of the legislation, although there is no obligation for any first nation to do so.
I must point out that not all first nations may want or be ready to take advantage of these potential new powers, including those first nations with oil and gas reserves. However, others, even without these resources on their lands, may want to assume the important moneys management authorities contained in this bill, which I will explore more fully in a moment.
I have talked about the basic elements of the bill. Now I would like to be a bit more specific.
We have already talked about the fact that the bill provides first nations with an option to assume control of petroleum resources on reserve lands and related revenues. In order to gain these authorities, first nation governments must first demonstrate their desire to assume such control. They must also be backed by a community vote endorsing their decision to take responsibility over either oil and gas and related revenues management or management of other moneys, or both.
A first nation must take the steps and pass the financial code that is required in this legislation before accessing its oil and gas resources or accessing the money. The financial code will, among other elements, deal with the method of holding money, the manner in which money is to be collected and distributed and to whom it is to be distributed, and it will deal with the resolution of conflicts of interest.
First nations that meet the criteria and opt into the oil and gas provisions of the legislation will acquire a new range of powers and responsibilities. They will have authority to make laws regarding exploration and exploitation of oil and gas. They will assume responsibility for oil and gas management, regulation and enforcement. They will also take over the obligations of Canada with respect to on reserve oil and gas contracts and they will control moneys related to oil and gas activity.
An important aspect of the governance provisions of this bill is that it recognizes the importance of the protection of the environment by including provisions to require first nations, in the development of their laws, to set standards that are at least equal to the requirements of the province in which the reserve is situated and the Canadian Environmental Assessment Act.
The other elements of this legislation have important implications for all first nations, not just those who may have access to oil and gas development. The moneys provisions of the bill before us today provide an alternative to sections 61 to 69 of the Indian Act, which many first nations consider to be overly bureaucratic, archaic and restrictive. Many first nations may want to be able to directly control the Indian moneys that belong to their reserve but which would otherwise be held in the consolidated revenue fund to support governance and broader opportunities for economic development in their communities.
This legislation places decision making with the first nations, allowing them to better respond to the needs at the community level and to tailor their moneys management regime to best meet those needs. If a first nation opts in to the moneys provision of this bill and meets the transfer requirements, their trust moneys will be transferred out of the consolidated revenue fund and will cease to be Indian moneys.
Once transferred, responsibility for such moneys would rest with the first nation and would be non-revocable, but members of the House can rest assured that this is not being forced on all first nations. As I said earlier, only first nations who hold a successful community vote endorsing the decision to take responsibility over the management of their moneys would be able to do so. Communities that do not choose to avail themselves of the money provisions of the bill would retain their moneys in the consolidated revenue fund.
The first nations oil and gas and moneys management act responds to the first nations commitment to work with government to explore new ways to improve the livelihood of their members. The White Bear First Nation, the Blood Tribe and the Siksika Nation have clearly demonstrated their determination by sustaining this initiative over the last decade.
Bill C-54 also reinforces the partnership between the Government of Canada and the first nations by developing legislation that responds to community aspirations to better manage community affairs.
I am proud to be able to represent the government in the House in moving this initiative forward and proud to have the support of so many colleagues in the House in doing so.
For all these reasons, I want to acknowledge the tremendous support this legislation has had from all parties in the House. With this bill we are giving communities that choose to opt in the tools they can use to get on with the job of building stronger communities and a brighter future for their members.