Mr. Speaker, it is always an honour to rise in the House and today it is an honour to rise to debate Bill C-27, the first nations financial transparency act.
Over the last six years, our government has consistently demonstrated our commitment to creating the conditions for a healthier, more self-sufficient aboriginal communities. Fundamental to achieving that are strong, stable and accountable first nations governments. Bill C-27 would strengthen first nations governance by increasing accountability and transparency, giving first nations community members the information they need to make informed choices about their leadership.
Bill C-27 complements Bill S-6, the first nations elections act, which we introduced in December 2011. Together, these pieces of proposed legislation demonstrate democratic practices and would empower first nations people.
First nations residents expect to know how funds are being spent in their communities. Like all Canadians, they want assurance that these funds are being used to improve their quality of life. Bill C-27 would improve their access to the financial statements of their governments and provide information on the salaries and expenses of their elected officials.
Indeed, democracy depends on citizens being able to call their leaders to account and ensure they represent the community's best interests.
Currently, community members may ask for financial information related to their band but unless their leaders choose to release it, it can be difficult for them to access the information required to make informed decisions about their leadership and the direction of their community. There are still community members who have no other option but to contact the Department of Aboriginal Affairs and Northern Development each year seeking assistance in obtaining this information.
A real or perceived lack of transparency and accountability from first nation leaders can also erode investor confidence and impede a community's ability to take full advantage of economic development opportunities. Ultimately, this delays or can destroy job opportunities and economic progress for the first nation and its members.
I also point out that parliamentarians already have a duty to inform Canadian taxpayers of how their tax dollars are spent, including for first nations.
A question was raised during the second reading debate of the bill on whether public disclosure of financial statements of band-owned businesses would undermine their competitiveness. It is important to note that Bill C-27 would not require each individual business owned by the band to publish its detailed financial statements. Instead, it is only the consolidated financial statements of the first nation that are covered under the proposed legislation. Some of my colleagues, in their speeches in the House today, have reiterated this point. These statements would not, in most cases, reveal any proprietary information that would undermine their competitiveness. There seems to be some misunderstanding on this. I understand that during the committee stage amendments were made to clarify these concerns.
Members of first nations are ultimately the owners of any businesses owned by the band and they have a right to know the financial position of those businesses, just as other Canadians have the right to know about businesses owned by other levels of government. The bill would ensure that this occurs.
Although some first nation-owned businesses may have concerns about providing financial information to the public, it is important to point out that these reporting rules are not our rules but the rules set out by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants. In other words, these are the exact same rules that apply to businesses owned in other governments in Canada. To be absolutely clear, the proposed legislation would not create any additional paperwork for first nation governments. They already produce audited financial statements each year as a requirement for their funding agreements with the department, and this bill would not require anything new in that regard.
Similarly, what we are asking of chiefs and councillors is no more than what we ask of ourselves as parliamentarians. For example, the Government of Canada posts its financial statements on the Internet and each of us, as members of Parliament, now disclose our salaries and special allowances to the public as required under the Parliament of Canada Act and the Salaries Act.
Furthermore, Canadians can easily find all of these facts and figures, and much more, since we introduced the Federal Accountability Act. This act has also increased the public's access to information about government activities and spending.
Provincial and territorial governments have adopted similar practices and the vast majority of them have legislation that requires municipal governments to make these documents public, as well. In addition, some provinces, such as Manitoba and Ontario, have extended beyond the legislature to require public sector bodies to disclose the public amount of compensation it pays to its employees over a certain threshold.
In short, under the Indian Act, first nation governments are the only governments in Canada that do not currently have a legislated requirement to make basic financial information public. Again, the bill would address this gap.
Some have noted that not all first nations have websites. This came up in debate in the House today. This is true, and Bill C-27 addresses this point. A first nation will not be required to have its own website as a result of the bill. If a first nation were not able to publish the information electronically, it could ask another organization to post it on the community's behalf. Alternatively, the first nation could ask the department to post the information on its behalf. However, we should be clear that having these documents published on a website does not fulfill a first nation government's obligation to make copies of financial statements available to its members.
Many first nations members do not have easy access to the Internet, a fact the department is also addressing through its connectivity efforts. As a result, first nations will need to continue to find ways to make this information available to their members who do not have Internet access. Many already do this by distributing printed copies to households, or making the information available in readily accessible locations in the community, including band offices.
As I mentioned at the outset, the department receives many requests each year for assistance in obtaining basic financial information from their own first nations government. Enhancing the accountability of band councils more directly to its members would be achieved by making more tools available to its individuals.
All that the bill changes is that first nations government will now join other Canadian governments in sharing basic financial information with its members and other Canadians. Once passed, the bill would also help assure potential investors that they could safely enter into joint financial agreements and business undertakings with first nations. This could and should contribute to social and economic improvements in the lives and livelihoods of first nations members.
I know members will agree that Bill C-27 is a necessary step for empowering and improving the lives of first nations members, and I urge all members of this House to vote in favour of the bill.
I will close with some of the statements I have heard in the House today. There has been some implication that requiring transparency that is similar to other levels of government is somehow paternalistic. I would disagree with that characterization. It is very positive for the bill to undertake the step of moving first nations members in the same direction as other levels of government when it comes to the transparency in the disclosure of financial records to its members and to other Canadians.
I want to note that the proposed legislation is asking that first nations use generally accepted accounting principles, which is consistent with expectations of governments from all other levels. We are not trying to prescribe salaries or the spending habits of first nations communities with Bill C-27. It is simply to move the financial reporting requirements and transparency requirements into alignment with other levels of government across this country.