Mr. Speaker, I am very pleased to rise today to speak to Bill C-27, and specifically to speak about the need for Bill C-27 as a way of re-establishing basic lines of accountability between a first nations chief and council and its members.
I begin by referring to a statement made by the Assembly of First Nations, which referred to this bill as “tinkering”. In a document prepared for the Special Chiefs Assembly held in December 2011, it said:
...federal led tinkering around the edges of the Indian Act with legislation that addresses aspects of core governance is not the answer. It will not provide long-term governance certainty and stability for our Nations.
Is this bill nothing more than tinkering with the Indian Act? Absolutely not. The Indian Act is silent on transparency and accountability. There is not a word in the Indian Act that deals with the preparation of financial statements and ensuring they are accessible to the public. The Indian Act is certainly not modern legislation that supports first nations governments. This is why the first nations financial transparency act is so needed.
To be clear, this bill would change the status quo. It would provide long-term governance, certainty and stability. The status quo as it relates to financial transparency is that there are currently no statutes or regulations to outline the financial transparency requirements for first nations governments or to guide the setting of salaries for chiefs and councillors. To the extent that there are any rules anywhere that require first nations to make their financial information available to their own people, it is not in that law, but in the funding agreements with the Department of Aboriginal Affairs and Northern Development. In accordance with provisions of these agreements, first nations governments are required to provide the department with audited consolidated financial statements and a schedule of remuneration and expenses for all elected officials. However, it is also a provision of these agreements that the statements be made available to the first nations members in their own communities. These agreements do not stipulate the manner or timing for disclosure. As a result, some individuals have found it quite difficult to access these documents. The practices within individual first nations communities vary widely. Some communities may not consistently disclose financial statements or information concerning salary and expenses while others distribute the information to members or post it on community websites.
This bill would change all of this. It would indeed change the status quo for first nations communities. Under the proposed legislation, each first nation would need to make its audited consolidated financial statements available to its members, as well as to publish them on a website. The information found in the audited consolidated financial statements relates to the major activities undertaken by the particular first nation being audited and details how the first nation expended its moneys. The statement with respect to what information is provided in these statements would be determined by the generally accepted accounting principles. Information that would be disclosed in the schedules to the financial statements include the salaries, wages, commissions, bonuses, fees, honorariums, dividends and any other monetary or non-monetary benefit that chiefs or councillors are receiving. The expenses of first nations leadership, such as transportation, accommodation, meals and hospitality would also be included. Chiefs and councillors would also be required to disclose remuneration paid to them by any entity controlled by the first nation. This would reflect current practice, as first nations are already required to report the remuneration and expenses, in separate categories, paid to the chief and councillors as part of their agreements under the funding agreement with the Department of Aboriginal Affairs and Northern Development Canada.
The Minister of Aboriginal Affairs and Northern Development would be required to publish the audited consolidated financial statement and schedule of remuneration, when received, for each first nation on the Aboriginal Affairs and Northern Development Canada website. This would ensure the information would be available and accessible at all times, and by everyone. The department already publishes on its website a document entitled “Schedule of Federal Funding” for each first nation as a result of the Federal Accountability Act. The bill would require first nations and the department to publish the audited consolidated financial statements and schedules on their websites, as well as remunerations and expenses of first nations to which the legislation would apply. If a first nation failed to do so, anyone, including the minister, could ask a court to require a band council to publish it.
The bill would not only empower first nation members but it would also change the status quo in another fundamental area.
Currently, when first nations members raise questions or concerns about the non-disclosure of financial statements or remuneration and expenses for chiefs and council members, Aboriginal Affairs and Northern Development Canada encourages them to raise these issues directly with their chief and council, respecting the principles of local community accountability.
If the department becomes aware of a situation where a first nation member cannot gain access to his or her community's financial statements, the department will work with the first nation government to ensure that the information is released. If efforts to have a first nation government release the statements to a member are unsuccessful, the department releases the financial statements or schedule of remuneration and expenses directly to the member.
Not only does this place the minister in a difficult position between the first nation council and its members, it makes no sense to require individual first nation members to have to appeal to the minister just for access to basic financial information relating to their own community that they should be able to get from their own band.
Bill C-27 would create a direct relationship with a clear line of responsibility, accountability and transparency between council and first nations members. The bill would underscore the fact that first nations governments are accountable to their own communities for the decisions they make, in addition to being accountable to taxpayers for the funds that they receive.
The bill would change the status quo by finally putting in place the same rules with respect to financial transparency that apply to other governments in Canada to first nations governments. The bill would provide long-term governance certainty and stability by creating a direct line of accountability between a first nation and its chief and council for access to basic financial information and for the decisions that led to the information that those documents contain.
It is worth noting, too, that the bill would achieve this without increasing the already significant reporting burden on first nation governments. Because the preparation of these documents is already a condition of their funding agreements, there are no new reports required. The bill proposes to place the same requirements in legislation with the only additional requirement being that some of the information already prepared for the department is posted on a website, maintained by the first nation or on its behalf, and on the department's website as well.
I know that members will agree that Bill C-27 is a necessary step forward in empowering and improving the lives of first nations members.