Mr. Speaker, today we have before us Bill C-27, the so-called first nations financial transparency act. This is another example of how the Conservative government tells Canada's aboriginal people to do as it says, not as it does.
At committee witness after witness spoke of how accountability and transparency are vital concepts to effective governance. First nations have accepted that and they want to implement that as well on their own, as nations and as governments. I think of the first nations in my own community. Salt River First Nation has gone through the process of developing transparency. It has it together and it put it together itself. The pride this first nation takes in what it does comes from the fact that it has self-actualized in this regard.
Bill C-27 falls short in allowing first nations to stand for themselves as governments. It fails to develop workable government-to-government relationships. Instead, the bill treats aboriginal Canadians as wards of the state rather than being capable of governing themselves.
The Canadian Bar Association in a letter to the Minister of Aboriginal Affairs stated:
The [Canadian Bar Association's National Aboriginal Law] Section believes the proposed Bill would not improve the capacity of First Nations to assume control over their own affairs. By focusing only on the expenditures of First Nations, the proposed legislation fails to address larger systemic issues of funding and responsibility for those issues.
The CBA goes on to say:
Given First Nations’ inherent right to self-governance, dictating reporting requirements without sufficient consultation with First Nations is problematic. It fails to recognize the unique constitutional arrangements between First Nations and the federal government, and does little to move away from the paternalism which has historically defined this relationship.
It adds:
Ultimately, the Chief and Council should be accountable to the members of the First Nation, as those members are best positioned to say whether the salaries of Chief and Council are “reasonable” given the work they do in the particular context. Remuneration should be disclosed annually to the members of the First Nation....
Instead of working to encourage first nations to develop their own accountability and transparency protocols, the Conservatives have chosen to impose a system of reporting of which the Canadian Bar Association says:
—the consolidated financial statements and schedules of remuneration allow a far more detailed inspection of expenses than those released by provincial or territorial governments.
Speaking for the Assembly of First Nations, B.C. Regional Chief Jody Wilson-Raybould told the committee:
Chiefs were clear in their assertion that these proposed measures...are both heavy-handed and unnecessary, and they suggest that first nations governments are corrupt and our leaders are not transparent and consequently need to be regulated by Ottawa.
As to who should be developing accountability and transparency protocols, Chief Wilson-Raybould was clear, saying:
—who should be responsible for determining the rules that apply to our governments and our governing bodies. The simple answer is that our nation should be....
In closing Chief Wilson-Raybould said:
It is troubling during this period of transition, as we move away from governance under the Indian Act, that the federal government seems to increasingly want to design our governance for us, in spite of the fundamental need for our nations to undertake this work ourselves in order for it to be legitimate.
Another shortfall with this legislation is the requirement to post financial information on the Internet for 10 years. Many first nations are located in very remote areas of Canada with little or no Internet access. Creating a website and maintaining it for years would be an additional cost to these first nations.
The Canadian Bar Association observed:
Most First Nations’ communities consist of fewer than 500 residents, many in remote areas, which impacts both service delivery and operating expenses. Most communities do not have funding to build the infrastructure necessary for Internet access, or the resources to create and maintain their own websites.
In addition to the technical problems with posting on the Internet, as the Canadian Bar Association observes, there is an issue of cost. However, this is not the only additional financial burden this act would place on first nations who are already seeing reduced funding for program delivery.
Chief Darcy Bear of the Whitecap Dakota First Nation told the committee:
One of the biggest problems for first nations is a lack of professional capacity, because of the way our communities are funded, through band support funding. A lot of our communities are funded and we have financial clerks. But a financial clerk cannot keep pace with the onerous reporting requirements of the federal government.
First nations, with their limited professional capacity, are already struggling to meet their reporting burden. First nation communities have an estimated average of 168 reports and in some communities that goes up to 200 reports that are required yearly by the federal government.
In December 2006 the Auditor General pointed out that the Department of Aboriginal Affairs “alone obtains more than 60,000 reports a year from over 600 First Nations”. The Auditor General concluded that “the resources devoted to the current reporting system could be better used to provide direct support to communities”.
The comment from the Canadian Bar Association is particularly telling. It states:
The legislation will not increase the capacity required to facilitate best practices of First Nations’ governments. Financial statements alone do not provide a meaningful measure of performance, nor are they a fair reflection of community priorities. In addition, non-compliance with onerous reporting burdens can lead to disastrous consequences, such as those flowing from the recent housing crisis at Attawapiskat First Nation. Withholding funds for non-compliance might result in the federal government failing to meet its constitutional obligation to provide essential services to all Canadians.
The Aboriginal Financial Officers Association of Canada raised a key question about these increased costs, saying, “These types of reporting lead to increased costs. Who pays for these additional costs?” It is clear who would pay. The aboriginal people of Canada would pay through reduced government programs and services on their reserves and in their bands. Funding that should be going to improve the lives of Canada's aboriginal people would instead be spent on more red tape and paperwork.
Then there is the requirement that first nations must be accountable to more than their membership. Chief Wilson-Raybould addressed this in her testimony. She said:
There is, of course, no concern where those receiving the audited consolidated financial statements are our citizens. This is, however, not the case where there is a requirement for public dissemination. This is a material departure from what was proposed in Bill C-575 and the precedent set under the first nations fiscal management act.
The last area I want to address is the impact that the bill would have on the economic development of first nations. The Conservatives pretend the bill would improve economic development when it would be likely to drive business away. Chief Darcy Bear warned the committee that the bill would result in the private sector deciding not to invest or partner with first nations. He said:
—we want to make sure that this bill is not going to scare away businesses from our community. You have the private sector off reserve and they have certain reporting requirements, but if they go on reserve and they have to disclose their competitive information to all of their competitors, they're going to say they don't want to go on reserve, that it's not right for them.
In her testimony, Chief Wilson-Raybould wondered why the bill would not be in line with public sector accounting standards when it came to business information.
The bill has little to do with transparency and accountability. The bill would not increase economic development of first nations, rather, it would make first nations less attractive to business. The bill would not move first nations toward self-government, rather, it would go back to the days when aboriginal Canadians were treated as wards of the state. The effect of the bill would be to go back to paternalism and colonialism.
As Lloyd Phillips, who sits on the Mohawk Council of Kahnawake near Montreal observed, in part, “It seems like (Bill C-27) is really about blaming aboriginal poverty on fiscal mismanagement instead of chronic underfunding”.
Can we not start to treat first nations in a fashion that deserves their respect, that makes their way in this country acceptable? They need to build their institutions. That is clearly obvious. We do not need to tell them how to build their institutions. We do not need to instruct them every step of the way on how they are going to do things. They need the independence and the strength that comes from independence to build successful communities and governments, and make them really a part of this great nation.