Mr. Speaker, members would be hard pressed to find anyone who is more aware of the need for and proud of this legislation than I. As my hon. colleagues know, I have been championing this issue for a very long time. It is almost two years ago now that I introduced Bill C-575, the first iteration of today's first nations financial transparency act. I believed then, as I do now, that first nations residents, like all Canadians, deserve transparency and accountability from their officials.
Indeed, more than just saying they are accountable in terms of their salaries and the reimbursement of expenses, these officials need to demonstrate they are absolutely transparent when it comes to reporting their earnings. This is what people in many first nations communities are demanding. That is why I originally brought forward my private member's bill.
In a nutshell, the purpose of Bill C-575 was to ensure that public funds that flow to first nations leaders are publicly disclosed. There is an existing process for band members to request financial information from their leaders. At the moment, if those requests are not met, the Minister of Aboriginal Affairs and Northern Development must step in and release the information.
My bill would have simplified the process, making disclosure automatic instead of going through this time-consuming and onerous process, which puts the minister in an awkward position and which undermines democracy, as first nations members cannot exercise their democratic rights without access to adequate information.
While some chiefs and councillors routinely release such financial information to their community members, unfortunately not all first nations achieve this standard. Those that do achieve this standard recognize the value in ensuring that their decisions and actions are clearly visible for all to see. They respect that their members have a fundamental right to know how public money is being spent. They know this information is vital to making wise, informed decisions about activities in their communities. They also understand that sharing this knowledge encourages an atmosphere of openness and trust between band councils and the community members they serve.
The problem is that not all band leaders see it that way. Current practices are uneven across the country. Some first nations will only release information about spending and the reimbursement of government officials' expenses on request. Others outright refuse to do so. It is precisely because some first nation leaders will not release this information that community members are forced to ask Aboriginal Affairs and Northern Development Canada to provide them with the details on their behalf.
I heard from individual members of first nations communities who complained that their local governments refused to release financial information. They have told me that access to this information is important and necessary for their communities. I know they are not alone in feeling this way. There was enormous support all across Canada for Bill C-575 when it was working its way through Parliament.
Indeed, many first nation band members have been complaining for years about the lack of accountability among their political leaders and their unwillingness to provide details about the band's finances and management.
Jo-Ann Nahanee, an advocate for transparency and accountability, is reported in the press as saying:
...for self-government to be successful, you need to have your members of your community—the participants of your government—be involved by informing them. My band does not do that.
She went on to explain:
There is an underlying fear on the reserve because there is a reliance on chief and council for welfare, for income. You are taking about people in poverty...and they are scared to speak up because they are scared to have these things taken away, so nobody speaks out.
That is just one example. There are similar complaints coming from other corners of the country, such as those brought to our attention by the Peguis Accountability Coalition. The coalition was formed by community members who are frustrated because they cannot access salary or other financial information about their band. They insist that those in power must be held accountable.
I can assure the House I am not implying that all first nations are reporting such problems or that the activities of all band leaders should be suspect; far from it. In fact, I am extremely proud of the many successful first nations in my home province of Saskatchewan whose leaders are wonderful role models in this regard. A perfect example is Darcy Bear, Chief of the Whitecap Dakota First Nation. Chief Bear is one of the biggest proponents of this legislation. He is on the record as stating:
This bill will mean more accountability of First Nation leaders to our people. Transparent and accountable First Nation governments support a strong environment for investment leading to greater economic development”.
Leaders like Chief Bear know that, in addition to better serving their community members, increased transparency and accountability pave the way to greater private sector investment and economic prosperity for first nations. As encouraged as I am by first nations chiefs and councils that recognize this reality, the fact remains that others do not. A sizeable proportion of first nations residents are not satisfied that they have access to the information they need to hold their officials to account. This has been substantiated by research produced by the Frontier Centre for Public Policy. It found that 25% of first nation individuals surveyed as part of its aboriginal governments index say that salary information for public officials is not available to band members. Thanks to the legislation before us, that will soon no longer be the case.
As we are aware, Bill C-575 died on the order paper when the last election was called. However, that may have been a blessing in disguise because its replacement, Bill C-27, builds on my original private member's bill and makes it even better.
While my private member's bill was unable to pass through the House of Commons before the election, by reintroducing it this fall, our government has reinforced its commitment to transparency and accountability at all levels of government. The new first nations financial transparency act would fulfill the 2011 Speech from the Throne commitment to support strong, democratic, transparent and accountable first nation governments by requiring that chiefs and councillors publish their salaries and expenses.
This act goes beyond what I had originally envisioned in Bill C-575. The new legislation would expand the scope of the information to be publicly disclosed over and above the salaries and expenses of chiefs and councillors. This bill also includes first nations' audited consolidated financial statements. This financial information would be made available to community members and the Canadian public on the individual first nation's website or on the website of a tribal council or partner organization. In addition, the audited consolidated financial statements and schedule of remuneration would be published on the website of Aboriginal Affairs and Northern Development Canada once they are made available by the first nation. These steps would ensure that first nation community members have the information they need to make informed decisions about their governments.
What we are asking band councils to do is only what municipal, provincial and federal governments are already doing. They would retain all the rights and responsibilities they currently have. For example, the act would not set salary levels for chiefs and councillors. Decisions such as these would remain the responsibility of the first nation. It would be up to communities to determine the appropriate level of remuneration for their officials. All that Bill C-27 would change is that this information would be publicly disclosed to ensure that community members have the information they need to decide if levels of compensation are reasonable and justified.
All members of first nations have a right to know how much their chiefs and councillors are being paid. It is this knowledge that helps eliminate controversy over compensation and focuses the public discussion where it really belongs: on fundamental quality of life issues such as housing, health care and education. All Canadians, not only members of first nations communities, should be able to access detailed information on how much first nations chiefs and councillors are being paid. Accountability is a fundamental principle of Canadian political life that we all know to be true. This is the basis of laws that legislatures across Canada have passed to clarify how much elected officials and senior executives in governments earn each year.
All other levels of government across Canada, including ours, have also established rules to fully disclose the amount and nature of expenses being reimbursed to elected and unelected officials of government. We in this House abide by such rules. Therefore, we are certainly not asking anything of first nation leaders that we do not expect of ourselves.
Another major element of Bill C-27 is that it would ensure we achieve the goal of greater transparency without increasing the reporting burden for first nations. The bill would simply make public some of the documents that are already being prepared by first nations for submission to Aboriginal Affairs and Northern Development Canada as part of their obligations under their funding agreements.
As proud as I am of my earlier efforts to address these issues in the last Parliament, I have to admit that the new legislation before us is even better than Bill C-575. Bill C-27 would ensure that the remuneration and expenses paid by a first nation to its political leaders would be disclosed. This includes individuals working in their capacity as chief and councillors, as well as their personal capacities, for instance, if they are also employees or contractors with the first nation.
The act would also ensure that a first nation's audited consolidated financial statements and schedule of remuneration and expenses would be disclosed to the public. It would ensure that this information is posted, both on a first nation website and on the Aboriginal Affairs and Northern Development Canada's website for a minimum of 10 years.
The bill would have improved enforcement powers. It contains a provision that would guarantee a first nation member, a member of the general public or the minister could apply to a superior court for an order requiring the council of a first nation to publish the information. In addition, in cases where first nations are not compliant, the minister would have authority under the act to assess remedies that exist in grant or contribution funding agreements with the first nation. These range from requiring the first nation to develop an appropriate action plan for disclosure, to withholding funds from a grant or a contribution or terminating a grant or contribution agreement.
These mechanisms are already available to the minister under the funding agreements. However, with greater powers being placed in the hands of first nation members, we would expect these mechanisms would only be used as a last resort. Indeed, there is no need for it ever to come to that. All the band councils need to do is release the basic information that all other governments across the country already do.
As I have noted, many first nation leaders currently provide such information because they know it is in the best interest of their community. They recognize it is good for public relations and building trust between electors and their governing officials. They understand it is good for business, as successful communities like Whitecap Dakota First Nation, in Saskatchewan, have proven. Ultimately, they realize it is good for democracy. Indeed, it is vital to ensuring that the democratic rights of first nations people are upheld.
It is beyond me why anyone, aboriginal or otherwise, could possibly have a problem with this legislation. First nations members who have been calling for these improvements would undoubtedly like to know the answer to that too. Actually, I am sure they would prefer that we simply pass this legislation so they can get on with building strong communities and stronger economies.
I urge all hon. members do just that and vote with us to make Bill C-27 the law of the land.