Mr. Speaker, I am pleased to address the House on Bill C-40, the Nelson House First Nation flooded land act which is almost identical to Bill C-39 and to which my colleague from Churchill spoke so eloquently a few moments ago.
By voting in favour of Bill C-40 we can address the longstanding and contentious issue of implementing the northern flood agreements for the Nelson House First Nation. In turn, the community can begin to build for the future instead of constantly working to have past wrongs corrected.
The hydroelectric plants on the Churchill and Nelson rivers are important projects that have brought many economic benefits to the province. Unfortunately they have also had a significant and lasting impact on the lifestyle and livelihood of thousands of First Nations people in northern Manitoba.
The flooding caused by the diversion projects deprived many aboriginal communities of their traditional fishing, gathering, hunting and trapping areas. The flooding also disrupted or destroyed traditional water transportation routes and shoreline access points.
In many cases personal property and community infrastructure were damaged or destroyed. At the same time the bands received few jobs or other benefits from the hydro projects. The northern flood agreement was a well intentioned undertaking to resolve the many problems and grievances of people living in the affected First Nations communities. It contained provisions for cash compensation, land management, resource development, community infrastructure, navigation and so on.
Unfortunately, for various reasons the northern flood agreement did not meet expectations. That is why the parties undertook to negotiate band specific implementation agreements. That is why we have these two bills before us today. It is time to address these matters on behalf of the Nelson House First Nation which is asking only that Canada, Manitoba and Manitoba Hydro live up to their northern flood agreement commitments.
The Government of Canada has a clear obligation, as do the other parties to the northern flood agreement, to help the communities to cope with the impact of the flooding. We are endeavouring through the implementation agreement and this legislation to ensure that those obligations will be dealt with once and for all in a manner that respects the letter and spirit of the agreement.
It is clear the purpose of the proposed act is not to enforce the Nelson House implementation agreement. The purpose is to exempt certain aspects of the agreements from provisions of the Indian Act relating to land and Indian moneys, provisions that have the potential to impede implementation of the agreements as intended. We are all well aware the Indian Act is an outdated piece of legislation. This act will give the Nelson House First Nation the opportunity to escape some of its burdensome provisions.
The proposed act will also allow Canada to use the Manitoba Arbitration Act in relation to the northern flood agreement. Finally, it will ensure that certain types of claims can still be made against Manitoba Hydro and that the adjudication process set out in the implementation agreements will take precedence over the process set out in the northern flood agreement.
Great care has been taken to ensure that the proposed act is not prejudicial to the other northern flood agreement First Nations. In fact Bill C-40 has been drafted in such a way as to preclude it from affecting any First Nations except the one named in this bill. We are not, and I must emphasize this point, undermining the northern flood agreement. We are simply establishing implementation processes that will better achieve the intended results of this agreement.
I also want to stress that the negotiation of band specific implementation agreements has been completely optional. All three First Nations that have implementation agreements, as well as the two that are currently involved in negotiations, have the option of continuing to implement the northern flood agreement without these agreements.
These First Nations are satisfied, as is the government, that this new approach offers the best chance for success. Although there will always be some opposition to change, the prevailing mood in the affected communities appears to be in favour of moving forward quickly and effectively. These commitments have waited long enough. Hon. members should be aware that community consultation meetings were held in both the Nelson House and York Factory First Nations throughout the respective negotiations. The consultation process was an integral part of the implementation agreements. The leaders of these two First Nations were also consulted on the content of these bills. They support the bills and are eager to see the House proceed as quickly as possible.
It is worth noting that virtually all of Canada's obligations under the Northern Flood Agreements have been fulfilled. The implementation agreement signed with Nelson House earlier this year provides for a final release regarding Canada's obligations.
A good part of Canada's responsibility under the agreement was to ensure that the five reserve communities have a continuous supply of potable water. This has required an investment of more than $88 million by the government. Today I am pleased to report that all houses in both the York Factory and Nelson House communities are served with potable water.
Canada has also met its obligation under the Northern Flood Agreement, supporting the development of comprehensive community development plans contributing to the Nevanun Economic Development Corporation and sponsoring the five-year federal ecological monitoring program.
The outstanding obligations under the Northern Flood Agreement are primarily shared by Manitoba in terms of providing land to the affected First Nations and Manitoba Hydro with respect to restitution for the adverse effects of the hydroelectric project. Further action by these parties is provided for under the band's specific implementation agreements.
For example, Manitoba Hydro will continue to be liable for personal injury and death caused by or attributable to the project. As well, the utility will be responsible for safe operation of the water regime in the Nelson House and York Factory communities.
In regard to the latter obligation, Manitoba Hydro is required to provide written forecasts of the anticipated static water level for the current and succeeding month, complete with details on anticipated changes and the estimated amount of change. These monthly forecasts must also be broadcast by Manitoba Hydro over a radio station that provides service to these communities.
For its part, the province of Manitoba is required to provide provincial crown land to the First Nations to replace their flooded lands.
Approximately 53,000 acres will be set aside for the use and benefit of the Nelson House First Nation under the terms of its implementation agreement. Much of this land will be added to the First Nation's existing reserves. In fact, the Department of Indian Affairs and Northern Development has already initiated the additions to reserve process to effect the transfer of these lands. However, as has been mentioned, some lands will also be held in fee simple title.
The First Nation will establish a corporation to hold its fee simple lands on behalf of the band. The corporation will issue one common share which will be held by the chief of the band in trust for all members. The chief is required to sign the declaration and acceptance of trust.
Under the terms of the implementation agreement, fee simple lands can be sold by the band subject to certain requirements. For example, a public meeting must be held to explain any transaction and to make decisions about the disposition of proceeds. The fee simple lands will be subject to property taxes at the discretion of the province of Manitoba.
The implementation agreement will also provide the Nelson House First Nation with fair and reasonable financial compensation. Nelson House will receive a federal contribution of $15.25 million. The province of Manitoba and Manitoba Hydro, through a combination of cash, bonds and forgivable loans, will contribute the remainder of the package which will total over $65 million for Nelson House. These funds will be paid out over several years. They are to be used for a wide range of purposes, including
socioeconomic development, resource harvesting, compensation and remedial works. They will in no way affect the First Nations normal programming.
When past expenditures are taken into account, it might appear that Canada is providing the largest share in implementing the Northern Flood Agreement. However, other obligations in the implementation agreements, such as an enhanced land package by Manitoba, the continued responsibilities of Manitoba Hydro for personal injury and death, and an obligation to provide additional compensation if the established water regime is exceeded, are significant and have not been costed.
Each First Nation will establish a trust fund to hold and manage the compensation moneys. I want to assure hon. members that these trusts will be administered according to generally accepted accounting principles and provincial trust laws.
The trust provisions of the implementation agreements have been carefully drafted to satisfy the immediate compensation concerns of people who have suffered as a result of the hydroelectric project while ensuring that moneys will be available to meet the needs of future generations.
Hon. members should also be aware that the implementation agreements give off-reserve members access to compensation through these trust funds.
The Nelson House and the York Factory First Nations will continue to provide the Department of Indian Affairs and Northern Development with audited financial statements on an annual basis. As well, the trust indenture, which is a companion document to each implementation agreement, requires that an annual report of the respective trust's business be provided to all parties.
I would like to take a moment to update hon. members on the status of negotiations with the two remaining Northern Flood Agreement First Nations: Cross Lake and Norway House.
In the case of Cross Lake, a memorandum of understanding was signed in December 1993, followed by the signing of an interim implementation agreement in June of 1994. Formal negotiations between the First Nation, Manitoba, Manitoba Hydro and Canada were in abeyance during much of 1995 pending development of a realistic work plan and budget consistent with the federal mandate. I am pleased to report that preliminary discussions resumed on a four-party basis earlier this year.
A memorandum of understanding and an agreement in principle have also been signed with the Norway House First Nation. In December 1995 a group of Norway House members sought and received an injunction to suspend negotiations. However, this injunction was vacated in early 1996 and discussions have since resumed with Norway House.
Returning to the business at hand, this bill is clearly in the best interests of the Nelson House First Nation. It is also in the best interests of Canada and Canadian taxpayers.
The proposed act will not impose additional obligations on Canada, but rather will ensure that the government lives up to commitments which have been made to the First Nations.
I urge my hon. colleagues to recognize the many benefits of this short and simple act and to support it at second reading so that it can proceed quickly through the House.
