Notes on DRAFT Self-Government Fiscal Policy

Proposal for Federal Review

Collaborative Fiscal Policy Development Process
December 13, 2017

Reconciliation and the Financing of Self

Government

1. The standard liberal narrative. Worth noting there is no mention of land

return as part of the Reconciliation process. No definition as to what
“transformative change” is.
2. Modern treaties and self-government agreements are all structured within
over-arching Canadian sovereignty so what this paragraph says is Canada
understands reconciliation to be within Canadian sovereignty. That isn’t Nation-
to-Nation. Link to AANDC Self Government Policy http://www.aadnc-
aandc.gc.ca/eng/1100100031843/1100100031844
3. “Canada recognizes that Indigenous Governments are autonomous orders
of government as set out in modern treaties and self-government agreements,
and are partners in the evolving system of fiscal federalism.” This lays it out in a
nutshell. Autonomous within a the Canadian federation with rights as Canada
mandates in the above self-government policy and as specified in the modern
treaty where the rights are those of a municipality.
4. This acknowledges there needs to be a new fiscal arrangement. There is no
mention of land or increasing land base. It is the same stuff municipalities worry
about but not the primary concern of sovereign Indigenous Nations tied to their
land base,
5. “help close socio-economic gaps between the Indigenous community and
other Canadians.”. This is the giveaway of the intention of this policy. The
language used by Perry Bellegarde “closing the gaps”. Probably deliberate to say
“see we gave you what you wanted”. The Liberals consistently equate Indigenous
people with Canadian citizenship. This again is contrary to the above stated
Nation-to-Nation relationship.
6. If land was ever to be a consideration, it would be mentioned here. It isn’t.
Nor does the “how” reconciliation can occur when the land base is so small that
there is not room for all members to live and be self sustaining. The language is
abstract. No mention that the revitalization is necessary as a result of
colonization..

Purpose and Application of this Policy

7. This policy only deals with the fiscal relationship and is only applicable
with comprehensive land claims (they include a rights surrender clause),
comprehensive self government agreement (they include a rights surrender
clause), a legislated self-government agreement.
8. This is a guide for Canadian federal officials.
9. Intended to be consistent with modern treaty and self government policies
which all included surrender of inherent rights and limit future liability of
Canada.
10. This policy is to be consistent with modern treaties and self government
policies. If so this means municipalization and taxations as the failed Nisga’a
treaty for example.
11. If there are inconsistencies with the other current federal policy this one
applies.

New Self-Government Agreements and Sectoral Self-

Government

12. I act self government agreement will include a fiscal agreement.

13. The policy will be modified as required for a sectoral self government
agreement.

Renewing the Fiscal Relationship

14. The bones of the fiscal arrangement principles.

1. Weasel word clause. “sufficient fiscal resources” sufficient sad determined
by who and based on what standards. “reasonably comparable public services
available to other Canadians”. What is reasonable and who gets to decide. What
does the First Nation give up in return? Notice this is not on the basis of Nation-
to-Nation but rather the Canadian government to Indigenous Canadians so it is
municipalization since Indigenous sovereignty is secondary to being Canadian
citizens.
2. Ot sounds good but it really is premised on Canadians and Indigenous
being the same thing with the same life objectives. It is impossible to define
traditional Indigenous well being in a settler-based paradigm.
3. Laudable goals except the previous two points devalue Indigenous
sovereignty and replace it with Canadian sovereignty and citizenship.
15. “Access by Indigenous Governments to tax revenues is an important
component of the renewed fiscal relationship.” What tax revenues? Does this
mean a cut of the tax revenue from settler’s living omg treaty lands or does it
mean taxation within First Nations. Dangerously vague.
16. This ids very dangerous because it undermines the treaty relationship and
it is not “Nation-to-Nation. Its also confuses the clear federal fiduciary
responsibility to Indigenous Nations. The Feds can delegate within their power
hierarchy but the relationship must be sovereign to sovereign our the treaty
relationship weakens and dissolves.
17. A general statement that could be very dangerous depending on what the
changes are. For example offloading of fiscal responsibility to the provinces
weakens the treaty conditions.
18. This statement scares the heck out of me. The only Indigenous
government the government of Canada recognizes are those coming out of
modern treaties and the Indian Act chief and council system. The approach is
hierarchical and parent child. It is the polar opposite of Indigenous governance
models. This means nothing changes. It legitimizes the outcome though because
Canada will have consulted with chief and council.
19. Deals with implementation citing this document as the policy, calling for
public reporting by governments (assume they include Indigenous governments;
specific fiscal agreements between specific Indigenous governments and Canada;
and ongoing collaborative governments. So far there has been little collaboration
on anything.

Fiscal Principles for the Renewed Fiscal Relationship

20. Outlines the fiscal principles

1. Sufficiency - there should be sufficient funding resources to meet
expenditures. Who decides sufficient and what is important expenditure?
Unclear
2. Access to public services - by entering int the fiscal agreement you are
Canadian. It sys so “Members of the communities represented by the Indigenous
Government should have access to programs and services that are reasonably
comparable to those available to other Canadians in similar circumstances.”
3. All Indigenous governments should be treated equitably.
4. Self-determination/autonomy - Keep in mind this is VC Canada saying
this. This is Mom pontificating. It has nothing to do with a Nation-to-Nation
relationship or it would be understood each Nation is responsible for its own
affairs. It’s about delivery of programs and services. Not about laws,
international relations import/export etc.
5. Stability, predictability, and flexibility - Ask Nisga’a hope that is working
for them
6. Transparency - In Nation to Nation relationships, transparency is owed
within the Nation. Not to the treaty partner. This is ,ore municipalization.
7. Efficiency and effectiveness - deliver programs and services effectively
and efficiently. This is the same relationship as under the Indian Act where
programs and services rather than revenue sharing of stolen resources for
sustainable self -governance (different than self-government)
8. Sustainability and affordability - fiscal relationships need to be sustainable
and affordable. A weasel clause that lets Canada say but we cannot afford that.
9. Accountability - clear roles and responsibilities and public administration.
What is public administration? I don’t know what it means and it is likely the
writers have no idea what it means.
10. Simplicity - keep it simple.
21. The above principles have variable relevance and weight depending on
what is negotiated into the self-government or modern treaty agreement. (Note:
both modern treaty and self-governmet arrangements are rights termination
policies. that revoke inherent rights as Indigenous Peoples. This means sign up
and you are becoming Canadian under Canadian sovereignty.
Review and Renewal of this Policy

22. The policy SHOULD be reviewed and revised ev very 5 years of less. The
language allows that review and revision NOT happen.
23. “Canada is committed to supporting a collaborative approach with
IndigenousGovernments for reviews of this policy. Canada will also seek the
involvement of representatives from Indigenous groups negotiating self-
government and with provinces and territories.” - This means the AFN or
collective groups like NAN. Minister Bennett is on record Indicating Canada has
grouped into about 60 groups all First Nations for efficient negotiating.
24. This policy nothwithstanding, Canada commits to honouring existing
agreements with Indigenous governments. The treaties were not made with
Indian Act elected chief and councils (the majority of Indigenous Governments)
so this is an out not to honour the treaties.

DESIGNING A NEW FISCAL MODEL

Self-Government Fiscal Arrangements

The key points in the diagram are highlighted. The first source of Indigenous
government funding will be through new taxation powers given by Canada. This
is how our treaty taxation exemption dies. Tax sharing is the same thing
municipalities and provinces do. And, funding from other governments means
the provinces and territories. If this is really a Nation to Nation relationship like
say Canada to Mexico with Canada getting to look at Mexico’s books and decide
how much money Mexico has to make by taxation before Canada will advance
funds. This is how municipalities are treated. So there you have it taxation and
municipalization is the plan.

New Fiscal Model

25. This policy is a guide and the diagram a map of key concepts. If this were
a nation-to-nation agreement with Indigenous rights holders, there would be
discussion on land return and mechanisms to transfer same, compensation for
resources taken from traditional lands without compensation to date,
26. Canada has set out the ways they calculate transfer payments. Revenues
and payments may come from these sources: “revenues from own sources;
federal transfers; additional funding to address socio-economic gaps; and
funding from other government sources.”
27. The new policy is the old policy. “This new fiscal model recognizes that
culture, language and heritage are foundational elements, advancing
reconciliation and fundamental change, whereby Indigenous peoples live in
strong and healthy communities with thriving cultures.” This is ironic
cheerleading. How can Reconciliation advance and the communities (note they
use term communities and not Nations deliberately. This is how they suck people
in to giving up their identity). There is no mention of land return except through
the comprehensive land claims where our Nations go to Canada’s courts to ask
for their land back or they negotiate an agreement with Canada that contains a
rights termination clause. n For example, a Nation makes a claim and comes to
an agreement on how much land and the terms then a few years down the road
they find the soil is laced with radioactive or petroleum waste at an old site that
was supposedly rehabilitated. Canada has no responsibility now because under
termination you give up the right to legal recourse. You are screwed and bear the
cost of rehabilitation.

Indigenous Government Responsibilities

28. The is Canada telling Indigenous Governments what their responsibilities

are. There doesn’t seem to be any collaboration here.
1. “responsibilities of Indigenous Governments (under either the Final
Agreement or other ‘permanent’ arrangement) such as core governance
functions, land management, and treaty implementation obligations; Note they
refer to this as the Final Agreement. Based on what I have read so far this is
assimilation. The final Solution to the Indian Problem. The FNLMA privatizes
reserve lands opening to the door to land loss and breakdown of collectively held
land. Modern treaties terminate Inherent Indigenous rights.
2. This just says the Indigenous assumes the responsibility for delivering that
are currently federal, provincial or territorial. conditions on Canada agreeing to
support these. Because it is conditional, they can always say “no”.
3. Indigenous governments are responsible for other stuff not defined.
29. “The self-government provisions of modern treaties and self-government
agreements vary widely, but contain jurisdiction —the authority to make laws —
over a broad range of subject matters. These jurisdictions are a consideration in
the development of fiscal arrangements but the passage of a law does not, on its
own, place a funding obligation on Canada.” This paragraph says. in essence,
that self-government means limited jurisdiction to make laws while Canada
reserves the right to decide what laws can be passed. A community cannot pass
laws that place a financial obligation on Canada. Canada determines what laws
can be passed by the Indigenous government. This is not nation-to-nation.
30. “Where an Indigenous Government exercises a recognized jurisdiction and
requests funding support,” Who has to do the recognizing? Canada can deny
funding if for example Kahnawake invokes their sovereignty and demands
Canada make up for the financial losses due the 2% cap and for the theft of
territory. Canada can just say we don’t recognize you. The End. It also leaves the
door open for cCanada to derogate things to the provinces or counties or regional
government eroding the principles of treaty.
31. Funding is not a given. It is based on jumping through all the hoops put in
place by Canada and depending on what the provinces say. We know how well
that works from the meeting last winter in Gatineau. Not one province stepped
up.
32. The paragraph says funding my be delivered directly to internal
Indigenous structures like health departments or education. This ignores the
Nation to Nation nature of the relationship under treaty.
Determining Expenditure Need
Expenditure Need Definition and Overview

33. Budgeting is part of the process to establish need.

34. This is a roundabout way of saying Indigenous governments aren’t
prudent so we will put measures in place to ensure they are responsible. Sets up
the blame game if Canada doesn’t meet its commitments under modern treaties
of self-government arrangements.
35. “Expenditure need is not related to the later expenditure choices of a
recipient Indigenous Governments will retain autonomy and discretion in how
they address their responsibilities. While measures of expenditure need are
normally developed based on benchmarks (similar governments or standards),
they are not intended to constrain the services actually provided, or the design of
the program delivery by the Indigenous Government - Indigenous governments
will have their limited autonomy. How they operate is up to them but Canada has
a say in apply success measures. This is more like provincial funding but even
more intrusive.
36. Successes may be used to apply to other communities and their programs.
Note they use the word communities and not Nations. There is no Nation too
Nation there is only federal government to lesser government.
37. This is a meaningless statement that says assessment of funding needs will
consider language and culture. It is not a given that any money will flow to these.
38. Costs will vary across Indigenous governments depending on their
responsibilities under their treaty or self-government agreements.

Methodology

39. Indigenous governments need to develop bureaucracy to deal with the case
needs, data gathering and methodologies. The 167 reports per year is killing
many communities today.m This retirement forces grouping into larger entities
like regional tribal councils to centralize and provide efficiencies.
40. Instructions for Ottawa bureaucrats with no grasp of Indigenous realities.
41. Not all IG deliver the same services due to differences in their agreements
with Canada.
42. Populations to be served will be assessed for expenditure. Canada will
work with IG to determine their population (read citizenship).

Governance

43. This next point should scare you if you are Indigenous. “Indigenous
Governments have an expenditure need associated with carrying out governance
functions similar to other governments in Canada in similar circumstances, as
well as functions that are unique to the Indigenous self-government context.” It
says that Indigenous Canadian governments are similar to other governments in
Canada but different with some unique functions. This language would never be
used to describe a Nation to Nation relationship.. It then describes a typical
hierarchical governance model. saying details will be worked out later. This
affirms the chief and council structure that is not serving our communities now.
44. Self-government costs money and base plus incremental costs are included
in the funding.
1. There is a base cost for all Indigenous governments
2. There are incremental costs determines by population, geographic
location, levels go government (as in tribal councils for multiple communities)
and Indigenous traditional governments

The single most important thing to remember about this point is under the
agreement you are allowed to tax your people, sell land, bass parking by laws etc
just like any municipality. You cannot pass a law saying no pipelines can cross
your territory or forest harvesting can’t take place because to get this money and
ability, you surrender your inherent rights. You accept Canadian law and policy
as sovereign. And, you have no Inherent Indigenous rights to stop the pipeline
because you have surrendered those right.

45. Governance expenditure also includes the need to “build capacity”. That
means bureaucracy.
46. “Canada recognizes that addressing governance expenditure need is
integral to maintaining and strengthening Indigenous Governments’ distinct and
culturally-based political, legal, economic, and social institutions.” This
statement forgets to put in brackets after the statement (within over-arching
Canadian sovereignty).
47. Governance expenditures will be based on:
1. responsibilities and job description
2. the costs of performing responsibilities and fulfilling job description.
48. In calculating costs Canada will apply benchmarks to decide what capacity
is needed to perform the responsibilities. It is unstated but elsewhere it is clear
in the model diagrams that Canada calls the shots just like any sub government
relationship model.
49. Self-explanatory and repeats the intent of 47.

Modern Treaty Management

50. This says under a modern treaty Indigenous governments have

responsibilities and meeting those responsibilities costs money. Canada WILL
SUPPORT those needs based on a collaboration to determine what is needed.
This is tricky wording. It completely ignore the issue of contributions to
Canadian GDP by resources plundered every day from Indigenous lands. This
really is saying we will give you charity to covered the costs of meeting your
responsibilities. There is no difference to today’s Indian Act arrangement.
Except, you no longer hold Inherent Rights so shut up and don’t complain.

Economic Development
51. This point is key to this agreement VERY IMPORTANT

“Indigenous Governments and their communities are part of the economic

fabric of Canada and their economic success contributes to, and draws from, the
economic success of Canada and its provinces and territories.”

This point carefully avoids the word “Nation” and it states that Indigenous
governments are part of the capitalist system that sustains Canada. That
Indigenous governments will contribute to Canada and Canada will reciprocate.
There is absolutely no room in this statement for traditional Indigenous lifestyles.
There is not room for dissent on what Canada or the provinces choose to do. You
are part of the whole. Assimilation.

52. Indigenous Governments have a responsibility for economic development

that involve costs for development. Canada will work collaboratively o develop of
appropriate expenditure needs assessment methodology. Remember the funding
comes from Canada in this model. It does not come from funds realized from
stolen resources. Canada has the hammer and will control this discussion.

Culture, Language and Heritage

53. There is an expenditure need (budget) needed for these components of

Indigenous Government including land stewardship. Canada will work with IG
to determine the need methodology (how to create the budget) unless it falls
under another budget heading. This assumes Canada will behave itself and
actually provide the necessary (as determined my the knowledge holding
Indigenous People) amounts of funding. SO far this has not been the case and
this funding has been weaponized to target Nations who are not compliant to
Canada’s wishes.

Stewardship of Lands and Resources

54. This says Indigenous governments are responsible for land management
resources planning, zoning, development control and law enforcement. This is a
municipal model. It extends to lands; both surface and sub-surface, traditional
territories (recently it became clear that Canada would still “own” the land but FN
would be responsible for stewardship so when things go wrong they become the
fall guy); heritage resources (unclear what this means),; harvesting and managing
public resources (read Canadian public so it is still Canadian land). Canada will
co-develop the expenditure need methodology

Environmental Management
55. This article says Indigenous Governments must (mandatory) manage
environmental matters. This is pretty broad. Will they have the right to veto
development on their lands? Canada will support development of funding
mechanisms. It is clear their are no controls held by Indigenous Governments
because it talks about development by Canada or private interests on their
traditional lands. Large projects will be funded on a case by case basis.

Infrastructure Maintenance and Replacement

56. Indigenous governments are responsible for their infrastructure, the

maintenance, upgrades, replacement and new projects. They need a budget for
this.
57. There is a need for a capital reserve for major infrastructure replacement.
Canada will discuss this and provide suppo5t for maintenance and operations.
They are supposed to do this now under the Indian Act. and under treaty. Why
would they do it this time?

Housing

58. There will be a budget for housing. The article recognizes the fact housing
is not privately held.
59. Canada will discuss suing arrangements with Indigenous Governments.
Keep in mind Canada is pushing the FNLMA to turn property into privately held.
There is not commitment here to adequately fund.
60. The housing budget should address “subsidies required to provide
affordable rental rates”. This concept is dangerous. It operates on the basis of
subsidizing people in poverty rather than addressing the real issue of
compensation for years of unfettered resource extraction and revenue taxation on
Indigenous territories. This create a narrative that is counter to true
Reconciliation. (Give back the land, compensate for historical resource
extraction, compensate for cultural destruction).

Education

61. Canada will work with Indigenous Governments to establish a budget

methodology. As in every article, there is no commitment of funding
just the development of budgeting methods.

Social Development

62. This says Canada will work with the IG to develop a methodology for the
creation of budgets for social assistance, child and family services. There is no
funding commitment.

Health

63.