Hon. Marty Klyne moved second reading of Bill C-45, An Act to amend the First Nations Fiscal Management Act, to make consequential amendments to other Acts, and to make a clarification relating to another Act.
He said: Honourable senators, on the unceded territory of the Anishinaabe Algonquin people, I’m honoured to rise as sponsor of Bill C-45. This legislation amends the First Nations Fiscal Management Act of 2006, helping support economic reconciliation and greater prosperity for First Nations.
Bill C-45 contains important measures to enhance the statute’s opt-in fiscal frameworks for the 348 scheduled and participating First Nations and any new entrants. Most importantly, this bill will also create the First Nations infrastructure institute.
I will start today by situating this bill in the bigger picture of economic reconciliation. Then, in the second part of my speech, I will explain Bill C-45’s improvements in relation to tax authorities, financial management, economic information, borrowing and infrastructure development and maintenance. All of this sets the table for greater access to capital and mainstream funding and investments, as well as First Nations’ meaningful realization of social and economic rights and equity. In turn, this shift can help First Nations prosper, supporting the revitalization of languages, cultures and ceremonies.
In the big picture, the statute that this bill would amend is an alternative to the Indian Act framework and one that is consistent with the United Nations Declaration on the Rights of Indigenous Peoples, or UNDRIP. Indeed, as the preamble notes, the bill will help implement multiple articles of UNDRIP. Essentially, the First Nations Fiscal Management Act provides participating First Nations with a legislative and institutional framework through which they can assert their jurisdiction in financial management, taxation and access to capital markets.
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By enhancing this framework, also noted in the preamble, Bill C-45 responds to Call to Action 44 of the Truth and Reconciliation Commission in relation to self-determination and economic reconciliation. The preamble also acknowledges traditional Indigenous models of taxation and sharing, including the word taksis in the Chinook trading language.
It is of fundamental importance to me, as sponsor, to highlight that First Nations-led institutions led the co-development of Bill C-45 through six years of hard work and consultations, including engagement with the 348 participating First Nations.
On today’s commencement of Senate debate, congratulations to Ernie Daniels, President and CEO of the First Nations Finance Authority; Harold Calla, Executive Chair of the First Nations Financial Management Board; Manny Jules, Chief Commissioner of the First Nations Tax Commission and Allan Claxton and Jason Calla of the First Nations Infrastructure Institute Development Board and their teams. Three of those organizations already exist under the act and will receive important modernization measures via this bill.
The legislation will also establish a fourth organization in relation to infrastructure. Along with the participating First Nations, this is their bill.
Thank you as well to Minister Miller and his team for advancing Bill C-45 on behalf of the government and to the other place for their unanimous support. I hope senators will join me in honouring these shared efforts and the consensus reflected in this bill by passing Bill C-45 before the summer.
This legislation is cause for optimism as our country works toward economic reconciliation. In 2021, with Bill C-15, Parliament upheld legal protection for Indigenous rights through UNDRIP. That historic change was a pivotal response to a long-term injustice. It restored Indigenous nations’ legal rights to self-government, social and economic rights and equity regarding their lands, waters and resources, including for responsible development.
Again, that all aims toward prosperous communities and supporting flourishing languages, cultures and ceremonies.
The UNDRIP action plan is due to be released this June. Senators should expect an economic component further to the Indigenous Peoples Committee’s observations from two years ago. For example, I hope to see the action plan engaging with the National Indigenous Economic Strategy unveiled last year by a coalition of 25 Indigenous organizations and their 107 calls to economic prosperity.
Complementing the breakthrough of UNDRIP, Bill C-45 supports financial pathways to greater self-determination, prosperity and well-being for many First Nations. For example, this bill can help communities build and grow their tax base, raise revenue for services, regulate services, start or purchase businesses and invest in infrastructure to improve quality of life and support commercial opportunities. All such changes toward greater prosperity can go hand in hand with traditional knowledge, values and culture. Moreover, the changes in this bill can fully complement the realization of self-government via section 35 constitutional rights and UNDRIP.
Of note, Bill C-45 responds directly to issues raised by Senator Tannas on May 16 in our Senate inquiry celebrating success stories of Indigenous businesses and entrepreneurs. Senator Tannas noted that First Nations businesses often don’t have access to capital to finance on-reserve assets. Bill C-45 enhances one avenue of financing by continuing to develop and support the First Nations Finance Authority, a lender to qualifying nations.
Before I get into the bill’s details in the second part of my speech, I will share two concrete examples of how the First Nations Fiscal Management Act can be a game changer.
My first example comes via Member of Parliament for Sydney—Victoria Jaime Battiste, Parliamentary Secretary to the Minister of Crown-Indigenous Relations, who is the first Mi’kmaw member of Parliament. On debate in the other place, Mr. Battiste shared the following experience of Membertou First Nation in Cape Breton. About 10 years ago, Membertou received the First Nations Financial Management Board’s first-ever financial systems certification. That certification provided the community with access to long-term, affordable capital, allowing Membertou to refinance and reinvest in business developments. The results have included an $8.2-million elementary school, a 90-lot housing development and a $9.5-million highway interchange opening access to further commercial developments on Membertou’s land.
Membertou went on to build one of the largest sporting venues on Cape Breton as well as a state-of-the-art bowling alley.
That said, perhaps Membertou’s greatest economic achievement was the acquisition of Clearwater Seafoods in 2021. That $1-billion acquisition was achieved with six other First Nations, all part of the First Nations Finance Authority under this act. Membertou Development Corporation is now home to 12 corporate entities.
My second example of success under the First Nations Fiscal Management Act is Siksika Nation, east of Calgary. In 2016, Siksika Nation opened the long-awaited new Chief Crowfoot School. The original school suffered damages from flooding, was overcrowded and had heating problems. Thanks to Siksika Nation’s commitment to obtain First Nations Financial Management Board certification, it was able to access financing through the First Nations Financial Authority to build the new school. Today, Chief Crowfoot School offers students various services, including speech and language, a dental therapist, a family liaison, a parent-student support worker and weekly visits from an elder to share traditional and cultural teachings. Siksika language and culture are also offered for each grade to promote pride and respect for Siksika heritage.
This example is a social success, but it’s also an economic one, considering the brighter future these students will be able to access. Early in life, an excellent community-led education instills identity, pride and hope in these students in the Siksika Nation. First Nations in Canada need more stories like that across the country.
In addition, First Nations under this act have realized billions of dollars in investment and the assessed value of their reserve lands now exceeds $15 billion. Thousands of laws have been passed under the act, and 150 First Nations administrators have graduated from the Tulo Centre of Indigenous Economics in Kamloops, B.C.
Loans to First Nations from the First Nations Finance Authority have resulted in the creation of over 20,000 jobs and an economic output of $4 billion through nine provinces and the Northwest Territories. On that point, I remind senators that, in 2021, Senator Harder’s Senate Prosperity Action Group noted a performance target of Indigenous businesses contributing $100 billion to the Canadian economy compared to the current estimated $32 billion. Let’s help reach that goal with Bill C-45.
At the House committee, Manny Jules of the First Nations Tax Commission quoted his father, Chief Clarence Jules, from 1965. His advice for First Nations was, “We must be able to move at the speed of business.” I can personally attest to this need for nimbleness in seizing economic opportunities from my experience in mainstream business as a corporate banker, commercial lender and as a developmental lender in Indigenous economic development.
However, colleagues, it is not only First Nations who can benefit from the First Nations Fiscal Management Act and the amendments in Bill C-45. This legislation can lead to shared opportunities and benefits for the entire country. For example, the act can support First Nations’ co-ownership of ventures developing critical minerals needed for the green transition, along with other net-zero capital located on First Nations’ territory. Bill C-45 will support more First Nations in being able to enjoy better interest rates when borrowing through the First Nations Finance Authority.
The journey toward economic reconciliation now offers Canadians, Indigenous and non-Indigenous alike, generational opportunities for employment, partnerships, investments and environmental progress. To illustrate that, last year, RBC reported that Indigenous territories hold at least 56% of advanced critical minerals projects, 35% of top solar sites and 44% of better wind sites. Business leaders and investors should run, not walk, to consult Indigenous nations on those opportunities.
Colleagues, let’s turn to the details of Bill C-45. I begin with a quote from Harold Calla of the First Nations Financial Management Board at the House of Commons Standing Committee on Indigenous and Northern Affairs, where he gave a good summary of the act and the bill.
[The sitting of the Senate was suspended and then resumed]Colleagues, let’s now turn to the details of Bill C-45. I begin with a quote from Harold Calla, of the First Nations Financial Management Board, at the House of Commons Standing Committee on Indigenous and Northern Affairs. He gave a good summary of the act and the bill:
These amendments build on the achievements of Canada’s most successful piece of Indigenous-led legislation. A huge part of this success lies in the FMA’s optionality for first nations that choose, on an individual basis by band council resolution, to be scheduled to the act. There are no financial enticements to do so, just an individual nation’s desire to have good financial management that is recognized to meet international standards, to be able to borrow from the First Nations Finance Authority or to levy local revenues to fund first nations government services.
Mr. Calla continued:
With the passage of these amendments, nations will be able to choose expert advice and support for building and maintaining infrastructure. The optionality of this legislation also provides evidence of its success. Nearly 350 first nations have chosen, one by one, to be scheduled to the FMA. That is over 60% of the first nations that are part of the Indian Act.
Specifically, Bill C-45 makes the following five proposals:
The first is expanding and strengthening the mandates of the First Nations Tax Commission and the First Nations Financial Management Board, such as letting them take on economic research and data-collection functions to facilitate evidence-based planning and decision making, enhancing their ability to offer advice in support of self-determination and granting them the authority to conduct their annual meetings virtually.
The second proposal is updating the chairperson position of the First Nations Financial Management Board to a full-time position, with accompanying compensation, and ensuring strong and diverse Indigenous representation on the board.
The third is combining two existing debt reserve funds — one to protect borrowing with local revenues such as property taxes, and the second for borrowing with other revenues like oil and gas — into a single fund relating to own-source revenues to simplify and lower the cost of pooled borrowing by First Nations. The changes also clarify that only borrowing members with outstanding loans can be called upon to replenish the safeguard fund in circumstances that it had to be used, in the event that multiple First Nations may default on their loans.
Proposal number four is enhancing First Nations’ authority to make and enforce laws, including expressly through court orders, regarding revenue collection and the provision of services on-reserve. These changes will allow nations to create local revenue laws beyond real property taxation and/or to regulate services in relation to, for example, the provision of water, sewer, drainage, waste management, animal control, recreation, transportation, telecommunications and energy.
The final proposal is creating a fourth institution under the act called the First Nations infrastructure institute as a centre of excellence to help participating First Nations and other interested Indigenous groups access the necessary tools and resources to develop and maintain strong, sustainable infrastructure.
This last proposal aims to help close the $30-billion infrastructure gap between Indigenous and non-Indigenous communities. As Allan Claxton, Development Board Chair for this forthcoming institute, told the House of Commons Committee:
The problems with the current first nation infrastructure systems are well known. Infrastructure on reserves takes too long to develop, costs to much to build and does not last long enough because it’s not built up to the proper standards. This contributes to a series of poor health, social and economic outcomes.
We are proposing to establish the First Nations Infrastructure Institute . . . to tackle these problems.
FNII has been designed to build on the successes of the FMA model. It will also be optional to all first nations.
Senators, this institute will also be available to nations with self-governing and modern treaty agreements. In addition, the infrastructure institute can support Métis and Inuit projects should that be of interest to their communities, as eligibility for these types of service offerings would not be limited to those scheduled to the act to date.
At the House of Commons Indigenous and Northern Affairs Committee, Minister Miller noted that the development board for the First Nations infrastructure institute has already set up a successful pilot project with the Chippewas of Kettle and Stony Point First Nation in southern Ontario. This First Nation is developing a feasibility study, business case and procurement options for water and waste water assets. The hope is that this is only the beginning of this initiative’s path to adequate infrastructure for First Nations, supporting the quality of life and economic opportunities that many Canadians take for granted. That is what economic reconciliation is all about.
To conclude, I remind this chamber that this consensus and opt-in bill is the product of extensive consultations and determined First Nations leadership. The other place passed Bill C-45 unanimously and expeditiously. The Senate should do the same.
On a personal note, I believe that Canada, as a nation of nations, is building up a head of steam to advance economic reconciliation. As obstacles are removed and rights are recognized, Indigenous nations, organizations, business leaders, entrepreneurs and youth are creating their own paths to success.
In the Senate, we have a part to play. The Prosperity Action Group’s 2021 report is a Senate policy initiative towards inclusive and sustainable wealth creation across Canada. The report aims to set the conditions whereby a rising tide lifts all ships and no one is left behind, including other racialized or marginalized communities.
In addition, senators from across the country are celebrating the success stories of Indigenous businesses and entrepreneurs in an ongoing speech series in this chamber. I urge colleagues to add your voices to our inquiry, lifting up and heralding Indigenous businesses in your region.
Therefore, colleagues, let’s build on all this momentum by moving quickly and with a united spirit on Bill C-45. Together, let’s pass this legislation into law before the summer, making a powerful statement and bringing practical change towards economic reconciliation. Thank you, hiy kitatamîhin.