Economic Resilience and Innovation: First Nations Leading the Way 5

Making Economic Reconciliation a Reality

The Wasauksing First Nation, along with the First Nations fiscal institutions and the Lands Advisory Board (LAB) hosted the “Making Economic Reconciliation a Reality: First Nations Leading the Way 4,” on March 28-29, 2022. The virtual forum was a follow up to the National Meetings held in May 2018 (Vancouver), May 2019 (Calgary), and February 2021 (Virtual).

The virtual event showcased First Nations achievements in using First Nation-led agreements and legislation to improve their economies through greater fiscal independence, improved financial management, debenture financing, and sound land governance. It also provided an opportunity to
learn more about how the First Nations fiscal institutions and the First Nations Lands Advisory Board (LAB) are supporting First Nations and enhancing innovations in First Nations fiscal relations.

Currently, there are now over 321 First Nations, from all regions in Canada, participating in either the First Nations Fiscal Management Act (FMA) and the Framework Agreement on First Nation Land Management (FAFNLM). First Nations across Canada are exercising their jurisdiction and striving to move beyond the Indian Act with First Nation-led initiatives that enhance the growth and sustainability of First Nations, ultimately supporting higher standards of community well-being.

The meeting brought together over 297 attendees from First Nations across Canada.

Highlighted updates include:

• Over 7000 FMA laws passed to renew our fiscal, financial, and borrowing jurisdictions,
• Almost 100 FMA standards, policies, sample laws and templates provide by FNTC and FMB to support efficient jurisdiction implementation,
• Numerous FAFNLM land codes passed and numerous land laws to renew our lands jurisdiction,
• Over 103 First Nations using the Framework Agreement on First Nation Land Management land registry,
• Almost $4 billion in investment in our communities,
• In 2019, almost $10 billion of independent revenues in our communities as determined by the FMB statistical analysis,
• Advanced statistics to support $340 million First Nation covid revenue replacement program,
• Almost $2 billion in FNFA loans to support infrastructure and other community projects,
• 237 First Nations with FALs that have developed financial administration laws that meet FMB standards. 193 of these First Nations have achieved FP certification and 51 First Nations have its FMS certification,
• Over $1 billion in local revenues generated by participating First Nations,
• Over 250 students have completed at least one course at the Tulo Centre,
• Almost 30 First Nation tax-based service agreements for faster ATRs, and
• FNFA: 9 debentures issued, over 1.6 billion in project financing, over 17,000 jobs across Canada.

The presenters included the National Meeting Host Community and C.T. Manny Jules (Chief Commissioner, First Nations Tax Commission), Harold Calla (Executive Chair, First Nations Financial Management Board), Ernie Daniels (President & CEO, First Nations Finance Authority), and Robert Louie (Chairman, Lands Advisory Board), as well as Chief Trevor Makdahay (Doig River First Nation), Chief Derek Epp (Tzeachten First Nation), Elder Xwechtaal Dennis Joseph (Squamish Nation), the Honorable Marc Miller, Minister of Crown-Indigenous Relations Canada, Vance Badawey, Parliamentary Secretary, Indigenous Services Canada, representatives of First Nations across Canada and team members from the First Nations fiscal institutions and LAB.

Chief Warren Tabobondung and Elder Joyce Tabobondung welcomed the delegates on behalf of the Wasauksing First Nation as the National Meeting Host. Elder Tabobondung provided an opening prayer and reminded participants that our spirituality as First Nations is what is important when making decisions. Chief Tabobondung spoke of the progressive and positive advancements made by his community though their involvement in the institutions and use of mechanisms provided by the FMA. He noted that First Nations elsewhere are also seeing advancements, and together, the institutions and participating First Nations are moving very strongly in the direction of making economic reconciliation a reality.

Minister Miller spoke about joint work to address the impacts of the pandemic and the importance of building economic resiliency, the efforts to create the First Nations Infrastructure Institute (FNII) and close the infrastructure gap, implementation of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and efforts to advance and modernize the Land Code and move away from the Indian Act. Parliamentary Secretary Badaway spoke of the importance of economic growth as a key factor for long-term prosperity and self-determination of First Nations. He noted that he is inspired by the RoadMap project and pointed to the federal financial support towards the realization of FNII as well as the fact that 117 First Nations have now signed on to access 10-year grants.

Other Meeting Highlights

Panel presentations were provided on the following topics:

• The First Nation Infrastructure Institute legislative proposal,
• The Fiscal Management Act legislative proposal to expand capacity and service support,
• FAFNLM Amendments and an improved land registry system,
• FAFNLM proposal to directly transfer ATRs to First Nation title,
• An FNFA proposal to create a pool insurance option for First Nations,
• Closing the infrastructure gap through monetization,
• FMA proposals to improve access to capital,
• FNTC proposals for a First Nation resource charge and FACT sales and excise taxes,
• FMB proposals to expand financial management statistics, services, and capacity support,
• A Tulo Centre proposal to expand programs and to build a new training campus, and
• The formalization the First Nations Leading the Way communities to develop and advance work on the FMB and FNTC Roadmap Project.

The First Nations Lands Advisory (LAB) panel featured Cori Pederson (Muskoday First Nation), Murray Long (Dakota Whitecap First Nation), Lorne Gelowitz (Saskatoon Police Service, ret’d), and Andrew Beynon (LAB), who discussed the issue of enforcement of First Nations law. The panel noted that this issue is a major priority for the LAB and signatory First Nations because without enforcement machinery for First Nations laws, true self-government is not possible. Lack of enforcement provides challenges to a broad range of First Nation laws, and results in a range of consequences – from illegal dumping to residency disputes and risk of liability. Federal and provincial governments and the RCMP have been very reluctant to engage on this issue, so Muskoday and Dakota Whitecap are undertaking a pilot project to address community safety and enforcement challenges. Innovative and flexible solutions are being explored related to policy, laying charges, prosecution, adjudication and enforcement provisions. Such solutions include the creation of provincially designated community safety officers, with special arrest and ticketing powers.

The First Nations Tax Commission (the Commission) panel focused on how tax jurisdiction and tax-based service agreements support strong First Nation economies, with participation from Chief Trevor Makdahay and Shona Nelson (Doig River First Nation), Councillor George Chaffee and Sue Lizotte (Kwikwetlem First Nation), and Trenton Paul and Jesse James from the Commission. Chief Makhaday shared best practices in terms of strong and active community participation in direction setting and decision-making. He noted that good governance has been key to their success, such as keeping their finances in order which helps to be accountable and transparent, success that has been awarded with a 10-year grant, and an MNP Award of Excellence in 2017. He shared numerous examples of community infrastructure requested by community members such as cabins, a playground for the Head Start program, gardening projects and a prayer house, as a result of working with the Commission and other institutions. Kwikwetlem shared similar success stories related to community development, including efforts to work with the neighboring municipality. The FNTC supported them to negotiate with Port Coquitlam to achieve a service agreement to support development on Nation lands, which will result in taxation benefits to the Nation.

The First Nations Finance Authority (FNFA) panel looked at the issue of how ESG is impacting our communities, and featured Chief Derek Epp (Tzeachten First Nation), Councillor Patrick Brennan (Henvey Inlet First Nation), and Jody Anderson (FNFA). Panel members considered key issues related to economic reconciliation, and talked about moving from managing poverty to managing wealth. It was noted that as the communities evolve, so too does the investment landscape. With respect to ESG investing, there is an understanding that wealth should be redistributed and we are wealthy when our lands and waters are healthy. Councillor Brennan spoke about the experience of Henvey Inlet in developing a major wind farm facility, with the support of the institutions, particularly the FNFA, who helped secure loans at a reasonable rate for the development. In the case of Tzeachten, the “little Band that could,” Chief Epp spoke about the difference that achieving financial certification has made for them, as well as access to better interest rates through the FNFA. The fact that the FNFA is First Nations owned and operated and respects First Nations cultures, needs and timelines was very important to both Nations who noted that support from the FNFA helped to ease their capacity development needs.

The First Nations Financial Management Board (FMB) panel focused on the value of Financial Management Systems certification, and included Louis Ledoux (Mistawasis Nêhiyawak), Tammy Manitowabi and Ryan McLeod (Sagamok First Nation), and Geordie Hungerford and Melanie Assiniwe (FMB). The FMB shared information about supports and services they provide to First Nations in terms of Financial Management Systems (FMS) certification – self government practices to make informed, process -based decisions through policy development and training. For Mistawasis, their certification journey began in 2013 and they achieved certification in 2019, a first for Saskatchewan. They developed four core policies, created a financial and audit committee and put internal controls into place to give assurance to members, funders and stakeholders. With support from the FMB they developed capacity and succession planning, and put in place accountability and transparency for their membership. Sagamok expects to receive their certification in April, and the steps they have taken to achieve that goal are helping to enhance transparency and accountability with their citizens as well. They have also been able to undertake significant community development and improve the long-term quality of life in the community through enhanced financial governance practices. The FMB team also described the RoadMap, which is a joint effort of the institutions. It provides a framework for economic reconciliation consistent with UNDRIP, and options to empower First Nations governments. For example, better statistics, building and managing infrastructure, greater self-sufficiency and expanded jurisdiction as well as simpler and faster processes for additions to reserves (ATR) and strengthened governance systems. The first chapter is available on the FMB website and the institutions are seeking to engage First Nations governments, organizations, and thought leaders on the first and future chapters.

The Education and Capacity Development Panel included presentations from Angie Derrickson (LAB) and Andre Le Dressay (Tulo Centre of Indigenous Economics). The LAB provides expertise to help equip Framework Agreement signatories with an understanding of various issues and topics such as governance, compliance and management, as well as processes to meet their strategic vision, and training, mentorship and professional development. Tools include a virtual workshop schedule, an online course catalogue, a Knowledge Paths Tool, a Lands Governance Manual, a knowledge repository and capacity training plans for communities. The Tulo Centre shared their efforts to support jurisdictions that renew Indigenous economies and empower communities. Such efforts include university accreditation for tax and lands administrators and sharing innovations. The Tulo Centre is also working on a new campus – for a First Nations Leading the Way University.

Geordie Hungerford from the FMB provided a presentation on asset management, and explained that First Nations are collectively losing out on hundreds of millions of dollars every year that they could be earning on their assets such as First Nations trusts. He suggested that one solution would be to create a First Nation Deposit and Investment Fund, similar to the Caisse in Quebec, which was established to build infrastructure, enhance public services and grow the Quebec economy. Such a model would allow higher returns, lower management fees, better diversification and lower risk to First Nations. Conference participants overwhelmingly supported the interest of the FMB to explore the concept.

Jody Anderson of the FNFA introduced the concept of an Indigenous-owned pooled insurance model which they have been exploring with BFL Canada, based on shared values of respect, integrity, empowerment and collaboration. The idea is to address the shortfalls of the status quo with respect to insurance. First Nations currently purchase insurance individually, which means they have reduced purchasing power, lack of control, lack of leverage and fragmented representation. A pooled insurance model would change the way First Nations are being insured, providing better access to capital markets and leveraging collective purchasing power. A feasibility study is underway to determine coverage and capacity gaps, and the FNFA would welcome comments and feedback.

The host institution panel featured presentations by C.T. (Manny Jules), Harold Calla, Ernie Daniels and Robert Louie, focused on the conference theme of “Making Economic Reconciliation a Reality.”

• Robert Louie explained that the LAB is continuing to work with the fiscal institutions to support thriving and self-supporting First Nation economies supported by modern tools of government and appropriate and effective supports. The LAB has just entered the 26th year since the Framework Agreement was signed and almost one third of all First Nations in Canada are signatories and more than a hundred First Nations have their own land codes. The LAB has worked with Canada to make six amendments to the Framework Agreement and the First Nations Lands Management Act (FNLMA), and for the past two years has been working to make a 7th change to the Framework Agreement as well as the complete replacement of the FNLMA – to develop a streamlined document that appropriately prioritizes the Framework Agreement. He also noted that the board has indicated preliminary support to look at expanding the scope to those First Nations that have implemented full self government. Other priorities include creation of an Independent First Nation Controlled Lands Registry for Framework Agreement First Nations; resolving legacy issues; increasing climate change and Emergency Response Support; enhanced enforcement strategies; and amendment #8 to the Framework Agreement – to expand the authority of a land code to areas such as: Wills and Estates, 10-year funding mechanism, land registry, enhanced environmental authorities and the potential to expand the authority of a land code beyond reserve boundaries to Aboriginal Title lands. In closing, he noted that the LAB is continuing to expand partnerships, expand training and professional development, and researching and proposing improvements to the ATR process.

• Manny Jules spoke of the colonial legacy that resulted in the removal of fiscal powers from First Nations, as well as the removal of the means to seek due process. He spoke of a three-part formula to restore the independent fiscal powers of First Nations: 1) open up more jurisdictional space for First Nations 2) fill that space with First Nations laws and 3) provide institutional support to maximize the benefits of First Nations jurisdiction. He noted that Canada has talked about justice and reconciliation, but it will not be real until fiscal powers are restored – and economic reconciliation must be based on an understanding about the removal of First Nations from the economy, and what that removal has done to First Nations. He spoke about initiatives being pursued by the institutions, which include an expansion of tax power, the creation of FNII, pooled insurance, expanding the Tulo Centre to become a university to implement the FMA, creating a better land registry and formalizing First Nations Leading the Way – to jointly advance innovations. He explained that “Taksis” are a fundamental government jurisdiction and means four things 1) to help each other 2) to look after one another 3) to not be stingy with each other and 4) to not be jealous of each other. He spoke about the 215 children buried on the site of the former grounds of the Kamloops Indian Residential School and the other little ones at former residential schools across Canada, and noted that leaders need to create new memories for the youth – so they don’t ever have to live through something like that again. He closed with a excerpt from Dennis Saddleman’s poem “Monster, a Residential School Experience” which spoke about “stories of hope, stories of dreams, stories of renewal and stories of tomorrow.”

• Ernie Daniels described the FNFA as an independent, non-profit corporation created by federal legislation that provides short- and long-term loans and investment and capital advisory services. He noted that 141 First Nations have now completed the membership process, and the FNFA has provided $1.65 billion in loans to date, and expect to pass the $2 billion mark later this year (without a single default). He explained that these loans represent $3.5 billion in economic impact and generated more than 17,000 jobs. He also indicated that investors have concluded through their own analysis that the FNFA meets ESG standards, and therefore new investors have emerged. He spoke to two priorities of the FNFA – the Indigenous-owned Pooled Insurance Model and monetization to close the infrastructure gap. With respect to the infrastructure gap, he noted that the idea would be to monetize Government of Canada transfers to accelerate infrastructure and economic development. Something needs to change – the existing model leaves First Nations further and further behind, and so the FNFA is proposing a pilot project regarding green energy to replace the dependency on diesel. In closing he noted that he was encouraged by Minister Miller’s comments on looking at monetization to address the infrastructure gap.

• Harold Calla began by noting that Canada has begun to acknowledge a history that was kept in the shadows for centuries, and that UNDRIP and the commitments of the Prime Minister provide an opportunity to create a better future for Indigenous Peoples. He spoke of the need for change – to move away from poverty, exclusion, prejudice and injustice, as well as the need to design and build the future through our own eyes and be included in the mainstream/global economy. He explained that the RoadMap is a body of work to provide rights holders with the information, knowledge and tools to build a true nation to nation relationship, and explained the seven chapters which will be developed. He indicated that this is an Indigenous-led initiative and a practical and fully optional framework that advances reconciliation consistent with UNDRIP. He noted that in order to effect substantial change, it is much easier to do so together and through economies of scale, perhaps through historical or other aggregations. He also noted that strong governments attract investment, which is why capacity development and training, standards and effective governance and advocacy are so important. He noted that ESG is becoming increasingly important in investment and economic development decisions, and we need to add an I for “Indigenous” to result in ESGI. He closed by setting out next steps, including ongoing collaboration and engagement, developing policy proposals as RoadMap chapters, and measuring progress on Government of Canada commitments.

The First Nations Infrastructure Institute (FNII) panel included Councillor Allan Claxton (Tsawout First Nation and FNII Chair), Rose Paul (Paqtnkek Mi’kmaw Nation) and Jason Calla (Temixw Planning Ltd.) and focused on the challenges regarding access to capital, FNII partnerships, and supports for project development, management and delivery. FNII is working on proof-of-concept projects with the Atlantic First Nations Water Authority and the First Nations Health Authority. FNII is supporting First Nations to develop projects that will be shovel ready when legislative change takes place. Councillor Claxton explained that the tools provided by the institutions and the LAB have allowed his community to provide things that the community members have identified as priorities, including roads, community buildings, wastewater projects to enable economic development and a new Big House. Rose Paul spoke about similar growth in community housing and economic development opportunities in Paqtnkek. FNII believes that regional organizations will be vital to closing the infrastructure gap – for example working in partnership with both the Atlantic First Nations Water Authority and Paqtnkek to achieve community infrastructure goals – which has helped the community to think big and determined how to close the infrastructure gap and be investment ready.

Musical performances – Conference participants enjoyed performances from M’Girl, Leonard Sumner and Morgan Toney during breaks in the conference agenda.

Graphic recording – the conference featured a graphic recording artist, Corrina Keeling, who created illustrations during the presentations and panels that summarized the concepts and topics being discussed.