FNTC: NEWS
NAEDB: Property Taxation Successful
The FNTC welcomes the National Aboriginal Economic Development Board (NAEDB) report, The Aboriginal Economic Progress Report 2015, released on June 17, 2015. Under Chief Clarence Louie’s guidance, the NAEDB shed important light on the economic and social conditions in Aboriginal communities. While the Report’s findings suggest that First Nations and other governments need to do more to address significant gaps in many socio-economic indicators, we are nonetheless buoyed by the Report’s strong support for First Nation fiscal tools, like property tax.
The Aboriginal Economic Progress Report 2015
The Report notes that “Property taxation provides communities with access to stable revenue streams that can be reinvested into infrastructure and services, and provides communities greater autonomy in spending-related decisions independent of federal government involvement.
…the integrated relationship between good governance and an active property taxation framework is a common component to establishing greater control in financial matters and building economic success and independence.”
Early observations suggest that First Nations that have real property taxation bylaws tend to have better economic outcomes than those that do not. First Nations that have had property tax bylaws for longer periods of time demonstrate significantly higher outcomes than First Nations both with and without property tax bylaws.[/su_box]
There over 150 First Nations exercising property tax authority or approximately 25% of First Nations in Canada. These communities are in all regions of the country and represent the diversity of different First Nation communities. Some have historic Treaties with Canada, others do not. As disparate as they are, there is also a common thread. Collectively, they recognize that taxation is a fundamental pillar of governance, an integral part of the fiscal framework to support economic growth, and more importantly, a means to break the bonds of government transfer dependency.
This linkage between property tax jurisdiction and economic well-being is something the First Nations Tax Commission has long understood and documented. We have witnessed transformations in First Nation economies. Property tax revenue helps build infrastructure and improve services which leads to greater economic investment, and in turn to more property tax revenue. To the extent that property tax jurisdiction can lead to greater economic opportunities for First Nations and their citizens, we believe we are on the right track, and are pleased that the NAEDB Report draws the same conclusion.
Taiwan Council of Indigenous Peoples Meets with Commission
Besides officially recognizing tribes, the Council promotes the use and revitalization of Taiwan’s aboriginal languages, supports legislation that would grant autonomous land to indigenous peoples, strengthens relations between Taiwan’s indigenous groups and those in other countries, and raises awareness of aboriginal cultures.
AANDC Press Release: Amendments to FMA
OTTAWA, May 7, 2015 – Today in the House of Commons, the Harper Government introduced Bill C-59, which includes amendments to the First Nations Fiscal Management Act. The Act proposes amendments that would reduce red tape, better align the regime with provincial standards, streamline internal operations and enhance investor confidence. Amendments would clarify and simplify various processes under the Act, ultimately making it easier for First Nations to opt-in to the Act, strengthening the regime and creating a more certain business environment for investors. The introduction of these amendments stems from recommendations and consultations with the three First Nations-led institutions established under the legislation – the First Nations Tax Commission (FNTC); the First Nations Financial Management Board (FNFMB); and the First Nations Finance Authority (FNFA) – as well as with First Nations scheduled to the Act and those interested in opting-in. The First Nations Fiscal Management Act has been very successful in improving economic opportunities and promoting greater self-sufficiency in First Nations communities who have opted-in and these amendments will contribute towards its continued success.
Quick Facts
- The First Nations Fiscal Management Act (FNFMA) came into force on April 1, 2006 and is opt-in legislation. It allows communities to securitize their property tax and other source of revenues for long-term borrowing, provides an alternative to federal funding for financing infrastructure and economic development on reserve.
- First Nations that opt-in to the Act have access to the tools and services offered by the three First Nations-led institutions established under the legislation, namely; the First Nations Tax Commission (FNTC) which implements an on reserve real property tax regime; the First Nations Financial Management Board (FNFMB) who provides financial certification to First Nations; and the First Nations Finance Authority (FNFA), which provides First Nations access to long-term pooled borrowing on a basis similar to other governments in Canada.
- The Act has been very successful, with strong and sustained demand from First Nations to participate in the regime. Currently, 158 First Nations have chosen to opt-in to the Act, with 82 collecting property tax, 52 having received financial performance certification, and 44 accepted as borrowing members.
- To participate in the First Nations Fiscal Management Act, a First Nation must first request that it be added to the Schedule of the Act through a Band Council Resolution.
Quotes
“Our Government is committed to helping enable First Nations to take full advantage of Canada’s economic prosperity—this is why I am so pleased that we are moving forward with amendments to the First Nations Fiscal Management Act. The proposed amendments for the opt-in legislation would reduce red tape, foster a strong and healthy investor’s climate and strengthen the regime. This is a clear demonstration of our Government’s commitment to working with First Nations to create the conditions that lead to jobs and economic development opportunities in Canada.” – Bernard Valcourt, Minister of Aboriginal Affairs and Northern Development
“Over the last ten years, we have witnessed more and more First Nations moving away from the transfer dependency model that has stagnated First Nation communities and economies. We fully expect that the legislative improvements will mean we can provide better services to more First Nations who are achieving greater self-sufficiency, improving accountability, and attracting private investment for their economies.” – C.T. (Manny) Jules, Chief Commissioner of the First Nations Tax Commission
“These amendments are an important step on the part of the Government of Canada to support the desire of First Nations to have the tools that enable better access to capital and improved accountability, and that improve the jurisdiction to raise revenues to create sustainable economies that benefit all Canadians.” – Harold Calla, Executive Chair of the First Nations Financial Management Board
“On behalf of FNFA‘s board of directors and the borrowing members we are extremely happy that these important amendments to FNFMA are being considered by this Government. We are also pleased with the assistance they provided throughout the process.” – Ernie Daniels, CEO of the First Nations Finance Authority
Related Products
Additional links
PRESS RELEASE: FNTC Applauds Announcement in Budget 2015 for Amendments to the FMA
KAMLOOPS, BRITISH COLUMBIA (April 22, 2015) The First Nations Tax Commission welcomes the announcement in the federal Budget 2015 that the federal government will be moving forward with amendments to the First Nations Fiscal Management Act (FMA). Enacted in 2005 by Parliament with all-party support, the FMA provides 147 participating First Nations with revenue raising powers like property taxation, improved financial management, and access to low-cost long term financing for community needs and economic growth. This has translated into over $220 million raised in property tax, over 50 new financial management systems, and a $90 million debenture. The amendments are intended to address inefficiencies, streamline First Nation access to the FMA so that more First Nations can participate, and improve investor confidence in the legislation.
The First Nations Tax Commission, along with the First Nations Finance Authority and the First Nations Financial Management Board, have been seeking amendments to the legislation since 2009. The need for change was reflected in the Minister of Aboriginal Affairs and Northern Development’s Report to Parliament on the Legislative Review of the First Nations Fiscal and Statistical Management Act – March 2012. Key stakeholder groups like the First Nations Tax Administrators Association, the Canadian Property Tax Association and the Canadian Energy Pipeline Association have endorsed the much needed improvements to the FMA proposed by the Commission.
FNTC Chief Commissioner C.T. (Manny) Jules welcomed the government’s announcement. “Over the last ten years, we have witnessed more and more First Nations moving away from the transfer dependency model that has stagnated First Nation communities and economies. We fully expect that the legislative improvements will mean we can provide better services to more First Nations who are achieving greater self-sufficiency, improving accountability, and attracting private investment for their economies.”
The First Nations Tax Commission is a shared governance organization established in 2005 under the First Nations Fiscal Management Act (FMA). Based in Kamloops, BC, the FNTC provides direct regulatory oversight for First Nation property taxation under the FMA, and an advisory function for First Nation property taxation under the Indian Act. Its principal functions include: working with First Nations to develop their property tax jurisdiction, reviewing and approving First Nation laws made under the FMA, and reviewing and recommending for Ministerial approval First Nation by-laws made under section 83 of the Indian Act.
FNTC Commissioner Profile – Céline Auclair
FNTC Commissioner Céline Auclair is the founder of the First Peoples Innovation Center, a non‑profit Aboriginal organization that assists the development of social innovation for the First People communities in Quebec. Commissioner Auclair’s extensive background includes working, both domestically and abroad, in international development, micro-finance development, First Nation taxation, property rights, human rights issues and good governance practices.
Clearing the Path recently had the opportunity to sit down with Commissioner Auclair to talk about her experience and involvement with the FNTC.
Prior to becoming an FNTC Commissioner, you were involved with FNTC’s predecessor, the Indian Taxation Advisory Board (ITAB). Can you tell us about that experience?
After I completed my PhD, I began working for ITAB on the very first property taxation framework under section 83 of the Indian Act. A few months later, I started working with the team to create the First Nations Gazette. When I first joined ITAB, the Gazette was a concept. ITAB was in the trial stage of developing the legal framework for First Nations laws to provide them with the legal stature that other laws in Canada had. It was rewarding to see that First Nations leaders were recognizing the importance of developing the legal structure for First Nations laws as part of their governance architecture. Since then, the First Nations Gazette has grown substantially and the economic stature of First Nations has changed drastically.
At that time, the Chief Commissioner was working hard to convince First Nations that taxation was a building block of First Nation economies. While I was working toward my PhD in Geneva, we were taught that to become a recognized government, three things were needed: to have people recognize the government’s authority, to have territory from which to base that authority, and to have the capacity to exercise jurisdiction. While it was theoretical at the time, we’ve since seen what taxation does for a government. It provides independence and is a tool to build an economy. It is a tool for the future. Taxation provides stable, predictable revenue that allows for multi-year planning. Understanding the power of taxation was the biggest lesson I learned at ITAB.
Throughout your career, you’ve had extensive international experience. How does that experience relate to your work as a Commissioner?
The Forum of Federations, an international governance organization promoting intergovernmental learning on governance challenges in multi-level democracies that I co-founded. During my 10 years there, I learned about the power of a federal state. There are only 26 countries around the world that have a federal charter, which allows different components of the country to have their own jurisdiction or constitutional power. In some countries, there is a two-level constitutional competency, while others have three orders of governments and governmental powers, such as monetary or foreign policy, which can be exclusive or shared between the levels of government. Many countries are innovating the way powers are shared and that can really sophisticate the way a country can govern.
I’ve applied what I’ve learned to my work with the FNTC by bringing that knowledge to the Commission so we can fully understand the advantage of a federal constitution and the flexibility it can bring for governments to exercise their jurisdiction independent from other governments. Canada’s constitution, as it is written, provides First Nations with governmental powers that are exclusive from other governments in the country. Taxation is a good example of that constitutional power. For decades, First Nations were not exercising powers on their lands, resulting in other governments doing so, which is still the case in some provinces today. By First Nations exercising their jurisdiction, they are also asserting their power under the constitution.
You also serve on FNTC’s International Relations Committee. Can you tell us more about the work that committee does?
We formed an international advisory committee with First Nations from other countries, including the United States, Australia and New Zealand, that have dealt with the same taxation issues we face in Canada to learn from them. We met a number of times to discuss challenges and listen to experts from those countries discuss the successes and difficulties they encountered with taxation. Those meetings were conducted over a three-year period and were incredibly useful to us.
We also consulting with emerging First Nation governments in Brazil and Mexico and found those meetings to be very interesting as well. To see new leaders with fresh eyes looking at yet the same problem faced by First Nations around the world was a valuable learning experience.
Our committee also had a good working session with world-renowned economist Hernando De Soto from the Institute of Liberty and Democracy. Mr. De Soto is a Peruvian economist who wrote a book called “The Mystery of Capital”, which detailed how lack of legal title to property hinders economic development. In our session, we discussed how formalizing property rights contributed to economic growth in Peru of 280 per cent and how other countries that have formalized property rights have experienced similar economic success. This demonstrated the power of property rights and underscored the important work the FNTC is doing on the First Nations Property Ownership Initiative here in Canada. While jurisdiction and taxation are the building blocks for First Nation economies, property rights are also at the heart of the economy. If you can’t own your own land, it can be very difficult to plan for the future. Property ownership can be controversial but the FNTC has worked hard to learn from the successes and difficulties encountered by First Nations in other countries to create a viable property ownership system for First Nations in Canada.
I pay tribute to the Chief Commissioner for being a visionary and leading the work of the FNTC. I encourage more First Nations to work with us to develop independent, stable governments that are able to assert their constitutional competencies. It is uplifting to see the dynamism of First Nations around the country and I am very optimistic for the future.
FNTC, FNFMB, and FNFA Urge All Parties to Amend the FMA
Nearly ten years after the passage of the First Nations Fiscal Management Act (FMA), the case to bring about much needed legislative changes was made directly to Parliamentarians at the March 12th meeting of the House of Commons Standing Committee on Aboriginal Affairs and Northern Development. The Standing Committee, which is studying ways to improve First Nation access to capital, heard from each of the three First Nation fiscal institutions supporting changes that would make the FMA easier for First Nations to join, improve efficiencies, and strengthen investor confidence.
FNTC Chief Commissioner C.T. (Manny) Jules cited the FMA’s ten year track record as a proven access to capital and why Committee members should support legislative change, “In 2005, it was passed by Parliament with all party support. Today close to 150 First Nations, 25% of all First Nations in Canada use this legislation. They have raised over $220 million in local revenues and issued a $90 million debenture. More than 50 First Nations have received financial management certification. Over 100 First Nation students have taken university accredited courses to use this legislation. More First Nations want to join, even some originally opposed to the legislation. This is an access to capital change that has worked.”
Both Mr. Ernie Daniels (President/CEO, First Nations Finance Authority) and Mr. Harold Calla (Executive Chair, First Nations Financial Management Board) emphasized the important role FMA debenture financing can have in improving First Nation infrastructure, financial management, and economic growth. Mr. Calla called for “all party support” to facilitate the passage of legislation before June 2015.
The forty-three legislative proposals build on the 2012 Report to Parliament issued by the Minster of Aboriginal Affairs and Northern Development and reflect recommendations made by First Nations, First Nations institutions, and other stakeholders in improving the operational performance of the FMA.
Click here to read the entire transcript of the March 12, 2015 Standing Committee meeting visit
CLEARING THE PATH: NEWS & SUCCESS STORIES
NAEDB: Property Taxation Successful
The FNTC welcomes the National Aboriginal Economic Development Board (NAEDB) report, The Aboriginal Economic Progress Report 2015, released on June 17, 2015. Under Chief Clarence Louie’s guidance, the NAEDB shed important light on the economic and social conditions in Aboriginal communities. While the Report’s findings suggest that First Nations and other governments need to do more to address significant gaps in many socio-economic indicators, we are nonetheless buoyed by the Report’s strong support for First Nation fiscal tools, like property tax.
The Aboriginal Economic Progress Report 2015
The Report notes that “Property taxation provides communities with access to stable revenue streams that can be reinvested into infrastructure and services, and provides communities greater autonomy in spending-related decisions independent of federal government involvement.
…the integrated relationship between good governance and an active property taxation framework is a common component to establishing greater control in financial matters and building economic success and independence.”
Early observations suggest that First Nations that have real property taxation bylaws tend to have better economic outcomes than those that do not. First Nations that have had property tax bylaws for longer periods of time demonstrate significantly higher outcomes than First Nations both with and without property tax bylaws.[/su_box]
There over 150 First Nations exercising property tax authority or approximately 25% of First Nations in Canada. These communities are in all regions of the country and represent the diversity of different First Nation communities. Some have historic Treaties with Canada, others do not. As disparate as they are, there is also a common thread. Collectively, they recognize that taxation is a fundamental pillar of governance, an integral part of the fiscal framework to support economic growth, and more importantly, a means to break the bonds of government transfer dependency.
This linkage between property tax jurisdiction and economic well-being is something the First Nations Tax Commission has long understood and documented. We have witnessed transformations in First Nation economies. Property tax revenue helps build infrastructure and improve services which leads to greater economic investment, and in turn to more property tax revenue. To the extent that property tax jurisdiction can lead to greater economic opportunities for First Nations and their citizens, we believe we are on the right track, and are pleased that the NAEDB Report draws the same conclusion.
Taiwan Council of Indigenous Peoples Meets with Commission
Besides officially recognizing tribes, the Council promotes the use and revitalization of Taiwan’s aboriginal languages, supports legislation that would grant autonomous land to indigenous peoples, strengthens relations between Taiwan’s indigenous groups and those in other countries, and raises awareness of aboriginal cultures.
AANDC Press Release: Amendments to FMA
OTTAWA, May 7, 2015 – Today in the House of Commons, the Harper Government introduced Bill C-59, which includes amendments to the First Nations Fiscal Management Act. The Act proposes amendments that would reduce red tape, better align the regime with provincial standards, streamline internal operations and enhance investor confidence. Amendments would clarify and simplify various processes under the Act, ultimately making it easier for First Nations to opt-in to the Act, strengthening the regime and creating a more certain business environment for investors. The introduction of these amendments stems from recommendations and consultations with the three First Nations-led institutions established under the legislation – the First Nations Tax Commission (FNTC); the First Nations Financial Management Board (FNFMB); and the First Nations Finance Authority (FNFA) – as well as with First Nations scheduled to the Act and those interested in opting-in. The First Nations Fiscal Management Act has been very successful in improving economic opportunities and promoting greater self-sufficiency in First Nations communities who have opted-in and these amendments will contribute towards its continued success.
Quick Facts
- The First Nations Fiscal Management Act (FNFMA) came into force on April 1, 2006 and is opt-in legislation. It allows communities to securitize their property tax and other source of revenues for long-term borrowing, provides an alternative to federal funding for financing infrastructure and economic development on reserve.
- First Nations that opt-in to the Act have access to the tools and services offered by the three First Nations-led institutions established under the legislation, namely; the First Nations Tax Commission (FNTC) which implements an on reserve real property tax regime; the First Nations Financial Management Board (FNFMB) who provides financial certification to First Nations; and the First Nations Finance Authority (FNFA), which provides First Nations access to long-term pooled borrowing on a basis similar to other governments in Canada.
- The Act has been very successful, with strong and sustained demand from First Nations to participate in the regime. Currently, 158 First Nations have chosen to opt-in to the Act, with 82 collecting property tax, 52 having received financial performance certification, and 44 accepted as borrowing members.
- To participate in the First Nations Fiscal Management Act, a First Nation must first request that it be added to the Schedule of the Act through a Band Council Resolution.
Quotes
“Our Government is committed to helping enable First Nations to take full advantage of Canada’s economic prosperity—this is why I am so pleased that we are moving forward with amendments to the First Nations Fiscal Management Act. The proposed amendments for the opt-in legislation would reduce red tape, foster a strong and healthy investor’s climate and strengthen the regime. This is a clear demonstration of our Government’s commitment to working with First Nations to create the conditions that lead to jobs and economic development opportunities in Canada.” – Bernard Valcourt, Minister of Aboriginal Affairs and Northern Development
“Over the last ten years, we have witnessed more and more First Nations moving away from the transfer dependency model that has stagnated First Nation communities and economies. We fully expect that the legislative improvements will mean we can provide better services to more First Nations who are achieving greater self-sufficiency, improving accountability, and attracting private investment for their economies.” – C.T. (Manny) Jules, Chief Commissioner of the First Nations Tax Commission
“These amendments are an important step on the part of the Government of Canada to support the desire of First Nations to have the tools that enable better access to capital and improved accountability, and that improve the jurisdiction to raise revenues to create sustainable economies that benefit all Canadians.” – Harold Calla, Executive Chair of the First Nations Financial Management Board
“On behalf of FNFA‘s board of directors and the borrowing members we are extremely happy that these important amendments to FNFMA are being considered by this Government. We are also pleased with the assistance they provided throughout the process.” – Ernie Daniels, CEO of the First Nations Finance Authority
Related Products
Additional links
PRESS RELEASE: FNTC Applauds Announcement in Budget 2015 for Amendments to the FMA
KAMLOOPS, BRITISH COLUMBIA (April 22, 2015) The First Nations Tax Commission welcomes the announcement in the federal Budget 2015 that the federal government will be moving forward with amendments to the First Nations Fiscal Management Act (FMA). Enacted in 2005 by Parliament with all-party support, the FMA provides 147 participating First Nations with revenue raising powers like property taxation, improved financial management, and access to low-cost long term financing for community needs and economic growth. This has translated into over $220 million raised in property tax, over 50 new financial management systems, and a $90 million debenture. The amendments are intended to address inefficiencies, streamline First Nation access to the FMA so that more First Nations can participate, and improve investor confidence in the legislation.
The First Nations Tax Commission, along with the First Nations Finance Authority and the First Nations Financial Management Board, have been seeking amendments to the legislation since 2009. The need for change was reflected in the Minister of Aboriginal Affairs and Northern Development’s Report to Parliament on the Legislative Review of the First Nations Fiscal and Statistical Management Act – March 2012. Key stakeholder groups like the First Nations Tax Administrators Association, the Canadian Property Tax Association and the Canadian Energy Pipeline Association have endorsed the much needed improvements to the FMA proposed by the Commission.
FNTC Chief Commissioner C.T. (Manny) Jules welcomed the government’s announcement. “Over the last ten years, we have witnessed more and more First Nations moving away from the transfer dependency model that has stagnated First Nation communities and economies. We fully expect that the legislative improvements will mean we can provide better services to more First Nations who are achieving greater self-sufficiency, improving accountability, and attracting private investment for their economies.”
The First Nations Tax Commission is a shared governance organization established in 2005 under the First Nations Fiscal Management Act (FMA). Based in Kamloops, BC, the FNTC provides direct regulatory oversight for First Nation property taxation under the FMA, and an advisory function for First Nation property taxation under the Indian Act. Its principal functions include: working with First Nations to develop their property tax jurisdiction, reviewing and approving First Nation laws made under the FMA, and reviewing and recommending for Ministerial approval First Nation by-laws made under section 83 of the Indian Act.
FNTC Commissioner Profile – Céline Auclair
FNTC Commissioner Céline Auclair is the founder of the First Peoples Innovation Center, a non‑profit Aboriginal organization that assists the development of social innovation for the First People communities in Quebec. Commissioner Auclair’s extensive background includes working, both domestically and abroad, in international development, micro-finance development, First Nation taxation, property rights, human rights issues and good governance practices.
Clearing the Path recently had the opportunity to sit down with Commissioner Auclair to talk about her experience and involvement with the FNTC.
Prior to becoming an FNTC Commissioner, you were involved with FNTC’s predecessor, the Indian Taxation Advisory Board (ITAB). Can you tell us about that experience?
After I completed my PhD, I began working for ITAB on the very first property taxation framework under section 83 of the Indian Act. A few months later, I started working with the team to create the First Nations Gazette. When I first joined ITAB, the Gazette was a concept. ITAB was in the trial stage of developing the legal framework for First Nations laws to provide them with the legal stature that other laws in Canada had. It was rewarding to see that First Nations leaders were recognizing the importance of developing the legal structure for First Nations laws as part of their governance architecture. Since then, the First Nations Gazette has grown substantially and the economic stature of First Nations has changed drastically.
At that time, the Chief Commissioner was working hard to convince First Nations that taxation was a building block of First Nation economies. While I was working toward my PhD in Geneva, we were taught that to become a recognized government, three things were needed: to have people recognize the government’s authority, to have territory from which to base that authority, and to have the capacity to exercise jurisdiction. While it was theoretical at the time, we’ve since seen what taxation does for a government. It provides independence and is a tool to build an economy. It is a tool for the future. Taxation provides stable, predictable revenue that allows for multi-year planning. Understanding the power of taxation was the biggest lesson I learned at ITAB.
Throughout your career, you’ve had extensive international experience. How does that experience relate to your work as a Commissioner?
The Forum of Federations, an international governance organization promoting intergovernmental learning on governance challenges in multi-level democracies that I co-founded. During my 10 years there, I learned about the power of a federal state. There are only 26 countries around the world that have a federal charter, which allows different components of the country to have their own jurisdiction or constitutional power. In some countries, there is a two-level constitutional competency, while others have three orders of governments and governmental powers, such as monetary or foreign policy, which can be exclusive or shared between the levels of government. Many countries are innovating the way powers are shared and that can really sophisticate the way a country can govern.
I’ve applied what I’ve learned to my work with the FNTC by bringing that knowledge to the Commission so we can fully understand the advantage of a federal constitution and the flexibility it can bring for governments to exercise their jurisdiction independent from other governments. Canada’s constitution, as it is written, provides First Nations with governmental powers that are exclusive from other governments in the country. Taxation is a good example of that constitutional power. For decades, First Nations were not exercising powers on their lands, resulting in other governments doing so, which is still the case in some provinces today. By First Nations exercising their jurisdiction, they are also asserting their power under the constitution.
You also serve on FNTC’s International Relations Committee. Can you tell us more about the work that committee does?
We formed an international advisory committee with First Nations from other countries, including the United States, Australia and New Zealand, that have dealt with the same taxation issues we face in Canada to learn from them. We met a number of times to discuss challenges and listen to experts from those countries discuss the successes and difficulties they encountered with taxation. Those meetings were conducted over a three-year period and were incredibly useful to us.
We also consulting with emerging First Nation governments in Brazil and Mexico and found those meetings to be very interesting as well. To see new leaders with fresh eyes looking at yet the same problem faced by First Nations around the world was a valuable learning experience.
Our committee also had a good working session with world-renowned economist Hernando De Soto from the Institute of Liberty and Democracy. Mr. De Soto is a Peruvian economist who wrote a book called “The Mystery of Capital”, which detailed how lack of legal title to property hinders economic development. In our session, we discussed how formalizing property rights contributed to economic growth in Peru of 280 per cent and how other countries that have formalized property rights have experienced similar economic success. This demonstrated the power of property rights and underscored the important work the FNTC is doing on the First Nations Property Ownership Initiative here in Canada. While jurisdiction and taxation are the building blocks for First Nation economies, property rights are also at the heart of the economy. If you can’t own your own land, it can be very difficult to plan for the future. Property ownership can be controversial but the FNTC has worked hard to learn from the successes and difficulties encountered by First Nations in other countries to create a viable property ownership system for First Nations in Canada.
I pay tribute to the Chief Commissioner for being a visionary and leading the work of the FNTC. I encourage more First Nations to work with us to develop independent, stable governments that are able to assert their constitutional competencies. It is uplifting to see the dynamism of First Nations around the country and I am very optimistic for the future.
FNTC, FNFMB, and FNFA Urge All Parties to Amend the FMA
Nearly ten years after the passage of the First Nations Fiscal Management Act (FMA), the case to bring about much needed legislative changes was made directly to Parliamentarians at the March 12th meeting of the House of Commons Standing Committee on Aboriginal Affairs and Northern Development. The Standing Committee, which is studying ways to improve First Nation access to capital, heard from each of the three First Nation fiscal institutions supporting changes that would make the FMA easier for First Nations to join, improve efficiencies, and strengthen investor confidence.
FNTC Chief Commissioner C.T. (Manny) Jules cited the FMA’s ten year track record as a proven access to capital and why Committee members should support legislative change, “In 2005, it was passed by Parliament with all party support. Today close to 150 First Nations, 25% of all First Nations in Canada use this legislation. They have raised over $220 million in local revenues and issued a $90 million debenture. More than 50 First Nations have received financial management certification. Over 100 First Nation students have taken university accredited courses to use this legislation. More First Nations want to join, even some originally opposed to the legislation. This is an access to capital change that has worked.”
Both Mr. Ernie Daniels (President/CEO, First Nations Finance Authority) and Mr. Harold Calla (Executive Chair, First Nations Financial Management Board) emphasized the important role FMA debenture financing can have in improving First Nation infrastructure, financial management, and economic growth. Mr. Calla called for “all party support” to facilitate the passage of legislation before June 2015.
The forty-three legislative proposals build on the 2012 Report to Parliament issued by the Minster of Aboriginal Affairs and Northern Development and reflect recommendations made by First Nations, First Nations institutions, and other stakeholders in improving the operational performance of the FMA.
Click here to read the entire transcript of the March 12, 2015 Standing Committee meeting visit