Mr. Speaker, I am pleased to stand today to speak in support of Bill C-23, the first nations fiscal and statistical management act. I intend to support this legislation at report stage. This bill was introduced last year as Bill C-19 and its passage has been long awaited by many first nations leaders. The bill is clear proof that the government is serious about fulfilling its commitment to first nations and aboriginal peoples.
The House will recall that in the recent Speech from the Throne the government committed to address the difficult but essential work of renewing its relations with Canada's first nations. The government vowed to undertake a new, collaborative approach in working with aboriginal leaders. The government also pledged to rekindle this relationship based on equality, trust and mutual respect. The government clearly indicated that fostering economic development in first nations communities and narrowing the gap in living standards between aboriginal and non-aboriginal peoples was a foremost priority and a measure of what we are as a country.
A number of significant steps have been taken to begin removing barriers to economic progress for first nations. Land claims have been negotiated, self-government agreements have been signed, and modern governance regimes have been developed and implemented.
Together, first nations leaders and the federal government have taken much action to encourage first nations entrepreneurs, attract investment, and create jobs in first nations communities. These measures are creating genuine hope and opportunity in first nations communities, thereby enabling first nations families to share in the prosperity that many other Canadians take for granted.
In recent years aboriginal economic development has undergone a truly remarkable transformation. Indeed, aboriginal owned businesses now operate in virtually every sector of the economy. Although factors such as improved transportation links and communications technologies have certainly contributed to the shift, I believe the principal difference has been a significant change in attitude.
I believe that in the past few years a spirit of collaboration has grown among aboriginals and non-aboriginals in both public and private sectors alike. Regrettably, not all aboriginal peoples have fully shared in this country's wealth and good fortune. Despite many positive strides forward, the economic condition of many aboriginal communities are simply unacceptable.
Bill C-23 is a vitally important measure to help bring first nations people into the economic mainstream of this country and to help first nations raise the living standards of their members. This legislation, led by first nations able and eager to wield increasing fiscal and administrative authority, would create four innovative institutions. These institutions are designed to support the sound fiscal management and encourage robust economic development in communities.
First, is the first nations finance authority, which would enable participating first nations to issue bonds and raise long term private capital at preferred rates to construct roads, water treatment plants, sewage systems and other crucial capital infrastructure. The first nations tax commission, which would evolve from the Indian Taxation Advisory Board, for those first nations who choose to participate would streamline the real property tax law approval process and help to reconcile community and ratepayer interests.
The first nations financial management board would provide professional advice and guidance in the development of financial management capacity on reserve, and the independent and professional assessment services required for entry into borrowing pools. Finally, the first nations statistical institute would assist first nations to meet their own statistical needs while encouraging participation in and use of the integrated national system of Statistics Canada.
Together, these four institutions would provide first nations with vital tools to foster economic development. These institutions are an essential means to help first nations access and manage the capital they require to grow and prosper. They are crucial levers for first nations people to raise living standards in their own communities.
It is important to note that much of the credit for this legislation lies with visionary first nations leaders. Rather than wait for the government to act, they took it upon themselves to address the absence in their communities of fiscal powers and institutional support, and to respond. These forward thinking men and women devoted an enormous amount of time and energy to develop the principles behind the bill. Many months ago they turned to the government for support in placing this fiscal, administrative and statistical framework on a strong legal foundation of fundamental requirements in seeking to attract investors and cultivate business development.
The result of these efforts is this pioneering piece of legislation. Bill C-23 would help first nations foster a business friendly environment, investor confidence and economic growth. The legislation would enable participating first nations to enter the economic mainstream by giving them the practical tools already used by many other governments. In fact, Bill C-23 would help first nations communities to be on the same level as other local governments. It is this fact that makes this truly a ground breaking piece of legislation.
The institutions created by the bill would provide first nations with access to capital markets already available to other governments. It made me ask, why is this so important? As hon. members may know, community infrastructure is fundamental to the quality of any community's life and economic growth. However, first nations seeking to borrow funds for such infrastructure currently face prohibitive transaction costs, processing times and interest rates. In fact, due to a lack of applicable legislative and institutional framework, a dollar of first nations tax revenue buys 30% to 50% less in capital works than revenue of other governments.
By making it possible for first nations to pool their borrowing requirements, Bill C-23 would enable many first nations, like other local governments, to raise long term private capital at preferred rates and it would provide first nations with institutional support to ensure they operate within their debt carrying capacity.
Bill C-23 is not a panacea for the challenges facing first nations. The legislation however is an important step forward for first nations people. The institutions created by Bill C-23 would lead to practical and long lasting benefits for communities. These institutions would improve the ability of first nations governments to address the social and economic well-being of their communities. The legislation would provide participating first nations with tools that other levels of government take for granted, essential tools needed by first nations to build their economies and to improve the quality of life on reserve communities.
It is important that all members support Bill C-23.