Mr. Speaker, I am pleased to rise today to debate Bill C-23, the first nations fiscal and statistical management act.
What we have before us is truly unique. The proposed legislation is first nation initiated; its development was first nation led; and the institutions it would create are first nation controlled.
I believe that all members will agree that we want to improve the quality of life in first nations communities. A number of steps have been taken over the past few years to begin removing barriers to first nation economic progress, self-reliance and self-government, but much more is needed and is needed now. The status quo is not acceptable.
Rather than wait for government, certain visionary first nation leaders took it upon themselves to address the gaps in fiscal powers and institutional support. They have devoted an enormous amount of time and energy to developing this initiative. Many months ago, they turned to the government for support in establishing its legal foundation, a particularly important aspect of the initiative as first nations seek to attract investors and business development. This is the purpose of Bill C-23.
Bill C-23 is a lengthy and technically complex bill, and I cannot hope to address all of its provisions in the time I have been allotted today. However I would like to quickly review the key elements in the bill.
As a first step, Bill C-23 defines first nation property taxation powers in much more detail than does the Indian Act. The bill also features provisions for property assessment, rate setting and budget based expenditure systems that continue first nation provincial property tax harmony while reconciling the interests of first nation governments and those of their taxpayers.
Bill C-23 provides for the evolution of the existing Indian Taxation Advisory Board into the first nations tax commission. This commission will build on the work of the Indian Taxation Advisory Board which has helped 98 first nations enter the field of property taxation since 1989. I should note that those first nations are now collectively raising more than $40 million annually in tax revenue.
Under Bill C-23, ratepayers will be assured a role in policy development and an improved system for hearing appeals and resolving disputes than is the case under the present Indian Act.
The proposed legislation will also clarify certain borrowing powers of first nations and create a first nations finance authority. Through the work of this institution, first nations, like other local governments in Canada, will have access to bond markets to raise long term private capital to finance the construction of roads, sewers, water and other types of infrastructure. This will be a first for aboriginal people in the world.
Assisting first nations to access the bond market will help them participate in the economic mainstream, better balance taxpayer costs and benefits, and realize a better return on tax dollars. The cost of borrowing will be reduced 30% to 50% compared to the current situation.
The first nations finance authority is modelled on the Municipal Finance Authority of British Columbia, which has 30 years of experience and a triple A credit rating. The proposal has been endorsed by major underwriters and credit raters and is expected to raise $125 million in private capital over its first five years of operation.
There is yet another gap that needs to be addressed, a gap in the financial management capacity of first nations. To this end, Bill C-23 will create a completely new institution, the first nations financial management board, which will offer a full range of services to support first nations financial management and accountability. This will be accomplished through the establishment of financial standards, promotion of capacity development, and ensuring that the rigorous systems and assessment services are in place to maintain the confidence of the markets.
Finally, Bill C-23 provides for the establishment of first nations statistics to fill the current gap in reliable data and well targeted analysis on first nations populations, economic growth and other matters. Good quality information is needed to support first nations decision making both at the national level and locally. To this end the statistical institute may work with the first nations, federal departments, Statistics Canada and provincial statistical agencies to help the first nations meet their information needs while at the same time building the shared data required to support effective Canada first nations developmental activities.
Many first nations, particularly the 98 that already have a tax system in place, will be quick to opt into the borrowing regime and other services provided through the bill. Other first nations may take more time to take up these opportunities and still others may decline them outright. Participation in this new initiative will be completely optional, a very key part of the bill.
First nations choosing not to proceed with property taxation or borrowing under the bill may still benefit from the specialized advisory and support services regarding financial and statistical management.
As we can see, each of these institutions, the tax commission, the financial authority, the financial management board and the statistical institute has a unique independent and professional role.
This is important legislation for first nations. Together, these institutions will provide first nations with the right tools needed to foster a business friendly environment, investor confidence, economic growth and sound governance. Bill C-23 will help participating first nations advance into the economic mainstream by giving them the practical tools already used by other governments. It will help them to ensure that the first nation real property tax financing, financial management and statistical systems are harmonized in a way that facilitates shared efforts with other governments. It will provide better representation and more certainty for on reserve taxpayers and a better return to the community as a whole from the tax dollars raised.
As I noted at the outset, the proposed first nations fiscal and statistical management act is a first nations solution. It was developed through the National Table on Fiscal Relations, a body established some five years ago as a consultative forum between the Assembly of First Nations and the Government of Canada.
Key players in Canada's financial markets, such as the Royal Bank of Canada, Dominion Bond Rating Services and Moody's Investor Services, have provided valuable input on the structure and operations of these institutions.
I want to conclude my remarks with this thought: Economic development is the road ahead. This is the path sought by first nations to improve their quality of life. Many first nations have begun this journey but have encountered obstacles which we can help them remove.
In order to seize control of their own economic future, first nations do not need to have their hands held, but they cannot succeed with their hands tied. These initiatives in the area of fiscal management are aimed at untying those hands. Let us support the bill.