Mr. Speaker, I rise to address the House at the report stage of Bill C-23, the first nations fiscal and statistical management act.
It is well known that many first nations support this bill, while there are indeed others who oppose it. While previously passing many resolutions in support for development of the institutions, the Assembly of First Nations voted last fall to withdraw its support. More recently, however, National Chief Phil Fontaine expressed a preference that the bill be optional so that legislation does not prevent other first nations from pursuing alternative approaches to economic development, sole source revenue and resource revenue sharing.
This government remains respectful of the democratic process within the AFN. We value the still considerable support for the bill among a large number of first nations and we remain steadfast in our belief that Bill C-23 is a valuable financial tool for those first nations who choose to benefit from its opportunities. We continue to support Bill C-23 on behalf of those many first nations who have worked long and hard toward its development.
Bill C-23 was led by first nations for interested first nations. Furthermore, Bill C-23, like all federal legislation, is developed in the context of the Constitution. Section 35 of the Constitution Act, 1982, provides substantial protection for aboriginal and treaty rights. Legislation, including Bill C-23, cannot lessen that protection.
We equally support the optional nature of the bill on behalf of those first nations who oppose it. Indeed, even in its opposition to the bill, the Assembly of First Nations does not deny the options under the bill that are open to those first nations that wish to exercise them.
First nations both for and against the bill continue to look toward the negotiation of claims and self-government agreements with Canada and, from these, new fiscal relationships. We must continue to work on those broader issues.
Bill C-23 flows from many years of work that began with Bill C-115, the 1988 amendment to the Indian Act. A first nation led amendment, Bill C-115, set out first nations authority to collect real property taxes on first nation lands. In fact, it corrected a situation whereby property tax revenues were flowing to neighbouring communities and no services were flowing back. Development funds were being lost.
Over the past 15 years, 98 first nations have exercised their property tax powers and more are developing laws to do so. More than $43 million is now generated annually, which is being used to deliver quality local services, support economic growth and improve the quality of life in first nation communities.
Since its creation in 1989, the Indian tax advisory board, a first nations board, has looked toward securing a legislative base by which to better advance first nation interests. Bill C-23 would do exactly that.
It would also address many of the issues first nations have faced in building their property tax systems and in working effectively with taxpayers, potential business partners and also investors.
Bill C-23 would also realize a dream of the First Nations Finance Authority Incorporated, known as FNFA Inc., which was incorporated in 1995. Its all first nation board has led the work to see first nations gain access for the first time to the bond market in order to secure affordable capital through Bill C-23.
Today first nations pay 30% to 50% more to finance capital works because they lack the legal and institutional framework by which to issue securities on the bond markets. The extraordinary transaction costs and time, and the crippling interest rates they must pay, are major barriers to economic, social and cultural development.
To remove these barriers, FNFA Inc. has lobbied the Government of Canada for many years for a legislated basis. Bill C-23 would allow first nations to issue investment grade securities. There is much interest in these securities on the part of the investment community, including the ethical funds.
The bill would provide first nations with modern tools of government already enjoyed by other governments in Canada. While the proposed financing authority would be fully independent from the Government of Canada, the other institutions, the proposed tax commission, financial management board and statistical institute would operate at arm's length.
This structure recognizes the continuing relationship between first nations and the Government of Canada and the need to work cooperatively on complex questions such as building a new fiscal relationship. The institutions would help interested first nations develop a more effective voice in these long term development issues.
The Prime Minister hosted an aboriginal round table on April 19 of this year, looking to speak to aboriginal leaders and discuss their concerns and formulate solutions. Assembly of First Nations National Chief Phil Fontaine, spoke to the press after this round table and laid out the critical elements of successful nation building and economic development, as cited in a study from Harvard University, including:
Capable governing institutions that exercise power effectively, responsibly, and reliably;
and Cultural Match, which means creating institutions that reflect First Nations values.
Leadership and strategic direction underlie all these principles...This means we must work out arrangements for resource-sharing and power-sharing.
Bill C-23 meets these guidelines and in fact epitomizes them.
Over the course of the bill's legislative history, we have heard first nations people speak both for and against the proposed first nations fiscal and statistical management act.
Many of those speaking against the bill also acknowledge that first nations are diverse in nature and do not seek to deny access to those first nations who see opportunity in Bill C-23. Some even have noted that their community might have an interest in Bill C-23 at some time in the future, particularly if their economic situation were to change through future negotiations or developmental activity.
First nations do indeed have diverse views. Bill C-23 would honour this diversity. Bill C-23 would allow each first nation to decide if and when it would make a law in order to exercise a power pursuant to the bill or would request a service from an institution. It would give first nations the choice to access a valuable tool, and the choice to realize their unique visions for developing their communities on a level playing field.
I support Bill C-23 and I hope to see my fellow members do the same thing.