Department of Indian Affairs and Northern Development

Assistant Auditor General: Elwyn Dickson
Responsible Auditor: Larry Ting


Main Points

INDIAN FOREST MANAGEMENT

15.1 The Department of Indian Affairs and Northern Development (DIAND) has not fully discharged its statutory responsibilities with regard to Indian forest lands.

15.2 The Timber Regulations established by DIAND to carry out these responsibilities are inappropriate and unenforceable.

15.3 Band consent is needed for entering reserves and for issuing logging permits, but the Crown has title over reserve lands. Management of reserve forest thus requires the co-operation of both parties.

15.4 DIAND and band councils lack adequate information to make effective decisions about Indian forest lands.

15.5 Significant sustainable social and economic benefits would be possible if Indian forests were better managed.

THE MANITOBA NORTHERN FLOOD AGREEMENT

15.6 Under the 1977 Northern Flood Agreement (NFA), the governments of Canada and Manitoba and Manitoba Hydro agreed to compensate five Indian bands for the adverse effects of hydro-electric development projects undertaken by Manitoba Hydro.

15.7 According to DIAND, the adverse effects included the flooding of up to 2,134 square kilometres of land, including 67 square kilometres of reserve land that is home to 10,000 status Indians.

15.8 The NFA is being implemented by a dispute resolution process rather than by a co-ordinated, co-operative effort by all parties. This is detrimental not only to the NFA parties, but also to the taxpayers of Canada, who ultimately pay the costs.

15.9 Certain environmental considerations have not been properly addressed, despite the federal government's knowledge of actual or potential dangers.

15.10 DIAND and other federal departments have spent over $115 million under the NFA (mostly since 1988), but they have not captured the total costs to date and they do not know what these are likely to be in the future. Under a 1990 proposal, the federal government would pay the bands an additional $78 million, not including ongoing normal funding.