SOME FAST FACTS ON THE FUNDING OF ABORIGINAL PROGRAMS

ABORIGINAL PEOPLE IN CANADA - Although Canada is ranked the number one country in which to live according to the United Nations' Human Development Index (based on income, education and life expectancy), Inuit and on-reserve Indians were ranked below many developing nations. Many First Nation and Inuit communities face housing shortages, as well as rates of unemployment, dependence on social assistance and youth suicide which are higher than the national average.

• Life expectancy: First Nations people face a life expectancy six years shorter than the Canadian average.
• Suicide: Youth suicide rates among the Aboriginal population are five to eight times greater than the national average.
• Infant mortality: The rate of infant mortality for the Aboriginal population is double the Canadian average.
• Poverty: Most Aboriginal people live at or below the poverty line.
• Unemployment: The unemployment rate for Aboriginal Canadians is twice the rate for non-Aboriginal Canadians. On reserves, the unemployment rate is about 29 percent, nearly three times the Canadian rate.

The need to address the discrepancies in living standards between Aboriginal and non-Aboriginal people is compounded by the fact that the Aboriginal population is growing about twice as fast as the overall Canadian population. Moreover, almost two-thirds of Aboriginal people are under 30, and about one-third of reserve residents are under the age of 15, which is increasing the demand for school space, housing, public infrastructure, social services and jobs.

Much remains to be done, but progress has been made to close the gap between socio-economic conditions in Aboriginal communities and elsewhere in Canada. Positive signs include the following:

• The proportion of children on-reserve who remain in school until grade 12 increased from about 39 percent in 1988/89 to 75 percent in 1997/98.
• The number of Registered Indians and Inuit enrolled in post-secondary institutions almost doubled between 1988/89 and 1997/98, rising from 15,572 to 27,100. In 1996/97, there were 3,714 graduates.
• The total number of housing units on reserves has increased from 60,509 in 1989/90 to 83,008 in 1997/98. Over the same period, the number of adequate units has gone up from 24,659 (40.8%) to 45,153 (54.4%).
• In 1988/89, 85% of on-reserve dwellings had an adequate water supply and 77% had adequate sewage disposal. By 1997/98, this had increased to 97% and 93% respectively.
• Entrepreneurship is on the rise among Aboriginal people, and there are now over 20,000 Aboriginally owned businesses in Canada.

GATHERING STRENGTH

Gathering Strength - Canada's Aboriginal Action Plan is now entering its third year of existence. This long-term, comprehensive response to the Royal Commission on Aboriginal Peoples provides a framework for the federal government to work together with Aboriginal people to improve the quality of life in First Nation and Inuit communities. The government's action plan is centred on four objectives: renewing partnerships; strengthening Aboriginal governance; developing a new fiscal framework; and supporting strong communities, people and economies. The government recognized that partnerships were needed to rebuild a climate of trust and co-operation. These set the foundation for being able to work together to address governance and fiscal issues, which are essential to building strong communities, people and economies.

Initial funding to implement Gathering Strength was outlined in the 1998 federal budget, and the 1999 budget committed additional funds over the next three years, for a total of about $750 million by 2001-2002. The federal government is committed to working in partnership with First Nations and Inuit, as well as the provinces, territories and the private sector, to make a positive difference in the lives of Aboriginal people and, in the process, build a stronger Canada.

FACTS ABOUT FEDERAL PROGRAMS DIRECTED TO ABORIGINAL PEOPLE

• The Department of Indian Affairs and Northern Development (DIAND) is one of 12 federal departments and agencies that offer programs for Aboriginal people. Most funding is directed toward basic services comparable to those that other Canadians receive through provincial, territorial and municipal governments.
• Four departments (DIAND, Health Canada, Canada Mortgage and Housing Corporation, and Human Resources Development Canada) are collectively responsible for approximately 97% of total federal funding directed to Aboriginal people.
• DIAND's expenditures represent 70% of all federal funding directed to Aboriginal people. The focus of DIAND's funding is almost exclusively the Registered Indian population on reserves and Inuit.
• Funding by other departments is "status-blind," directed to the overall Aboriginal population, living on reserves or elsewhere.
• More than 80% of DIAND's Aboriginal programming expenditures are for basic services -- including primary and secondary education, social services, and community infrastructure like water and sewer services, and roads -- which are provided to other Canadians by provincial, territorial and municipal governments.

For more information, contact:

Steven Outhouse
Communications Branch
(819) 994-2044

Backgrounder: Aboriginal People in Canada and the Federal Budget

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