It's my pleasure to appear before you and speak about the Department of Indian Affairs and Northern Development, and the Government of Canada's action plan in support of Aboriginal people and northerners assuming their place in the social, economic and political fabric of this country.

Let me begin by reflecting on where we have been. You'll recall that the Government of Canada launched Gathering Strength – Canada's Aboriginal Action Plan two years ago. You'll also remember that one of the principal pillars of Gathering Strength was the Statement of Reconciliation. In that Statement, the government acknowledged that the ways of the past have left an unfortunate legacy that individuals continue to deal with today.

As you know, Gathering Strength is a comprehensive policy approach based on four themes:

• strengthening the partnership;

• building strong, accountable Aboriginal governments;

• designing a new fiscal relationship;

• and, supporting strong, healthy communities, people and economies.

Since January 1998, we have seen considerable progress on all four themes -- but most noticeably in the first area: the relationship. That's because improving and modernizing the relationship among governments, Aboriginal people, and non-Aboriginal Canadians is an integral part of all the work we do. For good reason. Because it's only with mutual understanding and trust that we are going to move forward in governance, in a modern fiscal relationship and in supporting strong, healthy communities and economies.

In my view, we have made progress in our relationship. As a result, we can look forward to ever faster and far-reaching progress in other areas.

We need to continue our work with a two-track focus. One that acknowledges the legacy of the past and what we need to do to continue addressing that legacy. And a track that looks to the future. An approach that helps us translate the trust and the goals we are beginning to share into real and tangible improvements in the lives of individuals. Because improving the lives of individuals is the common denominator in everything we do.

As we talk about moving forward, First Nations people and Inuit want to know: "How does this make a difference to my life in my community?" And Canadians want to know too – what will change the often very grim picture painted by the media of life in Aboriginal communities.

I don't think I presume too much when I say that improving the lives of individuals is something that most members of this committee feel strongly about. And, it's this goal that drives any advocacy work that you do on behalf of Aboriginal people.

Having said that, it's important to understand that change can't be made overnight. The government's comprehensive approach is long-term because it has to be. And because change can't be made in one area in isolation of others.

Let me give you an example to illustrate this point.

Housing -- of the greatest and most urgent needs facing First Nations and Inuit in Canada. On the face of it, the solution seems simple: money.

In fact, the government alone doesn't have enough money to solve the problem. Not this government or any other. And so it is immediately clear that the relationship is important because we need other partners in government and the private sector at the table with their resources.

Even with partners, and resources, there are complications around leveraging those resources. The problem is that the Indian Act precludes real property ownership in fee simple by First Nations. That makes it difficult to raise collateral and get access to capital.

Then, there is the issue of spinoff benefits and sustainable economic development. We need to invest strategically, to make sure that we create jobs in the community that will stay in the community. We need to invest in training and skills development so that community members can take what they gain from one project to another and multiply their expertise.

Beyond that, even with the financial and human resources in place to build housing, we need to ensure that there is a housing plan for the community. Appropriate governance structures must be in place to manage the community's activities in a responsible and effective way, again for the long-term. There's a role for the department here in ensuring that there is a suitable funding arrangement in place that allows First Nations to plan for and manage major capital projects.

There is often the issue of an appropriate land base to accommodate long-term community housing needs. Many communities are living on inadequate land bases that haven't increased, even as the population on-reserve is increasing at twice the Canadian average.

Once we reach the construction stage, there are issues of structural integrity and economies of scale. Again, we need to invest strategically to make the most of limited resources, and new technologies. We need to do this in partnership so that decisions are made according to First Nations' priorities.

And of course, a change for the better in housing has a positive impact on everything from a family's health and safety, to the education of children in the home to the natural environment.

Housing is just one illustration of the domino effect that a change in one aspect of an issue generates in others. That's why our work is so urgent. And that's why it's so important that we get it right.

My department is essentially a government within a government – its range of responsibilities and jurisdictions is that broad. And so the challenge is immense. But we do have a plan. And it's a comprehensive approach that I believe is taking us in the right direction.

Let me now turn to the environment in which we work.

We continue to receive direction from the courts at all levels. For its part, the Supreme Court continues to hand down decisions – most recently in Marshall – which affirm Aboriginal and treaty rights.

The high court is also sending a clear signal that we need to do something about the Indian Act. The Corbiere decision was the first in what I think could be an opportunity for the systematic dismantling of the Act because it can't stand the test of the Charter of Rights and Freedoms.

Here in Ottawa, and on the west coast, we have been in the midst of a very public debate about the Nisga'a Final Agreement. This agreement has prompted wide-ranging discussions about treaty-making and self-government and Aboriginal rights.

On the east coast, thanks to the Marshall decision, we are engaged in discussions about Aboriginal and treaty rights, and how we can achieve certainty, especially when it comes to potential access to resources for Aboriginal people.

Nationally, as we witness the evolution of democracy on reserve, we are seeing more and more public debate about "good government" and what it means for First Nations.

But in spite of these and other major developments across the country – including the birth of the new territory of Nunavut – the Canadian public remains largely unaware of Aboriginal issues.

Across the country, the provinces are in different places on Aboriginal rights. Some are very actively engaged in treaty-making, in economic development and other important initiatives. Others are cautious, but hopefully willing, players. But more and more, it is clear to me that the provinces need to be involved. All provinces. In a whole variety of areas.

As a partner of Aboriginal people, the private sector leads by example. Governments can learn from the creative and practical approaches of resource companies to make sure that Aboriginal people benefit from jobs and training as a result of developments going on in their backyard.

Looking at demographics, we know that the Aboriginal population is extremely mobile and extremely young.

In communities, again, we know that there continue to be huge gaps in health, social and economic indicators for Aboriginal people as compared to other Canadians. Youth suicide. Infant mortality. Lack of running water. Shorter life expectancy. The statistics are as familiar as they are harsh.

But there is also progress. Progress in education – more young people finishing post-secondary education, and more youth staying in school at all levels. Progress in economic development – continuous growth in Aboriginal businesses dealing locally, regionally, nationally and internationally. Progress in health – with significant recent investments in Aboriginal health care, on AIDS and on diabetes to help close the gaps.

We have to balance the past and the future. And we have to balance our continuing work with celebrating success.

That same balance must be achieved between improving our relationship and improving the quality of life for Aboriginal people. In the past, we haven't been able to overcome the "disconnect" in our relationship to work effectively together on the economic and social development that is so urgently needed. Now, I think we have reached a balance between the two, and I am very optimistic about the progress we can make.

And so as we move forward, I see a shared agenda taking shape around six priorities. The first is to continue to deal with the legacy and the grievances of the past.

Canadians might wonder about the value of looking back. About the need to examine our history together to see how we can bring about reconciliation. I know that some question the value of doing that.

We have to look back in order to look forward. To rebuild lost trust. To get past the polarization that has characterized our relationship. Why? Because of decades of a passive, at times very adversarial, government approach. Aboriginal people have had to go to court again and again to get even the most basic recognition of their rights, and governments have fought them every step of the way.

We need to get to know each other. Because whether we're dealing together in business, in government or in society at large, we have to have trust. And we have to have an understanding of what we are each all about.

It's by agreeing that there are goals we share, and understanding each other's legitimate aspirations, that we will be able to bring about the economic and social development that will change people's lives.

Which brings me to the second priority: the need to create an Aboriginal economy.

As we all know, many Aboriginal communities are among the most remote and isolated in the country. They often lack even the most basic infrastructure – the hydro, the roads, the water and sewer systems – that we in this room take for granted.

But we also know that these same communities live where major resource companies in this country do business. First Nations and Inuit are a ready-made labour force, investment partner and corporate neighbour for the private sector.

So how do we build an economy and create opportunity? First of all, by investing in economic infrastructure. How can we talk about doing business and attracting investment in communities that you can't even get to by road? Communities that have no hydro grid or no water and sewer system. It's fundamental.

Settling land claims as fast as we possibly can will also help build an economy. It's the right thing to do. And, it's an extremely effective and available economic development instrument.

Beyond that, we need to look for opportunities to add to the land base of First Nations so they have what they need for housing. For economic development. For social infrastructure projects.

We need to look at access to resources. To see how, together with the provinces and territories, we can explore how Aboriginal people can share in the sectors that other Canadians have access to. To level the playing field so there is an opportunity for Aboriginal people to participate. As I've said, this is an area of our relationship where we can learn from Corporate Canada.

In this vast country of ours, it's difficult to argue that there isn't enough to go around. But we need to find practical ways to share the wealth. With a little creativity and political will, I know there are best practices and solutions we could put in place.

Good governance is the other important requirement for ensuring certainty, stability, and community well-being. Stable and effective governments create an environment conducive to economic growth. Sustainable governance structures and policies will ensure that First Nations can manage the economic and other affairs of their communities in an effective and responsible way.

It's key that we agree on a vision for this country that includes Aboriginal people as active participants in our economy. And that we agree to build a comprehensive plan for inclusion in the economy of Canada, from infrastructure to investment. A common vision and a strategic plan would open up vast new opportunities for us to pursue.

And this kind of strategic view would take the edge off so many potential flashpoints among First Nations and Inuit, the private sector and governments.

From fishing to forestry, to mining and minerals, the bottom line is that when people feel that development is moving ahead without them, without their input, beyond their control, with no role for them to play – the potential for conflict is high.

If we share a common vision, and everyone recognizes that all parties have a role to play and a contribution to make, people can focus on making a deal instead of taking a stand. Which brings me to my third and fourth priorities together: to modernize the Indian Act, and then define a modern treaty relationship that could and should eventually take the place of the Indian Act in describing how we are to live together.

You've heard me say I think the Indian Act is outdated and paternalistic. And that the Supreme Court will likely continue to strike down sections of the Act if they don't meet the test of the Charter of Rights and Freedoms.

To me, it's clear that something has to be done to address the obstacles and limitations this legislation represents – from the absence of protection for women's rights to restrictions on land use and the way that I as Minister am forced to be involved in the most minute details of the life of a First Nations person.

I also understand that no matter how misguided, it's been one of the few tangible protections of First Nations' interests that governments have ever bothered to put in place.

So, there's no point in doing away with the old until we have a vision of the future that we are confident will be better than the status quo. As we explore the future, our government is committed to responding to First Nations that want to move out from under the Indian Act by negotiating self-government agreements that reflect their aspirations.

Defining a modern treaty relationship flows naturally as a next goal as we look to move beyond the Indian Act. A relationship based on mutual respect and understanding, responsibility and sharing, just as it always should have been. And so that within this treaty relationship we could set out a modern way to live together, and a modern way to ensure that the benefits that were intended to flow from the historic treaties, actually do.

When I talk about "renewing the treaty relationship" and "defining a modern treaty relationship", concerns are raised about "re-opening" historic treaties. This is not about re-opening the treaties. Rather it is about making them real, in a way that make sense in a new millennium.

What encourages me in all of our efforts is that the fact that there is a part of the country where we can look and see if what we are doing is working. I'm talking about the North: the Yukon, the Northwest Territories and Nunavut. I would refer to Canada's North as the fifth priority that I see for our country. And, in particular, the place of Aboriginal people in a government to government to government relationship slowly growing up in each of the northern territories.

The role of the Department of Indian Affairs and Northern Development in the North is unique. We are the primary face of the Government of Canada there, with all of the responsibilities and challenges that brings. And sometimes the competing interests we represent are difficult to reconcile.

But if there's one thing that seems clear, it's that governance, economic development and environmental stewardship in the North should reflect the priorities of all northerners, including of course Aboriginal people.

If there's another thing we can agree on, it's that the concept of more control for northerners over lands and resources has been talked about too much, for too long, with too little to show for it. It's time that the business of my department became the business of northerners.

In all three northern territories, we see dramatic social, economic and political change underway. The territory of Nunavut is one year old and making significant strides as a new partner in Confederation. The territory is demonstrating stability and leadership as a new government.

Nunavut has the highest job creation growth rate in Canada. The economic development potential of Nunavut continues to grow with the territory. Nunavut has a large, dynamic labour force, skilled in traditional pursuits, with a rich primary natural resource base. The evolution of this newest territory continues to be rapid and exciting.

Looking west, we have three comprehensive land claim agreements covering nearly half of the Northwest Territories. We have seen the recent opening of Canada's first diamond mine. Each day we move closer to realizing the start up of a second mine. Increasing demand and favourable economies are driving the exploration of significant oil and gas potential. The recoverable conventional oil potential in the Beaufort Sea and Mackenzie Delta region alone compares to that remaining in Alberta.

Canada, Aboriginal organizations and the Government of the Northwest Territories are discussing devolution, trying to put government-to-government-to-government principles to work in a very practical manner which will safeguard the rights and concerns of everyone around the table and the people they represent.

In the Yukon, we continue to pursue advanced devolution discussions. We are working towards a modern government-to-government-to-government relationship based on a comprehensive and inclusive approach to developing governance structures, to sharing resources, to building the economy and to managing the environment.

My department is an integral part of the daily lives of northerners and has a strong role to play in supporting the economic, social and political development of the territories.

There's no question that as we try to design this modern relationship, balance the past with the future and meet economic challenges – we have our work cut out for us. All the more so because a large number of Canadians simply are unfamiliar with First Nations and their aspirations. Which brings me to the need for public education -- really a priority for me that cuts across our work in all of the areas I have already talked about.

Across Canada, it is our challenge to explain such things as why we are morally and legally obligated to settle outstanding claims. To honour the treaty relationship. To clear up damaging myths so that people understand that First Nations people and Inuit are contributing members of society.

As we do that, it is absolutely critical that we demonstrate that First Nations governments are good governments, run on sound principles and accountable to the people they represent.

We need a certain level of comfort among Canadians, so that they understand what we are doing and why. But I believe that if we work in an open and transparent way, and Canadians see the value of certainty in a modern relationship, they will support what we need to do.

Dealing with the past. Looking to the future. Facilitating capacity development of First Nations and Inuit governments and administrations. Creating an Aboriginal economy. Modernizing the Indian Act. Creating a modern treaty relationship. Supporting the development of Canada's North and informing and educating Canadians. These are the priorities I see that we can share with Aboriginal people.

And so what will be the outcome of our work together if we focus on these priorities?

We will see healthy Aboriginal communities which have been able to heal, to come to terms with the legacy of residential schools and other wrongs of the past.

There will be an understanding among Canadians that Aboriginal governments can and should be judged by the same standards as every other government in Canada – not any less critically, but not any more so either.

We will deal with thriving Aboriginal businesses which are able to get bank loans, leverage their capital and attract investment partners.

There will be national certainty as a result of the resolution of all outstanding land claims of all kinds.

We will see the eventual end of litigation that pits governments against Aboriginal people.

There will be a recognition that the aspirations of Aboriginal people are not a threat, but rather they want what other Canadians already have: a roof over their heads, good health, employment and a bright future for their children. And, so it follows that what is progress for Aboriginal people is progress for the country as a whole.

This is the future that I can see, from afar. It's true that we have a long way to go. But it's by firmly setting our sights on what we hope to achieve as politicians, as leaders, and as citizens that we will get there.

I hope that you will give some thought to how and where you and your colleagues and constituents can be part of this undertaking. Our work is as urgent as it is important because we are shaping the face of our country for generations to come.

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