FAQs about Devolution

Devolution is a process of transferring “province-like” powers to a territorial government from the federal government.

Though each of the territories has achieved different stages of devolution, this process has been underway since the 1950s and 1960s. Responsibilities, such as education, health care, local government, transportation, have been transferred to all three territorial governments.

In 2003, land and resource management in Yukon was successfully devolved, while the Northwest Territories (NWT) and Nunavut are in varying stages of the devolution process. Devolution processes currently under way in the NWT and Nunavut focus on the transfer of land and resource responsibilities. Consensus has been reached on the terms of a final agreement in the NWT. In Nunavut, a Chief Federal Negotiator has been appointed.

Land and resource management is considered the final significant area of “province-like” responsibility to be transferred to Nunavut and the Northwest Territories. In these territories, administration and control of public lands and resources in the territories are largely under the responsibility of Aboriginal Affairs and Northern Development Canada (AANDC). The transfer of these responsibilities to the territories would include the administration, control and management of land and rights in respect of water, which have already been devolved in Yukon.

There are typically five phases within the devolution process in Canada’s northern territories:

1. A framework agreement or negotiation protocol is outlined.
2. An Agreement-in-Principle is developed and signed by the key stakeholders.
3. A final transfer agreement is negotiated and affirmed.
4. Legislation and transition mechanisms are drafted.
5. The legislation and transition mechanisms are implemented.

Devolution is a key component within the governance pillar of Canada’s Northern Strategy. The devolution of responsibilities to territorial governments puts decision-making and accountability in the hands of those most affected by them. This has already been achieved over time in many areas, including education, health, social services and airports.

The devolution of “province-like” responsibilities to the territorial governments has been a central instrument for the Government of Canada to support greater self-sufficiency throughout the territories and is a long-standing policy objective linked to the political evolution in the territories. These transfers have strengthened the territories’ role in the Canadian Federation, making devolution an essential component of nation-building.

The outcomes of the devolution of land and resource management to the territories will allow for more decision-making among Northerners. Increased control over their economies will allow for direct investment in areas, such as infrastructure and health care, as well as decreased economic reliance on federal transfers.

After the transfer of land and resource management responsibilities to Nunavut and the NWT, the Government of Canada will still retain roles and responsibilities similar to Canada’s role in Yukon. 

The continuing federal commitment to the North includes roles in treaties and land claims, taxation, infrastructure, economic development, transportation, and other support, such as Territorial Formula Financing, major transfers and program funding.

Territorial Formula Financing is an annual unconditional transfer from the Government of Canada to each of the three territorial governments to enable them to provide their residents with a range of public services comparable to those offered by provincial governments, at comparable levels of taxation. It provides territorial governments with funding to support public services, in recognition of the higher cost of providing programs and services in the North. The TFF grant helps to fund services such as hospitals, schools, roads and social services.