News conference announcing the Royal Assent of Bill C-27 - First Nations Financial Transparency Act

The Honourable Bernard Valcourt, PC, MP
Minister of Aboriginal Affairs and Northern Development

For delivery at a news conference announcing
Royal Assent of Bill C-27
The First Nations Financial Transparency Act

March 27, 2013

 

Check against delivery

Thank-you to everyone here today for this important announcement.

I especially want to thank my colleague, Kelly Block, the Member of Parliament for Saskatoon – Rosetown – Biggar for being here today. 

I have just returned from an excellent  - although too short – trip to Saskatchewan where I spent the day meeting with First Nation leaders, community members and youth to talk about education, economic development and how we move forward with our shared priorities. I look forward to returning there soon. 

I also want to welcome Phyllis Sutherland, from Peguis First Nation, members of her community and other First Nation communities who are here with us today, as well as Colin Craig, from the Canadian Taxpayers Federation.

Ladies and gentlemen I am pleased that on my first trip to Manitoba as Minister of Aboriginal Affairs and Northern Development I have the privilege of making such an important announcement.

Later today Bill C-27, the First Nations Financial Transparency Act will receive Royal Assent at which point it becomes law.

This Act is something that First Nation communities have long demanded.

Thanks to the tireless efforts of organizations like the CTF, and community members such as Phyllis, and others like her, First Nation communities across Canada will come to enjoy the benefits that flow from greater accountability and transparency: that is, more investment, economic opportunities, and partnerships.

These contribute to the goal we’re trying to achieve: more self-sufficient, prosperous First Nation communities.

When this bill was tabled, Chief Darcy Bear, of Whitecap Dakota First Nation in Saskatchewan stated that "transparent and accountable First Nation governments support a strong environment for investment leading to greater economic development.”

And Chief Bear knows what he is talking about. His community is an excellent example of what is possible when you have strong, accountable and transparent government.

Here in Manitoba, we have communities like Swan Lake First Nation which, under the leadership of Chief Francine Meeches, has embraced the principles of Bill C-27 to great success.

Last year, the community was formally recognized by the Institute of Public Administration and Deloitte for its sound management, beating out communities like Lethbridge, Alberta, and London, Ontario.

The community has pulled itself out of debt and used economic development to improve lives on the reserve.

Similarly, last year the Frontier Centre for Public Policy recognized Fisher River Cree Nation, which is under the capable leadership of Chief Crate, for its good governance and transparency.

Good governance has allowed the community to generate own source revenues and to invest in education. They now have one of the highest graduation rates in the province.

The First Nations Financial Transparency Act will help to encourage the kind of accountable government that leads to the sort of change we’re seeing in First Nation communities like Swan Lake, Fisher River, and Whitecap Dakota.

And yet, until this legislation was passed, First Nation governments were the only level of government in Canada that did not have some form of legislation to ensure accountability and transparency.

First Nation community members know this. That’s why people like Phyllis Sutherland, and organizations like the CTF have been calling for action.

And our Government listened. In October 2010, my colleague Kelly Block introduced a private member’s bill to “enhance the financial transparency of First Nation governments.”

While that Bill died in March 2011 due to the dissolution of Parliament, in the 2011 Speech from the Throne our Government committed to support transparency for First Nations communities by requiring chiefs and councillors to publish their salaries and expenses”.

In November 2011, we introduced the First Nations Financial Transparency Act in the House of Commons.

Today, our Government delivers on its promise to First Nation communities.

With Royal Assent, the roughly 580 First Nations operating under the Indian Act can benefit from more accountable, transparent governments.

This legislation recognizes that First Nation members want no less than other Canadians when it comes to knowing how public funds are spent in their communities. 

They want assurance that their governments manage resources to improve the lives of the people they serve.

C-27 will ensure First Nation citizens have the same democratic rights, protections, and responsibilities as all other Canadians.

First Nations are already required, as a condition of funding agreements to provide officials in my department with audited financial statements and a schedule of salary, honoraria and travel expenses for chiefs and councillors.

But that isn’t always shared with local residents, even when they ask for the information. In fact, during committee hearings, we heard stories of people being intimidated in their home community just for asking for that information.

This Act ensures these statements will now be made available to the First Nation members as well as the public through posting on a website. 

This change will not lead to an increased reporting burden – these documents are already being prepared. Now they will be prepared to the same professional standard right across the country – the one used by other levels of government.

Our ultimate goal is one recipient, one agreement and one report.  Work toward this goal has already begun through a pilot project in which several First Nations across Canada are taking part.

The participating First Nations prepare an annual report to their community and my department will now draw the performance information it needs from these reports to satisfy its own requirements to report to the Treasury Board and Parliament. 

The results of this pilot have been encouraging and as an added benefit, the participating First Nations are in an excellent position to meet the requirements under C-27.

In parallel with financial transparency created by C-27, the government is reducing the reporting burden on First Nations created by funding agreements. The year-end reporting handbook has been streamlined by 60% from previous years. This means that we are reducing the number of reports recipients must submit, including eliminating those that duplicate information we can now get from the audited financial statements that will be online.

All First Nations will now be completing fewer reports each year, beginning this year.  We intend to go even further to weed out unnecessary reporting while ensuring Parliament, Canadians and First Nation community members can evaluate the results achieved with taxpayer dollars. 

Consistency and transparency will help voters in First Nations make decisions at election time.

They will be able to make comparisons from year to year, and from community to community.

They can ask questions about spending and about revenues.

Some First Nation governments already post financial information on their communities’ websites. Some already table comprehensive annual reports to their communities.

C-27 will encourage this kind of progress right across the country.

Legislation like Bill C-27 is an essential step forward on that path. 

We can all look forward to seeing its benefits unfold in the years ahead.

Thank you.