National Day Of Audit

<e-notes> from [email protected] 13 July 2007 Edition

Facing Up To A “National Day of Audit”: Mr. Prentice Meets The Truth Squad A Four Arrows Report

The Backlash Begins The Canadian public seemed to understand the situation. Various polls were announced. On justification: Canadians who believed the National Day of Action was justified: 76% Canadians who believed disrupting tourists’ travel plans was justified: 8% On results: Canadians who believed the government should deal with First Nations poverty, land claims, etc: 83% Canadians who believed the government would actually deal with poverty and claims: 7% Two conclusions might be drawn: 1) Canadians believe First Nations are justified in their demands, so long as their respective lives are not disrupted; 2) there is a democratic deficit in Canada. The Day of Action had scarcely begun, however, when the backlash began. Columnists fretted about taxpayers having already paid too much. Worried that First Nations would have “to be supported forever”. Suggesting that if Indian men stopped beating their women and got a job, all problems would disappear (automatically assuming that all perpetrators of violence against First Nation women were First Nation men). There was little demonstration that Canadians understood how the current situation came to be, nor why there is poverty, nor how to get themselves out of the mess which colonialism has created for everyone. Once the protests, rallies and speeches had faded away, those militant forces who specialize in defending the thrust of Western Civilization and ensuring that Indians pay taxes resumed their

– thanks to Sun Media

campaign at an even higher volume. One of the strongest themes is expressed in the above cartoon, based on two myths that are perpetuated like urban legends, acting on otherwise rational minds like viruses act on computers they infect. First myth is that “natives receive billions”, second myth is that the poverty which exists despite the funding is caused by corruption of “chiefs”. First Nations can expect that when Parliament resumes in October and reactionary thinkers return from vacations once again have time on their hands, the call for “change” will resume more forcefully. It is foolhardy to believe that the Day of Action alone will result in meaningful change. June 29 has kickstarted the change process, but only sustained action will keep its energy going and make real change happen.

The National Day of Audit: Mr. Prentice Meets The Truth Squad an informative <e-note> by 13 July 2007 Edition

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So, we are still $2.1-billion short in accounting for the $9.1-billion mentioned by Mr. Prentice. Only Mr. Prentice can provide the answer as to what went into his numbers. The accounting doesn’t stop here, however. As the following facts show, a significant amount of spending “on Indians” goes to paying legal obligations, damages, settlements, court orders. Then there is the question of funds spent on “public services”, meaning the same kind of services Canadians take for granted.

Myth-blasting: The Truth Squad At Work This edition of <e-notes> is dedicated to providing facts to challenge the $9.1-billion myth. This is not easy sledding. But stick with it, and you will have the facts. In 2005-2006, the federal government spent $209-billion. How much of that went to Ukranians? How much to Indonesians? to Germans? No one knows. But everyone knows how much is set aside for “Indians”. Or do they? The Minister of Indian Affairs should know, but his figures vary from week to week, and even then don’t seem to add up right. So this essay is an effort to get to the bottom of the issue – with the facts. The way it works is that the Government prepares a Budget. This is translated to Estimates – the amount each Minister will put before Parliament for its approval. At the end of the year, the Department tables its “Public Accounts”, showing how much money was spent. The last Public Accounts is for 2005-2006. The accounts for the past fiscal year will be published in September 2007.

Where was the $9.1-billion spent? So let’s add up the tab. Let’s start with the $9.1-billion claimed by the Minister as mentioned above. In 2005-2006, the Department of Indian Affairs received only $5,831,111,000 – that’s $5.8-billion. Other Departments with “aboriginal spending”: Health $1,100-m Fisheries $ 71-m Public Security $ 66-m Heritage $ 40-m Industry $ 37-m CMHC $ 7-m Justice $ 7-m Environment $ 1-m TOTAL $1,229-m

There is also the question of value for Ottawa-designed programs, costs for operations and administration. But you be the judge. Check out the facts. How Did Indian Affairs Spent Its $5.8-billion? Back to the $5.8-million spent by DIAND:. $345-m went to pay the hired help, and $40-m for transportation for said hired help . $5-m for “information” $183-m for professional and special services $11-m for rentals $8-m for repair and maintenance $3-m for utilities, materials, supplies . $4-m acquisition of land, buildings and works $23-m acquisition of machinery and equipment $64-m on “other subsidies and payments” That leaves $5.1-billion for transfer payments “to finance programs and services for aboriginals”, to quote the Minister. On to that goes $700m in non-transfer expenses.. Strangely, the total is less than the $6,016,447,000 Parliament had authorized. That means $155-m in funding “lapsed”, meaning it was money Mr. Prentice sent back to add on to the huge federal surplus. What did the $5.1-billion buy? Here’s a partial list: $36-m in loans to native claimants to advance their claims against the government, and $43-m in loans to B.C. First Nations to support participation in the B.C. Treaty Commission process – but this will be paid back, right? Shouldn’t count it, then. Hardly seems worth mentioning $71,522 for Mr. Prentice’s bonus for being a Minister, topping up his M.P. salary and providing a car allowance – but something to remember just the same, right? All of $2-million in loan guarantees made to Indians for housing and economic development – but probably that comes back too, right?

The National Day of Audit: Mr. Prentice Meets The Truth Squad an informative <e-note> by 13 July 2007 Edition

Treaty money! How much do you think Canada pays annually for all the land across the contintent made available for immigration and settlement through the Treaties? $1,827,267. Good deal for Canada, eh? One big-ticket item is the $160-m paid to settle legal obligations from claims. Can’t be counted as a “benefit”, however, right? That’s just paying your damages.

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So let’s look at the program expenditures. (Note Indian Affairs distinguishes between “administration” and “operating costs”, meaning money to administer the operating costs and the transfers is not counted as “administration”). The grand total is $$700-m in “operating costs”, and $5.1 in transfers.: “Governance”: Indian Affairs used $6-m for operating expenses, $70-m in transfer payments.

$9-m paid as compensation paid to native claimants for resource royalties. Really neither an expense nor a “benefit”.

“Institutions”: $36-m operating, $454-m in transfer.

Plus another $36-m paid to the Nunavat government for implementation of the Labrador Inuit Claims Agreement Act. Can’t call it a benefit” when it’s just paying the bills..

“Healthy Northern Communities”: $49-m for operating, $48-m in transfers as grants to the Governments of NWT and Nunavat for health care of Indians and Inuit.

Contributions to DIAND employee benefit plans: $52m. Band employees get 12.5% benefits, DIAND employees 20%. Amounts received by chiefs and councillors as benefits: $0.

“Northern Land and Resources”: $128-m operating charge, $37-m in transfer payments. Aboriginal $$??

“Cooperative Relationships”: $63-m for operating, $66-m in transfer payments.

“Northern Economy”: $2-m in operating, $14-m in transfers. Another “non-aboriginal charge”. “Managing individual affairs”: $11-m for operating, $9-m for transfer payments “Canadian Polar Commission: $1-m operating costs. Another non-benefit to take off the tab. “Education”: $106-m operating, $1.6-billion in transfer payments. “Social Development”: $76-m operating costs, $1.3-b in transfer payments “Certainty of title and access to land and resources”: $16-m in operating costs, $8-m in transfers.. “Responsible Federal Stewardship”: $7-m in operating costs, $16-m in transfers.

– photo by Fred Chartrand, Canadian Press Indian Affairs Minister Jim Prentice at a news conference on Parliament Hill on the National Day of Action 2007.

There’s the $3-m Indian Affairs was ordered to pay out by courts. Can’t count that either, right? Loans to native claimants for the prosecution of their claims: $22-m, but that that’s a loan, not an expense. And in addition the $29-m loaned to B.C. First Nations to participate in the B.C. Treaty Commission process. Has to be paid back – can’t be counted as a “benefit”.

“First Nations Governance over land, resources, and the environment: $33-m in operating, $54-m transfers. “Economic and employment opportunities for Aboriginal people”: $6-m operating, $62-m transfers. “Access to Capital and Economic Development”: $41m in operating costs, $461-m in transfers. “Community infrastructure”: $97-m operating, $1.0billion in transfer. “Office of the Federal Interlocutor for Metis and NonStatus Indians”: $8-m in operating costs, $28-m in transfer payments. $360,640 for employee benefit plans alone! Indian Claims Commission: $7-million in operating. Costs of adjudicating past wrong-doing? Hardly an “aboriginal benefit”, inquiring about past wrongs..

The National Day of Audit: Mr. Prentice Meets The Truth Squad an informative <e-note> by 13 July 2007 Edition

A Brief Statement On Federal Obligations For Funding First Nations When the Treaties were signed, neither First Nations nor Governments assumed that First Nations would ever become dependent upon “taxpayers’ money”. The promises were clear: First, land taken up for immigration and settlement would be sold to settlers; the funds would be invested, and an annual annuity would be paid; initially the amount would be $5 per capita annually was set increasing as the fund increased. Second, First Nations people would continue to have access to non-settled lands to pursue their normal economic activities. Third, lands would be set aside for farming, and economic assistance would be provided to develop the agricultural economy. Fourth, First Nations would continue to participate in the use of natural resources to at least provide a comparable standard of living to their people.

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TRANSFER PAYMENTS: M ORE THAN Y OU EVER W ANTED TO K NOW Grants Governance Grants to “representative status Indian organizations” to support their administration: $5,587,456. Examples: Nishnawbe-Aski Nation $189,511; Union of Ontario Indians $232,372. Institutions Grants for band support funding: $138-m. Examples: Alexis Creek $302,020; Batchawana $403,800; Birdtail Sioux $254,854; Burns Lake #109,217. Grants to Yukon First Nations pursuant to individual selfgovernment agreements: $41,734,600. Example: Nacho Nyak Dun First Nation $1,807,758. Grant to the Sechelt Indian Band pursuant to the Sechelt Indian Band Self-Government Act: $4,076,830. Grant to the Miawpukek Indian Band to support designated programs: $8,723,000 Grant to self-governing aboriginal organizations, pursuant to comprehensive land claim agreements, self-governing agreements, or treaty legislation: $51,291,829. Examples: Nisga’A Nation $40,155,001. Nunatsiavut, Labrador $9,497,277. Tlicho $1,639,551. Grant to the Westbank First Nation to support implementation of the Westbank First Nation SelfGovernment Agreement $3,886,558

The failure of past and current generations to keep those promises has directly led to the requirement that the federal government use its financial resources to pay costs.

Certainty of Title and Access to Land Amount available to settle specific claims: $67-m. Amount actually spent to settle specific claims: $3-m.

If there were a return to treaty-based fiscal arrangements – including resource revenue sharing – and paying off the accumulated social deficit caused by past failure to comply with obligations,

Grants for settlement of treaty land entitlement claims in Saskatchewan and Manitoba: $2,074.

a) First Nations would no longer be “dependent”, b) “taxpayers”would no longer have to pay, c) First Nations people would have, on average, a standard of living at least equal to that of Canadians.

Examples: CarryTheKettle Band $966k Cowessess $$2.1-m

Grants to the Saskatchewan Association of Municipalities for the payment to rural municipalities for the loss of their tax base as a result of treaty land entitlement claims in Saskatchewan: $757,518. Grants to the Province of Saskatchewan for the payment of school districts for the lost of their tax base as a result of the settlement of treaty land entitlement claims in Saskatchewan: $890,312. Social Development Grant to provide income support to indigent on-reserve residents: $8-m. Examples: Ashern Personal Care Home $101,592; Regina Help Homes $127,511.

The National Day of Audit: Mr. Prentice Meets The Truth Squad an informative <e-note> by 13 July 2007 Edition

Education Grants to Indians and Inuit to support their post-secondary educational advancement: $776,362 Grants to Inuit to support cultural advancement: $43,215. Grants for Mi’kmaq education in Nova Scotia: $29-m. Northern land and resources Grants to Association of Canadian Universities for Northern Studies for coordinating the northern scientific activities of Canadian universities: $76,000. Grant of award to the person judged to have made outstanding contribution to northern science: $4,500. Access to capital and economic development: (Legal Obligations, not “benefits”): Amount available for grants to Indian bands to settle specific claims. $60-m. Amount spent: $40-m. Examples: Alexander Band: $12-m; Big Grassy $2-m; Kahkewistahaw $8-m; Onigaming $2-m; Siksika $14-m; Songhees $1.2. Grants to beneficiaries or implementing bodies of comprehensive land claims agreements or settlements: $51-m. Examples: Carcross/Tagish $14-m.

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CONTRIBUTION AGREEMENTS (note that unlike grants, contribution agreements are tied to heavy accountability requirements, can only be used for stated purposes, etc.] Governance Contributions to support the building of strong governance, administrative and accountability systems: $16-m. Examples: National Centre for First Nations Governance, Chilliwack $2.3-m; Aboriginal Financial Officers Assn. $625,000; Centre for Indigenous Environmental Resources $1-m; Federation of Canadian Municipalities $262,500;. University of Saskatchewan $720,865 Contributions for the purpose of consultation and policy development: $47-m. Examples: Assembly of Manitoba Chiefs $6.5-m; Federation of Saskatchewan Indians $3.3m; Congress of Aboriginal Peoples $428,250. Indian Taxation Advisory Board $4.5-m. AFN $10.2-m; NWAC $523,950; Institutions Contribution to the Cree-Naskapi Commission: $773,158 Contributions to the Province of Newfoundland and Labrador for the provision of programs and services to native people: $6-m.

Grants to aboriginal organizations designated to receiving claim settlement payments under comprehensive land claims settlements: $160-m. Examples: Sahtu Secretariat $10-m; Nisga’A $12-m. qqq

Contributions to support Indians, Inuit and Innu for the purpose of supplying public services in Indian governmental support: $198-m.

Payments to Pikani Nation/Canada/Alberta Settlement Agreement: $3-m.

Contributions to the Inuit Art Foundation for the purpose of assisting Inuit Artists and artisans in the development of professional skills and marketing of their art: $458,000.

Grant to the Government of the NWT to facilitate implementation of comprehensive land claim agreements: $1,660,000. Grant to the Chippewas of Kettle and Stony P:oint Band pursuant to the Seniors Compensation Advance Payment Agreement: $0. ($525,000 budgeted and not spent). Payment to the Rainy River First Nation in settlement of a special claim: $37-m. Grant to support the Deh Cho First Nation under the outof-court settlement agreement: $0. ($5-m budgeted and unspent.) Community infrastructure Grants to the beneficiaries of comprehensive land claim agreements or comprehensive land claims settlements: $78-m. (legal obligation, not “benefit” ) Grants to students and their chaperons to promote fire protection awareness to band schools: $7,725.

Payments to support Indians, Innuit and Innu for the purpose of supplying public services in capital facilities and maintenance: $233,479 Contributions to support the building of strong governance, administrative and accountability systems: $703,500. Cooperative Relationships Contributions to native claimants for the preparation and submission of claims: $9-m (legal obligation $) Canada’s contribution to the British Columbia Treaty Commission and to the First Nation Summit for operating costs: $3-m. Funding to Native claimant entities or organizations for negotiation preparedness: $14-m. Contributions to B.C. Treaty Commission for purpose of supporting First Nations in the B.C. Treaty Commission process: $4.4-m.

The National Day of Audit: Mr. Prentice Meets The Truth Squad an informative <e-note> by 13 July 2007 Edition

Contributions to Indian, Inuit and Innu communities etc. to facilitate their participation in the negotiation of the inherent right of self-government: $17-m. Contributions to support the building of strong governance, administrative and accountability systems: $12-m Contributions to individuals, Indian bands and associations for the funding of Indian test cases $1-m. Contributions for the purpose of consultation and policy development: $3.2-m. Contributions to provincially and/or regionally-based treaty commissions: $1.8-m. Northern Governance (note: not First Nation related) Contributions to individuals, organizations and other levels of government for consultation, research, innovation, capacity building and activities related to promoting the political, economic, social and scientific development of the North: $2.5-m. Managing individual affairs Payments to Indian bands for land and estates management: $2-m. Contributions to Indian bands for registration administration (for “Indian status”) $4.4-m Education Payments to support Indian, Inuit and Innu for the purpose of supplying public services in education: $1.4-billion. Contribution to the Province of Quebec in respect of Cree and Inuit education as described in the James Bay and Northern Quebec Agreement: $94-m. Payments to support Indians etc. for the purpose of supplying public services in capital facilities and maintenance: $640,484. Contribution for the purpose of consultation and policy development: $817,000. Social Development (sic) Payments to support Indians, Inuit and Innu for the purpose of supplying public services in social development: $1.3-billion.1

1

Essentially, this is for social assistance which is paid according to provincial standards to all people in Canada who qualify. The only difference is that Indians on reserve receive lower amounts of assistance than off-reserve.

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Healthy Northern Communities Contributions to individuals, organizations and other levels of government for the purpose of promoting the safe development and conservation and protection of the North’s natural resources: $4.4-m Certainty of Title and Access to Land and Resources Contributions to First Nations in the B.C. Treaty Process, their organizations, the Province of B.C., and third parties for treaty-related measures: $2.4-m. Responsible Federal Stewardship Contributions to First Nations for the management of contaminated sites: $7-m. Contributions for the purpose of consultation and policy development: $2.2-m Contributions to Indian bands for land and estates management: $3.1-m. First Nations Governance over Land, Resources, and the Environment Contributions to Indian Bands for land and estates management: $12.1-m. Contributions to implement the First Nations Land Management Act: $8-m. Contributions to support Indians, Inuit and Innu for the purpose of supplying public services in Indian government support: $1.3-m Contributions for resource development: :$1.7-m. Northern Land and Resources Contributions to individuals, organizations, and other levels of government for the purpose of promoting the safe development, use, conservation and protection of the North’s natural resources: $33-m Contributions to the beneficiaries and various implementing bodies for the purpose of implementing comprehensive land claim settlements: $1.6-m Economic and Employment Opportunities for Aboriginal People Payments to support Indians, Inuit and Innu for the purpose of supplying public services in economic development: $62-m. First Nations Finance Authority, Kelowna $1-m. National Aboriginal Capital Corporation Association $1.1-m Access to Capital and Economic Development Contributions to the beneficiaries and various

The National Day of Audit: Mr. Prentice Meets The Truth Squad an informative <e-note> by 13 July 2007 Edition

implementing bodies for the purpose of implementing comprehensive land claim settlements: $39-m. Examples: Mackenzie Valley Environmental impact Review Board $4.1-m; Nunavat Wildlife Management Board $4.4-m. Payments to support Indians, Inuit and Innu for the purpose of supplying public services in economic development: $93-m. Contributions to First Nations in B.C. treaty process for treaty-related measures. $1.15-m Community Infrastructure Payments in support of Indians, Inuit and Innu for the purpose of supplying public services in capital facilities and maintenance: $939-m. Northern Economy Contributions to territorial governments in relation to regional development and infrastructure projects: $14-m. Office of the Federal Interlocutor Federal Interlocutor’s contribution program: $15-m Urban Aboriginal Strategy: $13-m. Unused: $2-m. Settlements of Grievances, Litigation Swampy Cree Tribal Council $44,799; Rent review settlement for loss of revenue Cowichan Tribes $300,000; Debendmang Manitoulin Native Lands Development $70,000; Hupacasath expropriated land $25,000; Settlement of claim for disruption to traditional lifestyle $155,000; Land Dispute settlement (name withheld) $1-m, Improper Use and Occupation of Katlodeeche First Nation land $100,000. Court Ordered Payments Roger William and the Xeni Gwet’in: $1.8-m +, Settlement of Timber Rights Whitefish Lake Band of Indians $350,000

LOSSES OF PUBLIC PROPERTY DUE TO AN ILLEGAL ACT Stolen Blackberry from an employee $500; loss of laptop $1,870; vandalism to vehicle $3,081; loss of pencil sharpener $10. Theft of palm pilot $300; of cell-phones $550; camera $670, 3 GPS $3,600; equipment bag $27; overalls $38; rain pants $43; flashlight $22; taxi chit $5, 8 laptops $19,203.

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SUMMARY BY PROGRAM ACTIVITY 1) Education $1,514-m 2) Social Development $1,276-m 3) Community Infrastructure $1,017-m 4) Access to Capital and Economic Development $461-m 5) Institutions $454-m 6) Governance $70-m 7) Cooperative Relationships $66-m 8) Economic Development, Employment $62-m 9) First Nations governance over land, resources $54-m 10) Healthy Northern Communities $48-m 11) Northern Land and Resources $37-m 12) Office of the Federal Interlocutor $28-m 13) Responsible Federal Stewardship $16-m 14) Northern Economy $14-m 15) Managing Individual Affairs $9-m 16) Certainty of Title and Access to Land, Resources $8-m 17) Northern Governance $3-m TOTAL: $5,136-m

INDIAN AFFAIRS REVENUES Esso Ltd - Norman Wells Project profits Return on investments Sales of goods and services Royalties from Mining Miscellaneous Oil & Gas Royalties Return on loans and advances

$132-m $143-m $93-m $78-m $37-m $15-m $10-m

SUMMARY BY MAJOR FUNCTION Elementary/Secondary Education Social Maintenance Capital Facilities and Maintenance Social Support Services Indian Government Support Housing Economic Development Lands and Trust Services Program Management and Administration Corporate Policy Self-Government TOTAL Claims GRAND SEMI-TOTAL Northern Affairs Administration Territorial Transfers GRAND GRAND TOTAL

$823-m $655-m $572-m $355-m $294-m $138-m $67-m $65-m $42-m $20-m $18-m $3,277-m $279-m $3,556-m $158-m $35-m $1,193-m $5,009-m.

The National Day of Audit: Mr. Prentice Meets The Truth Squad an informative <e-note> by 13 July 2007 Edition

WHERE DID THE CASH GO? Contracts Office of Indian Residential Schools Legal Services $16,448,090 Public Works and Government Services $2,958,596 Cassels Brock Blackwell, Toronto $314,594 Donlevy & Co., Saskatoon $301,250 Klosky Minsky, Toronto $254,405 Lavery,. De Billy, Montreal $213,240 Merchant Law Group, Saskatoon $219,755 Torys, Toronto $1,600,000 Legal fees accrued for settlement agreement $10,000,000

Joan Holmes & Associates Miramar Mining Corp, Yellowknife N12 Consulting, ottawa PriceWaterhouseCoopers Public History, Ottawa Sierra Systems Group, Ottawa Stratos, Inc., Ottawa Terriplan Consultants, Yellowknife Timothy J. Christian, Q.C., Edmonton

$1,432,819 $547,073

Non-Professional Contracted Services Excel Human Resources, Ottawa Maxsys Professionals & Solutions

$1,632,719 $566,476 $298,216

Other Business Services Public Works and Government Services

$1,954,902

Other Professional Services Public Works and Government Services

$17,423,225 $14,718,599

Indian Affairs and Northern Development Informatics Accenture, Toronto CGI Information Services Coradix Technology Consulting Donna Cona, Inc. Information Management and Technology

$1,441,121 $1,742,705 $1,261,985 $5,865,636 $1,007,591

Legal Services Justice Canada $34,342,382 Miles, Davison, McCarthy Mcniven, Calgary $2,187,770 Ogilvy Renault, Toronto $537,119 Other Professional Services AJJA Information Technology, Ottawa Thomas Berger, Vancouver Bmb Consulting Services, Ottawa Brain hunter, Ottawa Canadian Development Consultants Deloitte & Touche, Toronto La Diamonds International, Yellowknife Donna Cona Heenan Blaikie, Montreal IBM Business Consulting Services

$779,826 $422,883 $907,337 $427,230 $919,606 $14,147,193 $2,076,763 $1,671,862 $535,899 $803,389

$1,210,936 $1,125,000 $617,262 $1,302,823 $1,568,060 $1,020,795 $542,396 $1,414,348 $460,194

Population Data 31 Dec 2004

Informatics Spearhead Management Canada

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Atlantic Quebec Ontario Manitoba Saskatchewan Alberta B.C. Yukon NW T TOTAL

On-Resere Off-Res

Total

18,683 11,714 48,329 20,237 80,802 82,852 74,577 43,833 59,072 58,059 61,549 32,873 58,470 59,488 3,872 4,110 11,068 5,038 416,422 318,204

30,397 68,566 163,654 118,410 117,131 94,422 117,958 7,982 16,106 734,626

On Reserve 61% 70% 49% 63% 50% 65% 50% 49% 69% 57%

Historic On-Reserve Population 1996 347,586 Annual Increase 1997 358,906 3.3% 1998 368,720 2.7% 1999 377,563 2.4% 2000 384,861 1.9% 2001 389,660 1.2% 2002 396,408 1.7% 2003 402,700 1.6% 2004 408,464 1.4%

DEBTS WRITTEN OFF Indian Economic Development Guarantee Loan Program ($101,572) and On-Reserve Housing Guarantee Loan Program ($253,667).

The National Day of Audit: Mr. Prentice Meets The Truth Squad an informative <e-note> by 13 July 2007 Edition

By the Numbers on Housing 89,100 80,443 8.657

Number households 1996-1997 Number of houses 1996-1997 Families without houses 1996-1997

119,300 96,804 22,496 22,496

Number households 2004-2005 Number houses 2004-2005 Families without houses 2004-2005 Houses Promised, Kelowna Accord

$163.2-m Allocated for housing 1996-1997 $128.2-m Allocated for housing 2004-2005 2,487 1,875

Housing units built 1996-1997 Housing units built 2004-2005

$30,000 $30,000

Amount allocated per house Amount allocated for serviced lot

Indian Affairs Loans To Be Collected Loaned to various native claimants: $375-m to participate in resolving their claims: First Nations in British Columbia: $309-m to participate in the Treaty Process Council of Yukon Indians: $10-m advanced to elders on claims settlement Indian Economic Development Guaranteed Loan Program: $9-m ($60-m maximum authorized) On Reserve Housing Program Guarantees: $6-m ($1.7-billion authorized) Stony Band Perpetual loan $389,616

By the Numbers on Capital Projects Atlantic Region for Next Five Years $64-m needed for water, sewers, schools, etc. $25-m available for water, sewers, schools, etc. Quebec Region for Next Five Years $50-m upgrade water plants to meet standards $25-m upgrade treatment plants to meet standards $60-m create new community of Kitcisakik Ontario Region for Next Five Years $150-m to recapitalize 25% of water plants $40-m Attwapiskat schools B.C. Region for Next Five Years $90-m shortfall in new subdivisions $76-m for erosion mitigation, $5-m available $155-m for flood mitigation, $10-m available $20-m shortfall in school construction money Manitoba Region for Five Years $45-m for housing subdivision servicing $25-m infrastructure for new Marcel Colomb $120-m construction high-priority schools $112-m upgrade wastewater treatment plants $166-m upgrade water treatment plants $1,659 per capita capital expenditures, 1996-1997 $1,225 per capita capital expenditures, 2004-2005 6.7% of asset replacement value spent 1996-1997 3.9% of asset replacement value spent 2004-2005

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The National Day of Audit: Mr. Prentice Meets The Truth Squad an informative <e-note> by 13 July 2007 Edition

THE COST DRIVERS: THE BIGGER PICTURE The 2% Cap: The Busting Point Is Close At Hand Since 1996, Indian Affairs and Health Canada have been operating under an imposed cap of 2% annual growth in expenditures. That artificial limit is in no way related to “need”, and it certainly does not match population growth, not to mention inflation or real costs or accumulated backlogs from fiscal neglect. . The conclusion can be drawn that at least a part of the huge surpluses being enjoyed by the federal government for many consecutive years have been derived at the expense of First Nations people. In 1996, First Nation population was about 600,000. By 2001, it was at the 700,000 mark, near 800,000 by 2006 – consider just the new classrooms required! The projections show a similar rate of growth for the foreseeable future. So Where Do Things Stand Now? Concerned about the situation, the Department of Indian Affairs did a study on all the factors which were driving cost increases, and then compared the projection of costs with the 2% cap. The Minister of Indian Affairs was presented with the dramatic picture. Cabinet got the warning of the consequences which were coming. But the last federal budget had no good news for First Nations. The annual shortfalls are startling: elementary/secondary basic education: $80-m post-secondary education $100-m income assistance $90-m child and family services $70-m capital (infrastructure) $300-m facilities operating and maintenance $40-m on-reserve housing $120-m Indian Government support $70-m Regulatory Services $113-m Other: Assisted Living, Economic Dev., etc. $50-m TOTAL $1,033-m Some of these shortfalls simply cause suffering in daily life. Others cause secondary problems in health, unemployability, etc. Still other shortfalls are cumulative, such as infrastructure and on-reserve housing. Year 2

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doubles the amount, year 3 triples it, etc., as an accumulated backlog that just won’t go away. Capital for Community Infrastructure: water and sewage systems, roads and bridges, waste dumps, fire protection, schools, residences for teachers. It all costs money. Estimates are there is $13-billion of capital stock on reserves (replacement value) – just to maintain current value with 5% annual depreciation would cost $636-m! Problem is that DIAND believes it really has no legal obligations in this area, so the kitty is constantly robbed to finance under-funded programs such as child and family services – $296-m in 2004-2005, $293-m in 2005-2006. Start of the year estimates look rosy – but check out the actual expenditures. DIAND spends less now than it did a few years back. Look at the shortfall in Manitoba alone – $637-m already on the essential wish-list. $40-m for technical;/vocational schools; $40-m for airstrips, $50-m for reserve roads, $166-m to fix water treatment plants; $112-m for wastewater treatment, $120-m for high-priority schools, $45-m for subdivision servicing. Short-term fix: Parliament should demand that money it allocates for capital programs is spent on capital programs, while providing adequate funding for noncapital programs. Increase funding at least 5% annually, the amount Statistics Canada calculates for construction price increases. Projected Capital Needs: Reserve communities are growing, not only by population increases, but becauo se more members are going back home than are leaving. It’s easy to project how many kindergartens will be needed four years from now – just count the kids, and start construction planning today. Capacity required for water plants for the next 10-15 years can similarly be calculated. One minimal estimate of capital costs for 2005-2006 was $799-m; amount actually expended $505-m = shortfall of $293-m. Short-term fix: an independent study should be published annually setting out reserve capital needs for the next ten years so Parliament can make an appropriate allocation. Facilities/Infrastructure Operation and Maintenance: Currently $32-m is allocated for operations and maintenance of on-reserve infrastructure. Often allocations are inadequate: $2,464 annually to operate a community’s refuse site. Funding for water and sewage facilities would not cover 1980 costs. There is an annual shortfall of $82-million.

The National Day of Audit: Mr. Prentice Meets The Truth Squad an informative <e-note> by 13 July 2007 Edition

Short-term fix: An independent study should determine actual costs and annual increments to maintain at least provincial standards. Parliament should then allocate these amounts. Housing: There are 96,804 homes on reserves. The are 119,300 families needing homes: that’s an accumulate shortfall of 22,496. Housing expenditures have actually been declining. The 2004-2005 expenditure of $128-m is 22% less than that for 1996-1997. In 2004-2005, only 1,255 net new units were constructed. 3,800 new families are formed annually on reserves, but only 1,755 new houses are constructed. Unemployment and existing poverty means the annual shortfall can not be met by individual efforts. The Department’s recent “get a mortgage” housing splash is pure conservative economic theory and not workable in practice. The policy that providing $30,000 as “assistance” to build a home will cover the need for social housing is complete folly. Short-term fix: Parliament should commission an independent study to determine the actual need and projected need for social housing on reserves across Canada, and start out on a ten-year plan to meet those needs. Policy should be that everyone should contribute to their housing needs according to their ability to do so – and the balance should be covered. Current policy that “residents must secure other sources of funding to make up the shortfall in what Parliament provides is unreasonable and unworkable. Post-Secondary Education: Post-secondary education is considered to be one of the more effective means of eliminating the gap in life chances between First Nations youth and Canadian youth. DIAND has two programs – one to provide support for post-secondary studies, another to provide tuition, books, travel and living allowances for students to prepare for college entrance. A fixed amount is allocated, averaging out to $11,390 annually per student – currently there are 24,316 students. Increased costs means that over four thousand fewer students are studying today as compared to the 14% in 1996-97. A

Loans Guaranteed By Government Parliament has authorized the federal government to guarantee up to $1.7-billion in mortgages for onreserve housing. The current contingent liability for CMHC loans is $595-m, for other lenders $752-m. $350-m remains unused. It also has $300-m outstanding in the Off-Reserve Aboriginal Housing Trust.

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large portion are “mature students” rather than youth. $21m annually also is provided to existing institutions for programs to address special needs of Indian students. Despite youth population growth, number of students supported has decreased 9% over the last ten years. Short-term fix: Make it possible for existing funds to be leveraged to get corporate contributions. Adopt a policy that no qualified student is without studies, but tie continuing funding to results. Automatic 3% annual cost-of-living increase. Elementary/Secondary Education: This involves over a hundred thousand on-reserve students. Annual increase in educational costs is 4.7% annually, but Indian Affairs funding increases only 2% annually. Currently, $6,150 is provided for a reserve student’s education, $8,211 for a provincial school student. Over the last ten years, provincial per-student costs have increased 24%, reserve schools 10%. Increased fuel costs for school buses means less money in classrooms. All this means a decrease in quality of education for reserve students as compared to provincial students. The per-student expenditure for reserve schools grows less than half as compared to perstudent expenditures in provincial schools. This is without considering the need for First Nation language and cultural education, remedial programs, nutrition programs, extra-curricular programs such as sports and recreation, and after-school programs that enhance the educational experience. The on-reserve student population growth over the last ten years would require 420 new classrooms. Short-term fix: at a minimum, automatically First Nation schools should receive as much as comparablylocated provincial schools. An independent assessment should determine additional costs required to cover catch-up and enhancement costs .

Indian Residential Schools Resolution $159,186,000 Amount to staff: $17-m Transportation and communication $4-m Information $2-m Professional Services (lawyers, etc.) $39-m Transfer payments (settlements?): $46-m Subsidies & payments: $48-m Everyone agreed this is not to be counted as a “benefit”??

The National Day of Audit: Mr. Prentice Meets The Truth Squad an informative <e-note> by 13 July 2007 Edition

Indian Band Funds – Capital Accounts In 2005-2006, Indian Affairs was holding over a billion dollars in a Capital Account. During the year, the account received $26-million in oil royalties, $218-million in gas royalties. There was another $16-m in miscellaneous receipts. $516-m

Social Assistance Services: if you can’t work and you need help, on average an Indian on a reserve will receive 50% less services than a nearby neighbour in similar circumstances – for example, help to look for or prepare for employment. As for shelter allowances, there is a shortfall of $105-m compared to provincial standards – this is money for First Nations to maintain social housing rented to social assistance recipients. Short-term fix: Parliament should immediately provide at least provincial equivalent funding Regulatory Services: Some one has to do it. There are the costs of land registries, keeping track of who has “status” and who doesn’t, and doing environmental assessments. DIAND estimates when a hundred hectares of land is added to a reserve, it costs $4200, and the Land Registry is already underfunded, with millions of acres of Treatypromised land waiting to be added. Ordinary standards are not met. This is a major strategic risk for the government. The Department is not adequately funded to fulfill environmental monitoring and compliance obligations under federal legislation and policies – not to mention its legal obligations to First Nations. Right now, there are over 7,300 applicants backlogged in the status entitlement section – a two-year waiting period.. For adoptions, there are a 1,100 applicants waiting. There are 450 protests awaiting action, a ten-year waiting period. Court challenges – many of them financed by the Department – could open up re-examination of 45,000 denied applications. The passage of Bill C-44 could mean re-examination of 250,000 applications at Indian Affairs plus hundreds of thousands more in regional offices. The recent McIvor case could mean 750,000 new persons would acquire status.

First Nations Tax Collection Agreements Through agreements, the federal government collects income taxes on behalf of First Nations governments, and then turns the money over to those governments.

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Indian Band Funds – Revenue Accounts Funds produced by assets in interest or leases goes into a “Revenue Account”. There was $278-m in the account at the beginning of the year, which increased to $278i-m. The increase came from $52-m of interest the government paid into this account, and $29-m in miscellaneous. First Nations withdrew $13-m for per capita distributions, and $63-m was used for various collective purposes.

Aboriginal Healing Foundation Assets of the Foundation as of 31 March 2006 were $71-m.

Health Transfer Payments $73-m was previously authorized for the control and provision of Health services to Indian bands, associations, or groups. $28-m has been disbursed, $45-m is to be disbursed over the next four years The National Aboriginal Health Organization (NAHO) had $25-m contracted, of which $5-m is still to be disbursed.

Future Attractions A new agency, “Indian Oil and Gas Canada”, will be established as a “First Nations institution” under the auspices of the Indian Resources Council. The Act and its regulations must be amended. A new Land Registry regime to change to allow for registering property interests of individual “owners” and financial institutions holding mortgages. Changes in legislation to put third parties on a better legal footing for sub-surface mineral rights on lands selected by First Nations to settle claims. National “Additions to Reserves” Legislation coming.

The National Day of Audit: Mr. Prentice Meets The Truth Squad an informative <e-note> by 13 July 2007 Edition

Contingent Liabilities Comprehensive land claims: There are currently 74 comprehensive land claims under negotiation, accepted for negotiation or under review. A liability of $3.2-billion of lawful obligations is estimated for claims that have progressed to a point where quantification is possible. The remaining claims are still in the early stages of negotiations and cannot yet be quantified. Specific claims: There is an estimated contingent liability of $5.6-billion of unpaid lawful obligations. Litigation: The First Nations percentage of all damages which the government expects it is going to have to pay can only be roughly estimated. There are in all $9.8-billion of contingent liabilities. First Nation portion is likely to be over half the total. . Residential School Settlement: over $2-billion must be paid by the federal government.. All of these expenditures are payment of legal obligations, i.e., owed to First Nations and can in no way be considered “benefits” or “programs”.

Government Leases of Reserve Lands The federal government has a lease agreement with the Capilano First Nation. It has paid $100-m over the last ten years in annual $10-m payments.

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“NON-ABORIGINAL HANDOUTS” Those Canadians who criticize “handouts to the aboriginals” are not conscious about the “hand-out the also receive – and without having to give up any natural resources! There is Canadian Health Transfer $ provided to each province and territory to support health care. There is the Canadian Social Transfer to provinces for post-secondary education, social assistance, and social services, including early childhood development and early learning and childcare. Equalization ensures all provinces are able to maintain a satisfactory standard of public services – $6,327 per capita. Generally, although provinces receive per capita dollars from the federal government for on-reserve residents, they do not provide benefits to them. A major portion of “aboriginal funding” could be covered if the federal government would channel money in the per-capita count for First Nations to First Nations. Remember: when the federal government announces some new funding through the provinces, First Nations will be short-changed if Indian Affairs does not does not provide equivalent funding.

TAX REMISSIONS The federal government agreed not to collect, or to refund, income taxes and the GST paid or payable by Indians or bands or certain designated Indian settlements that are not yet designated as reserves. The amount not collected: $3.5-m Other remission orders were given for certain Treaty Land Entitlement settlements ($65,940), extending a 1993 remission order regarding employers’ residences ($155,758) and for Yukon Indians living on Crown lands which are not reserves ($6,841), other such settlements in Ontario, Quebec and Manitoba ($1.1-m, TLE lands in Manitoba ($64,865), to Indians and Bands on the campus of the Saskatchewan Indian Federated College ($203,120); Indians or bands at Camp Ipperwash ($103,551).

The National Day of Audit: Mr. Prentice Meets The Truth Squad an informative <e-note> by 13 July 2007 Edition

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OTHER FEDERAL DEPARTMENTS:

FISHERIES AND OCEANS: $71-m

In addition to federal funds from Indian Affairs, some other departments spend money which could add on to that spent by Indian Affairs. A significant amount was spent by Health Canada, and lesser amounts by other departments. .

Contributions to support increased Native participation in commercial fisheries, cooperative fisheries management arrangements, and consultations respecting Aboriginal fisheries agreements: $31-m.

HEALTH CANADA $1.1-billion Contributions to incorporated local or regional non-profit aboriginal organizations and institutions for the purpose of developing early intervention programs for aboriginal preschool children and their families – Head Start: $28-m First Nations and Inuit Health $1.1-billion operating, $1.4million capital. Medical travel funds: Nunavat $10-m; NWT $3.2-m, Yukon $1.6-m. Territorial Health Access Funds: Government of Yukon $6.3-m, NWT $4.3, Nunavat $4.3-m Contributions for integrated Indian and Inuit communitybased health-care services: $340-m. Payments to Indian bands, associations, or groups for the control and provision of health services $202-m. Contributions to support pilot projects to assess options for transferring the non-insured health benefits program to First Nation and Inuit control: $8-m Contributions to Indian bands, Indian and Inuit associations or groups or local governments and territorial governments for non-insured health services: $129-m. Aboriginal Health Institute Centre for the Advancement of Aboriginal Peoples’ Health: $5-m Contribution to health promotion and prevention projects and for developmental projects to support First Nations and Inuit control of health services: $32-m Construction of hospitals and other health care delivery services: $8-m There’s also $4-m for “mental health support” for survivors of Indian residential schools – but we hardly can call that a “benefit”, right?

Contributions under the Aboriginal aquatic resources and oceans management program: $12-m Contributions under Fisheries access program: $28-m.

PUBLIC SECURITY: $66-m Payments to aboriginal communities for the delivery of aboriginal correctional programs and services: $5-m. Federal-provincial “aboriginal policing” agreements: Quebec $21-m; Ontario $25-m, Manitoba $3-m, Alberta $6-m, B.C. $2-m. All-Canada total: $61-m

HERITAGE CANADA: $40-m: Preservation of Canada’s Heritage Contributions to aboriginal associations, aboriginal women’s groups, aboriginal community groups, aboriginal communications societies, aboriginal friendship centres and associations specifically representing aboriginal friendship centres: $18-m Community Development and Capacity Building Contributions to aboriginal associations, etc: $22-m.

INDUSTRY CANADA: $37-m Aboriginal Business Canada $37-m (this program transferred to Indian Affairs in 2007

CMHC: $7-m Aboriginal capacity program: $7.4-m

JUSTICE CANADA: $7-m Contributions, Aboriginal Justice Strategy Fund: $7.3-m Aboriginal Court work Program $4.8-m

ENVIRONMENT: $0.7-m Contributions for Aboriginal consultation on the longterm management of nuclear fuel waste in Canada: $738,896

FOREIGN AFFAIRS: $59K Governor-General’s Visit to Normandy, France for “Aboriginal Journey” $59,330

The National Day of Audit: Mr. Prentice Meets The Truth Squad an informative <e-note> by 13 July 2007 Edition

Congress of Aboriginal Peoples Joins Call For Audits, Doesn’t Support Day of Action Montreal, Quebec – In an interview with Beryl Wajsman, editor of The Suburban, Quebec’s largest English weekly newspaper, Patrick Brazeau made it clear that the Congress of Aboriginal Peoples did not support last Friday’s “Day of Action” called by the Assembly of First Nations. Brazeau takes a different view. He does not believe that “the closure of roads and economic interruption is the way to bring about debate, to engender public support, or to spur Canadians into socially-minded activism to address Aboriginal issues.” Brazeau also advocates a closer examination of Canada’s $10.1-billion in aboriginal expenditures to know what is working and what is not, both at Indian and Northern Affairs and on Indian Act reserves. In addition, he wants immediate steps to improve reserve governance, ensuring that accountable, transparent and responsible leadership serves the First Nations. Brazeau has consistently spread the message across the country that as much as old wrongs need to be righted to the greatest extent possible, native peoples should not imprison themselves in an attitude of total dependence on government and constant blame of the other for that resolution. He has called for a re-examination of attitudes and approaches within the Aboriginal communities as much as more efficient and effective responses from the state. He sees responsibilities going hand in hand with rights. Brazeau said that, “The respect of freedom means being able to provide compelling arguments for action to Canadian decision-makers, who can be convinced by pragmatism, moral conviction and sincere and strategic efforts, rather than through more provocative measures. We must raise the bar on debate about Aboriginal issues. And, grassroots Indian peoples must become engaged and involved in ensuring that needless and provocative protests such as these become a thing of the past.” Brazeau has called for “progress to replace politics” within native councils as well as governments. To Brazeau, one of the most serious impediments to solving many Aboriginal issues is that while Canada’s

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Constitution makes it clear that responsibility for “Indians, and lands reserved for Indians” rests firmly in the lap of the federal government, Indian Act reserve communities “…see Ottawa involved in the delivery of programming and services that are clearly the purview of the provinces, in areas such as education, health care and family services.” He believes this has resulted in a stalemate that perennially leaves Congress of Aboriginal Peoples’ aboriginal peoples as the Patrick Brazeau losers every time. But Brazeau feels that Canada as a whole, and Aboriginal peoples in particular, would be better served by everyone working in common cause in pursuit of legislative solutions, rather than “…engaging in protracted and combative measures that only sustain suffering.”