Minister Philpott Welcomes Report on a New Fiscal Relationship with First Nations


OTTAWA, ONTARIO (December 6, 2017) – Today, the Honourable Jane Philpott, Minister of Indigenous Services, welcomed the report on a new fiscal relationship between First Nations and the Government of Canada.

“Last year, Canada and the Assembly of First Nations signed a Memorandum of Understanding to develop the proposed elements of a new fiscal relationship—one that provides sufficient, predictable and sustained funding for First Nation communities. Since that time, three joint working groups have been developing options to guide us on our journey forward.

This week, National Chief Perry Bellegarde and I were presented with a report that lays out initial recommendations on a new fiscal relationship. I am pleased to receive these recommendations on behalf of the Government of Canada.

To continue the work that has begun on this new fiscal relationship, we will work with our First Nations partners to move ahead on a number of proposals, including:

•    Providing more funding flexibility to support effective and independent long-term planning. The Government of Canada is proposing to work with First Nations Financial Institutions and the Assembly of First Nations on the creation of 10-year grants for communities that are determined by First Nations institutions to be ready to move to such a system. Participating communities would commit to report to their own members on their priorities and targets and on a common set of outcomes outlined in an accountability framework.  We would aim for 100 First Nations to receive 10-year grants by April 1, 2019.

•        Replacing the Default Prevention and Management Policy with a new, proactive approach that supports capacity development. This approach would be based on current pilot projects, which are being conducted with the First Nations Financial Management Board. Earlier this year, the Government also announced an additional $24 million in each of fiscal years 2017-18 and 2018-19 for the Band Support Funding Program to assist First Nations that are in greatest need of local governance support.

•         Establishing a permanent Advisory Committee to provide further guidance and recommendations on a new fiscal relationship. Taking into account regional interests, the Committee would help shape strategic investments, propose options to address sufficiency of funding, including a New Fiscal Policy model, and could co-develop an accountability framework supported by First Nations-led institutions. This would streamline reporting mechanisms, and support First Nations in their primary responsibility of reporting to their citizens. It would also include an outcome-based framework aligned with United Nations Sustainable Development Goals, including key well-being and socio-economic markers to measure progress in closing gaps.

Together, we will continue our work to address the disparities and inequities in the socio-economic conditions between First Nations and other Canadians to create a better Canada for all.

I look forward to our continued partnership in developing a new fiscal relationship between First Nations and the Government of Canada.”

For more information, media may contact:

Andrew MacKendrick
Press Secretary
Office of the Honourable Jane Philpott

INAC Media Relations
Indigenous and Northern Affairs Canada

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