Ottawa, Ontario (July 22, 2010) - The Honourable Chuck Strahl, Minister of Indian Affairs and Northern Development and Federal Interlocutor for Métis and Non-Status Indians, announced today that his department will be engaging First Nations governments and organizations in an effort to revise its policy dealing with defaults in funding agreements, commonly known as the Intervention Policy.
"We are looking to revise this policy so that it focuses on preventing problems in the management of funding agreements before they arise and not just intervening when they occur," said Minister Strahl.
Discussions with First Nation governments and financial experts as well as studies conducted by Indian and Northern Affairs Canada (INAC) revealed concerns about community well-being and development. Many First Nation communities were in intervention status and tended to remain in that status for a long time. In addition, the more serious intervention measures removed the responsibility and accountability for remedying the problem from the community.
The Department's new approach is intended to manage funding agreements in a more transparent, holistic and cooperative way. The aim is to develop a policy that will reduce the risk to the delivery of programs and services while supporting capacity development for First Nations where needed.
"The First Nations Financial Management Board is pleased to be working with INAC and others on the mutually agreed objectives of building capacity and the development of intervention prevention strategies. We actively support initiatives like this that promote financial relationships between First Nations and other governments and that are appropriate, effective, mutually beneficial and ultimately encourage economic development," said Harold Calla, Chair First Nations Financial Management Board.
INAC is currently developing assessment tools that will allow the Department to work with First Nations on prevention, capacity building and remediation activities throughout the life cycle of the funding agreement. With these tools, the Department and the funding recipient will be able to identify gaps in all areas that could threaten the financial well being of the community.
"I like the fact that funding recipients are being consulted and that capacity building is a major component to the new policy. I believe this is an excellent process that will produce an effective new Intervention Policy and tools to ensure funding recipients have the capacity and are building the capacity that is necessary to effectively manage and govern their communities and to take advantage of economic activities," stated Ernie Daniels, President and Chief Operating Officer, Aboriginal Financial Officers Association of Canada.
Through the summer, INAC will be leading a series of engagement sessions focused on obtaining input from key individuals and organizations with direct experience in financial management in First Nations communities. The goal is to have a new policy in place for fiscal year 2011-2012.
"These engagement sessions will help to ensure that the policy and implementation tools being considered are effective and appropriate," added the Minister.
For more information, please contact:
Minister's Office
Office of the Honourable Chuck Strahl
Press Secretary
819-997-0002
Media Relations
Indian and Northern Affairs Canada
819-953-1160
