FACT SHEET #1
Limited Fiscal Relations Mandate from AFN Resolutions

1. The original AFN Assembly resolution of 1996 authorized a fundamental review of the bilateral fiscal relationship. The AFN was mandated to conduct discussions with Canada based on this fundamental approach. This same kind of radical restructuring, including a significant increase federal cash transfers to First Nations, was called for by the RCAP Report.

2. It does not appear that much in terms of implementation occurred for about two years.

3. As of 1998, a handful of Assembly and Confederacy resolutions indicate that the fiscal relations unit at the AFN began to focus almost exclusively on the creation of small-scale fiscal “institutions”. The Indian Tax Advisory Board (ITAB), dedicated to the promotion of property taxation bylaws under sec. 83 of the Indian Act, worked closely with the AFN. Not surprisingly, then, the fiscal relations unit recommended, amongst other things, the creation of a Tax Commission, as a successor to the ITAB.

4. The fiscal relations unit eventually promoted three other institutions, i.e. the Financial Management Board, the Finance Authority, and the Statistical Institute. AFN resolutions authorized conceptual or developmental work on all of the institutions. However, the fiscal institutions unit was not authorized to sign off on anything final with the federal government.

5. At the Halifax General Assembly of 2001, the fiscal institutions unit was authorized to develop draft legislation for the institutions, subject to the draft being brought back to a Special or General Assembly for approval, rejection, modification or deferral. The Bill (the FNFSMA) will be considered for the first time at the Special Assembly in Ottawa, November 19-20.