FACT SHEET #4
The Governance Act (FNGA or Bill C-7) and the FNFSMA are Connected

1. The FNGA and the FNFSMA are both federal bills. They are key components of a “suite” of legislation promoted by INAC. Other components are the specific claims tribunal bill and the bill applying the Land Management Act to all First Nations. The Minister has made it clear that he intends to ram through the suite of legislation, in particular the FNGA, regardless of First Nation opposition. INAC, and not the First Nation leadership, knows what is best for the Indian people.

2. The fiscal institutions Bill (the FNFSMA) is exactly coincident with the federal agenda. The same agenda is behind the FNGA. Canada does not want to deal with rights, especially the inherent right, and it does not want to increase fiscal transfers to First Nations. Instead, INAC blames the victim, i.e. First Nations. The agenda of both the FNGA and the FNFSMA promotes on-reserve revenue collection (taxation and own source revenue) and the imposition of tighter and tighter financial management rules. Note the complete absence of attention to off-reserve territory. Any scrutiny of the federal role in the bilateral fiscal relationship is avoided.

3. In practice, the institutions created by the FNFSMA may play a key role in the implementation of the FNGA. Thus, the draconian financial management provisions of the FNGA may be implemented, at least in part, by the Management Board of the FNFSMA. The Board has a particular mandate in co-management and third party management. The Management Board has a complete veto over all local First Nation financial management laws.

4. It is true that a small number of First Nations support the FNFSMA. They are primarily in BC and are generally affiliated with the existing Indian Tax Advisory Board. The position of these First Nations deserves respect. This respect has been shown. At the Halifax General Assembly in 2001 opponents of the institutions package allowed developmental work to continue, even though the resolution was invalid. But respect is a two way street. If most First Nations believe that the Bill prejudices their rights, the proponents should reassess their position. The FNGA and the FNFSMA should not be rammed through, whether by INAC or anybody else.