FACT SHEET #6
The Fiscal Institutions Bill (FNFSMA) Impacts All First Nations

1. The FNFSMA affects all First Nations, whether or not they “opt” into the Tax Commission and the Finance Authority.

2. The Bill sets a negative precedent in terms of the inherent right and the bilateral fiscal relationship. The assumption of the Bill is that the inherent right does not include control of local revenue collection and financial management. This precedent affects all First Nations.

3. The Bill promotes the collection of local revenue through property taxation and service fees. These monies must be spent on infrastructure and other matters that would otherwise be the fiduciary responsibility of INAC. It is reasonable to assume that INAC will eventually force all First Nations to either pass taxation bylaws or take their potential tax bases into account. INAC saves money, not First Nations. The pressure on INAC to increase fiscal transfers to First Nations will be greatly diminished, possibly on an indefinite basis.

4. The Statistical Institute will access most First Nation data without consent. The research and publication policy of the Institute will be controlled by a board appointed only by Canada.

5. The veto of the Management Board over all financial management laws affects everyone.

6. The multi-million dollar budgets of the institutions will be drawn on an indefinite basis from the existing INAC envelope. The total annual cost may be in the range of $20 million. All First Nations will be paying and paying, whether or not they opt into the Tax Commission and the Finance Authority. This represents a significant and perpetual transfer of funds from all First Nations to a relatively small number of communities and individuals.

7. If a First Nation does get involved, whether by choice or under duress, there is a significant loss of control over financial policy. And it is almost impossible to disengage.