June 18, 2007 - The First Nations in Ontario today rejected a settlement offer from the Province that would have involved the payment to First Nations of a share of provincial gaming revenues in order to settle disputes related to Casino Rama based on the Province collecting a 20% tax on the Casino Rama gross revenues in breach of promises made at the time Casino Rama was established.

The Province’s settlement offer involved the payment of 1.6% of provincial gaming revenues to First Nations that could have amounted to $125 million per year for 20 years. This would amount to an average of less than $1 million annually per First Nation. However, it also involved:

• Compromising First Nations jurisdiction and sovereignty for generations to come;
• The First Nations being subject to an array of restrictions covering the use of the funds;
• The First Nations giving up their interest in Casino Rama, which should generate $10 billion in gross revenues over 20 years; and,
• Abandoning a lawsuit against the Province under which the First Nations are claiming over $2 billion in connection with Casino Rama.

The First Nations and the Province had signed a non binding Agreement-in-Principle in March 2006 outlining the proposal. However, the proposal that the Province finally presented to the First Nations contained significant provisions and restrictions that were not referred to in the Agreement-in-Principle.

Angus Toulouse, the Ontario Regional Chief, said “We are all extremely disappointed that the Province’s proposal was so one-sided and contained provisions that the First Nations could not accept, particularly when these provisions had not been raised at the Agreement-in-Principle stage. As everyone knows, many of our Nations are in dire need of funding to break the cycle of dependence and poverty that plagues them. This seemed like a promising way in which a portion of the needed funding could be provided. However, the province cannot expect the First Nations to agree to unreasonable terms and conditions attached to the receipt of that funding. While the proposal involved a lot of money, there is more at issue than money.”

A formal response will be forwarded to the Province that suggests positive next steps and a willingness to reach a suitable and reasonable agreement.

For more information, please contact:
Pam Hunter, Policy Advisor
(416) 597-1266 Office
(613) 203-3233 Mobile