November 10, 2006
North Shore Tribal Council: The Department of Indian and Northern Affairs continues to refuse to live up to Canada’s financial obligations to Ontario (and therefore to First Nations) under a federal/provincial social services cost sharing agreement that dates back to 1965.

The North Shore Tribal Council met on Thursday, November 2nd with representatives of the Department of Indian and Northern Affairs Canada and the Ontario Ministry of Community and Social Services. The meeting was held with some expectation that there would be an announcement that Canada will honour its cost-share obligations to Ontario under the 1965 Welfare Agreement and its fiduciary obligations to Indians; and that the full level of funding for the new Niigaaniin Ontario Works Program will finally be made available to the NSTC.

Instead, Canada simply repeated its position that it will not provide its full share of the operational funding level that the NSTC has negotiated with Ontario, as it is required to do under the 1965 Welfare Agreement. Canada is apparently still of the opinion that First Nations can deliver the full Ontario Works Program in a manner that meets provincial standards with an operating budget less than half that provided by Ontario to non-native delivery agents working in similar geographic and socio-economic circumstances.

Ontario representatives indicated that they are continuing to meet with Canada in an effort to resolve the cost-share issue; but were not prepared at this time to commit to using the alternatives available to them under the OW Act to ensure that the NSTC receives the level of funding that Ontario has agreed is required to meet the service delivery standards set out in the OW Act and regulations. Ontario was asked to consider using these alternatives and to provide a reply by November 10th.

What all this means is that the NSTC First Nations are incurring a rapidly increasing operating deficit in their efforts, fully eight years after the proclamation of the OW Act, to live up to their contractual obligations to Ontario, and, most important, to finally ensure that the full range of financial and employment assistance services is available to their members as is their right under provincial law. What all this means is that Canada continues to benefit financially by refusing to live up to the terms of its cost-share agreement with Ontario and refusing to ensure an equitable level of service is available to individuals and families living on reserves in Ontario – as was the intent of the 65 Agreement and the fiduciary obligations under the Indian Act.

Following the meeting with INAC and MCSS officials, the NSTC Board met and discussed the options available. Given the possibility that Ontario may take action to rectify the situation, a final decision as to appropriate option or options was put off to the meeting of the Board scheduled for mid-November.