Establishing a new fiscal relationship
The Government of Canada and the Assembly of First Nations are working together to establish a new fiscal relationship that moves towards sufficient, predictable and sustained funding for First Nations communities.
About the process
With the signing of the Memorandum of Understanding in July 2016 (PDF), a process was established to achieve this goal, which will be a key step in addressing the disparities and inequities in the socio-economic conditions between First Nations and other Canadians.
From October 11 to November 20, 2017, the Government of Canada and the Assembly of First Nations engaged with First Nations chiefs and administrators. Through this engagement, participants were asked to review and provide feedback on options prepared by 3 working groups to support a new fiscal relationship. Feedback received on working group options has been incorporated into the report: A new approach: Co-development of a new fiscal relationship between Canada and First Nations.
Since then, Canada and the Assembly of First Nations have been working on a number of proposals made in the report:
- creating 10-year grants
- replacing the Default Prevention and Management Policy
- developing a mutual accountability framework
- establishing an advisory committee on fiscal relations
Canada is also working jointly with 25 self-governing Indigenous governments to develop a new self-government fiscal policy framework that will enable these governments to realize the full potential of their agreements.
Default Prevention and Management Policy
As part of its September 2017 commitment, Canada will work with First Nations partners to replace the Default Prevention and Management Policy with a new proactive approach that supports capacity development. The new approach will be based on pilot projects currently being conducted with the First Nations Financial Management Board to support First Nations in exiting third party management, and informed by ongoing engagement with First Nations partners.
Assembly of First Nations-Indigenous Services Canada Joint Advisory Committee on Fiscal Relations
The report A new approach: Co-development of a new fiscal relationship between Canada and First Nations recommended the creation of an advisory committee to provide further guidance on the development of key areas of the new fiscal relationship. The first committee meeting of the Assembly of First Nations-Indigenous Services Canada Joint Advisory Committee on Fiscal Relations was on November 14, 2018. The members are:
- Chief Richard Sidney, Yukon
- Richard Nerysoo, Northwest Territories
- Chief David Jimmie, British Columbia
- Chief Lee Crowchild, Alberta
- Vice-Chief Heather Bear, Sasktachewan
- Chief Laurie Carr, Ontario
- Chief Connie Lazore, Quebec
- John G. Paul, Atlantic
- Harold G. Calla, First Nations Financial Management Board
- Terry Goodtrack, AFOA Canada
- Bonnie Healy, First Nations Information Governance Centre
- Don Drummond, technical expert
- Kevin Page, technical expert
In June 2019, the committee released the interim report Honouring our Ancestors by Trailblazing a Path to the Future and is currently engaging with First Nations on the report's recommendations.
- Signing of a Memorandum of Understanding on a new fiscal relationship with the Assembly of First Nations
- Canada and the National Chief of the Assembly of First Nations announce progress on new fiscal relationship
- Minister Philpott Welcomes Report on a New Fiscal Relationship with First Nations
- A new fiscal relationship: Engagement 2017
- Assembly of First Nations: Fiscal Relations