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Indigenous

Putting government mismanagement of Indigenous affairs in the rear-view mirror

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From the Macdonald-Laurier Institute (MLI)

By Ken Coates for Inside Policy

The failures of governance on Indigenous affairs represents an unhappy situation where the problem is, simultaneously, too much government and too little governance

In an era of a mounting number of interconnected complex and difficult problems, one feels sorry for the politicians and civil servants attempting to produce policies, programs, and funding that will make real and sustained progress. We are often confronted with the frightening realization that government, as it is currently structured and directed, is simply not up to the challenges of the 21st century. This is certainly the case with Indigenous affairs in Canada, where the federal government struggles to find the right path forward.

The socio-economic data is clear. Indigenous peoples lag well behind the non-Indigenous population on almost all measures: personal income, access to clean water, educational outcomes, rates of incarceration, health outcomes, opioid deaths, tuberculosis cases, overcrowded homes, and many others. Language loss is endemic, many communities struggle with intergenerational conflict, too many cultural traditions are at risk, and long-term systemic poverty continues to take its toll.

Most Canadians think that the government of Canada is doing a great deal – some people think too much – to address Indigenous challenges and opportunities. They point, as the government often does, to billions of dollars in annual expenditures, formal and public apologies, major court judgments in favour of Indigenous defendants, a seat at a growing number of political tables, and concessions on language, values, and priorities.

The juxtaposition of these two realities is troubling – despite the massive expenditures on Indigenous affairs there are continued and major shortcomings in First Nations, Métis, and Inuit outcomes and achievements. Frustration burns deep in many Indigenous communities, as it does among the general population. Canadians at large have heard the many apologies, hundreds of program announcements, billions in spending, and the near-constant uncertainty of legal processes, and they too are deeply concerned about the failure of decades of concerted government efforts to make things better.

Of course, there have been major achievements. While media coverage focuses on conflict and despair, First Nations, Inuit, and Métis communities have made substantial improvements, even with the current difficulties in mind. Post-secondary attendance remains strong, with continuing challenges with the high school to PSE transition. Indigenous entrepreneurship is a bright spot in the Canadian economy. Modern treaties and self-government agreements are changing how the government manages Indigenous policies, funding, and decision-making. And impact and benefit agreements have secured Indigenous communities an important place in resource and infrastructure development.

But frustrations with the government of Canada’s management of Indigenous affairs continues. Communities complain of long-delayed negotiations, difficulties with payments, the omnipresent influence of the Indian Act, files lingering on the desk of the Minister of Indigenous Services Canada, the inability to get promised money out the door quickly and efficiently, the imposition of complicated accountability provisions, and many other problems. Even major settlements, like the $40 billion allocated to address shortcomings in child and family services, has been bogged down in unrewarding negotiations.

The failures of governance on Indigenous affairs represents an unhappy situation where the problem is, simultaneously, too much government and too little governance. Starting well before Confederation, paternalism became the hallmark of federal policy towards Indigenous peoples. Government officials believed that they knew best and managed Indigenous affairs with scant consideration of Indigenous ideas and goals – and often with a firm, manipulative hand. To the degree that Indigenous peoples escaped the dominance of Ottawa, it was largely due to the shortage of government workers and money, which meant that most northern peoples were left largely alone until the 1950s.

In the 1950s and 1960s, in a massive wave of self-justified paternalism, government intervention expanded rapidly. Indigenous peoples were required to live in government-established and run settlements, typically in government-built houses and under the control of a growing cadre of paternalistic Indian Agents. Residential and day school education became standard fare – as did acute language loss and the disruption of harvesting activity and traditional cultures. Welfare dependency, extremely rare before the mid-1950s, replaced harvesting and the mixed economy as the economic foundations of Indigenous life, with all of the controls and intrusions that attend any reliance on government cheques.

Well-meaning state officials inherited the paternalism of their predecessors, believing that government-designed and -run programs would provide Indigenous communities with pathways to the mainstream economy and the benefits of the dominant society. A few achievements stand out, but generally the effort did not work. Indigenous communities were transformed into frustrated supplicants, relying on a steady stream of applications and approval processes to provide what were typically short-term grants that would fund core community operations.

The arrangements prioritized federal budget-making and administration over Indigenous decision-making and community priority-setting. The budgets grew dramatically. Federal officials made countless announcements. The number of federal civil servants grew dramatically. And individual Indigenous people continued to suffer. Through decades in which state funding and programming continued to expand, the gap between Indigenous well-being and non-Indigenous social and economic conditions scarcely narrowed at all. What did grow dramatically was social dysfunction, self-harm, and family disarray.

It turned out that too much government “help” could be as bad as neglect and inattention to Indigenous needs. Ottawa continued to supply earnest and well-meant programs, but they were built with diminishing enthusiasm from Indigenous peoples. First Nations, Métis, and Inuit communities understood what the government of Canada did not: that community control was much more important and effective than Ottawa-centred policy-making. Much of the Indigenous effort since the 1970s has focused on righting the imbalance, establishing more self-government processes, expanding own-source revenues, and returning to Indigenous peoples the autonomy that had sustained them for centuries.

Indigenous peoples have their own agendas – and they have largely succeeded in changing the core foundations of Indigenous governance in Canada. Modern treaties have, for some people, eliminated some of the more pernicious aspects of the Indian Act and its associated bureaucracies. Self-governing First Nations are become more common and increasingly successful. The Inuit secured their own territory – Nunavut – and acquired considerable autonomy in Labrador and northern Quebec. Impact and benefit agreements and resource revenue sharing have given communities the funding they require to establish their own spending priorities. Duty-to-consult and accommodate provisions have given Indigenous communities a major role in determining the shape and nature of resource development. Major Supreme Court of Canada decisions continue to extend Indigenous authority.

This story of Indigenous re-empowerment has not yet fully unfolded, although the returns to date have been more than promising. Self-governing First Nations in the Canadian North and elsewhere have used their autonomy to very good effect. Communities near the oil sands in Alberta have used their involvement in resource extraction to create substantial autonomy for themselves. Near-urban and urban First Nations are supporting metropolitan redevelopment. Joint ventures and economic cooperation have become the norm rather than the exception. Struggles continue; generations of paternalism and government oversight are not overcome in a flash.

But the primary lesson is simple. State paternalism has been a force for disruption and manipulation of Indigenous communities. Re-empowerment, autonomy, and economic independence have demonstrated the potential to rebuild, enhance, and strengthen First Nations, Métis, and Inuit communities. Decades of government mismanagement of Indigenous affairs must be put in the rear-view mirror. It is time for the re-empowerment of Indigenous communities to become the new normal.

Indigenous realities have changed dramatically, particularly related to Indigenous rights, expectations, capacity, financial settlements and community expectations.  Government administration and policy-making, as current constituted, is not sufficiently community-centric, properly funded, appropriately responsive or driven by Indigenous imperatives.  Despite generations of large-scale spending and many programs and announcements, basic conditions are far too often seriously substandard and real progress slow and unimpressive.  With Indigenous people and their governments in the forefront, Indigenous governance and support requires a dramatic rethinking and Indigenous empowerment in order to respond properly to the challenges and opportunities of the 21st century.

Ken Coates is a Distinguished Fellow and Director of Indigenous Affairs at the Macdonald-Laurier Institute and a Professor of Indigenous Governance at Yukon University

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Ottawa has spent nearly $18 billion settling Indigenous ‘specific claims’ since 2015

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From the Fraser Institute

By Tom Flanagan

Since 2015, the federal government has paid nearly $18 billion settling an increasing number of ‘specific claims’ by First Nations, including more than $7 billion last year alone, finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think tank.

“Specific claims are for past treaty breaches, and as such, their number should be finite. But instead of declining over time, the number of claims keeps growing as lucrative settlements are reached, which in turn prompts even more claims,” said Tom Flanagan, Fraser Institute senior fellow, professor emeritus of political science at the University of Calgary and author of Specific Claims—an Out-of-Control Program.

The study reveals details about “specific claims,” which began in 1974 and are filed by First Nations who claim that Canadian governments—past or present—violated the Indian Act or historic treaty agreements, such as when governments purchased reserve land for railway lines or hydro projects. Most “specific claims” date back 100 years or more. Specific claims are contrasted with comprehensive claims, which arise from the absence of a treaty.

Crucially, the number of specific claims and the value of the settlement paid out have increased dramatically since 2015.

In 2015/16, 11 ‘specific claims’ were filed with the federal government, and the total value of the settlements was $27 million (in 2024 dollars, to adjust for inflation). The number of claims increased virtually every year since so that by 2024/25, 69 ‘specific claims’ were filed, and the value of the settlements in 2024/25 was $7.061 billion. All told, from 2015/16 to 2024/25, the value of all ‘specific claims’ settlements was $17.9 billion (inflation adjusted).

“First Nations have had 50 years to study their history, looking for violations of treaty and legislation. That is more than enough time for the discovery of legitimate grievances,” Flanagan said.

“Ottawa should set a deadline for filing specific claims so that the government and First Nations leaders can focus instead on programs that would do more to improve the living standards and prosperity for both current and future Indigenous peoples.”

Specific Claims: An Out-of-Control Program

  • Specific claims are based on the government’s alleged failure to abide by provisions of the Indian Act or a treaty.
  • The federal government began to entertain such claims in 1974. The number and value of claims increased gradually until 2017, when both started to rise at an extraordinary rate.
  • In fiscal year 2024/25, the government settled 69 claims for an astonishing total of $7.1 billion dollars.
  • The evidence suggests at least two causes for this sudden acceleration. One was the new approach of Justin Trudeau’s Liberal government toward settling Indigenous claims, an approach adopted in 2015 and formalized by Minister of Justice Jodi Wilson-Raybould’s 2019 practice directive. Under the new policy, the Department of Justice was instructed to negotiate rather than litigate claims.
  • Another factor was the recognition, beginning around 2017, of “cows and plows” claims based on the allegation that agricultural assistance promised in early treaties—seed grain, cattle, agricultural implements—never arrived or was of poor quality.
  • The specific-claims process should be terminated. Fifty years is long enough to discover legitimate grievances.
  • The government should announce a short but reasonable period, say three years, for new claims to be submitted. Claims that have already been submitted should be processed, but with more rigorous instructions to the Department of Justice for legal scrutiny.
  • The government should also require more transparency about what happens to these settlements. At present, much of the revenue paid out disappears into First Nations’ “settlement trusts”, for which there is no public disclosure.

Read The Full Study

Tom Flanagan

Professor Emeritus of Political Science and Distinguished Fellow, School of Public Policy, University of Calgary

 

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Natural gas pipeline ownership spreads across 36 First Nations in B.C.

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Chief David Jimmie is president of Stonlasec8 and Chief of Squiala First Nation in B.C. He also chairs the Western Indigenous Pipeline Group. Photo courtesy Western Indigenous Pipeline Group

From the Canadian Energy Centre

Stonlasec8 agreement is Canada’s first federal Indigenous loan guarantee

The first federally backed Indigenous loan guarantee paves the way for increased prosperity for 36 First Nations communities in British Columbia.

In May, Canada Development Investment Corporation (CDEV) announced a $400 million backstop for the consortium to jointly purchase 12.5 per cent ownership of Enbridge’s Westcoast natural gas pipeline system for $712 million.

In the works for two years, the deal redefines long-standing relationships around a pipeline that has been in operation for generations.

“For 65 years, there’s never been an opportunity or a conversation about participating in an asset that’s come through the territory,” said Chief David Jimmie of the Squiala First Nation near Vancouver, B.C.

“We now have an opportunity to have our Nation’s voices heard directly when we have concerns and our partners are willing to listen.”

Jimmie chairs the Stonlasec8 Indigenous Alliance, which represents the communities buying into the Enbridge system.

The name Stonlasec8 reflects the different regions represented in the agreement, he said.

The Westcoast pipeline stretches more than 2,900 kilometres from northeast B.C. near the Alberta border to the Canada-U.S. border near Bellingham, Wash., running through the middle of the province.

Map courtesy Enbridge

It delivers up to 3.6 billion cubic feet per day of natural gas throughout B.C. and the Lower Mainland, Alberta and the U.S. Pacific Northwest.

“While we see the benefits back to communities, we are still reminded of our responsibility to the land, air and water so it is important to think of reinvestment opportunities in alternative energy sources and how we can offset the carbon footprint,” Jimmie said.

He also chairs the Western Indigenous Pipeline Group (WIPG), a coalition of First Nations communities working in partnership with Pembina Pipeline to secure an ownership stake in the newly expanded Trans Mountain pipeline system.

There is overlap between the communities in the two groups, he said.

CDEV vice-president Sébastien Labelle said provincial models such as the Alberta Indigenous Opportunities Corporation (AIOC) and Ontario’s Indigenous Opportunities Financing Program helped bring the federal government’s version of the loan guarantee to life.

“It’s not a new idea. Alberta started it before us, and Ontario,” Labelle said.

“We hired some of the same advisors AIOC hired because we want to make sure we are aligned with the market. We didn’t want to start something completely new.”

Broadly, Jimmie said the Stonlasec8 agreement will provide sustained funding for investments like housing, infrastructure, environmental stewardship and cultural preservation. But it’s up to the individual communities how to spend the ongoing proceeds.

The long-term cash injections from owning equity stakes of major projects can provide benefits that traditional funding agreements with the federal government do not, he said.

Labelle said the goal is to ensure Indigenous communities benefit from projects on their traditional territories.

“There’s a lot of intangible, indirect things that I think are hugely important from an economic perspective,” he said.

“You are improving the relationship with pipeline companies, you are improving social license to do projects like this.”

Jimmie stressed the impact the collaborative atmosphere of the negotiations had on the success of the Stonlasec8 agreement.

“It takes true collaboration to reach a successful partnership, which doesn’t always happen. And from the Nation representation, the sophistication of the group was one of the best I’ve ever worked with.”

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