Indigenous
Canada’s Indigenous Model is Not Sustainable
From the Frontier Centre for Public Policy
The stated purpose of the extra indigenous spending that has always been there, and the virtual explosion on indigenous spending since 2015 is meant to fix that problem. But these massive expenditures have now reached the point where they risk destabilizing the country.
Canada’s parliamentary budget officer, Yves Giroux has spoken out about the alarming rise in Canada’s contingent liabilities related to indigenous claims. Todays estimated 76 billion dollars is many times the 15 billion dollars it was when the Liberals took power in 2015.
This is one part only of the massive increase in spending on indigenous matters that has taken place since then.
Federal spending per indigenous person has always been much higher than spending per non-indigenous person. The higher level of spending has been justified because most indigenous people do much worse on virtually every health and social indicator than the mainstream population. Their health is poorer, and their lives are shorter.
This disparity was generally known as Canada’s “Indian problem”. That term is no longer fashionable, and the extra spending is now said to be necessary to achieve “reconciliation”. Regardless of the terms, what is clear is that since Confederation there has always existed a large rural and urban indigenous underclass that does poorly compared to the mainstream. The stated purpose of the extra indigenous spending that has always been there, and the virtual explosion on indigenous spending since 2015 is meant to fix that problem. But these massive expenditures have now reached the point where they risk destabilizing the country.
Perhaps it’s time for Canadians to ask if the “nation to nation” reconciliation plan that spending is based on is working. Is it fixing the problem?
A recent CBC report proves that it is not. Instead, the problems are getting worse.
The CBC investigated an indigenous community at St. Theresa Point where 24 people sometime share one house. Almost all of the houses in the community are crumbling and need to be replaced. Families struggle to achieve basic hygiene. Living conditions resemble what one would expect to find in a third world community, and not in wealthy, modern Canada.
St. Theresa Point is typical of hundreds of other Indian remote reserves. Most are almost totally dependent on the federal government for their survival. There is virtually no real employment. The poorest people in those communities are directly dependent on welfare checks, but even the chief, councillors and other employees receive their paycheques from the transfer payments sent by Ottawa. In reality almost everyone in the community is on welfare of some type.
Unlike in other rural communities, people on poor reserves tend not to move when economic opportunities decline. In small-town Canada, the rules are simple: If the towns or farms can’t supply enough jobs, one moves to the city where the jobs and careers are. But on remote reserves, most people stay put, even if there are no jobs or careers there for them. And most of those who do move to the city do not do well. A lack of education, poor job skills, and lack of motivation usually consign reserve residents who move to the mean parts of town where many end up in gangs, crime and prostitution. The result is that the people who stay in uneconomic remote reserves become more and more dependent. Low education levels sink even further. And succeeding generations become ever less likely to be able to provide for themselves and their families.
To make matters much worse, addiction problems are endemic. At one time, alcohol was the drug of choice. Now, amphetamines, fentanyl, and prescription drugs have been added to the list, with the family violence, sexual abuse, crime, teenage pregnancy and fetal alcohol births that inevitably follow from chronic drug use.
And reserve populations are growing. Although status Indians living on reserves currently comprise only about 1% of the total population, they are the country’s fastest growing demographic. The cost of operating these communities is crippling now, but in a few years, it will be completely unsustainable. Pretending that these desperately poor reserves are sovereign “nations” that will somehow magically become prosperous and self-supporting is a cruel joke on the young people hopelessly trapped on them. The prospect of hundreds of dependent reserves teeming with, unemployed, and largely unemployable young people, with massive social problems, is a frightening dystopia – hundreds of Gaza strips. But it is where we are headed. To make things even worse, the government-promoted false genocide and “missing children” narratives have made many of these people very angry.
Although there is no treaty right, or any other right to free housing on a reserve the reality is that if the government did not provide housing for the reserve residents, they would be unable to provide housing for themselves. The strange result is that Canadian taxpayers – many of whom will never be able to afford to buy a house themselves – pay through their tax dollars for houses for the rapidly growing reserve population. These houses deteriorate quickly, because they are considered “free” by the residents, and have to be fixed and replaced in a wasteful and expensive cycle.
And it is a national disgrace that most reserves are dead ends for most of the young people born into them.
The late Farley Mowat described northern indigenous settlements as “unguarded concentration camps”. That might be a somewhat harsh way to describe reserves, but at best most are human warehouses, plagued with social problems. The young people living there deserve some hope, and Canada’s current plan for them offers them none.
So, Canada’s current indigenous plan is clearly not working. Is there a better plan for success?
Maybe we should ask Wab Kinew, Manitoba’s new premier. He is indigenous and highly successful. How did he get there?
The formula is actually not complicated. It has nothing to do with massive welfare giveaways, “nation to nation” utopias, or incredibly expensive “reconciliation” projects. It definitely has nothing to do with staying in a community that lacks economic opportunities, and waiting for handouts. It involves education, hard work, and going where the jobs are. Kinew’s parents realized that a stable home and education were key. Wab did the rest. He worked his way up the ladder in the usual way, and went where the jobs were. He did that with his indigenous identity intact.
Not every young person has Kinew’s talent, but everyone can follow the formula that made Kinew, and many other indigenous achievers successful.
The alternative – spending ever increasing amounts on a steadily increasing list of demands from a growing dependent reserve population is not an option. We don’t need the parliamentary budget officer to tell us that it is not sustainable.
As for remote, uneconomic reserves, like St. Theresa Point, they should be gradually and humanely closed down. It has been recognized for many years that reserves long ago had served their purpose, and should be phased out. As far back as 1911, it was said:
“Department officials were increasingly coming to the view that reserves had outlived their usefulness. Frank Pedley suggested that they resulted in the isolation and segregation of Indians, and thereby hindered progress…and encouraged the tribal form of government.”
The reserve system was not ended in 1911 because the chiefs and ruling families refused to give up their privileged positions. It isn’t happening today for the same reasons. We still have the same Indian Act and reserve system that has held indigenous people back for almost 150 years. (Senior Ontario lawyer, Peter Best, describes the toxicity of the reserve system in his important book, There Is No Difference)
So, the long-term plan should be to find a way to overcome that resistance, and find a fair way to phase out reserves, and the antiquated Indian Act. The reserves that are economically viable can merge into existing rural municipalities, or become stand-alone municipalities. Opportunities should be made available for young people from uneconomic communities to move to job centres, and receive help to succeed there.
In the meantime, the example of Wab Kinew is proof that there has never been a better time or place than today’s Canada to be an educated and ambitious young indigenous person who is willing to study, work hard, and go where the jobs are.
Brian Giesbrecht is a retired judge and senior fellow at Frontier Centre for Public Policy
Watch Brian on Return to Reason here.
Economy
CANADA MUST REVIVE A “PIPELINE WEST” – Indigenous Ownership and Investment in Energy Projects are Critical to Canada’s Oil Customer Diversification
From EnergyNow.Ca
Interesting events renewed discussions around pipeline projects when Alberta Premier, Daniel Smith made social media comments on Jan 21.2025 that Canada should have more nation-building projects and revive Northern Gateway.
It inspired an immediate comment from the President of the Union of BC Indian Chiefs, Grand Chief Stewart Phillip expressing interest in reviving the project. “If we don’t build that kind of infrastructure, Trump will,” Phillip said. “And there won’t be any consideration for the environment, for the rule of law… I think we can do better.”
The next day, Chief Phillip retracted the comment leaving questions about the 180-degree pivot.
Some proponents of Indigenous development, like Calvin Helin, a member of the Tsimshian Nation and Principal at INDsight Advisers, a lawyer who specializes in commercial and Indigenous law and best-selling author, thought the event raised questions about influence.
“Environmental groups have infiltrated some Indigenous organizations,” Helin said in an interview. “They managed to support a government that championed their agendas, particularly agendas involving Alberta – objectives like the coastal pipeline ban and changes to the regulatory approval system. In this era of Trump, all they’ve managed to do is to weaken Canada’s position.”
Helin stressed that in 2025, the energy industry clearly understands the mandate to deal seriously with Indigenous interests, with Indigenous leaders coming forward to support natural resource development while respecting the environment. He suggested that Indigenous inclusion and recognition at the outset is essential for energy projects in 2025 and beyond.
Back in 2018-2019, Helin proposed the Eagle Spirit Corridor a $50 -billion First Nations majority-owned Canadian four pipeline corridor after the Northern Gateway Pipeline was under consideration.
Helin had consulted early with Indigenous groups and proposed a robust natural resource corridor from Bruderheim, AB to Grassy Point, BC. The project involved the support of 32 First Nations from the outset. A variety of shared services were proposed to make the corridor more economical than a pipeline. Helin expected the project would create tens of thousands of jobs over the long term, as well as generate tax revenue and royalties, but it was killed by the federal government’s Bill C-48 tanker ban which stopped companies from using terminals along BC’s north coast to ship oil. The project was ultimately abandoned.
The Enbridge Northern Gateway Pipeline project for a twin pipeline from Bruderheim, AB, to Kitimat, BC, was also stopped by Bill C-48. Both Eagle Spirit and Northern Gateway chose the north BC coast for transportation to Asian markets for the deeper waters that could accommodate larger-capacity crude oil tankers.
The routes of the Eagle Spirit and Northern Gateway pipelines/corridors are quite similar with Eagle Spirit’s route extending a bit farther north in the final leg, as in the maps below.
Recent threats of tariffs on Canadian imports made by U.S. President Trump have stimulated calls to revive pipeline projects to tidewater, including Northern Gateway.
In direct reference to Northern Gateway, Enbridge CEO Greg Ebel has stated to media that Canada would have to designate major pipeline projects as legally required “in the national interest” before companies will consider investing again.
After the cancellation of Northern Gateway, Dale Swampy,the Indigenous leader who helped to establish the Northern Gateway Aboriginal Equity Partners group (AEP), formed the National Coalition of Chiefs(NCC), a group of pro-development First Nation Chiefs who advocate for the development of oil and gas resources in their communities.
Dale Swampy, President of the NCC says it still makes good sense to get a pipeline devoted to bitumen to the West Coast and that Canada has been “putting all its eggs in one basket” for 50 years and has been selling to just one customer while “everybody else in the oil industry, including the U.S., is getting into the global competitive market.”
The Canadian Energy Centre reports that the oil and gas industry is not going into decline over the next decade and in fact, the demand for oil and gas in emerging and developing economies will remain robust through 2050. In light of the multiple effects of U.S. tariffs, Canadian pipelines to tidewater are seen as urgent. Swampy advocates for policy change and the revival of the Northern Gateway project powered by Indigenous equity investment.
“First, we have got to get rid of the oil tanker ban (C-48),” Swampy said. “We’ve got to get more fluid regulatory processes so that we can get projects built in a reasonable timeline so that it doesn’t cost us billions more, waiting for the regular regulatory process to be complete- like TMX. You’ve also got to get the proponents back to the table. We had 31 of the 40 communities already signed on last time. I believe that we can get them signed on again.”
He continues to work with industry to develop an Indigenous-led bitumen pipeline project to the west coast. “We can get this project built if it’s led by First Nations.”
He says other Indigenous leaders are starting to realize the benefits of cooperating with natural resource development, whether it’s mining or the BC LNG projects that he says are now more widely accepted by First Nations.
Stephen Buffalo, President and CEO of the Indian Resource Council of Canada (IRC) agrees.
“I talk about ripple effects,” Buffalo said. “When Jason Kenney was Premier of Alberta, and the Trans Mountain expansion was a big discussion, he wanted to ensure that First Nations had an opportunity to be some sort of equity owner in projects. With the lack of investment capital, he created the Alberta Indigenous Opportunities Corporation with the province as a government backstop.”
Buffalo says the IRC has assembled just over $800 million in government backstop for First Nations to participate in projects which found strong proponents. And those projects are related to natural resource development. He acknowledged that some communities – some of them in BC, don’t see the big picture of what Indigenous Opportunities Corporations can allow them to do.
“You shouldn’t get in the way of others that really need access to healthcare and education and want to develop their communities. I always tell people, our land base, that we were given under the Indian Act, isn’t changing what our populations are. We need housing, and we need the infrastructure, which includes clean water.”
He sees the urgent need for First Nations to get out of poverty and alliances to develop natural resources are key.
“ When we landlock our resources, the U.S. economy seems to get better. Now we’re dependent on the U.S. We have to send our oil to the U.S. at a huge discount. Could or should we have Northern Gateway? Absolutely. Should we have Energy East? Absolutely. We’re importing oil, but we have it at home. Why do we need to import it?”
Buffalo agreed that project discussions and regulations have huge value, but the slowness of the discussion, including pushback from environmental groups that influence discussions is negatively impacting First Nation development. In the case of regulations like Bill C-59, the anti-greenwashing bill, Buffalo says it has silenced many of the members of the Indian Resource Council.
“I’m just looking after our communities,” Buffalo says, “the ones that are never written about, talked about, the ones that don’t have clean water, that don’t have adequate housing, that are lacking education foundations, that are lacking good health care. When government regulatory bodies are making decisions, they’re making decisions for those people that they don’t ever see or ever talk to.”
My discussions with Calvin Helin, Stephen Buffalo and Dale Swampy resulted in a few policy suggestions for 2025 and beyond.
- Repeal Bill C- 69 – It not only blocks all pipelines but stops mines, refineries, export plants and other energy infrastructure that First Nations want to invest in. C-69 is unconstitutional- as ruled on October 13.2023 by Canada’s top court.
- Cut Taxes in Response to U.S. Tariffs– Tax cuts on investment and energy can neutralize the cost of the tariffs with lower taxes and incentivize investment in Canadian projects. Eliminate the Carbon Tax- Carbon tax elimination has been popular with First Nation leaders who have stated the tax has put us at a strategic disadvantage to other countries.
- Repeal Bill C-59, the anti-green-washing bill, which according to Stephen Buffalo has silenced many of the members of the Indian Resource Council and Bill C-48 – the Tanker Ban.
- Greenlight LNG Plants and related infrastructure– Canada sells gas exports uniquely to the U.S. There is a strong business case for sales to Asian and European markets. In a recent Canadian Energy Ventures webcast it was revealed that Natural Gas is sold as LNG to Europe at 16X the price Canada sells its gas to the U.S. First Nations are successfully involved in Woodfibre LNG, Cedar LNG and Ksi Lisims LNG in BC.
- Cut Regulatory Delay & Speed Up Approvals – Delay undermines investor confidence that projects can be completed in reasonable timelines.
- Reconciliation– Issue clear guidelines on what constitutes meaningful consultation. Industry can treat Indigenous peoples as partners and continue to advance economic reconciliation, including equity partnerships.
Maureen McCall is an energy professional who writes on issues affecting the energy industry.
From the Frontier Centre for Public Policy
When politicians misrepresent facts or historical events, whether out of ignorance or political expediency, they do a disservice to the truth and public trust. On Feb. 24, 2025, B.C. Conservative Party Leader John Rustad reportedly told Global News that “more than 4,000 children did not return home” from residential schools because “those children died in residential schools.” As researcher Nina Green points out, this statement is demonstrably false and contradicts the Truth and Reconciliation Commission’s (TRC) final report.
Sadly, Rustad is not the only one making such claims. Similar statements, portrayed as facts, are repeated by politicians who should know better.
The truth, according to the TRC, is that 423 named children died on the premises of residential schools between 1867 and 2000. That is a tragedy, and we must expand our understanding of how and why these deaths occurred. To learn from tragedies, we must acknowledge and reflect on them. But to truly understand, we must accept what is true rather than bending or distorting it. Repeating the claim that “more than 4,000” children died in residential schools, as Rustad and others have uncritically reported, misrepresents reality.
The vastly inflated number, according to Green, originates from the University of Manitoba’s National Centre for Truth and Reconciliation (NCTR), which has misrepresented the data by including children who died after leaving school—in hospitals, in accidents at home, and even well into adulthood. This distortion has led to widespread misrepresentation, misleading policymakers and the public.
Why does this matter?
Canada’s history with Indigenous residential schools is deeply painful. Abuses, neglect and forced assimilation were real in many instances. However, distorting the facts about residential school deaths promotes a false narrative of genocide that does not serve justice—in fact, this false narrative undermines it. If reconciliation means anything, it must be built on truth, not contrived political narratives.
By repeating the claim that more than 4,000 children died at residential schools, Rustad is spreading falsehoods and stoking division. This figure has been used to justify claims of mass graves, leading to international headlines and widespread outrage that harm present generations of Indigenous people. Yet, nearly four years after the first claims of unmarked graves, no remains have been excavated or verified.
Rustad is not a private citizen—he is a public figure whose words carry weight. As such, he is responsible for ensuring that the information he disseminates is accurate. Rustad is failing in his duty to the public. Depending on his motivation, he contributes to a culture in which historical accuracy is sacrificed for political expediency.
Some may argue that the exact number of students who died at residential schools is not important. But truth is not negotiable. If we accept exaggerated claims in one instance, we set a dangerous pattern for historical distortions. The truth should not be ideological or political.
If Rustad is serious about Indigenous issues, he should demand transparency from the University of Manitoba and its NCTR. Instead of accepting misleading figures, he should call for the full release of the TRC records, as was promised in 2013.
Leaders like Rustad must be held accountable. Falsehoods, no matter how well-intentioned, do not advance reconciliation. They erode trust, divide Canadians, and ultimately undermine the cause they claim to support. All Canadians deserve much better.
Marco Navarro-Genie is the vice president of research at the Frontier Centre for Public Policy. With Barry Cooper, he is coauthor of Canada’s COVID: The Story of a Pandemic Moral Panic (2023).
28 energy leaders call for eliminating ALL energy subsidies—even ones they benefit from
Carney’s Cap on Alberta Energy Costing Canada Billions
SPARC Caring Adult Nominations now open!
Manufacturers Endorse Pierre Poilievre for Prime Minister
-
Alberta1 day agoAlberta Institute urging Premier Smith to follow Saskatchewan and drop Industrial Carbon Tax
-
Addictions1 day agoShould fentanyl dealers face manslaughter charges for fatal overdoses?
-
2025 Federal Election2 days agoFool Me Once: The Cost of Carney–Trudeau Tax Games
-
Alberta1 day agoAlbertans have contributed $53.6 billion to the retirement of Canadians in other provinces
-
Automotive2 days agoTrump announces 25% tariff on foreign automobiles as reciprocal tariffs loom
-
2025 Federal Election1 day agoChinese Gangs Dominate Canada: Why Will Voters Give Liberals Another Term?
-
Also Interesting21 hours agoThe bizarre story of Taro Tsujimoto
-
Energy1 day agoEnergy, climate, and economics — A smarter path for Canada