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
Indigenous
Trudeau gov’t to halt funds for ‘unmarked graves’ search after millions spent, no bodies found
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From LifeSiteNews
According to the committee tasked with searching for ‘unmarked burials’ at residential schools, the Government of Canada has denied its request for further funding.
The Canadian federal government will be halting funding to a committee tasked with searching for “unmarked burials” near former residential schools after zero graves were discovered and millions of taxpayer dollars spent.
In a statement released last week, the National Advisory Committee on Residential Schools Missing Children and Unmarked Burials said it was “extremely disappointed to learn that the Government of Canada has decided to discontinue funding to support their work to help Indigenous communities in their efforts to identify, locate and commemorate missing children.”
NAC urged “the federal government to reconsider” its funding cuts to the committee, which is co-administered by the National Centre for Truth and Reconciliation and the federal Department of Crown-Indigenous Relations and Northern Affairs, that was struck in 2021.
The reality of the situation is that since the NAC was struck not one body has been located on lands associated with former government-funded and mandated residential schools, many of which were run by Catholic and Anglican churches in Canada.
In fact, Canada’s Department of Crown-Indigenous Relations had already confirmed it spent millions searching for “unmarked graves” at a now-closed residential school, but that the search has turned up no human remains.
The initial funds budgeted in 2022 to aid in “locating burial sites linked to former Residential Schools” were already set to expire in 2025, with some $216.5 million having been spent.
A total of $7.9 million granted for fieldwork has resulted in no human remains having been found to date.
In 2021 and 2022, the mainstream media ran with inflammatory and dubious claims that hundreds of children were buried and disregarded by Catholic priests and nuns who ran some of the schools.
As a result of the claims, since the spring of 2021, 112 churches, most of them Catholic, many of them on indigenous lands that serve the local population, have been burned to the ground, vandalized, or defiled in Canada.
The cut in funding comes after Trudeau’s cabinet said last year it would expand a multimillion-dollar fund geared toward the project.
The Tk’emlups te Secwepemc First Nation was more or less the reason there was a large international outcry in 2021 when it claimed it had found 215 “unmarked graves” of kids at the Kamloops Residential School. The claims of remains, however, were not backed by physical evidence but were rather disturbances in the soil picked up by ground-penetrating radar.
The First Nation now has changed its claim of 215 graves to 200 “potential burials.”
As reported by LifeSiteNews, Prime Minster Justin Trudeau as recently as June again falsely stated that “unmarked graves” were discovered at former residential schools.
Canadian indigenous residential schools, while run by both the Catholic Church and other Christian churches, were mandated and set up by the federal government and ran from the late 19th century until the last school closed in 1996.
While there were indeed some Catholics who committed serious abuses against native children, the unproved “mass graves” narrative has led to widespread anti-Catholic sentiment since 2021.
While some children did die at the once-mandatory boarding schools, evidence has revealed that many of the children tragically passed away because of unsanitary conditions due to the federal government, not the Catholic Church, failing to properly fund the system.
In October of 2024, retired Manitoba judge Brian Giesbrecht said Canadians are being “deliberately deceived by their own government” after blasting the Trudeau government for “actively pursuing” a policy that blames the Catholic Church for the unfounded “deaths and secret burials” of Indigenous children.
Business
An era of Indigenous economic leadership in Canada has begun
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Energy for a Secure Future (ESF), the Institute of Energy Economics, Japan (IEEJ), and the First Nations LNG Alliance have signed a Memorandum of Understanding (MOU) to increase energy trade between Canada and Japan. The MOU was signed at the Canadian Embassy in Tokyo and recognizes the growing importance of Indigenous-led LNG projects in Canada’s energy security, reducing global emissions, and driving economic growth for First Nations and the country as a whole.
With Canada’s trade relationship with the U.S. uncertain—especially with U.S. President Donald Trump threatening a 25 per cent tariff on Canadian exports, including 10 per cent on energy—the need to diversify markets has never been more pressing. Canada ships 97 per cent of its oil and gas to the U.S., leaving the country exposed to the political whims of Washington. Expanding trade partnerships with key allies like Japan provides an opportunity to mitigate these risks and build a more resilient economy.
At the heart of Canada’s modern energy industry are First Nations-led LNG projects, which are proving to be a model for economic reconciliation and environmental responsibility. The Haisla Nation’s Cedar LNG, the Squamish Nation’s involvement with Woodfibre LNG, and the Nisga’a Nation’s Ksi Lisims LNG project exemplify Indigenous leadership in Canada’s energy future. These projects bring economic prosperity to Indigenous communities and position Canada as a key player in low-emission energy for the world.
Few people embody this leadership more than Chief Crystal Smith of the Haisla Nation, who received the 2025 Testimonial Dinner Award on February 7. Her vision and determination have brought Cedar LNG—the world’s first Indigenous-majority-owned LNG facility—to life. Under her leadership, this $4-billion project will start up in 2028 and will be one of the most sustainable LNG facilities in the world, powered entirely by BC Hydro’s renewable electricity. Her work is not just about resource development—it represents a country-changing shift in Indigenous economic leadership. By owning the majority of the Cedar LNG project, the Haisla Nation has set a precedent for economic self-determination, long-term job creation, revenue generation, and skills training for Indigenous youth.
She is echoed by Karen Ogen, CEO of the First Nations LNG Alliance, who has been a long-time advocate for Indigenous participation in LNG. As she says, “Our involvement in LNG not only represents an opportunity for economic growth for our communities and for Canada but will help the world with energy security and emissions reduction.”
The MOU signed in Tokyo signals Japan’s growing interest in Canadian LNG as part of its energy security strategy. Japan is phasing out coal and needs reliable, low-emission energy sources—Canadian LNG is the answer. Shannon Joseph, Chair of Energy for a Secure Future, said, “Japan wants diverse energy partners, and on this mission, we’ve heard clearly that they want Canada to be one of those partners.”
This partnership also highlights Canada’s missed opportunities over the last decade. As industry leaders like Eric Nuttall of Ninepoint Partners have pointed out, Canada could have avoided its current dependence on U.S. markets had it built more pipelines to the east and west coasts. The cancellation of the Northern Gateway and Energy East pipelines left Canada without the infrastructure to reach Asian and European markets.
Now, with the expansion of Trans Mountain (TMX) and the rise of Indigenous-led LNG projects, Canada has a second chance to shape its energy future.
As B.C. Minister of Economic Development Diana Gibson has said, expanding trade relationships beyond the U.S. is key to Canada’s future.
The First Nations-led LNG sector is demonstrating that Indigenous leadership is driving economic reconciliation and strengthening Canada’s geopolitical influence in global energy markets. For too long, Indigenous communities were merely stakeholders in resource projects—now they are owners and partners. First Nations are proving that responsible development and environmental stewardship can coexist.
With the MOU between Canada and Japan, the growth of LNG projects, and the recognition of Chief Crystal Smith, a new era of Indigenous economic power is emerging. These developments make one thing clear: First Nations are not just leading their communities—they are leading Canada.
In times of trade uncertainty, their vision, resilience, and business acumen are building the foundation for Canada’s energy future, ensuring prosperity is shared between Indigenous peoples and all Canadians.
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