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Indigenous

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

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11 minute read

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

Business

Land use will be British Columbia’s biggest issue in 2026

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By Resource Works

Tariffs may fade. The collision between reconciliation, property rights, and investment will not.

British Columbia will talk about Donald Trump’s tariffs in 2026, and it will keep grinding through affordability. But the issue that will decide whether the province can build, invest, and govern is land use.

The warning signs were there in 2024. Land based industries still generate 12 per cent of B.C.’s GDP, and the province controls more than 90 per cent of the land base, and land policy was already being remade through opaque processes, including government to government tables. When rules for access to land feel unsettled, money flows slow into a trickle.

The Cowichan ruling sends shockwaves

In August 2025, the Cowichan ruling turned that unease into a live wire. The court recognized the Cowichan’s Aboriginal title over roughly 800 acres within Richmond, including lands held by governments and unnamed third parties. It found that grants of fee simple and other interests unjustifiably infringed that title, and declared certain Canada and Richmond titles and interests “defective and invalid,” with those invalidity declarations suspended for 18 months to give governments time to make arrangements.

The reaction has been split. Supporters see a reminder that constitutional rights do not evaporate because land changed hands. Critics see a precedent that leaves private owners exposed, especially because unnamed owners in the claim area were not parties to the case and did not receive formal notice. Even the idea of “coexistence” has become contentious, because both Aboriginal title and fee simple convey exclusive rights to decide land use and capture benefits.

Market chill sets in

McLTAikins translated the risk into advice that landowners and lenders can act on: registered ownership is not immune from constitutional scrutiny, and the land title system cannot cure a constitutional defect where Aboriginal title is established. Their explanation of fee simple reads less like theory than a due diligence checklist that now reaches beyond the registry.

By December, the market was answering. National Post columnist Adam Pankratz reported that an industrial landowner within the Cowichan title area lost a lender and a prospective tenant after a $35 million construction loan was pulled. He also described a separate Richmond hotel deal where a buyer withdrew after citing precedent risk, even though the hotel was not within the declared title lands. His case that uncertainty is already changing behaviour is laid out in Montrose.

Caroline Elliott captured how quickly court language moved into daily life after a City Richmond letter warned some owners that their title might be compromised. Whatever one thinks of that wording, it pushed land law out of the courtroom and into the mortgage conversation.

Mining and exploration stall

The same fault line runs through the critical minerals push. A new mineral claims regime now requires consultation before claims are approved, and critics argue it slows early stage exploration and forces prospectors to reveal targets before they can secure rights. Pankratz made that critique earlier, in his argument about mineral staking.

Resource Works, summarising AME feedback on Mineral Tenure Act modernisation, reported that 69.5 per cent of respondents lacked confidence in proposed changes, and that more than three quarters reported increased uncertainty about doing business in B.C. The theme is not anti consultation. It is that process, capacity, and timelines decide whether consultation produces partnership or paralysis.

Layered on top is the widening fight over UNDRIP implementation and DRIPA. Geoffrey Moyse, KC, called for repeal in a Northern Beat essay on DRIPA, arguing that Section 35 already provides the constitutional framework and that trying to operationalise UNDRIP invites litigation and uncertainty.

Tariffs and housing will still dominate headlines. But they are downstream of land. Until B.C. offers a stable bargain over who can do what, where, and on what foundation, every other promise will be hostage to the same uncertainty. For a province still built on land based wealth, Resource Works argues in its institutional history that the resource economy cannot be separated from land rules. In 2026, that is the main stage.

Resource Works News

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Indigenous

Residential school burials controversy continues to fuel wave of church arsons, new data suggests

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Macdonald-Laurier Institute

By Edgardo Sepulveda for Inside Policy

Church arsons surged again in 2024 according to new data released by Statistics Canada—continuing a disturbing trend first uncovered by a Macdonald-Laurier Institute investigation published last year.

Scorched Earth: A quantitative analysis of arson at Canadian religious institutions and its threat to reconciliation, which I published last April, warned that the arson wave – almost certainly spurred by ongoing anger over potential unmarked burials of children at residential schools –would not disappear without concerted government policy intervention.

Unfortunately, my prediction is proving accurate.

Newly available custom data from Statistics Canada confirms that arsons in 2024 continued at nearly double the baseline level established from 2011–17.

This persistent elevation is particularly concerning given that arson is a dangerous crime with significant financial costs and, in the case of religious institutions, broader implications for Canadian society and political discourse. Most importantly for those committed to Indigenous reconciliation, the apparent lack of effective policy response risks undermining public support for reconciliation efforts—suggesting these crimes are not being treated with the seriousness they deserve, particularly because many targets are Catholic churches associated with residential school legacies.

Scorched Earth developed specific terms and a conceptual framework to analyze arsons at religious institutions. First, I refer to “potential unmarked burials” rather than other terminology, including “mass graves” – language suggesting verified remains and, potentially, the site of clandestine burials. Neither has been established. No remains have been verified at any of the 21 announced sites. The Tk’emlúps te Secwépemc First Nation revised its own characterization of the Kamloops, BC, announcements in May 2024 to “probable unmarked burial sites,” a significant shift from its initial May 2021 announcement of “remains of 215 children.” This precipitated announcement, together with some of the initial media coverage in Canada and elsewhere, likely contributed to the intensity of the arson response.

Second, the conceptual framework, updated with the latest Statistics Canada data, separates “baseline” from “excess” arson associated with specific shocks, such as the announcements. It shows that arsons at religious institutions have remained elevated since the initial spike in 2021. Based on careful geographic statistical analysis presented in Scorched Earth, I demonstrated that the most likely explanation for elevated arsons was a criminal response prompted by the 17 announcements of potential unmarked burials at former residential schools, beginning in Kamloops, B.C., in May 2021. Four additional announcements occurred in 2024, bringing the total to 21. While data through 2023 showed no detectable increase in arsons related to the Israel-Gaza conflict, analysis of 2024 data suggests this changed: arsons in response to that conflict now constitute a minority of the increase above baseline levels, with the majority remaining those related to announcements of potential unmarked burials.

Investigation and Prosecution Rates Remain Insufficient for Effective Deterrence

Statistics Canada’s newly released custom clearance data for arson at religious institutions provides the first comprehensive official view of law enforcement effectiveness in these cases, superseding the preliminary compilation included in Scorched Earth.

Crimes in Canada are considered “solved” when police identify a suspect with sufficient evidence to support charges. Cases are then classified as “cleared” through two mechanisms: laying charges (“cleared by charge”) or alternative processes such as diversion programs (“cleared otherwise”).

As Figure 2 illustrates, the cleared-by-charge rate for all arson averaged 13.1 per cent over the 2011–24 period. For religious institutions, the yearly average reached 14.4 per cent—marginally higher but still concerning. The clearance rate for religious institutions shows significant year-over-year variability, reflecting the smaller statistical base compared to all arsons. The “cleared otherwise” category adds an average of 4.7 per cent for both arson types.

While these low clearance rates align with those for other property crimes, the continuing elevated arson rate suggests they provide insufficient deterrence for either first-time or serial arsonists. Evidence from Scorched Earth indicates that sustained clearance rates in the mid-30 per cent range—achieved by the National Church Arson Task Force (NCATF) in the United States during the 1990s—effectively reduced church arsons targeting predominantly Black congregations in the American South.

While my statistical analysis indicates that announcements of potential unmarked burials likely motivated many incidents, this remains circumstantial evidence. Direct evidence would require confessions or explicit statements of rationale from arrested arsonists, or credible claims of responsibility from organized groups. Out of the 306 arsons at religious institutions over the 2021-24 period, 53 resulted in charges and 13 were cleared through alternative processes, totaling 64 cleared incidents—an overall clearance rate of 21 per cent.

A clearance rate at this level, while insufficient for effective deterrence, makes it unlikely that most arsons during this period resulted from organized political, ideological, or anti-religious campaigns. A coordinated campaign would likely be visible to investigators even at this clearance level. Since police identify suspects in far more cases than they prosecute, investigators develop a broader perspective on potential culprits than clearance rates alone suggest. Law enforcement officials have not provided any indication of such organized campaigns.

Federal and Provincial Funding Addresses Searches But Ignores Consequences

Neither federal nor provincial governments have introduced policy initiatives addressing elevated arson rates at religious institutions, despite substantial new funding for related matters.

Following the Kamloops announcement, the federal government launched the Residential Schools Missing Children Community Support program, providing $246 million to hundreds of communities, including for research and field investigations. Separately, British ColumbiaAlbertaOntario, and other provinces have committed hundreds of millions in additional dollars, including programs to address mental health effects from the search process and announcements.

This funding inventory highlights a significant policy gap: substantial resources address the cause—announcements of potential unmarked burials—while none target the effect: arsons at religious institutions.

Even viewed narrowly as a crime issue, recent government responses to other property crimes demonstrate available policy tools. When auto theft peaked in 2023, the federal government announced $121 million in federal support, convened a national summit with all levels of government and law enforcement, and released a National Action Plan by May 2024.

Policy Gaps and a Call to Action

The NCATF, created in response to arsons targeting Black churches in the 1990s United States, achieved clearance rates sufficient to reduce incidents. Canada possesses the same policy tools but has not deployed them for residential school-related arsons.

This is not a matter of capacity or institutional precedent. Recent government responses to other serious property crimes, such as auto theft, demonstrate that Canada can mobilize coordinated federal-provincial action when it chooses to. The apparent policy inaction since 2021 for residential school-related arsons must end.

Canada is not powerless to stop the arsonists. The policy recommendations set out in Scorched Earth continue to be valid:

  • Create a national or regional integrated police/fire investigations unit focused specifically on arson at religious institutions. This integrated unit would investigate arsons at all religious institutions—Christian, Muslim, Jewish, and others.
  • Improve Indigenous police and fire protection services, including to ensure full Indigenous participation in the integrated unit.
  • Complete the long-running project of building and maintaining a comprehensive and timely national and on-reserve database of fire statistics.

Law enforcement officials must thoroughly investigate and prosecute the arsonists. The attacks threaten reconciliation and full Indigenous equality—and they must be condemned by all Canadians.


Economist Edgardo Sepulveda has more than 30 years of experience advising clients in more than forty countries. He has written for Jacobin magazine, TVO Today, and the Alberta Federation of Labour, and has been lead author of three peer-reviewed academic articles in the last five years. He received his BA (Hon) from the University of British Columbia and his MA from Queen’s University, both in Economics. He established Sepulveda Consulting Inc. in 2006.

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