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First Nations Tax Commissioner Appointment Regulations

Vol. 140, No. 21 — October 18, 2006

Registration
SOR/2006-243 October 5, 2006

FIRST NATIONS FISCAL AND STATISTICAL MANAGEMENT ACT

First Nations Tax Commissioner Appointment Regulations  (PDF Version)

P.C. 2006-1078 October 5, 2006

Her Excellency the Governor General in Council, on the recommendation of the Minister of Indian Affairs and Northern Development, pursuant to subsection 20(3) and paragraph 140(a) of the First Nations Fiscal and Statistical Management Act (see footnote a), hereby makes the annexed First Nations Tax Commissioner Appointment Regulations.

FIRST NATIONS TAX COMMISSIONER APPOINTMENT REGULATIONS

BODY TO APPOINT

Named body

1. For the purposes of subsection 20(3) of the First Nations Fiscal and Statistical Management Act, a commissioner shall be appointed by the Native Law Centre of the University of Saskatchewan.

COMING INTO FORCE

Coming into force

2. These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Introduction

Background/Overview

A core group of First Nations led the development of the First Nations Fiscal and Statistical Management Act (the Act) which came into force on April 1, 2006. The Act establishes four institutions, the First Nations Tax Commission (FNTC), the First Nations Finance Authority (FNFA), the First Nations Financial Management Board (FMB) and the First Nations Statistical Institute (FNSI).

The institutions enhance the tools available to First Nations to support good government, economic growth and, ultimately the quality of life on reserve, by strengthening First Nation real property tax regimes, creating a First Nations bond financing regime, supporting First Nation financial management and strengthening First Nation statistical capacity.

There are 12 priority regulations which are needed to operationalize the four institutions. A staged approach to finalizing these 12 regulations is being adopted to ensure the four institutions become operational as soon as possible, while work continues on outstanding policy and administrative procedures in close collaboration with partnering aboriginal organizations.

The four regulations in this first package are required immediately for the operation of the FNFA, the governance structure of the FNTC and the statistical relationships of the FNSI.

The second stage of regulation development will include six regulations affecting the operations of the FNTC and the FMB, and the property tax regimes established by the Act. The final stage will include adding the names of First Nations wishing to operate property tax systems under the Act to the Schedule and amending the Property Assessment and Taxation (Railway Right-of-Way) Regulations.

With respect to the four regulations in this package, in brief, the First Nations Tax Commissioner Appointment Regulations establish the Native Law Centre of Canada (NLC) as the body named to appoint a commissioner to the FNTC.

Two regulations are needed to support the FNFA. The Debt Reserve Fund Replenishment Regulations establish the method by which the Debt Reserve Fund will be replenished. The Short-term Pooled Investment Fund Regulations clarify that the FNFA can invest its members' funds in investment instruments used by the Municipal Finance Authority of British Columbia (MFABC).

The Statistical Data Disclosure Regulations, support the FNSI by creating a list of federal departments, agencies or organizations that have consented to provide the FNSI with access to their data holdings for statistical purposes.

Each set of regulations will be described in more detail in the sections below.

Gender Based Analysis

A complete gender equality analysis of the impact of the initiative and its four institutions was undertaken and has been reviewed and approved by the Women's Issues and Gender Equality Directorate at the Indian and Northern Affairs Canada (INAC).

The analysis found that the Act and its associated regulations strengthen the ability of First Nations to respond to the needs of all of their community members. They are designed to support First Nations in improving economic and social conditions on reserve, to the benefit of stronger families and women. Lack of employment and bleak prospects are known to increase the level of stress on individuals and families anywhere. The potential for these institutions to assist First Nations to improve the employment climate in certain communities, could potentially reduce stress on those individuals and families. The reduction of this stress could also have the beneficial effect of reducing the incidence of abuse and family violence. Therefore, the institutions, by improving economic prospects for First Nations will have a positive gender equality influence at the community level.

First Nation property tax regimes, established under the Act, would be harmonized with the corresponding provincial tax systems. Under a budget based property tax system, female and male taxpayers are both charged on the basis of the assessed value of the property they occupy. The standard manner in which taxes are calculated and charged does not favour men or women, thus no inequities would be perpetuated by the proposed system.

Within First Nation communities, there is a growing call for improvement to general financial and statistical management. First Nation women and First Nation women's organizations are on the forefront, seeking changes which allow greater transparency of process, stronger accountability of leadership, and actual citizen input into decision-making. These institutions are poised to help meet this identified need. For example, at the community level, FMB would support best practices and build capacity in financial management, while the FNSI would strengthen local data and information systems as essential elements of good decision-making and accountability. These improvements would benefit all members of First Nation communities, women and men alike, and ultimately, may assist in achieving gender equality.

Overview of Consultations

INAC, jointly with the Indian Taxation Advisory Board (ITAB), the First Nations Finance Authority Inc. (FNFI Inc.), and the First Nation Advisory Panels for the FMB and the FNSI, held public consultations on many proposed regulations including the Debt Reserve Fund Replenishment Regulations, the Short-term Pooled Investment Fund Regulations and the Statistical Data Disclosure Regulations. The consultation period commenced July 11, 2005 and ended September 30, 2005.

First Nations were notified of the consultations by a letter from the Minister. The draft regulations, summaries of each and information outlining how comments could be submitted, were posted on the website for the legislation: www.fnfi.ca. Consultation sessions, open to the general public, were held in Moncton, New Brunswick and at Westbank First Nation in British Columbia. A focussed consultation session was held with taxing First Nations in Richmond, British Columbia and another with the Canadian Property Tax Association in Calgary, Alberta.

Consultations on the First Nations Tax Commissioner Appointment Regulations were also held and will be specifically discussed in the section dealing with these Regulations.

First Nations Tax Commissioner Appointment Regulations

Description

In 1988, amendments to the Indian Act clarified property tax jurisdiction by First Nations in respect of real property rights on their reserve lands including newly-defined conditionally surrendered or designated lands. ITAB was established in 1989 by the Minister to provide advice on the approval of real property taxation by-laws, and to promote and safeguard First Nation property taxation powers under section 83 of the Indian Act.

ITAB will evolve into the FNTC once the institution becomes operational in the fall of 2006. The FNTC both assumes the new responsibilities under the Act and will carry on the advisory function of the ITAB in respect of section 83 of the Indian Act. The FNTC builds on the success of ITAB and fulfills the need to create a more flexible and viable institution in support of enhanced First Nation economic growth.

Specifically, the FNTC was created to:

  • assume authority for the approval of First Nation property tax laws made under the Act;
  • provide professional and objective assessments of First Nation property taxation under the Act;
  • prevent and minimize the costs of disputes by providing a mechanism for hearing the concerns of affected parties under the Act and for promoting the reconciliation of the interests of First Nations and taxpayers;
  • set standardized administrative practices for First Nation real property tax administrations created under the Act and provide training to ensure standards are achieved;
  • provide education in order to raise awareness of the benefits of First Nation taxation between First Nations and the rest of the country; and
  • advise the Minister on policy issues relating to the implementation of First Nation property taxation powers, and on any matter or policy put to it by the Minister.

FNTC is a shared governance organization which requires that appointments to the governing body be made by both the government of Canada and at least one other government or organization. In the case of the FNTC, 9 commissioners are selected by the Governor in Council on behalf of the government of Canada, with the remaining commissioner appointed by a body established pursuant to subsection 20(3) of the Act. The First Nations Tax Commissioner Appointment Regulations, made pursuant to paragraph 140(a) of the Act, identify the NLC as the body to appoint the additional commissioner to the FNTC.

Renowned for its expertise in promoting First Nation law, the NLC is a research centre within the University of Saskatchewan. It is responsible for the Program of Legal Studies for Native People. This program has been widely recognised for its role in increasing Aboriginal representation in the legal profession. The NLC also publishes the Canadian Native Law Reporter and since 1997, the First Nations Gazette. The Gazette is similar to the Canada Gazette and has been instrumental in improving the accessibility of First Nation laws, maintaining confidence in First Nation governments, and improving First Nation taxpayer relations.

All 10 commissioners need to be appointed before the FNTC is operational. As a result, these Regulations are required on a priority basis so that the NLC can appoint one commissioner to the Tax Commission concurrently with the Governor in Council appointments.

The commissioners must be committed to the development of a system of First Nations real property taxation and have the experience or capacity to enable the Commission to fulfil its mandate. The commissioners will set the strategic direction for the Commission, establish standards for First Nation local revenue laws, undertake the review and approval of these laws and conduct reviews of complaints concerning First Nation laws including the holding of quasi-judicial hearings.

Alternatives

Without these Regulations, the FNTC will not have the full complement of 10 commissioners required by the Act and it will not function as a shared governance body. First Nation proponents strongly support this shared governance structure, as it provides a credible, transparent and predictable process for the appointment of a commissioner.

The name of the NLC was advanced by ITAB as the appropriate body to appoint the one commissioner after it had undertaken a review of a significant number of possible organizations. Criteria for the selection of the best organization were developed by ITAB and reviewed by INAC. These criteria included: whether the interests of the organization were sufficiently national in scope; whether the organization was familiar with First Nation property taxation; and whether the organization would be able to support the achievement of the mandate of the FNTC. The results of the ITAB analysis of potential organizations was also reviewed by INAC, which agrees with the selection of the NLC.

The NLC is a stable, credible, widely respected institution in First Nation, academic and governmental communities across Canada. The NLC has maintained an apolitical approach to academic research, higher learning for Aboriginal students, and the promotion of First Nation law. This approach is critical in advancing an institution free of bias. In making appointments to the FNTC under the Act, First Nations and the Canadian public can be assured that the NLC will do so in accordance with the legislation.

Benefits and Costs

These Regulations do not require any additional funding as the remuneration for the one commissioner is included in government funding for the operation of the FNTC. This funding is secured under the implementation plan for the Act and is part of INAC's existing financial resources. The average annual funding for the FNTC is $5 million. Costs associated with the selection of the one commissioner will be borne by the NLC.

These Regulations will enable the FNTC to function as a shared governance organization and be more accountable and responsive to First Nation taxing authorities and taxpayers. The NLC, has a standing with First Nations, academics and governments that is unparalleled. With the addition of a director appointed by the NLC, the FNTC be able to maximize the recognition of various stakeholder interests, and further enhance its credibility and utility in promoting equitable, effective and efficient First Nation tax regimes.

It is anticipated that a greater level of investment in First Nation communities will result from the efficient and equitable operation of a property taxation regime as more business and residential interests decide to locate within the tax authority's jurisdiction. A better property tax system, attracting investment, would result in a commensurate increase in the value of on-reserve real property, the timely development of further on-reserve infrastructure through improved access to capital markets and viable long term debt financing and improved First Nation economic development opportunities.

Consistent with the recommendations of the Royal Commission on Aboriginal Peoples, Gathering Strength: Canada's Aboriginal Action Plan, and the External Advisory Committee (EACSR) on Smart Regulation, the First Nations property tax system, supported by federal legislation and regulations, would greatly contribute to the government's policy goals for self-government, a new fiscal relationship, improved accountability, and economic development for First Nation communities.

The Act contains a number of safeguards to ensure accountability for revenues generated from property taxation. First, in accordance with section 13 of the Act, these revenues, which are maintained in a separate account, can only be expended through the authority of an expenditure law made under the Act. In accordance with section 10 of the Act, an expenditure law must be made annually. Section 13 also provides that such an expenditure law cannot authorize expenditures that exceed the local revenues estimated for the year, over and above any deficit carried over from prior years. Finally, under section 14, the local revenue account shall be audited at least once each calendar year, and reported separately from other accounts. The audit is made available to all taxpayers, First Nation members, the FNTC, the FMB, the FNFA and the Minister.

The regulations are straightforward in their application and impose no requirements on First Nation property tax authorities. The NLC is required to do the associated research and administrative work in appointing one commissioner according to the regulations.

Consultation

The First Nations Tax Commissioner Appointment Regulations were developed jointly with ITAB. Consultations took the form of discussions held by ITAB with established organizations who were considered to have the potential to become the body to appoint the one commissioner. The result of the discussions indicated that the NLC was the only organization that met all the criteria and the regulations were developed to reflect this decision.

The regulations were pre-published for a 30-day period in the Canada Gazette, Part I, of July 1, 2006 and no comments were received.

Compliance and Enforcement

No compliance or enforcement requirements are associated with these Regulations. The Governor in Council will comply with the Act by appointing nine commissioners and the NLC will comply with the Act and regulations by appointing one commissioner to the FNTC. However, as an entity separate from the federal government, the NLC has the right to establish its own standards and criteria for the appointment of the one commissioner.

Contacts

For the First Nations Tax Commission

Wayne Haimila
Senior Counsel
Indian Taxation Advisory Board
321-345 Yellowhead Highway
Kamloops BC  V2H 1H1

Telephone: (250) 828-9857
FAX: (250) 828-9858

For the Department of Indian Affairs and Northern Development

Sheila Dubyk
Manager
Institutional Development
10 Wellington Street, 18th Floor
Gatineau PQ  K1A 0H4

Telephone: (819) 994-1330
FAX: (819) 997-0034

Debt Reserve Fund Replenishment Regulations and Short-term Pooled Investment Fund Regulations

Description

Background

In 1995, the FNFA Inc. was created to allow First Nations to have access to pooled investments at higher interest rates. Since that time, the FNFA Inc. has worked with several expert organizations to develop a means for First Nations to access private capital through the issuing of bonds. The FNFA established by the Act replaces the existing FNFA Inc. It continues to provide the investment services of the FNFA Inc. It also allows qualifying First Nations across Canada to pool credit, enjoy lower borrowing costs and access the bond market for capital funding and permits First Nations to pool their collective requirements for other funding needs, including leasing.

To become a borrowing member of the FNFA, First Nations must first meet the test of good financial management and transparent governance by both being certified by the FMB and having a financial administration law approved by the FMB.

The first step in the bond issuing process is for member First Nations to pool their capital funding requirements. The FNFA will then obtain a credit rating from a bond rating agency and issue bonds on the joint credit, based on property tax revenues of the participating First Nations. Capital funds raised through the bond issues will then be loaned back to the participating First Nations to build much needed infrastructure, thus adding value to their lands and attracting further investment. With increasing property values, much needed development and prosperity will follow. Value for money will improve greatly. For the first time, First Nations in Canada will be able to service their lands in a comprehensive fashion rather than by small projects, undertaken as grants and finances permitted. Enhanced economies of scale will be the result.

Debt Reserve Fund Replenishment Regulations

The Debt Reserve Fund Replenishment Regulations, made pursuant to paragraph 89(c) of the Act, provide certainty and stability to borrowing members and investors as to how the Debt Reserve Fund will be replenished equitably between borrowing members, if the need arises. The regulations are clear and are limited to First Nations borrowing through the FNFA.

FNFA bond issues will be attractive to potential purchasers, including Canadian banks and financial institutions because they will be backed by a Debt Reserve Fund into which each borrowing member, sharing in the proceeds of a bond issue, will contribute 5% of the amount it individually has borrowed. This amount is payable to the FNFA at the time of the bond issue and is returned, with interest, to the borrowing member at maturity of the bond.

Should a First Nation miss a loan repayment, any shortfall in respect of obligations to investors will be made up through the use of the Fund. In the event that payments are ever made from the Fund, the FNFA can recover such amounts from the defaulting borrowing member. Should the amount in the fund fall below 50% of its required value, in addition to attempting to recover the amounts from the defaulting borrowing member, the FNFA can also require payments from the other borrowing members pursuant to the strict process established by the Debt Reserve Fund Replenishment Regulations. In accordance with the Act, both the defaulting borrowing member and the other borrowing members must recover replenishment amounts through increases in property tax rates.

The Debt Reserve Fund Replenishment Regulations set out a formula determining the payments required in the event other borrowing members were ever collectively called upon by the FNFA to replenish the Fund. The formula in the regulations ensures that each borrowing member pays an equitable amount based on the size of their respective tax base. The cost is shared between the borrowing members with those communities with larger tax bases paying proportionality more than those with smaller tax bases.

Under the regulations, the Board of the FNFA notifies borrowing members 90 days in advance of any request to replenish the Fund and subsequently forwards an invoice to the borrowing members. The members pay their share of replenishment and then collect that amount from taxpayers in the next tax year. The borrowing member(s) that caused the Fund to be depleted in the first place remain(s) liable for the full amount of the Fund's depletion.

The Fund is an important cornerstone to the credit rating of the FNFA.

The confidence of Credit Rating Agencies is enhanced by the existence of absolute certainty as to how a late payment or a default will be handled. Participating First Nations must be clear on their responsibilities and obligations in respect of each collective bond issue. Purchasers of FNFA bonds, including Banks and financial institutions need precise information about these procedures to generate the confidence they need to buy the bond issues.

Short-term Pooled Investment Fund Regulations

The FNFA short-term investment pools provide safe investment opportunities for First Nation governments for moneys on hand but not immediately needed. The types of short-term investments that can be made by the FNFA in the pooled funds are clearly set out in the Act and are restricted to high quality financial instruments. This provides assurance to investors that their capital is safe.

There are currently two highly attractive short-term investment funds available to First Nations through the FNFA; the Money Market Fund and the Intermediate Fund. Previously, the FNFA Inc. had entered into a contract with the Municipal Finance Authority of British Columbia (MFABC), which was created by the province of British Columbia by statute to allow smaller municipalities to collectively invest in safe securities at better interest rates as well as collectively issue bonds to raise private capital. This arrangement allowed the FNFA Inc. to offer its members investments in funds operated by the MFABC which are similar to the Money Market Funds and Intermediate Funds contemplated by the Act, thus providing the members with the higher rates of return inherent in large scale pooled investments.

The MFABC funds are managed in accordance with the Municipal Finance Authority Act of British Columbia which establishes and governs the MFABC. This statute includes similar provisions to those found in the Act restricting the types of permitted short-term investments the MFABC can make. However, the permitted investments of the MFABC may be greater in scope than those permitted to First Nations investing with the FNFA, who are the same First Nations that were investing with the FNFA Inc.

The Short-term Pooled Investment Fund Regulations developed under paragraph 89(a) of the Act, ensure that the FNFA can invest its members' monies in the pooled investment funds of the MFABC. The regulations establish that the MFABC investment pools are "investments or a class of investments prescribed by regulations" established in section 87(2)(f) of the Act.

Alternatives

The alternative to the Debt Reserve Fund Replenishment Regulations is to develop administrative procedures at the FNFA Board level for dealing with late payments and defaults. This was rejected as not being binding to the extent required over the long term, as, without these Regulations, the credit rating and, ultimately, the marketability of the bonds would be seriously impaired.

The alternative to the Short-term Pooled Investment Fund Regulations is to establish new FNFA investment pools and not use the MFABC pools. This was rejected as not being beneficial to FNFA investing members who would lose the benefit of the economies of scale of investing in the MFABC pools. Without the regulations, investing in the MFABC pools would not be a permitted investment.

Benefits and Costs

These Regulations do not require any additional funding as the issuing of bonds and the provision of investment services is included in government funding for the operation of the FNFA. This funding is secured under the Act implementation plan and is part of the department's existing financial resources. The average annual funding for the FNFA is $500 thousand.

The Debt Reserve Fund Replenishment Regulations will support an investment grade credit rating for FNFA bonds. A good credit rating will reduce the interest paid by members on the bonds issued with possible savings of up to 4% in interest. On a $100 million transaction this equals $4 million annually or $80 million over 20 years (which is the usual borrowing period for a sewer and water system). Money, borrowed at lower interest rates and paid back over a longer period of time allows for a more comprehensive approach to planning and building infrastructure. The members will receive at least twice the value for their communities by borrowing through the FNFA.

The benefit of the Short-term Pooled Investment Fund Regulations is that the size of the combined MFABC/FNFA investment pools means the costs of management can be kept very low. The combined size of the investment pools under the control of the fund manager is typically over a billion dollars of municipal government and First Nation money. First Nations receive the benefits of being part of a much larger investment pool with significantly lower management fees than First Nations could expect on their own.

The security of consistent and known regulations protects both the borrowing and investing members and provide collection authority. It is important for borrowing members to have confidence that under law (regulation) there is a transparent system for replenishing the debt reserve fund based on common formula.

Consultation

The Debt Reserve Fund Replenishment Regulations and the Short-term Pooled Investment Fund Regulations were developed jointly with FNFA Inc. which was governed by an all Aboriginal Board of Directors. Directors are elected by the following shareholders: Westbank First Nation, St. Mary's First Nation, Songhees First Nation, Tzeachten First Nation and Millbrook First Nation. Input into the development of the regulations was received by FNFA Inc. from staff at the MFABC. The newly created FNFA has indicated its concurrence with the regulations.

Broader consultations, for both the Debt Reserve Fund Replenishment Regulations and the Short-term Pooled Investment Fund Regulations, took place with the general public and selected focus groups as part of the initiative-wide consultation sessions that were held in Moncton, Westbank, Richmond and Calgary. Specific questions raised by the participants regarding the FNFA were general in nature and sought clarification on how the FNFA would work. There were no changes made to either the Debt Reserve Fund Replenishment Regulations or the Short-term Pooled Investment Fund Regulations as a result of the comments received.

The regulations were pre-published for a 30-day period in the Canada Gazette, Part I, of July 1, 2006 and no comments were received.

Compliance and Enforcement

The FNFA, through the Act is required to establish and maintain a Debt Reserve Fund. The FNFA manages the Debt Reserve Fund in accordance with the Act, the regulations and the policies of the Board. The FNTC has a role in the enforcement and compliance of the Debt Reserve Fund Replenishment Regulations through its examination and approval of local revenue laws passed by First Nations where those laws address the replenishment of the Debt Reserve Fund and make provision for payment, including the annual First Nation property tax rate and expenditure laws. The FMB is mandated under the Act to intervene in the management of a First Nation and can enforce payment in the event of non-compliance with charges levied under the Debt Reserve Fund Replenishment Regulations.

The Short-term Pooled Investment Fund Regulations allow the FNFA, through its policies, to ensure that those entities investing in the pools are permitted to do so, namely First Nations and First Nation organizations. Through its investment guidelines, the FNFA ensures that the types of investments made are compliant with the Act and regulations. Where local revenues are invested, FNTC, pursuant to its mandate to ensure the integrity of the overall tax system, has a role in ensuring compliance by investing members to any standards or policies of the Commission respecting the investment of local revenues not immediately required by a First Nation.

Contacts

For the First Nations Finance Authority

Deanna Hamilton
President
First Nations Finance Authority
Suite 205-515 Highway 97 South
Kelowna BC  V1Z 3J2

Telephone : (250) 769-2404
FAX: (250) 760-2407

For the Department of Indian Affairs and Northern Development

Sheila Dubyk
Manager
Institutional Development
10 Wellington Street, 18th Floor
Gatineau PQ  K1A 0H4

Telephone: (819) 994-1330
FAX: (819) 997-0034

Statistical Data Disclosure Regulations

Description

The FNSI collects, analyses, interprets and disseminates statistical information to meet the statistical needs of First Nation governments, businesses and organizations. By developing the capacity of First Nations to effectively use statistical information, the FNSI demonstrates the importance of complete and accurate data. This, in turn, encourages First Nation participation in national data collection activities. As a First Nation-led statistical organization, it encourages consideration of First Nation culture and customs in the collection and analysis of First Nation data, which benefits First Nation decision making and helps support the more effective design and delivery of government programs for First Nations.

While there is significant data on First Nations being collected by Statistics Canada and various other government departments and agencies, at present, the data is held in a variety of data bases, is incomplete, and is not being interpreted from a First Nation perspective. This means that even such basic statistics as population counts for communities are not reliable. Currently, First Nations do not have at their disposal the data sets available to the majority of Canadians: information on housing, justice, natural resource management, culture, education, employment rates and health.

The Statistical Data Disclosure Regulations, made pursuant to section 113 of the Act, list each federal department, agency or organization (as set out in any of Schedules I to III of the Financial Administration Act) that has consented to enter into an agreement with the FNSI to allow the Institute access, for statistical purposes, to its data holdings related to First Nations.

The following departments have consented to be in the regulations:

  • Canada Housing and Mortgage Corporation
  • Department of Canadian Heritage
  • Economic Development Agency of Canada for the Regions of Quebec
  • Department of Fisheries and Oceans
  • Department of Health
  • Department of Indian Affairs and Northern Development
  • Office of Indian Residential Schools Resolution of Canada
  • Department of Natural Resources
  • Parks Canada Agency
  • Department of Public Safety and Emergency Preparedness
  • Department of Public Works and Government Services
  • Royal Canadian Mounted Police
  • Statistics Canada
  • Department of Veterans Affairs.

The data which can be accessed, includes data on First Nation communities and individuals, as well as data that directly affects First Nation communities and individuals. For instance, Natural Resources Canada may have data on mining and forestry activities which could impact the lands of First Nations.

Under the Act, the FNSI could access only existing data holdings based on data sharing agreements with a department or agency, clearly outlining the type of data being shared and the intended use of the data. In this regard, all data sharing agreements and the associated privacy of information issues will be dealt with in accordance with the provisions of the FSMA and the Privacy Act.

Alternatives

The alternative is for these Regulations not to be developed. However, this would mean that the FNSI could not fulfil its mandate because access to government data is crucial to the FNSI's success.

Benefits and Costs

These Regulations do not require any additional funding for the FNSI as the collection of data from other government departments is included in government funding for its operations. This funding is secured under the Act implementation plan and is part of the department's existing financial resources. The average annual funding for the FNSI is $5 million.

There may be some initial additional costs for the departments, agencies and other federal organizations on the list as they undertake to build relationship with the FNSI in accordance with the data sharing agreements developed pursuant to subsection 107(3) of the Act. However, over time, as the FNSI enters into agreements with federal departments, agencies and organizations and develops a comprehensive picture of data holdings relating to First Nations, it can assist the federal government to identify and eliminate duplication of effort. Thus each involved department, agency and other organization may be able to reduce its costs associated with the collection and analysis of such data.

Access to government data enables the FNSI to provide First Nation governments, businesses and organizations with the statistical information they need for exploration, analysis and, ultimately, decision making. Gaining access to statistical information based on government data holdings represents a logical and mindful first step to building the information capacity of First Nations. Access to government data allows the FNSI to assist government departments and First Nations in assessing their knowledge and brings all parties to the same point of reference.

Access to government records gives the FNSI the ability to compile and analyze existing data to provide the government and the general public with a more complete picture of the social and economic conditions of First Nations across Canada. This is particularly beneficial in the determination of fiscal transfers, as well as for program and policy creation, management and evaluation.

With access to the data holdings of various government departments, the FNSI is well positioned to assist in minimizing the potential duplication of effort in data collection and analysis. This helps to reduce the response burden which may be inadvertently placed on Fist Nations and their members.

Consultation

The First Nations Advisory Panel for the FNSI worked in partnership with INAC to consult with federal departments, agencies and other organizations in order to obtain their agreement to be included in the Statistical Data Disclosure Regulations. Background information was forwarded to various federal departments, agencies and organizations considered key sources of information relating to First Nations. This was followed up by meetings, where an overview of the mandate and role of the FNSI was provided. Once all questions were answered satisfactorily, each department, agency or organization advised of their agreement to be listed through letters addressed to the INAC Deputy Minister.

Once the regulations come into force, discussions will commence leading to the development of data sharing agreements between the FNSI and the individual federal departments, agencies and organizations listed in the regulations.

The Statistical Data Disclosure Regulations were also part of the consultations held in Moncton, Richmond, Westbank First Nation and Calgary. Some concerns were expressed about the security of personal information collected and held by the FNSI. Parties at the consultation sessions were assured that security measures in respect of data collected and held by the FNSI were fully addressed through the provisions of the Act (including those provisions relating to the application of the Privacy Act). The sessions did not produce any comments or raise any concerns specifically related to the regulations. As a result, no changes to the regulations were made.

The regulations were pre-published for a 30-day period in the Canada Gazette, Part I, of July 1, 2006 and no comments were received.

Compliance and Enforcement

These Regulations contains a list of federal departments, agencies and other organizations that have agreed to provide the FNSI with access to their data holdings relating to First Nations for statistical purposes. There are no enforcement provisions required as it is the individual data sharing agreements which will define the nature of the relationship between the FNSI and the federal departments, agencies and other organizations listed in the regulations.

Contacts

For the First Nations Statistical Institute

Chief Tom Bressette
Chair
First Nations Statistical Institute Advisory Panel
2515 Bank Street
P.O. Box 40077
Ottawa ON  K1V 0W8

Telephone: (613) 884-9382

For the Department of Indian Affairs and Northern Development

Sheila Dubyk
Manager
Institutional Development
10 Wellington Street, 18th Floor
Gatineau PQ  K1A 0H4

Telephone: (819) 994-1330
FAX: (819) 997-0034


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