CharacteristicsofaNation-to-NationRelationship:NationalDialogueDiscussionPaperSubmittedtotheInstituteonGovernancebyMarciaNickersonNovember2017

TableofContents

BACKGROUND 1

TAKINGSTOCKOFTHELEGACYOFCOLONIALISM 2RECONCILIATIONANDRELATIONSHIPREBUILDING 3

FRAMINGTHENEWRELATIONSHIP:FEDERALAGENDA 4BI-LATERALMECHANISMS 4REVIEWINGLAWS&POLICIES 6RECOGNITIONOFINDIGENOUSRIGHTSANDSELF-DETERMINATIONDISCUSSIONTABLES 6PRINCIPLESRESPECTINGTHERELATIONSHIP 7DISSOLUTIONOFINDIGENOUSAFFAIRS 8RESPONSETOADMINISTRATIVECHANGES 9

CHARACTERISTICSOFTHENATION-TO-NATIONRELATIONSHIP 10FRAMINGANEWROYALPROCLAMATION 11NATIONBUILDINGANDNATIONRE-BUILDING 12AGGREGATIONANDINDIGENOUSINSTITUTIONALDEVELOPMENT 14JURISDICTION 15RECOGNITIONOFINHERENTRIGHTOFSELF-GOVERNMENT 15WHATITMEANSTOGOVERN 15RECLAIMINGINDIGENOUSJURISDICTION 16INTERJURISDICTIONALRELATIONSHIPS 17INTERGOVERNMENTALFISCALRELATIONSHIPS 18FOUNDATIONSOFANEWFISCALRELATIONSHIP 18BEYONDTHE2%CAP 19BEYONDGRANTSANDCONTRIBUTIONS 20REVENUESHARING,POWERSOFTAXATIONANDOWNSOURCEREVENUE 21WELLBEINGANDWEALTHCREATION 22CLOSINGTHEGAPS 22TREATIES&CLAIMSETTLEMENTS 23EQUITYPARTICIPATION 23IMPROVEDFINANCIALADMINISTRATION 24SELFDETERMINATION&FINANCIALACCOUNTABILITY 24

WHERETOBEGIN 25ROLEOFTHEFEDERALGOVERNMENT 26ROLEOFTHEPROVINCES 26ROLEOFMUNICIPALITIES 26ROLEOFCANADIANPUBLIC 27

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BackgroundThefederalgovernmenthascommittedtopursuingaNation-to-Nationrelationshipbasedonrecognition,rights,respect,co-operationandpartnershipwithIndigenouspeople, acknowledging this as both the right thing to do and a path to mutualprosperity. The Nation-to-Nation relationship with Indigenous peoples has beenidentified as a seminal priority for Canada. At the same time, Indigenous leadersemphasizedthatCanada’ssesquicentennialservesasanopportunityforCanadaandIndigenouspeopletocompletethestoryofourcoexistence.Recognizing the opportunity this moment presents, the Institute on Governance(IOG)andCanadiansforANewPartnershipconvenedadialogueseriesaroundtheNation-to-Nationrelationshiptoenablenationsandleaderstosharetheirvisioninan open forum and direct the agenda moving forward. The dialogue series,beginning inFebruary2017,has focusedon four themes:NationBuildingandRe-Building,Jurisdiction,IntergovernmentalFiscalRelationships,andWealthCreation.In total, approximately 400 people participated in these dialogues, includingIndigenous leadership, Crown government representatives and civil societyparticipants.Whathasemergedisacoherentpathforchangebasedonanation-to-nation relationship that is steeped inbuildingon years of recommendations fromother key dialogues and studies, ranging from the Section 35 debates, to RoyalCommissionfindings,totheTruthandReconciliationCallstoAction.InanticipationofthefinalnationaldialoguetobeheldinOttawathisNovember,thispaperpresentssomeofthekeyfindingsfrom“CharacteristicsofaNation-to-NationRelationship”dialogueseriestodate,alongsidesomeofthekeydevelopmentsoverthe course of the discussions – specifically, efforts on the part of the federalgovernment to illustrate their commitment to thenation-to-nationagenda.This isnotmeant tobeacomprehensivesummaryofall inputs todate.Foraccess to theoriginal discussion paper, session summaries, or thought leader interviews, clickhere.Over the courseof thepast twoyears, PrimeMinisterTrudeauhas revamped theIndigenous portfolio, endorsed the final report of the Truth and ReconciliationCommission,endorsedtheUnitedNations’DeclarationontheRightsofIndigenousPeoples (UNDRIP), created a national public inquiry into missing and murderedIndigenous women, and committed to a Nation-to-Nation relationship withIndigenous peoples. Recognizing and enabling Indigenous governments wouldrequirea significant investmentand is consideredbymanyanaturalextensionoftherightsaffirmedinSection35oftheConstitutionAct.

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TakingStockoftheLegacyofColonialismA key first step in resetting the relationship between the Crown and Indigenouspeoplesinvolvestakingstockofandrecognizingthelegacyofcolonialpoliciessuchas the IndianAct and theResidential School program.Thesepolicies have erodedmany Indigenous nations’ governance institutions and practices, left a legacy ofintergenerational trauma within Indigenous communities, and threatened thesurvivalofIndigenouslanguagesandcultures-thebasisofIndigenousidentityandnationhood. Throughout the dialogue series many Indigenous leaders echoedformerAkwesasneGrandChiefMikeMitchell’ssentiments:“Mylanguage,mysong,myspiritualbeliefs;thatismysovereignty,that'smyidentity.”Participants acknowledged that starting with the Royal Proclamation, 1763, theCrowncommencedonapathofrecognition,committingtotreatymakingwithself-governing Indigenous nations. TheRoyal Proclamation ensured settlers could notacquire Indigenous lands directly without the Crown negotiating a formal treaty.TheTwoRowWampumusedintheTreatyofNiagara,1764,illustratedaNation-to-Nation relationship: a ship representing settler culture, religion, government andtraditions, and a canoe representing Indigenous government,way of life, spiritualways, customs and traditions, travelling together down the river of life, neithertryingtosteertheothers’vessel.Then,throughSection91(24)oftheBritishNorthAmericaAct,1867,andtheIndianAct,1876,theCrowntookadramaticallydifferentdirectioninitsrelationshipwithIndigenouspeople:oneofdenialofIndigenoustitleandrightsandapolicyofassimilation.Colonial policies of denial and assimilation have had devastating impacts onIndigenous people, leaving awide disparity in socio-economic outcomes betweenCanadian and Indigenous populations. The intergenerational impacts stemmingfromcolonialpoliciesareasignificant factor inthesuicidecrisismanyIndigenouscommunitiesacrossareexperiencingacrossthecountry.RegionalChiefIsadoreDayemphasizedtheneedtorebuildtoandgiveIndigenousyouth hope and a vision for their futures and the futures of their communities:“Theydonotseevision,theydonotseehopeandtheydonotseeopportunityinourcommunities.” To many, a “Nation-to-Nation” relationship means supportingIndigenousnationstorebuildhealth,happycommunitiesandcultures.Ovide Mercredi underlined the landlessness of Indigenous people is one of thegreatest crimes of Canada and that reconciliation requires restoring lands thatbelong to First Nations so they are not landless in their homeland and withouteconomicopportunitiesdrivenbythem,intheirhomeland.All dialogues around the Nation-to-Nation relationship inevitably begin withdiscussions of current and past historical injustices, and how these may beaddressedbytherelationshipandthroughreconciliationefforts.

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ReconciliationandRelationshipRebuilding

What would reconciliation mean to you, we asked, and people said reconciliationwouldmeanreclaimingknowledgearoundhealthywaysofparenting,ongoinghealing,reclamationofland,housing,language,culture,andtheconnectionbetweenreclaimingasenseofbelongingandidentityandtheabilitytofeelonecanstarttoheal.~MarieWilson,TruthandReconciliationCommission(TRC)~

IfreconciliationwastheoverarchingthemeoftheTRCreport,nationbuilding(withself-governmentastheultimateexpressionofnationhood)wasthemostimportantactivity the Commissioners saw to achieving this end. A new Nation-to-Nationrelationship is a fundamental component of fostering reconciliation and restoringresilience to Indigenous Nations. As Justice Murray Sinclair has noted,“Reconciliationisaboutforgingandmaintainingrespectfulrelationships.Therearenoshortcuts.”In 2015 the TRC released 94 Calls to Action, which identified these key actionspertainingtothenation-to-nationrelationship,including,amongstothers:

• DevelopanationalactionplantoachievethegoalsofUNDRIP.(#44)• With Indigenous peoples jointly develop a Royal Proclamation of

ReconciliationtobuildontheRoyalProclamationof1763andtheTreatyofNiagaraof1764,andreaffirmthenation-to-nationnatureoftherelationship.Thiscommitmentwouldinvolve:

o RepudiatingtheDoctrineofDiscoveryandterranullius.o UsingUNDRIPastheframeworkforreconciliation.o Base new and old treaty relationships on mutual recognition and

respect.o ReconcilingIndigenousAboriginalandCrownconstitutionalandlegal

orders as part of bringing Indigenous peoples on as full partners inConfederation.(#45)

• Enact legislation to establish the National Council for Reconciliation, anindependentoversightbodyjointlyappointedbytheGovernmentofCanadaandnationalIndigenousorganizations.(#53)

Inlate2016thePrimeMinistercommittedto:• Establish an Interim Board of Directors to make recommendations on the

creation of a National Council for Reconciliation and begin an engagementprocess to develop recommendations on the scope and mandate of theNationalCouncil.

• Provide$10milliontosupporttheworkoftheNationalCentreforTruthandReconciliation locatedat theUniversityofManitoba,asrecommendedinCallto Action 78, to ensure that the history and legacy of Canada’s residentialschoolsystemisremembered.

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ThePrimeMinsternotedworkisunderwayon41oftheTRCCallstoActionthatfallunder federalorsharedpurview.TheMinisterofCrown-IndigenousRelationsandNorthern Affairs (CIRNA) is tasked with supporting the work of reconciliation,includingtruthtellingandhealing,implementingtheTRCrecommendationsandtheUnitedNationsDeclarationon theRightsof IndigenousPeoples (UNDRIP).Duringourdialogues,theAuditorGeneralrecommendedpullingoutfiveorsixindicatorstotrack and to put more pressure on departments and provide a baseline ofinformationformeasuringchangeandsuccesswithregardstoimplementingthesecommitments.Mostrecently,inits10PrinciplestoguideitselfinitsrelationshipwithIndigenouspeoples, the federal government recognizes that reconciliation is “an ongoingprocess throughwhich Indigenous peoples and the Crownwork cooperatively toestablishandmaintainamutuallyrespectful frameworkfor livingtogether,withaviewtofosteringstrong,healthy,andsustainableIndigenousnationswithinastrongCanada.”1

FramingtheNewRelationship:FederalAgenda

Bi-lateralMechanismsBothInuitTapiriitKanatamiandtheMétisNationalCouncilhavepublicallystressedthe need for an approach that recognizes and respects the distinctions betweenIndigenouspeoples.Inlate2016thePrimeMinistercommittedtocreatepermanentbilateralmechanismswith theAssemblyof FirstNations (AFN)andFirstNations,theInuitTapiriitKanatami(ITK)andthefourInuitNunangatRegions,andtheMétisNationalCouncil(MNC)anditsgoverningmembers.InFebruary2017, thePrimeMinisterand Inuit leaders signed the InuitNunangatDeclarationtocreatetheInuit-CrownPartnershipCommitteeandrenewtheInuit-CrownrelationshipbetweenInuitTapiriitKanatamiandtheGovernmentofCanada.The Inuit-CrownPartnership Committee (ICPC) is a permanent committee taskedwith creating prosperity for Inuit for the benefit of all Canadians. Itwill advancesharedpriorities including implementationof Inuit land claimsagreements, socialdevelopment,andreconciliationandwill“energeticallyandcreativelypursuingthesocio-economic, cultural,andenvironmentalconditionsof success through the fullimplementation of land claims agreements as well as reconciliation.”2Immediateactionwill includeaddressing“painfulmemoriesof thepast, includingrelocationsandthetreatmentofInuitduringthetuberculosisepidemicofthe1940s-60s.”3

1DepartmentofJusticeCanada.PrinciplesrespectingtheGovernmentofCanada'srelationshipwithIndigenouspeoples.July19,2017.2PrimeMinisterJustinTrudeau.InuitNunangatDeclarationonInuit-CrownPartnership.February9,2017.3PrimeMinisterJustinTrudeau.PrimeMinisterofCanadaandPresidentofInuitTapiriitKanatamiannouncetheInuit-CrownPartnershipCommittee.February9,2017.

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TheICPCisstructuredtocomplementandnotimpedeongoingworkonlandclaimsimplementation.4At the secondmeetingof the ICPC in late September2017, Inuitand federal leaders met to put in motion a number of initiatives to tackletuberculosis,addressclimatechangeandinvestinearlychildhoodeducation.TheypledgedtoestablishataskforcetocreateandimplementastrategyforeliminatingTB in InuitNunangat and discusswildlifemanagement and Indigenous guardiansprogramming.5InApril 2017 the federal government and theAssembly of FirstNations signed aMemorandumofUnderstanding(MOU)to:

• Promote and foster the renewal of the Nation-to-Nation relationshipbetweenCanadaandFirstNationsasholdersofTreatyandinherentrights,title,andjurisdiction.

• Support the full andmeaningful implementationof theTRCCalls toActionandtheUNDeclarationontheRightsofIndigenousPeoples(UNDRIP).

• Establish mechanisms and processes to ensure the full and meaningfulenforcementandimplementationofTreatyrights.

• Jointly review, reform and develop federal laws, regulations, procedures,policiesandpracticesthatrespectFirstNationsrights

• Jointly identifymeasures and priorities for closing the socio-economic gapbetweenFirstNationsandotherCanadians.

• Establish transparent and accountable processes to jointly communicateactivities,andresults.

Thisprocesswillestablishasteeringcommittee,jointtables,workinggroups(withrepresentation to reflect a whole-of-government commitment by the federalgovernment, including PMO, PCO, Finance and Treasury). Canada will provideresources tohelp support implementationof theMOUand “to enable the full andmeaningful engagement of First Nations as rights holders, through theirgovernments.”6AlsoinApril2017,duringthefirstMétisNation-CrownSummitinOttawa,thePrimeMinisterand thePresidentof theMétisNationalCouncil7signed theCanada-MétisNation Accord, creating a permanent bilateral mechanism on issues such asemployment,healthandhousingforMétispeople.Canadaisinvesting$84.9millionover five years and $28.3million per year afterward to build the capacity of theMétis National Council and its five provincial GoverningMembers andworkwithCanadaonMétisself-governmentandself-determination.8

4InuitTapiriitKanatami.WhatistheInuitNunangatDeclarationonInuit-CrownPartnership?March14,2017.5Inuit-CrownbodywillfocuseffortsonTB,climatechange.Committeeis“mosttransformativechangeinitiatedbyInuit,"saysITKpresident.NunatsiaqNews.October3,2017.6GovernmentOf Canada and theAssembly of FirstNations.MemorandumofUnderstanding to Support FirstNationsJurisdictionandSovereigntyandaRenewedCrown-FirstNationsRelationship.April2017.7TheMétisNationisrepresentedbytheMétisNationalCouncilanditsGoverningMembers:theMétisNationsofOntario,Manitoba,Saskatchewan,AlbertaandBritishColumbia.8PrimeMinisterJustinTrudeau.ThePrimeMinisterofCanadaandPresidentoftheMétisNationalCouncilwelcometheSigningoftheCanada-MétisNationAccord.April13,2017.

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ReviewingLaws&PoliciesUndertaking this work requires confronting the reality of the history of Canada –something the Truth andReconciliation Commission is helping Canada to do. Itmeanscompleting the foundations that were not built when Canada was created. It willultimately require undoing the Indian Act and other legislation that has remnants ofcolonialismandcreatinglawsandpoliciesthatrecognizeIndigenousgovernments, lawsandlands.~JusticeMinisterJodyWilson-Raybould,AFNGeneralAssembly,July2016~

InFebruary2017,thePrimeMinisterannouncedtheestablishmentoftheWorkingGroup of Ministers on the Review of Laws and Policies Related to IndigenousPeoples. Justice Minister and Attorney General of Canada, JodyWilson-Raybould,who chairs the working group, describes the group’s mandate as “engaging withIndigenous peoples to ensure laws, policies and operational practicesare basedonthe recognition ofrights and advance reconciliation” and “reviewing relevantfederal laws, policies and operational practices to help further a nation-to-nation,Inuit-Crownand government-to-government relationship with Indigenouspeoples.”9

RecognitionofIndigenousRightsandSelf-determinationDiscussionTablesAsweknow,progresson the transferofgoverningauthority, landsandresourceshas been slow and often mired in legal complexity. Beyond reconciliation,empowermentofIndigenousnationswiththecapacityforself-governmentwasandremains a significant feature of creating a modern, renewed relationship. InNovember 2017, iPolitics reported that the number of ‘Recognition of IndigenousRightsandSelf-determinationDiscussionTables’hasjumpedfromaround20inJuly2016 to over 50 today. The tables represent 300 Indigenous communitieswith atotalpopulationofmorethan500,000people.10

SomeIndigenousPeoplesmayjoinforcesatonetablebecauseoflanguageorkinshipties,whileothersunitebecauseofpriorpoliticalarrangementsthatbroughtthemtogether,said(Joe)Wild.11

Thistablestructure,whichcanresultinavarietyofagreementsaimedatdifferentformsofself-determination,ismeanttoaddresspreviouscriticismsaroundlengthynegotiations, overlapping or competing claims, rigid policies, and paternalisticapproachestoself-governmentandmoderntreaties.Throughoutthedialogueseriesparticipantshavebeenclearthatthefederalgovernmentneedstobeclearerontheprocesses in moving towards self-government and the Nation-to-Nationrelationship, includingtheneedforanoverarchingGovernmentpolicyrecognizingandaffirmingthenation-to-nationrelationship.

9MinisterofJusticeandAttorneyGeneralofCanadaandChairoftheWorkingGroupofMinistersontheReviewofLawsandPolicies,JodyWilson-Raybould.WorkingGroupofMinistersontheReviewofLawsandPoliciesRelatedtoIndigenousPeoples.February22,2017.10JamesMunson,“INACfindingnewsuccesswithTreatyNegotiations”,iPolitics:November8,2017.11Ibid.

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PrinciplesRespectingtheRelationshipThefederalJusticeMinisternotedtheGovernmentofCanadahasrecentlyreleased10Principles,whichwill governCanada’s side of its relationshipwith Indigenouspeoples.ThePrinciplesaredirectedatfederalofficialsandthefederalbureaucracy,tobeginshiftingdecades-oldpatternsofbehaviourandoperatingpracticestoanewreality.ThesePrinciplesare informedbySection35,UNDRIP,RCAPandtheTRC’sCallstoAction.Theyare:

1. All relations with Indigenous peoples need to be based on the recognition andimplementationoftheirrighttoself-determination, includingtheinherentrightofself-government.

2. ReconciliationisafundamentalpurposeofSection35oftheConstitutionAct,1982.

3. ThehonouroftheCrownguidestheconductoftheCrowninallofitsdealingswithIndigenouspeoples.

4. Indigenous self-government is part of Canada’s evolving system of cooperativefederalismanddistinctordersofgovernment.

5. Treaties, agreements, and other constructive arrangements between Indigenouspeoples and the Crown have been and are intended to be acts of reconciliationbasedonmutualrecognitionandrespect.

6. Meaningful engagementwith Indigenous peoples aims to secure their free, prior,and informed consentwhen Canada proposes to take actionswhich impact themandtheirrightsontheirlands,territories,andresources.

7. Respecting and implementing rights is essential and that any infringement ofSection35rightsmustbylawmeetahighthresholdofjustificationwhichincludesIndigenousperspectivesandsatisfiestheCrown’sfiduciaryobligations.

8. Reconciliation and self-government require a renewed fiscal relationship,developed in collaboration with Indigenous nations, that promotes a mutuallysupportiveclimateforeconomicpartnershipandresourcedevelopment.

9. Reconciliation is an ongoing process that occurs in the context of evolvingIndigenous-Crownrelationships.

10. Adistinctions-basedapproachisneededtoensurethattheuniquerights,interestsand circumstances of the First Nations, the Métis Nation and Inuit areacknowledged,affirmed,andimplemented.12

12DepartmentofJusticeCanada.PrinciplesrespectingtheGovernmentofCanada'srelationshipwithIndigenouspeoples.July19,2017.

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DissolutionofIndigenousAffairsFinally,inSeptember2017,theGovernmentofCanadaannouncedthedissolutionofIndigenous and Northern Affairs Canada (INAC), historically tasked withimplementingthecolonialIndianAct,replacingitwithtwonewdepartments:

1. The Department of Crown-Indigenous Relations and Northern Affairs(CIRNA),whichwill focuson improvingwhole-of-government coordinationof the Nation-to-Nation relationship and creating a framework for arecognition-of-rightsapproach.

2. TheDepartment of Indigenous Services,whichwill focuson improving thequalityofservicesdeliveredtoIndigenouspeoples.A long-termmeasureofsuccess is for this department to ensure “programs and services [are]increasingly delivered, not by the Government of Canada, but instead byIndigenousPeoplesastheymovetoself-government.”13

The1983PennerReport,of thereportof theparliamentarySpecialCommitteeonIndian Self-Government, highlighted INAC’s inherent conflict of interest andrecommended itsdissolution. In1996,RCAPalsorecommendedcreating twonewdepartments to replace INAC – one to focus on the relationship and nationrebuildingandanothertosupportservicesinIndigenouscommunitiesaspartofitslarger plan to restructure the relationship between the Crown and Indigenouspeoples.The federal government describes this as a step toward ending the IndianAct, aprocess that will also require First Nations leadership in addition to legislativeamendments.BothMinistersaremembersoftheWorkingGroupofMinistersontheReview of Laws and Policies Related to Indigenous Peoples, whose work andPrinciplesguideandsupporttheworkofbothMinisters.The Prime Minister’s mandate letter for the Minister and Department of CIRNAprovidesdirectionto:

• Develop and lead consultations as the Government of Canada adoptsmachineryofgovernmentchangestorenewtherelationshipwithIndigenousPeoples.

• Provide recommendations to the PM on the division of responsibilitiesbetween the two Ministers and departments, including the anticipatedtransfer of responsibility for the FNIHB from theMinister of Health to theMinisterofIndigenousServices.

• WorkwiththeMinisterofFinancetoestablishanewfiscalrelationshipwithIndigenous Peoples based on sufficient, predictable, and sustained fundingfor communities, a renewed economic and fiscal relationship that enablesnationshaverevenuegenerationandfiscalcapacitytogoverneffectivelyandabilitytoprovideprogramsandservicestotheircommunities.

13PrimeMinisterJustinTrudeau.NewMinisterstosupporttherenewedrelationshipwithIndigenousPeoples.August28,2017.

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• Supporting the Ministers of Health and Indigenous Services in makingsystemic changes to reduce health and welfare inequities betweenIndigenous peoples and non-Indigenous Canadians, including developinggovernance models that bring control and jurisdiction back tocommunities.14

ThemandateoftheMinisterandDepartmentofIndigenousServicesincludes:

• Adopting a rigorous results and delivery approach that delivers real andimprovedresultsintheshortterm,improvesoutcomesoverthelongerterm,andsupportstheMinisterofCIRNAinmodernizeinstitutionalstructuresandgovernance so to support Indigenous peoples’ capacity to implement theirvisionofself-determination.

• WorkingtoleverageIndigenouspeoples’ingenuityandunderstandingalongwiththatofotherexpertsonservicedelivery.

• Ensuring the successful delivery of Budget 2016 and Budget 2017investments in Indigenous Services, including new and repaired housing,ensuring children on reserve receive a quality education, and ensuringpeopleonreservehaveaccesstocleandrinkingwater.

• Taking an approach to service delivery that is patient-centred, focused oncommunitywellness,linkseffectivelytoprovincialandterritorialhealthcaresystems, and that considers the connection between health care and thesocialdeterminantsofhealth.15

ResponsetoAdministrativeChangesThough this is not the first time Canada and Indigenous nations have tried toredesigntherelationship,atthisjuncturethePrimeMinisterandCabinetarehighlyengaged and there is an opportunity to make lasting change. Many Indigenousleadersbelievethatthis“windowofchange”isslowlyclosingand,therefore,timeisof the essence on the part of Indigenous leaders toworkwith the processes andstructuresunfoldingatthefederallevel.Naiomi Metallic, member of the Listuguj Mi’gmaq First Nation and Chancellor’sChairinAboriginalLawandPolicyatDalhousieUniversitystressesthat“takingtheeasyadministrativesteps,withoutdoingtheharderworktoachievethelong-lastingchangesthatwillberequired,suchastransformingCanadianlaws,willnotresultintrue reconciliation.”16Mere administrative changes do not alter Canadian law andcouldbeeasilyignoredorreplacedbyfuturegovernments.Comparedtoabasisinlaw, she notes, “administrative actions provide Indigenous peoples far fewerprotectionsfromthevagariesofpolitics.”1714PrimeMinisterJustinTrudeau.MinisterofCrown-IndigenousRelationsandNorthernAffairsMandateLetter.15PrimeMinisterJustinTrudeau.MinisterofIndigenousServicesMandateLetter.16Naiomi Metallic. Why administrative changes won’t kill the Indian Act: Splitting Indigenous and NorthernAffairsCanada intotwo isapositivemove,butadministrativechangesalonewon’t leadtoself-determination.September20,2017.17Ibid.

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RCAP’srecommendationtodissolveINACwasonepieceofamorecomprehensivestrategytosupportIndigenousself-government.Metallicarguesthecurrentfederalgovernment’s focus seems to be on changing its internal organization andinstitution, not on the broader strategy of moving to self-government. Bringingabouta transformativechange in the relationship requiresa largerplan includingsubstantive legal and political action. Dissolving INAC has to be ancillary to abroaderstrategyofmovingtoself-government.18CanadianhistorianKenCoatesnotes, “When themajor government actionsof thepastfewmonthsinvolveastatementofprinciplesforreconciliationandanoverduebut hardly exciting division of the Indigenous Affairs department into twoministries, you can appreciate that many Indigenous folks are not overlyimpressed.”19AftertheevaporationoftheKelownaAccord,Indigenouspeopleshavelearned not to get their hopes upwith federal government promises. There is anopportunity with a federal government more sincerely committed to Indigenousaffairs. Behind the scenes, Indigenous leaders are working with the federalgovernment on how tomove forward. According to Coates, “it is here, in the co-productionof Indigenousprogramming, that therealauthorityofUNDRIP is tobefound.”20

CharacteristicsoftheNation-to-NationRelationshipWhat follows are some of the key characteristics and relationship issues thatemerged over the course of the dialogue sessions. Needless to say, establishing anewrelationshipwiththeCrownincludes:

• Indigenous self-government founded in self-determination, legal capacityandaccesstoresources;

• therecognitionofinherentAboriginalandTreatyrights,aswellastheabilitytoexerciseandimplementinherentrightsandresponsibilities;

• treatyrenewalandtreatyimplementation;• fiscalarrangementsandresourcerevenuesharing;andclosingthesocialand

economicgapsfacedbyIndigenouspeoples.These are all aspects that were addressed in detail throughout the “Nation-toNation”dialogueseries.

18Ibid.19Ken Coates. Helping Indigenous Peoples is about more than embracing UN declarations. Ottawa Citizen.September20,2017.20Ibid.

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FraminganewRoyalProclamationManyoftheideasemergingfromtheNation-to-NationCharacteristicsDialogueechothesentimentsvoicedbytheRoyalCommissiononAboriginalPeoples:

Change of this magnitude cannot be achieved by piecemeal reform of existingprogramsandservices-howeverhelpfulanyoneofthesereformsmightbe.Itwilltake an act of national intention - a major, symbolic statement of intent,accompaniedbythelawsnecessarytoturnintentionsintoaction.ThiscanbestbedonebyanewRoyalProclamation, issuedby theQueenasCanada'sheadofstateandthehistoricalguardianoftherightsofAboriginalpeoples,andpresentedtothepeople of Canada in a special assembly called for the purpose. The proclamationwould set out the principles of the new relationship and outline the laws andinstitutionsnecessarytoturnthoseprinciplesintoreality.Itwouldnotsupplantbutsupport and modernize theRoyal Proclamation of 1763, which has been calledAboriginal peoples'Magna Carta. The new proclamation would commit thegovernmentofCanadatomakinggoodonitsproclaimedintentionsbyintroducingnewlawsandinstitutionstoimplementthem.21

RCAPdetailedaspecificandcomprehensiveplanwiththefollowingcoreelements:

1. The federal government should begin the cycle of renewal with an act of

nationalintention-anewRoyalProclamation.

2. Parliamentshouldenactcompanionlegislationtogivetheseintentionsformandmeaningandprovidethe legal instrumentsneededto implementthem.Launch public education campaign to promote understanding amongstCanadians.Threemajorpiecesoflegislationwouldbeneeded:

• anAboriginalTreaties ImplementationAct, settingout aprocess forclarifying and modernizing existing treaties and making new ones,andestablishingregionaltreatycommissionstofacilitateandsupportthenegotiationprocess

• anAboriginalLandsandTreatiesTribunalAct,establishingabodytoclearthebacklogofspecificclaimsandactasombudsmanforthenewcomprehensivetreaty-makingprocesses

• an Aboriginal Nations Recognition and Government Act, setting outthe process and criteria for recognizing Aboriginal nations,acknowledging, on an interim basis (until treaty negotiations arecomplete), their jurisdiction over core issues within their existingterritories,andprovidingfinancing

3. Thefederalgovernmentshouldconveneaforumincludingfirstministersatthefederal,provincialandterritoriallevelsandleadersofnationalAboriginalorganizations to negotiate a Canada-wide framework agreement to lay theground rules for processes to establish the new relationship. The forumwouldaddress:

21HighlightsfromtheReportoftheRoyalCommissiononAboriginalPeoples:PeopletoPeople,NationtoNation.MinisterofSupplyandServicesCanada1996.

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• treatyrenewalandnewtreatymaking• redistributionoflandsandresources• clarificationofareasofindependentandsharedjurisdiction• redesignofshort-termandlong-termfiscalarrangements

4. Aboriginal nations should begin their rebuilding processes and developinstitutionsandhumanresourcesforself-governmentandallitentails.

5. Allgovernmentsshouldpreparetoenterintothenewtreatyprocess.6. Governmentsshouldtakeinterimsteps,asproposedbythisCommission,to

redistributelandsandresourcessoCanada'swealthissharedfairlywiththeoriginalinhabitantsoftheland.

7. Aboriginal andnon-Aboriginal governments should co-operate to stimulateeconomicdevelopment.

ThroughoutthedialogueIndigenousleadersspoketoaProclamationthatcommitsCanada to forging a new treaty relationship and adopting a number of new laws(alsocalledforintheTRCCallstoAction43-46).AnewRoyalProclamationwouldbe followedbyParliament enacting companion legislation to create the new lawsneeded to implement the new relationship and anchor this change and providesomeprotectionfromthevagariesofpoliticsandchanginggovernments.

NationBuildingandNationRe-Building

Thenewmodelfornationre-buildingis[Indigenousnations]doingitfromtheinsideout.Weneedenablinginstitutions,notrepresentativeinstitutions.Whohastherighttorepresentourchildren?Thegrandmothersinournation;weneedtobringourgrandmothersbackouttotellus how to behave, in our languages, because in our languageswe knowhow to govern andrelatetoourenvironment.~GwenPhillips,KtunaxaNationCouncil~

RCAP identified that although there are about 1,000 reserve and settlementcommunitiesacrossthecountry,thereareabout60to80Indigenousnations,unitedbyasharedsenseofnationalidentityandconstitutingthepredominantpopulationin a certain territory or collection of territories. Colonization and specifically theIndianActdismantledmanynations’governmentsandcreateda largernumberofsmallcommunitygovernments,withsmalllandbases,dividedpopulations,andlackof capacity and critical mass to make decisions. Small governments often lackcapacityandresourcestoadequatelyservepeople’sneeds.Many participants reiterated that the right to self-governance is inherent, or suigeneris; in other words not something to be granted by the Crown. As MilesRichardson noted, “Nations cannot exist without an acceptable measure ofsovereignty, and sovereignty is not negotiated or bestowed by someone else. Itexists within Indigenous Nations. It is not drawing down powers, but exercisinginherentrights.”Indigenouspeoplesmustleadeffortstorebuildtheirnations,and

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many are through self-definition, nation rebuilding, rebuilding self-governanceinstitutionsandpractices,andrevitalizingculturesandlanguages.FederalJusticeMinister,JodyWilson-Raybouldrecentlyreiteratedsomeofthekeydialogue questions at the 2017 Assembly of First Nations (AFN) Annual GeneralAssembly (AGA), advising Indigenous nations to be clear on their vision for thefutureofCrown-Indigenousrelationsandtobepreparedtoanswerkeyquestions:

• How will you organize yourselves as Indigenous peoples, bonded bylanguage, culture, and traditional territories, in order to implementrelationshipswiththeCrown?Whatwillyouestablishasyourpoliticalandgoverninginstitutions?

• Howwillyoumanageoverlappingterritorieswithothernations?• Howwill you involve yourElders, educators, business leaders, youth, legal

experts,communityorganizersandmembersinrebuildingyourgovernanceinstitutionsandnewformsofpartnershipwiththeCrown?

• Whatstepsdoyouneedtotaketoprepareyourcitizensformovingbeyondthe Indian Act?What tools need to be built to exercise your right of self-government?

Followingtheseremarks,therehasbeenincreasedtalkoftheneedtodoawaywiththe Indian Act band structure and support rebuilding of traditional governance.DevelopingrobustgovernanceinstitutionswillbetterpositionIndigenousnationsintheirrelationshipswiththeCrownandotherinstitutions.Akwesasne,forexample,hasworkedtorestore itsnationhoodthroughmeasures includingpassing lawsonlandmanagementandhuntingand fishing.Akwesasnedidnotseekrecognitionoracceptance from the Crown for its laws and initiatives, but simply began toimplement self-government by systematically taking over education, policing, andenvironmental management. Modernizing traditional laws and governance canprovide Indigenousnations the toolsneeded tobetteruphold their inherent rightwithrespecttootheractors,includingtheCrownandindustry.Rebuilding a nation’s traditional governance in contemporary times involvesengaging traditional knowledge holders and leaders in defining how to bringforward that nation’s traditional laws into an appropriate form of contemporaryexpression. According to Chief Councillor Marilyn Slett, the Heiltsuk Nation’sdeclaration of sovereignty was developed in concert with Heiltsuk hereditaryleadership,mandatedbythecommunity,andincludes“usingourownlanguage,ourownconcepts,meetingthesocialandeconomicneedsofourpeople,balancingtheeconomy and the environment, and respecting our connection to the land andwaters,andourstewardshipresponsibility.”Supporting nation-rebuilding means comprehending that the Crown cannotparachute solutions into Indigenous communities. Indigenous communities, basedon their needs and priorities, must drive solutions. Indigenous nations andcommunities need to lead their own governance renewal and nation rebuilding

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processes,while theCrowncanplay a supporting role in thisnationand capacitybuilding. The Crown can invest in community engagement and decision-makingprocesses, so that nations have a clear vision for what they will do with self-governmentandhowtheywilldoit,andtheCrowncanprovidefundingsupporttohelpbuildandsustainself-governmentcapacity.

AggregationandIndigenousInstitutionalDevelopmentA number of panelists and participants spoke to the need for aggregation,particularlyinorderforIndigenousnationstogainafootholdinnegotiationswithboth the Crown and industry. Indigenous peoples must work to build theirinstitutions,frameworks,andgovernance,whichwillattimesneedtoberecognizedandfiscallysupportedbyCanada.Fundamentalto institutionaldevelopment isthebuildingofanIndigenouscivilservice.Recruitment,trainingandretentionarekeystocreatinginstitutionalcontinuitywithincommunitiesandbuildingtheskillsetsofa new generation of indigenous leadership to manage their communities’ andnations’affairs.AggregationcanhelpfacilitateserviceimprovementandinnovationandcanenableIndigenouspeoples to engagewith theCrownat a central agency levelwith theirowncentralagencies.TheseinstitutionsareonewayFirstNationscanexpandtheirexerciseofjurisdictionand/orauthority.TheFirstNationsHealthAuthority(FNHA)is an example of Indigenous communities coming together to build Indigenousinstitutions,realizingeconomiesofscale,andtransforminginheritedsystemsfromtheCrown tomeet Indigenousneeds through Indigenous approaches.As a result,there are no longer any health-related decisions about BC First Nations withouttheirinvolvement.SomeofthekeyssuccessesoftheFNHAmodelinclude:

• Unifiedleadership.• Reciprocalaccountabilitybetweenpartners.• Governance, including a Tripartite Committee, the First Nations Health

Council, which conducts advocacy and negotiations, and the First NationsHealthDirectorsAssociation,whichplaysatechnicaladvisoryrole.

• Comprehensive, consensus based decision-making process resulting inunprecedentedsolidarityincreatingtheFNHA.

• Community-driven,Nation-basedapproaches.TheFNHAmodelincorporatestraditionalwellnessandculturalapproaches.

• Partnership tables, which enable the FNHA to take a seat at the table onbehalfofBCFirstNationsinhealthcaredecisionmakinginBC.

Canada has an important role to play in investing in First Nations economicdevelopmentandability toaccessdebtandequity for things like infrastructure tohelpeconomicandsocialdevelopment.Asnationsbecomeself-governing,theyneedaccesstocapitaltotraintheirpublicservicepersonnel,investininfrastructureandbuildaneconomicbase,asthecostofclosingtheserviceandinfrastructuregapistoogreatfortheCrowntofundalone.InitiativessuchastheFirstNationsFinancial

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Management Act (FNFMA) and the First Nations LandManagement Act are FirstNations-led initiatives, built on standards and processes that are recognized bymarkets andother governments; andare considered important steps in achievingIndigenousself-government.

Jurisdiction

RecognitionofInherentRightofSelf-GovernmentManyleadershavestatedthatthesourceofIndigenousauthorityisnotParliament,norprovincial government,norSection91(24)of theBNAAct, nor the IndianAct,northecourts,includingtheSupremeCourtofCanada(SCC).Indigenouspeopledidnot create these laws nor empower settler governments to make laws overIndigenouspeople.IndigenousauthorityisnotdelegatedfromtheCanadianCrown.Indigenous peoples have their own existing governments, based on ancientauthority. Indigenous inherent rights and authority derive from ownership ofancestral lands and resources. It stems from Indigenous peoples’ history livingwithin their traditional territories and coexisting with other nations adjacent totheir territories. Indigenousownershipdoesnothave tobeproven to thecolonialregime. The inherent right to self-rule stands on its own legitimacy and is notdependentonCanada’sacknowledgementforitsexistence.OvideMercredicalledonIndigenous people to stop waiting for Canada to recognize them. “No nationbecomesgreatbywaitingforanothernationtogiveitpermissiontobecomegreat.”Recognizing the inherent, sui generis, nature of Indigenous jurisdiction is a keystartingpointforagenuineNation-to-Nationrelationship.

WhatitMeanstoGovernHonourableMurraySinclairaddressedthequestionofWhatdoesitmeantogovern?Law at its most fundamental is about how we conduct relationships, such asbetween parents and children. These laws are carried forward in stories. WhoIndigenous people are is included in and passed down through their teachings.IndigenouslawcomesfromtheCreator,fromIndigenousnations’existenceintheirterritories for millennia. This history endows Indigenous nations with theresponsibilitytogoverntheirterritoriesandpeople.Many Indigenous peoples have lost understanding ofwho they are and how theygovernedthemselvesbeforecolonizationanditwilltaketimetoreviveorrecreatethose understandings and practices. Residential schools and public schools haveworkedtopreventIndigenouspeoplefromlearningwhotheyare,wheretheycomefromandhowtheirnationsgovernthemselves.MichaelHudson,who led the JusticeCanada task forceon constitutional relationswith Indigenous people, noted the Canadian Constitution acknowledges that pre-colonialIndigenousgovernmentshavesurvived,despitebeingreduced,deniedandsuppressed over the past 150 years. The challenge for the Crown is to create the

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spaceforandsupportIndigenousgovernance.HerecommendedIndigenousnationsconsider three core aspects of governance as they rebuild their self-governanceinstitutions,codes,capacityandpractices:

1. Legitimacy.Governinginstitutionsareasvalidastheircitizensregardthem.ThisisespeciallytrueofIndigenousgovernmentsbecauseofcolonialhistory.Ensuring legitimacy with one’s people is key to being seen to be thelegitimaterepresentativeofanationbyotherpartnersandactors.

2. Economy.Noonewantsthepowertogoverntheirownpoverty.Accesstofinancial resources will typically require strong governance controls. Bebusiness-mindedandpracticalinbuildingprosperityforyourpeople.

3. Intergovernmentalrelations.Indigenousgovernmentshaveacomplexsetofrelationshipswithothergovernmentsandagencies.

ReclaimingIndigenousJurisdictionWhileself-governmenthasbeenonthetablesincetheWhitePaperdebateof1969,itremainsanagendaneithertheprovincesnorthefederalgovernmentseemreallyprepared to embrace, even despite being a keyRCAP andTRC recommendations.Nonetheless,manyIndigenousnationshavebeguntheworkofrebuildingtheirself-governanceandassertingtheirjurisdictionandauthority.Former GrandMikeMitchell the former Grand Chief of the Akwasasne describedhowAkwesasnecametoexercisejurisdictionontheSt.LawrenceRiver,traditionalpre-contact fishing ground. Quebec and Ontario conservation confiscatedAkwesasne boats and motors because the Akwesasne refused to buy provincialfishing licenses.“TheytoldustheAkwasasnetheydidnothaveany jurisdictionoftheir own,” he noted.Akwasasne concluded theyneeded tomake a law reflectingtheir responsibility for animal and fish life and thewaters and the land.Within amonth, they produced a Mohawk Nation law on conservation, enabling them toenforce their jurisdiction inwaterswith overlapping provincial and internationaljurisdictions.Henoted thatduring thisprocess INACtried to “strip this lawdownseveraltimes”,butAkwasasnedeemedsuchanactionisultravires,oroutofINAC’sjurisdiction.Peter Lantin, President of the Council of theHaidaNation (CHN) relayed how, in1974, after seeing the removal of resources from their territory withoutconsultationorbenefit,ChiefsandEldersfoundedtheCHNtofindawaytodealwithland claims issues and regain control over the remaining resources. In 1985, theHaidamobilized its warriors to stop clear-cutting on Lyell Island, resulting in anagreement tokeepGwaiiHaanas in itsnatural state inperpetuity (while theCHNandCanadaagreedtodisagreeonthequestionofTitle).TheHaidathendevelopedtheirConstitutiontosetuptheirgovernment.TheHaidaAccordunifiedhereditaryleadersfromdifferentclanswhoputtheirtraditionalterritories inacollectivepot

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together to solve the land claims issue. Through a reconciliation accord with BCcreating the Haida Gwaii Management Council, the Haida co-manage land usedecisionsandarecurrentlyworkingonasimilararrangementformarineresources.TheyhavealsosignedapeacetreatywiththeirneighbourstheHeiltsukNation.Inyetanotherexample,SophiePierre,formerChiefCommissioneroftheBCTreatyCommission described how her Ktunaxa Nation, which is divided by the 49thparallel,hasunitedandnolongerpresentsitselfasindividualbandsorFirstNationswhen dealing with external actors like industry. While each community hasgoverning structures that work under the Indian Actmodel, they have startedfocusing on key activities they “want to take over”. For example, they now haveexclusiveauthority forallKtunaxachildrenwithinCanada,aswellasauthorityonlandusedecision-makingasaresultoftheBCTreatyprocess.Finally, Chief Councilor Marilyn Slett described how essential her nation’sindependentresponsetothe2016NathanE.StewartdieselspillinSeaforthChannelwaswithregardstoassertingtheHeiltsukinherentrighttoself-government.Seeinghow there has been a consistent failure on Canada’s part to consult with anddisclosevital information to thenation, theHeiltsukNationdecided tomanage itsown investigation and pursue adjudication, determine whether there has been aviolationof theHeiltsuk’s traditional laws.Boththe investigationandadjudicationdemonstrate theHeiltsukwill hold the Crown and polluters accountable for theiractions.

InterjurisdictionalRelationshipsWhile Canadian politicians seem preoccupied with the potential for Indigenouspeople to make laws inconsistent with Canadian or provincial/territorial laws,potentially impacting Canada’s authority and sovereignty, the reality is thatAboriginal title is in direct conflict with provincial jurisdiction over lands andresources.TheCrown’sresistancetosharedpowerwithIndigenousnationsstandsincontrast toCanada’sexperiencewithsharedpowerandconcurrent lawmakingwiththeprovinces.Dave Joe, O.C., former Chief Negotiator for the Council of Yukon First Nations(CYFN), described four categories of jurisdiction treaty FirstNationswill have, inrelationtoothergovernments:

1. AnIndigenousnationhastheexclusiveauthoritytoregulate(e.g.harvestingwithintheterritorycoveredinatreaty)andallocatefiscalresources.

2. An Indigenousnationhasparamount concurrent authoritywith theCrownlawsovermattersdealingwithitscitizens,suchashealth,education,culture,spiritual belief. This power is not confined to treaty lands or traditionalterritory, but is applicable more widely. In the case of a conflict, theIndigenousnation’slawsareparamount.

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3. AnIndigenousnationhasconcurrentauthoritywiththeCrownwithregardtothebodyofrightscentredontreatylands,suchasthoseIndigenouslawsdealingwith lands, resourcesandgaming. In somecases, treaty rightsmayinvolve infringements on criminal and other federal laws with the federallawstakingparamountcyinsuchcases.

4. Sharedpower,suchasinwhereanIndigenousnationsharesintaxrevenue.Nationswillhavetoconsiderhowtoenforcetheirjurisdictionthelawstheyadopt.TribalcourtscanadjudicateonIndigenous,Canadianandprovincial/territoriallawsas long as there is some sort of agreement with those other entities.Former RCAP Commissioner Paul Chartrand discussed how the concept of“subsidiarity”canhelpusthinkaboutinterjurisdictionalrelationships.Subsidiarityis an idea that seeks tobalance solidaritywithautonomy,askingnotwhohas thepowertodox,butwhoshoulddox.Itscoretenetisthatoneshouldneverentrustanything to a bigger entity that can be best done by a smaller entity and thatdecisionmaking should bemade as close to the citizen as is appropriate for thecircumstance.Everyoneispresumedtoknowbesthowtogovernhisorherownlifeandtonavigatehisorhervalues,preferences,lifeplansandtrade-offs.Thiscanbegeneralized to institutions. Under subsidiarity, power is joint and concurrent,maximizingopportunitiesforIndigenousself-governance.

IntergovernmentalFiscalRelationshipsTo many, the foundation of self-government is fiscal equality. Canada needs tosupporteffective,equalself-governmentforFirstNations.Onekeystepinprovidingthis support is for Canada to bring all institutions of government together in a“joined-up” Crown. The Honourable Bob Rae recommended putting one clearMinisterincharge,responsibleforreportingtothePrimeMinister,Parliament,andFirstNationsandsubsequentlyreachingouttotheprovincesforparticipationinthekeygoalsandimplementationofthatvision.

FoundationsofaNewFiscalRelationshipRobertLouie,FormerChiefoftheWestbankFirstNationidentifiedanumberofkeyfeatures required to lay the foundations for a new Nation-to-Nation fiscalrelationship:• RecognizeFirstNationsasgovernmentsandasadistinctorderofgovernment,

withclearfiscalpowersandadequatefinancialandhumanresources.• RecognitionFirstNationshave the jurisdiction tomanage theirown landsand

resources,whichincludenotjustreservelands,butalsototraditionalterritories.• First Nations governmentsmust have adequate access to revenues, both from

someformofrevenuesharingandfromenablingFirstNationstoearnrevenueandtoleverageinvestments.

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• BuildnewinstitutionstodisplacetheIndianActinthedeliveryoftheprogramsandtransferthebureaucracytoFirstNationscontrol.

• SupportIndigenousgovernmentstoacquirelandandraisemoney.• FirstNationsmusthavethecapacitytoraisemonies,includingthroughresource

revenuesharing.Since changing governments regularly changespolicypriorities, to bemeaningful,these commitments need to be legislated to ensure they extend beyond thegovernmentoftheday.Paul Thoppil, INAC Chief Financial Officer acknowledged that the current fiscalrelationshipisbuiltaroundarecipient-funderarrangement,ratherthanaNation-to-Nation relationship; and this model does not yield the results expected by FirstNations and other Canadians. He noted the federal government is working onengagingawidearrayofFirstNationspeopleandtheAFNusingthefollowingeightguidingprinciplesonfiscalrelationshipswithIndianActbands:

1. Focusonrelationshipswithcommunities,movingawayfromatransactionalapproach.

2. Acknowledgethebenefitsof fosteringaggregation,supportingFirstNationsinbuildingtheirnations.

3. Institute a fiscal regime that is sustainable and helps First Nations movebeyondtheIndianActiftheysochoose.

4. Recalibratetheaccountabilitymodeltoamodelofmutualaccountability.5. SupportFirstNationsleveragingnewIndigenousinstitutions(suchasaFirst

NationsAG,aFirstNationsBudgetOfficer,andtheFNFMB)asawaytobuildstrong,accountablegovernments.

6. Supportbuildingoverallcommunitycapacity,notjustfiscalcapacity.7. Ensure all First Nations experience improvements under a new fiscal

relationship,notjustthehigh-performingfew.8. FirstNationsshouldbeabletoopt-intoanewfiscalrelationshipornot.Itis

forthemtodecideforthemselveswhethertheywantinornot.Underthecurrentfundingmodel,fartoomanyofFirstNationsaremanagingtheirownmiseryunder thedysfunctionalbureaucracyof the IndianAct.Well-governednations require long-term, equitable transfer payments andneed to develop theirowngovernanceinstitutions.

Beyondthe2%CapIndigenous communities have been systemically underfunded, subject to a twopercent capon increased fundingper year since themid-1990s.Thispoverty anddespair results directly in themissing andmurdered statistics, stolen childhoodsand child suicides, homelessness, and astronomical rates of incarceration. At thesametime, INACsentback$900million inunspent funding lastyearand,yet,hasstill not complied with the Human Rights Tribunal ruling to spend an additional

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$150million onmental health funding.New investments are needed to eradicatepovertyanddespair.The recent FirstNations Child& Family Caring Society / CanadianHumanRightsTribunalrulingshowedtheCanadadoeshavetheobligationtoprovidecomparableservicelevelsonreservetonon-Indigenouscommunitiesoffreserve.Thisrulingondiscriminationwithin childwelfare also applies to education, healthcare, housingservices,seniorsandeverysingleservicecurrentlyprovidedundertheIndianActtothose who live on reserve. Moreover, Section 36, the equalization section of theCanadian Constitution speaks to the entitlement of every Canadian citizen toequivalentlevelsofservice.The federal government announced the end of the two percent cap in July 2016;however, it remains to be seen what new funding is transferred and whetherfunding takes the shape of geographically fair and stable block transfers orproposal-basedgrant/contributionfunding.

BeyondGrantsandContributionsWayneWouters,FormerClerkof thePrivyCouncil,acknowledged thatgrantsandcontributionshavebeenunsuccessfulasaninstrumentofpolicyandinadequateinrelation towhatneeds tobeachieved.Aspartof the “Accountability” trend,moreand more conditions are added to these agreements over time, increasing thereporting burden, requiring Indigenous governments to spend unnecessaryamounts of time reporting. Grant and contribution funding is also tied to veryspecificpurposes,leavingthepowertodeterminehowthemoneywillbeusedandhumanneedaddressedtothefederalgovernmentandnotIndigenouspeoples.Moreover, this formof funding isunstableand insecure.Duringdeficitreductions,grants and contributions are the easiest to cut and First Nations have faced thebruntofthesereductions.And,thismodelalsorequiresFirstNationscommunitiesto dedicate continuous time and resources to apply for program-by-programfundingandtoreporting,againdivertingresourcesfromservingthehumanneedincommunitiestojumpinghoopsforafunderthatdoesnotrequirethesameofotherjurisdictionsitallocatesfundingto,namelyprovincesandterritories.FirstNationsneedtoorganizeanddevelopthegovernancestructuresnecessarytoreceive,governandadministerblockfundingforhealth,educationandotherareasof governance and administration. Block funding provides the predictability andstability all governments need. Transfer payments need to be transparent,consistent and supported in legislation, and all parties should agree on targetservicelevelsandoutcomes.While the previous Auditor General (AG), Sheila Fraser, summed up her findingsfromtenyearsofauditsas“unacceptable”,currentAGMichaelFergusondescribesthesituationsinceas“beyondunacceptable”.15yearsworthofauditsdemonstrate

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thatfederalprogramshavefailedtoeffectivelyserveCanada’sIndigenouspeoples.Hehasconcludedthepaceofimprovementbyfederaldepartmentsissoslowastobealmostimperceptible.Despite the AG’s many recommendations, there has been a lack of progress inimplementation.Changeisneededifmeaningfulprogressistoberealized.TheAGrecommendseightfactorstomakeanewNation-to-Nationrelationshipwork:

1. Sustainedpoliticalwill2. Aggregation3. Appropriate and real consultation about the needs of recipients, levels of

services,andmechanismsofservicedelivery4. Clearstatementsaboutthelevelofservicetobedelivered.5. Anappropriatelegislativebase.6. Local servicedeliverycapacitywithappropriategovernancestructuresand

accountabilitytoindigenouspeoplesreceivingtheservices.7. Appropriateandstablefunding.8. Monitoringonthepartofthefederalgovernmentofwhetherit’slivingupto

itscommitments.

RevenueSharing,PowersofTaxationandOwnSourceRevenueOtherchallengesincludealackofprogressonresourcerevenuesharing,lackoforlimited powers of taxation and constraints around Own Source Revenue (OSR).Isadore Day, Regional Chief of the Chiefs of Ontario, argued for the need to gobeyondresource revenuesharing, to sharingyields fromother formsofeconomicactivityinpopulatedareaswherethereisnoCrownlandorresources.Suchsourcesincludetaxation,otherroyalties,andcommerceinmoredevelopedareas.TheCouncilofYukonFirstNationshas11taxsharingagreementswithotherlevelsofgovernment,includingcorporatetaxationandtaxessuchasalcoholandtobacco.Regarding economic rights within the Final Agreement, if the Yukon Territorydecidestobuildanewhydroproject,forexample,YukonFirstNationswehavetherighttoparticipatein25%oftheequity.TheyalsohaverightoffirstrefusalonsaleofallYukonterritorialassetsover$10million.The process of allocating mineral claims and subsurface rights has been donewithoutFirstNations involvement.Thiswillhave tochange ifFirstNationsare tohave genuine equality. With regard to OSR, legal issues around ownership ofmineralsandresourcesmakeitdifficultforFirstNationstobenefitfromtheirownresources inmany cases (e.g., the ConstitutionAct, 1867, assigns ownership overmanyoftheresourcestotheprovinces).OSRistypicallyoffsetbydeductionsfromfederal transfers to First Nations; keeping First Nations mired in a poverty trapcharacterized by glaring socio-economic gaps exist between Canadian andIndigenouspopulations.

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Canada’sexpectationofOSRoffsetshasreallysloweddownclosingthegaps.DaveJoe,O.C.,FormerChiefNegotiatorfortheCounciloftheYukonFirstNations(CYFN)emphasized thatwehave to acknowledge that all of thiswealth in Canada comesfromtraditionalFirstNationlandsandresourcesasafundamentalstartingpoint.Assuch,OSRoffsetsshouldnotcomeintoeffectuntilthesocio-economicgapsbetweenIndigenouspeopleandCanadianshavebeenclosed.

WellbeingandWealthCreationTheIndigenousLandManagementInstitutedefineswealthcreationastheprocessesbywhich Indigenouspeoplesareable to improve theiroverallstandardsof living.Thereare threemainpillarsofwealthcreation:economicdevelopment,educationandenvironment.Acoreobjectiveofwealthcreationiscommunitydevelopment,or“healthy, inclusive, safe and sustainable communities made up of increasinglyhealthier, educated and employed individuals grounded in their culture andtradition.”22ManyIndigenouscommunitieshavebeenplaguedbyhighunemploymentratesandwidespreadsocialdependencyandgenerallyatthebottomofeverysocio-economicstatisticinthecountry.FirstNationleadersacknowledgethattheIndianActwasnotdesigned to promote and facilitate economic development and presents barriersthathavesubsequentlyledtothecreationahostofopt-inoptionsforcommunities.Turning this around requires a vision for self-sufficiency and efforts to create avibrantIndigenouscommunitythroughbusinessdevelopment,withastrongfocusoneducation,partnershipandemploymentopportunitiesandaccesstothe labourmarket.FirstNationsaredevelopingtheirowneducationsystems,focusingonlife-long learning,beginningwithearly childhoodeducationand includesprofessionaldevelopmentandtrainingopportunities.Closing thegapon this lossofpotentialandproductivitywillhavebenefitsacrossthe Canadian economy and dramatically improve the wellbeing of Indigenouspeoples.Tothisend, theCrownneedstoequitably fundIndigenousprogramsandservicesandcorrectsystemicunderfunding.

ClosingtheGapsTosupportnationrebuildingandstrengthenedNation-to-Nationrelationships, theCrown should support an Indigenous-led process for poverty reduction inIndigenous communities and immediate and targeted funding for communities incriticalcondition.KeyrecommendationsweremadetohelpclosethegapsbetweenCanadianandIndigenouspopulationsandsupportnationbuilding,including:

• InvestinginYouth.22Wesley-Esquimaux, “CommunityDevelopmentandGoodGovernance:WisePracticesas theFoundation forDevelopment.”

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• LevelingtheJusticePlayingField.• BuildingFinancialLiteracy.• ProvidingAccesstoCapital.• DevelopingNewFiscalRelationships.• DevelopingIndigenousInstitutions.• InvestinginCommunityCapacityBuilding.

Treaties&ClaimSettlementsTheBCTreatyCommissioncontractedastudywithDeloitte toexaminethe treatynegotiationprocessfromasocio-economicperspective,toqualifyandquantifyhowtreaties are changing the landscape for communities that are implementing them.Theyfoundthatthesetreatieshavegeneratedabout$1.2to$5.7billionineconomicgrowth.ThesefinancialbenefitsoftreatiesalsoresultininvestmentsinlocaleconomiesasFirst Nations grow businesses, invest capital, and develop communityinfrastructure. The billion-dollar retail and residential development at onTsawwassen First Nation land is a direct result of their treaty, the first in theprocess. It is the largest non-resource development on First Nations land inCanadianhistory.

EquityParticipationAsarepresentativeofindustry,BrianMcGuigan,ManagerofAboriginalPolicyattheCanadian Association of Petroleum Producers highlighted the opportunities inprocurement and equity participation in businesses or business ownership.Community benefits stemming these opportunities include capacity developmentfunding; investments in community, including sports, recreation and culture; andemployment and training opportunities. He identified the top three priorities 3opportunitiesfortheCrowntosupportIndigenouscommunitiesinwealthcreation:

1. Tangibleactiononreconciliation.2. Programs that ease Indigenous access to capital and enable participation,

particularlyforlargerprojects.3. Improved Crown consultation processes to enable early, meaningful

engagement.It was agreed the Crown should step out of the way and let Indigenous peoplesdevelop theirownbusiness relationships.Movingmoredecision-makingpower toIndigenous groups will reduce the scope of federal oversight, reduce theadministrativeburdenofthatrelationship,andfostermoreinnovation.

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ImprovedFinancialAdministrationThe First Nations FinancialManagement Board (FNFMB), created under the FirstNationsFiscalManagementAct (FNFMA), is consideredoneof themost successfulinstitutions in Canada. It has worked to strengthen financial administrationpracticesandachievegreateraccountabilityandtransparency.Thisinturnhasledtoadditionalprivatesectorpartnerships,alsoessentialtoIndigenouscommunities’economic diversification and success. In 10 years it has expanded to 220 FirstNations,withover70communitiesachievingfinancialcertification,$400millioninnewventures,and$1billionininvestmentinnewlands.

SelfDetermination&FinancialAccountabilityClint Davis, former President of the Canada Council for Aboriginal Business andcurrent Managing Partner, Acasta Capital Indigenous spoke to the success of theNunatsiavutGroupofCompaniesinInukLabrador.Followingthe2005Nunatsiavutland claim settledby theby the Inuit inNewfoundland andLabrador – oneof 19such agreements in the country – a 3rd order of government was created andconstitutionallyprotected.The magnitude of self-government agreements and the impact and ability toexercise Indigenous jurisdiction is not fully recognized by potential industrypartners,whichisanindicationthatalotofeducationisrequiredwithgovernmentsand businesses around both the “duty to consult” and self-determination. Jointventures, client-supplier, and employer-employee relationships all provide anopportunity to engage and build trust with Indigenous businesses communities.Workingtogether,ratherthanatodds,reducesriskforbothpartiesastheystrivetomeettheirgoals.WithintheNunatsiavutGroupofCompanies,Inukcommunitymembersarethesoleshareholders.Injust6yearsthecompaniesgrewthefundsfrom$6to$50throughconstruction, real estate, and transportation ventures. Nunatsiavut is one of anumberofIndigenousbusinessandcommunitieshavehadanincreasingamountofsuccess and growth. TD Economics has begun to quantify the buying power ofcommunities, people, and businesses, demonstrating Indigenous people as a netcontributortotheGDPasopposedtoadrainonCanadiansociety.Thekeydriverinthisgrowthisbusiness.ChiefTerrancePaulofMembertouFirstNationinNovaScotiaspoketosomeofthecritical foundation and elements of success for sustainable wealth creation.AccordingtoChiefPaul,itbegan30yearsagowithavisionforself-sufficiencyandeffortstocreateavibrantMi’kmaqcommunitythroughbusinessdevelopment,withastrongfocusoneducation,partnershipandemploymentopportunities.LikemanyIndigenous communities, Membertou First Nation had high unemployment ratesand widespread social dependency. Three clear objectives for a sustainablecommunity included: 1) entering the gaming industry2) entering the commercial

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fishing industry and, 3) becoming the first ISO certified Indigenous community intheworld.Membertou is now the third largest employer in the Cape Breton RegionalMunicipality, employing over 500 people. Another key to successwas reinvestingprofits fromtheFirstFishermen’sSeafood,whichresulted ingeneratingprofitsofmorethan$3millioninannualrevenuetothecommunity.TheMembertouGamingCommission helps support funding shortfalls in various federal programs such ashousing,infrastructureandeducation.In order to decrease dependency, Membertou has developed its own educationsystem,focusingonlife-longlearning,beginningwithearlychildhoodeducationandincludes professional development and training opportunities. In order tostrengthenfinancialadministrationpracticesandachievegreateraccountabilityandtransparency, in 2015 Membertou earned a Financial Management SystemsCertificatefromtheFirstNationsFinancialManagementBoard.Thisinturnhasledtoadditionalprivatesectorpartnerships,alsoessentialtothecommunity’ssuccessanddiversifyingtheMembertoucommercialportfolio.Finally, Chief Paul cited the critical foundations of clear financial and fiscalresponsibility, accountability and transparency to the Membertou people as aprimaryfactorinsustainingcommunitysupportandcommunityvision.Proceduresand policies are key, including financial laws, and governance and communityinvolvementandengagementisreallyimportanttosustainablesuccess.MaryBethDoucette, Executive Director and Associate Chair of the Purdy Crawford Chair inAboriginal Business Studies, Cape Breton University reiterated, “Everything is aprocess”.Membertoucreatedacommunitybasedgovernancecommittee tocreatelaw and policy, which followed time-consuming but necessary processes thatinvolved listening, collecting, and presenting choice. This non-linear iterativeprocess ensured community satisfaction around sound decisionmaking based onengagement with community and leadership. She noted that since, successfulcommunitiesarefollowingsimilarprocessesasMembertou.

WheretoBeginManyleadershavenotedthatthebroadergeneralpublicandbusinesscommunityarebothinterestedandinvestedintherelationshipthatemergesfromtheongoingNation-to-NationworkacrossCanada, includingwhatneedstobeaccomplishedinthe fiscal relationship and with regards to wealth creation to solidify the newrelationship.Theapproachthatisneededisoneofcollaborativedesigninwhichweact together in our shared interest. If done right, this can expand benefits for allinvolved. Key challenges moving forward include ensuring that the bureaucracykeeps pacewith the federal reconciliationmandate, and ensuring that Canadiansknowtheirhistory.Inordertomoveforwardweneedtolearnfromthepast.

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RoleoftheFederalGovernmentFourkeyactionswereidentifiedforCanadatotakeinthisregard:1) The federal governmentmust articulate Canada’s policy on its relationship to

Indigenous people and formalize its commitment to a Nation-to-Nationrelationship as a departure from the colonial past. The policy would ensurefederal messaging is consistent so that there is a “whole of government”approachtotheNation-to-Nationrelationship.ThispolicywouldbenegotiatedwithIndigenousnations.RCAPdescribedthisasaNewRoyalProclamation.

2) TheCrownmustimplementthedirectionofthecourts.

3) TheCrownmustrecognizeeachFirstNationandtheirterritory.Recognitionisthefirststepinreconciliation.

4) The Government of Canadamust invest time and resources into relationshipbuilding, including fostering understanding and good relationships betweenCanadiansandIndigenouspeoples.

RoleoftheProvincesFormerPremierofOntarioandLiberalMPBobRaeemphasizedthesignificantroleof the provinces as components of the Crown. Provincial government mandatestoucheveryone’slives:anytimesomeoneleavesreserveorterritorytogotoschool,hunt, or live elsewhere, they fall under provincial jurisdiction. Many Indigenousgovernments and organizations have formed direct relationships with provincialgovernments. For example, in 2015 the Chiefs of Ontario and the Government ofOntario signed a historic political accord thatwill guide the relationship betweenFirstNationsandtheprovince.

RoleofMunicipalitiesGinger Gosnell-Myers, Aboriginal Relations Manager for the City of Vancouver,described the extensive work the City of Vancouver has been doing to advancereconciliation that can be adapted and implemented by other Canadianmunicipalities,including:• Committing tomanyTRCCalls toActionbeyond those specificallydirected at

municipalitiesandendorsingUNDRIP.• OfficiallyrecognizingtheCityisoperatingonuncededterritoriesandstartingall

Citymeetingsbyrecognizingtheuncededterritoriesofthehostnations.• BecomingaCityofReconciliation,holisticallyembeddingreconciliationintothe

work it does as amunicipality, acknowledging reconciliation is not the act ofoneyear,butalong-termactofmultiplegenerations.

• Co-managingStanleyParkwiththethreehostnations.A number of other municipalities across the country have undertaken thecommitmenttobecomeCitiesofReconciliation.

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RoleofCanadianPublicInterest in reconciliation has continued to grow throughout civil society. Lawsocieties, nursing associations, medical schools, social workers, educators, faithcommunities, public servants, indigenous governments, journalists, child welfareadvocates,andeventheparliamentsofothercountrieshavealldemonstratedgreatinterest in reconciliation in Canada. Nonetheless, media and public attention toIndigenousrealitiesisinfrequentandun-sustainedandthepublicatlargeshowsastronglackofknowledgeandunderstandingofthehistoryandcurrentissuesfacingIndigenouspeopleinCanada.ThisignoranceservesasabarriertofindingcommongroundandaffectstheactionsofCanadiangovernmentandtheapproachittakestoitsrelationshipstoIndigenouspeoples.Civil society organizations have a key role to play in helping implement the TRCCalls to Action, moving away from crisis management to collaboration based onmeaningful relationships. Public education about Indigenous culture, rights andresponsibilities is critical for a holistic reconciliation process in which CanadiansexpectandpressuretheirgovernmentstodealhonourablywithIndigenouspeoples.Thiseducationandawarenessraisingprocessisneededacrosstherangeofsocial,health and governmental services to facilitate the implementation of a Nation-to-Nationrelationshipandtohelpensurepublicserviceprovidersdeliver.