AFN National Chief comments on the Native Fiscal Imbalance
From The Globe and Mail 30/10/06 Commentary
The Native Fiscal Imbalance - PHIL FONTAINE
The recent report of the federal ombudsman for inmates reveals the shocking overrepresentation of First Nations peoples in Canada's justice system, and the systemic discrimination against them in that system. The Sapers report testifies to the urgent need to address Canada's greatest social injustice: poverty among First Nations peoples.
The justice system is but one area where First Nations are suffering disproportionately. More than 27,000 First Nations children are in the care of child-welfare agencies: Indian and Northern Affairs reported a 70 per cent increase in child welfare cases from 1995-2003. The key reason for taking children into care is physical neglect due to poverty. A direct link exists between the number of First Nations youth (40 per cent) who are incarcerated and those in the child-welfare system.
Despite the strong evidence showing the continuum between poverty and these social conditions, the federal government has no comprehensive plan to effect change. Correctional Services' own statistics confirm that, despite years of task-force reports, internal reviews, national strategies and partnerships, there has been no measurable improvement in the overall situation of aboriginal offenders over the past 20 years. This is much the same finding that the Auditor-General of Canada reported in her five-year review of programming for First Nations released in May.
Next month will mark the 10-year anniversary of the Royal Commission on Aboriginal Peoples. Canada has failed to respond to that commission's report. The only meaningful follow-up was the Aboriginal Healing Foundation and the first ministers accord on aboriginal issues reached last November in Kelowna, B.C. And yet the Conservative government claims that the $5.1-billion accord was not secured and could not be included in the 2006 budget. Recently, a majority of members of Parliament voted in favour of implementing the accord, testifying that it was indeed an agreement between the Ottawa, provinces, territories and First Nations governments.
The federal government says it is acting on a more concrete plan, such as safe drinking water. But the 21 remedial action plans promised for high-risk First Nations communities have not been completed since the spring announcement.
Instead, the Conservative government recently announced the $13.2-billion federal surplus will be applied to the federal debt, with no opportunity for debate. The funds for the first ministers accord could have been found in this surplus, and $12-billion could still have been applied to the debt.
Meanwhile, Indian Affairs Minister Jim Prentice has publicly said that $9.1-billion is spent on aboriginals. But this figure relates to all aboriginal peoples in Canada (1.4 million), compared to 750,000 First Nations peoples. The $9.1-billion, if broken down according to the First Nations population, shows a serious fiscal imbalance. Per capita spending on First Nations is half the amount for average Canadians.
Spending on First Nations through core federal programs is capped annually at rates lower than inflation and population growth. The Auditor-General has reported that, from 1999-2004, funding increased by only 1.6 per cent, excluding inflation, while the population increased by 11.2 per cent.
This contrasts dramatically with Canada Health and Social Transfers, which are growing at 6.6 per cent annually and will increase by 33 per cent from 2004 to 2009. Even though First Nations population figures are included in calculating CHST amounts, provinces and territories are not accountable for spending on First Nations, and some explicitly exclude, through legislation or policy, First Nations living on-reserve.
So how can this injustice be remedied?
To ensure a productive and competitive Canada, First Nations must have equal opportunities, a fair fiscal framework and real self-government for real self-sufficiency.
Only through a comprehensive plan supported by real investments can First Nations finally and forever break free from the prison of poverty.
Phil Fontaine is national chief of the Assembly of First Nations.