Representatives of Indigenous people from across Canada are presenting a paper to the UN Committee on Economic, Social and Cultural Rights on the violation of Indigenous peoples' rights in Canada. The entire paper can be found at http://knet.ca/documents/INET-UN-Presentation-Violations-May-5-06.pdf ...

Be sure to see the May 8 story below highlighting the initial findings that Canada continues to violate basis human rights of the under privileged members of our society. As well, the CBC story from May 22 highlighting the findings from the UN committee.

For more information about the UN Committee on Economic, Social and Cultural Rights, visit http://www.ohchr.org/english/bodies/cescr

See the press release below from this group ... 

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Canada's rights situation not much better despite past rebukes: UN panel - May 8, 2006 - LISA SCHLEIN

GENEVA (CP) - A United Nations watchdog group has harshly criticized Canada for its failure to live up to its commitments under an international treaty that protects people's economic, social and cultural rights.

In a tough assessment, one of the committee's 18 independent experts noted that "some situations (in Canada) had actually got worse" since Canada's record was last scrutinized in 1998.

Canada is one of five countries being examined by the UN Committee on Economic, Social and Cultural Rights on its compliance with the international covenant dealing with those rights. The committee's session will also examine Monaco, Liechtenstein, Morocco and Mexico. Each of the 153 states that is party to the treaty, effective from 1976, has to submit a periodic report to the committee.

The committee grilled Canada for two days, last Friday and again Monday, about its record on poverty, homelessness, indigenous and migrant rights, health and education. It found the government wanting in all areas.

"Many of the issues our committee raised in 1993 and 1998 are unfortunately still live issues today," said Ariranga Govindasamy Pillay, an expert from Mauritius. "Years later, the situation appears to be unchanged, and in some respects worse."

"There is continuing homelessness and reliance on food banks, security of tenure is still not enjoyed by tenants, child tax benefits are still clawed back."

"The situation of Aboriginal peoples, migrants and people with disabilities doesn't seem to be improving," Pillay said.

In presenting Canada's report, Alan Kessel, a legal adviser to the Department of Foreign Affairs and International Trade, said Canada is "proud of its record of achievement in the promotion of economic, social and cultural rights."

Canada is at the forefront of promoting human rights internationally and domestically, and "its efforts had paid dividends," Kessel said.

He noted the Canadian government provides income support for low-income families with children through the National Child Benefit Supplement. He said Canadians are among the best-housed people in the world and that most "have access to housing of acceptable size and quality at affordable prices."

Among the federal government's priorities, he said, are improved childcare, lower taxes, health care and crime reduction.

But the committee challenged the Canadian delegation on a wide range of issues, including Aboriginal rights. It specifically asked about the government's failure to settle outstanding land claims brought forward by the Six Nations and the Lubicon River Indians.

The experts also asked why young Aboriginal women are disproportionately exposed to sexual assault and murder. They expressed concern regarding discrimination against women under the Indian Act.

The Canadian delegation countered the criticisms by saying "it recognized and affirmed land and treaty rights." It said it recognized "the inherent right of Aboriginals to self-government."

Several committee members said they were disturbed by the lack of investment in social programs and by continuing high poverty rates of the most marginalized - including women, Aboriginal peoples, people of colour and immigrants.

A group of about 20 non-governmental organizations representing a range of human rights, Aboriginal, anti-poverty and womens groups attended the hearings and provided the committee with studies that painted a bleak picture of life in Canada for underprivileged people.

Vince Calderhead is with the Charter Committee on Poverty Issues, a Canadian social advocacy group.

He said "social assistance levels are lower now than they have been in 25 or 30 years even though the government is trumpeting an improved economy."

The Canadian delegation said Canada is making progress on poverty alleviation and believes that this is due to "Canadas support for self-reliance for families and self-sufficiency" for those with disabilities, Aboriginals, and the homeless.

It said "there had been a consistent downward trend in low incomes since 1996, and governmental programming was benefiting all Canadians."

The committee will formally issue its conclusions and recommendations on May 19 when its session concludes.

© The Canadian Press, 2006

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from http://www.cbc.ca/story/world/national/2006/05/22/unreport-canada.html

Canada failing to care for poor, disadvantaged: UN report

Last Updated Mon, 22 May 2006 16:32:47 EDT

The Thunder Bay Regional Career Fair (May 11 and 12 at Lakehead University) is hosting a special program to encourage Aboriginal youth to obtain the training necessary to develop a career in the trades. Streaming of these sessions is being planned so watch for the web link to watch these online.

Here is the link: http://streaming.lakeheadu.ca/careerfair

From their information package (see the invitation and schedule below) ...

"The North Superior Training Board and its partner, the Aboriginal Employment Resource Centre are pleased to announce a very special Regional Career Fair 2006 event aimed at encouraging young Aboriginals to consider a career in the Skilled Trades. With significant shortages in skilled trades workers projected throughout the North, the trades represent a tremendous opportunity to our First Nation youth."

For more information about this event visit http://www.nstb.on.ca/careerfair/index.htm

PRESS RELEASE - Tuesday, May 2, 2006

THE UNITED CHURCH OF CANADA AGREES TO SIGN RESIDENTIAL SCHOOLS SETTLEMENT AGREEMENT

Toronto: In a statement released today, The United Church of Canada  announced that it will sign the Residential Schools Settlement Agreement.

"This is a historic agreement that recognizes and begins to address,  in a comprehensive package, the harm done to Aboriginal individuals and communities by the Indian Residential School system," said the Rev. James Scott, the church's General Council Officer for Residential Schools. "It is important for former students, for our church, and for our nation."

The unanimous decision was made by the church's General Council Executive, which met in Toronto, April 28-May 1, 2006, after a recommendation to support signing the Settlement Agreement was brought to the executive by the United Church's Residential Schools Steering Committee.

Scott points out that although the United Church had previously participated, along with the government, in hundreds of individual abuse settlements with claimants, it had always been unwilling to enter a formal bilateral agreement with Canada. He says the church supports this multi-party, comprehensive package, however, because it addresses not only compensation but also healing programs, a Truth and Reconciliation Commission, and commemoration. "And the Aboriginal voice was front and centre in reaching this agreement," he said.

Scott emphasizes that while the United Church agreement defines the church's legal and financial obligations, "it does not limit the church's moral responsibilities as they relate to our active and long-term commitment to build right relationships of trust, respect, and equality between Aboriginal and non-Aboriginal peoples."

"It is to the work of healing, justice-seeking, and reconciliation that we must now turn our attention and our resources. This work will challenge our theological and cultural assumptions as well as our pocketbooks, but it offers the promise of transformation," says Scott.

Under the United Church agreement, The United Church of Canada agrees to contribute a total of $6.89 million toward compensation and healing, much of which has already been paid.

Scott says the United Church will be actively involved in the healing, reconciliation, and commemoration components of the Settlement Agreement, such as the national and community events related to the Truth and Reconciliation Commission.

"We will also continue to attend adjudication hearings for abuse claims to bear witness to the claimant's story and offer words of acknowledgement, apology, and support," says Scott.

He adds that as a faith community, the United Church has  participated in the negotiations on the Settlement Agreement, remembering our accountability to those who have been harmed.

"This has involved the incremental steps of learning to be present to those we do not know, learning to listen to what survivors feel and need for healing, and being open to the gifts and leadership of former students in the process of reparation and reconciliation," comments Scott. He says this continues to be a humbling challenge for a church more accustomed to being the "helper."

NOTE: See also "A Collective Step Forward", a background document on the Indian Residential Schools Settlement Agreement on The United Church of Canada's website (www.united-church.ca)

For further information, please contact:
Mary-Frances Denis
Communications Officer
The United Church of Canada
416-231-7680 ext. 2016 (office)

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Sioux Lookout is one of four conference sites hosting the Community Learning Networks Ontario regional conference on May 25 and 26. All conference sites will be linked by the Kuhkenah Network (K-Net) using a variety of communication tools so conference participants can join the virtual gathering using their computer or by registering at one of the conference sites. In Sioux Lookout, call Lyle Johnson (lylejohnson@knet.ca - 807-737-1135 x1387) or visit http://cln-ontario.org for more information.

Click here to see the preliminary agenda format.

Keewaytinook Okimakanak

Payroll/Personnel Clerk

SCOPE OF POSITION:

Keewaytinook Okimakanak seeks a Payroll/Personnel Clerk for its Finance Department which provides payroll and human resource services for more than 140 employees.  The clerk maintains the payroll system, manages sensitive information with strict confidentiality and must have strong bookkeeping, computer, interpersonal and organizational skills to perform duties accurately and efficiently.  A detailed job description is available upon request.

QUALIFICATIONS:

• Diploma or Certificate in payroll administration with 2 years work experience
• Grade 12 Diploma and aptitude for bookkeeping / accounting
• Payroll Association Certification would be an asset
• Experience with AccPac Payroll would be an asset
• Knowledge of software applications such as Microsoft Word, WordPerfect, Excel
• Ability to communicate effectively both verbally and in writing
• A co-operative attitude when working with First Nation people, co-workers and the public

LOCATION:  Balmertown, Ontario

SALARY:       Commensurate with experience

STARTING:  May 15, 2006

TERM:      Limited to One Year – Replacement for Staff  on Leave

CLOSING:    May 11, 2006 at 4:30 p.m.

Please send resumé along with three written references to:

Hiring Committee
Keewaytinook Okimakanak
Box 340
BALMERTOWN, ON   P0V 1C0    
Fax:  807-735-1383

Only those applicants considered for an interview will be contacted.

Hello all.  This is Edmond Etherington. I am participating in a spiritual and cultural walk that is planning to leave from Cochrane Ontario on  May 14, 2006 and walk to Robb Alberta. 

So far things are going good for us. There are youth participating in the meaning behind this walk.  Youth from Moosonee, Peawanuck, Moose Factory, Kashechewan, and some youth from Sunchild Alberta are helping. 

Other youth are welcomed to participate in this life experience and meet new people across this country. We will be ask to speak to other youths in different communities on the way. And if your not camera shy, we will be on the news probaly every city we pass by. Don't be shy to join. Guaranteed this is something you will never forget and it will help you as a youth in this society today. 

If you need any more info and have any questions feel free to call me on my cell at (705) 262-4628. If anyone is interested in donations like tents, camping gear or are interested meeting the youth, we won't be hard to find on the highway.  We are going to be the only ones on the highway to Thunder Bay. 

All youth are welcome because there are young women and young men participating in this walk.

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from Timmins Daily Press, April 2006

Cross-country walker hitting spiritual stride By EDMOND ETHERINGTON

I am a Cree from the James Bay area. I am the son of Pat Etherington and the late Marlene Etherington. I am 28 years old. My father is from Fort Albany and my late mother was from Moose Factory.

I am writing this to the communities around the James Bay coast. A great opportunity is knocking on the doors for the youth in the area. I did participate in a walk last year that started in Cochrane and ended at Robb, Alta., just south of Edson, Alta.

My father put together this walk to respect the old ways. Today, I am going forward with another walk in May for the new generation, “our youth.” This walk would be a good opportunity for the youth to see this country and meet new friends along the way. It is a cultural walk and spiritual walk.

For me, there is a good meaning behind it. So we can show the youth of today how strong the native culture is. I have been living in Alberta for the last two years. I have been learning as much as I can about the spiritual ways we Crees have. I do know we have our cultural beliefs about trapping, hunting, etc., but we don’t realize that there are spiritual beliefs, too. I try to get this across to our youth so we can try to break the cycle of negativity that is in our communities so down the road they can do the same for their kids.

For myself, it’s really strong for me to do this. I have been through it all growing up. I wasn’t brought up on the reserve. I was brought up in the city life. I had the positive life my parents tried to give me but took advantage of it. I had been selling drugs since I was 14 years old. That’s all I know to do. I am sure some of the people reading this today have bought drugs off me during the time I was selling around James Bay. But now that’s all behind me. The negative I had before is in the past.

We were not meant to look behind us because if we did we would have eyes on the other side ofour heads. We don’t. That’s why I want to show people that a person like myself who has been in the gutter that there is hope for all of us. We just have to make up our minds.

That’s what an Elder taught me. Now he is gone into the spiritual life, his teachings are in my heart. I have the great-grandchildren of this Elder participating in the walk, too.

The youth are realizing that they can do this for their communities so others can look up to them as leaders. I know it’s going to be hard, but if we put our energy together as young individuals we can accomplish this goal.

There are more meanings and teachings I could get out but I can’t write it down on paper because it’s not meant to be written. So I am going to leave it at that for now. I do speak to youth in the justice system and schools around Alberta but now I am here back in my neck of the woods. If anyone is interested, feelfree to leave a message with the Ininew Friendship Centre in Cochrane and I will get back to anybody.

I am looking forward to working together on this good cause for youth so we can be strong as one. So nobody can break us up as “nishawbe.” Keep your head up.

From http://cnews.canoe.ca/CNEWS/Canada/2006/05/02/1561349-cp.html

Ontario supports Kashechewan territory move - By STEVE ERWIN - May 2, 2006

TORONTO (CP) - New land has been approved in principle for the beleaguered Kashechewan First Nations community, who have been given Ontario government permission to pursue a move to a provincial Crown territory on higher ground some 30 kilometres upriver.

The land swap would see the northern Ontario community, which faces annual flooding that last month led to an evacuation of virtually all its 1,700 residents, move to new land agreed upon Tuesday in a meeting between provincial Aboriginal Affairs Minister David Ramsay and aboriginal leaders.

Ramsay said ministry officials still need to complete final checks to ensure there are no timber licences or mining claims on the proposed land. It is located on the same side of the Albany River, which runs west of James Bay, as the current reserve.

But Ramsay said the province has no issues with handing the Crown land over to the Kashechewan First Nation, provided the federal government gives its blessing too. The move requires Ottawa's approval because the new territory must be designated as reserve land under federal law.

"As far as we're concerned, money's not an issue here," Ramsay said when asked whether the province would need to be compensated for turning over province-owned land to the First Nation community. "We've just to got to give these people a safe place to live."

Kashechewan's current location is on low land surrounded by a dike that often fails to keep homes from flooding when the ice breaks each year during spring thaw.

The new site is one of six that Kashechewan's band leaders had earlier proposed as potential places to relocate the community, said Grand Chief Stan Loutitt of the Mushkegowuk Council of tribes in northern Ontario. The site agreed upon with the province is the only one that didn't encounter flooding this spring, he said.

Ramsay said the new location is some 55 metres above sea level; the current Kashechewan land is only five-metres above sea level.

A formal transfer of the provincial Crown land is necessary for the relocation to begin because the proposed new territory falls outside Kashechewan's current reserve boundaries.

"This kind of starts the process," said Loutitt, who will join Kashechewan Chief Leo Friday in a Wednesday meeting with federal Indian Affairs Minister Jim Prentice.

The pair will ask Prentice to accelerate the move of Kashechewan's residents to a permanent new home within one or two years - much faster than the 10-year plan put forth by the previous Liberal government in Ottawa.

The Liberals made that pledge following another mass evacuation of Kashechewan last fall that drew national headlines. That evacuation was forced by a contaminated water scare that raised health concerns for residents.

Loutitt said it makes "fiscal sense" to make the move sooner rather than later so that governments can avoid spending millions more dollars in the next few years for additional evacuations of Kashechewan.

"We just can't be spending millions of dollars every year on evacuations," Loutitt said following his meeting with Ramsay in Toronto.

Friday said his community members are anxious to relocate.

"I just want to see a move right away - not talk about it for another two years in order for it to happen," he said.

"A lot of people in the community say, 'Let's move now.' "

Most of Kashechewan's residents are currently in temporary accommodations in northern Ontario host communities, though many of them are stuck living in makeshift shelters such as local arenas.

"They're really in a terrible situation," Friday said.

From http://www.idexonline.com/portal_FullNews.asp?id=25554

De Beers Risks Losing Social License to Operate in Canada
(May 2, '06 - IDEX Online Staff Reporter) 
 
Tensions between De Beers and the Muskrat Dam First Nation are strained after the community found an ongoing drill program underway at their traditional goose hunting area. Chief Vernon Morris, of the Muskrat Dam First Nation, is demanding that De Beers end the drill program and begin negotiations with the community to redress the disruption to the hunt.

Chief Morris has also written to the Ministry of Northern Development and Mines demanding that the province assume their legal obligations under the treaty to protect the First Nations' right to hunt. Currently, according to the Mining Act, De Beers can stake and explore mine claims without consulting the First Nations. 

"We will continue to see a peaceful resolution of this issue," said Chief Morris. "However, we will use every avenue, including the courts, to protect our traditional way of life and our land from the impact of De Beers' activities. De Beers is threatening our identity as aboriginal people."

The annual spring goose hunt, which takes place in the area north of Bearskin Lake, Ontario, usually returns 200 geese for community use. Said Chief Morris, "The activities of procuring the geese are a source of cultural value and social well-being, particularly for the elders."

Last October, the Muskrat Dam First Nation was one of a number of Far North communities that declared a moratorium on mining exploration and development on their traditional lands.

The latest dispute is just one in a series of battles between First Nations over mining in Ontario's far north. Last week, junior mining company Platinex applied for a court injunction over a dispute with Kitchenuhmaykoosib Inninumug Platinex are seeking to create a "treaty rights free zone" in order to pursue their drilling program.

See the Press Releases issued by AFN and NAN below for their reaction to this federal budget along with CBC North news article about the new Conservative government's first budget. News coverage is describing this budget as the Conservative's attempt to get re-elected in a majority government by trying to attract urban voters through tax credits and reducing GST by 1 percent. 

The Budget Speech 2006 - Focussing on Priorities - Excerpts for Aboriginal Canadians

Mr. Speaker, people from many nations have built a good life in this country and contributed to its strength. But our First Nations, the first people to live here, face special challenges.  We must support our Canadian Aboriginal communities in addressing their particular needs.

• We are providing $450 million for improving water supply and housing on reserve, education outcomes, and socio-economic conditions for Aboriginal women, children and families.
• We are confirming up to $300 million to the provinces to address immediate pressures in off-reserve Aboriginal housing.
• We are setting aside funds to meet the Government’s obligations associated with the legacy of residential schools.

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ASSEMBLY OF FIRST NATIONS FEDERAL BUDGET REACTION 2006

Assembly of First Nations Statement on the 2006 Federal Budget - First Nations Sacrificed to Build a Better Canada

     OTTAWA, May 2 /CNW Telbec/ - "First Nations will remain in last place as a result of today's so-called "Building a Better Canada" federal budget. This disappointing budget does not begin to address the gap in quality of life between First Nations and other Canadians and could increase the gap through inaction.

     The Canadian public may see a $3.2 billion figure dedicated for Aboriginals in the 2006 budget, but $2.2 billion was already set aside last November as compensation for residential schools survivors. We welcome the money for survivors, but it was a measure to provide redress and acknowledge liability, not a new measure to build a better Canada for First Nations.

     The money allocated to address the critical socio-economic and infrastructure gaps faced by First Nations is more realistically described as a portion of the two-year, $450 million funding commitment that has been earmarked for "Aboriginal Canadians". That money is a drop in the bucket when compared to the $17 billion surplus, and is only a third of the money that had been allocated to improving quality of life for First Nations and other Aboriginal Canadians under the corresponding first two years of the Kelowna targets.

     The government committed in this budget to measures that will correct fiscal imbalances at the provincial and territorial level. Nowhere is fiscal imbalance more apparent than in the critical under-funding of First Nations health, education, housing and infrastructure, yet today's budget perpetuates the imbalance for our communities.

     There is a critical need to address First Nations health, social and childhood development issues, yet First Nations are excluded from the government's new comprehensive plan on wait time guarantees. This budget committed to a 6% escalator in health for provinces and territories, but despite previous announcements, there was no corresponding escalator for First Nations health. There is no First Nations-specific component in the government's child care plan and, while over $300 million was committed to addressing diseases like tuberculosis and HIV/AIDS in developing countries, there was no funding to address rising tuberculosis and HIV infection rates for First Nations.

     This government stated today that they will consult with provinces, territories and Aboriginal leaders to "develop a new approach". The approaches developed in Kelowna were developed with and supported by Aboriginal leaders, provinces and territories. These were not commitments from a particular party, but by the federal and all provincial and territorial governments. The Minister of Indian Affairs, Jim Prentice, has stated publicly that he was committed to "putting the wheels on Kelowna". Why is it now necessary to reinvent the wheel?

     This government has consistently stated that they are willing to discuss Kelowna targets. We are more than willing to meet to discuss implementing measures that will improve quality of life for First Nations, but this budget does not appear to offer much."

Phil Fontaine
National Chief
Assembly of First Nations

     The Assembly of First Nations is the national organization representing First Nations citizens in Canada.

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/For further information: Don Kelly, AFN Communications, Director, (613) 241-6789 ext. 320, cell: (613) 292-2787; Ian McLeod, AFN Bilingual Communications Officer, (613) 241-6789 ext. 336, cell: (613) 859-4335/

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NISHNAWBE ASKI NATION FEDERAL BUDGET REACTION 2006

NAN Grand Chief disappointed with fraction of FMM commitments in budget

     THUNDER BAY, ON, May 2 /CNW/ - Nishnawbe Aski Nation (NAN) Grand Chief Stan Beardy is disappointed only a fraction of the priorities addressed by the former Liberal government at the First Ministers Meeting on Aboriginal Issues was part of the 2006 federal budget announced by Finance Minister Jim Flaherty in the House of Commons this afternoon.

     "It's good to see the Harper Government recognize the need for resources to upgrade water, housing, and social services both on and off-reserve, especially considering the ongoing challenges of many of the communities across Nishnawbe Aski territory, including the second evacuation of Kashechewan in less than one year," said NAN Grand Chief Stan Beardy who represents 49 First Nation communities across Ontario.

     "It remains disappointing, however, that other priorities identified at the November 2005 First Ministers Meeting, such as health and economic opportunities continue to be neglected."

     As announced in Budget 2006, the Conservatives are committing $450 million to improve water supply and housing on reserve, education outcomes, and socio-economic conditions for Aboriginal women, children and families, $300 million to provinces to address immediate pressures in off-reserve Aboriginal housing, and funds to meet governmental obligations associated with the legacy of residential schools - a fraction of what was announced by the former federal government last November.

     The First Ministers Meeting on Aboriginal Issues, which took place in Kelowna, B.C. November 2005, had former Prime Minister Paul Martin's Liberal government announcing contributions of more than $5 billion over the next five years to close the gap between Aboriginal and non-Aboriginal Canadians in the areas of education, health, housing, and economic opportunities.

     "If significant steps and strategies for implementation are not taken today to close the gap between Aboriginal and non-Aboriginal Canadians, there will be continued hardship in taking responsibility for ourselves in terms of decreasing the burden currently posed on all of Canada," said Beardy. "In order to take responsibility for ourselves we need economic development and business opportunities, particularly in terms of skill development and partnerships with industry."

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/For further information: Jenna Young, Director of Communications, Nishnawbe Aski Nation, (807) 625-4952 OR (807) 628-3953 (mobile)/

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from

Tory budget kills Kelowna deal  May 2 2006 - CBC News

The Kelowna Accord– an agreement to raise aboriginal health, education and housing standards – has been killed in the new Conservative government's first budget.

Finance Minister Jim Flatherty told the House of Commons on Tuesday that the Tories want to meet the targets of the agreement made last November… but estimates show it plans to spend far less money than was promised under the former Liberal government.

The accord set aside $5.1 billion to raise aboriginal living standards.

Instead, Flaherty promised to spend $150 million this year and $300 million next year for vaguely defined efforts to improve education programs, provide clean water, repair crumbling housing stocks and close "the socio-economic gap."

But the budget states the new government is still committed to meeting the targets agreed upon at the Kelowna meeting of native leaders and politicians last November.

"The government will work with aboriginal leaders, and provinces and territories to develop a new approach with workable solutions," the budget says.

Other northern spending– or not

 
Finance Minister Jim Flaherty tables the Budget in the House of Commons on Parliament Hill in Ottawa. (Tom Hanson/ Canadian Press)
 
There's some new support to ease housing pressure in the North. Flaherty confirmed up to $300 million will be spent over the next three years for affordable housing in the three territories. That money will be used to buy more affordable housing, including rental units and transitional homes.

Programs to improve off-reserve housing in the provinces will also get a $300-million boost.

There was also no mention of spending for a new military base in the Arctic. While on the campaign trail, Conservative Leader Stephen Harper surprised many observers when he promised to build a new military base in the Arctic to watch for signs that other nations were encroaching on Canada's sovereignty in the North.

Although the budget includes increased funding for the military, amounting to $1.1 billion this fiscal year, no specific mention was made of the new northern base.

One commitment the government did keep from previous Liberal promises was for a $500-million socio-economic fund for the Northwest Territories. The money is to be used over the next 10 years to help communities along the Mackenzie Valley pipeline project path address problems caused by the megaproject.

However, "[f]unding will be linked to project milestones and is conditional on the project moving forward," budget documents warn.

Ottawa spent $9.1 billion last year for education, social services, health and housing programs for aboriginal people, many of whom are owed the support under historic, mutually agreed upon treaties.

Opposition critics and most native leaders urged the Conservatives to honour the Kelowna deal. Crafted after 18 months of talks, it included a 19-page plan of targets and reporting requirements.

There have long been hints that the Tories would scrap it.

Conservative MP Monte Solberg, now immigration minister, was most blunt last January when he accused the Liberals of drafting the deal "on the back of a napkin on the eve of an election. We're not going to honour that."

Fulfilling campaign promises

The Conservative government used its first budget to follow through on several campaign promises, with initiatives that include reducing the GST and bringing in its monthly child-care allowance.

INDEPTH: Federal budget 2006

"For years, Ottawa has been overtaxing Canadians," Flaherty said in the advance copy of his speech to the House of Commons. "In this budget, we deliver real tax relief for Canadians."

The Conservatives said they will cut the GST by one percentage point to six per cent on July 1. The move is expected to cost the government $3.52 billion this year and $5.17 billion in 2007.

The government didn't specify when it would cut the rate to five per cent, as Prime Minister Stephen Harper promised during the last election campaign.

Income tax measures both remove and add some relief.

The tax rate on the lowest tax bracket will go to 15.5 per cent on July 1, after the Liberals cut it from 16 per cent to 15 per cent in their fiscal update in November.

At the same time, the government is introducing a new Canada employment benefit that will offer working people a $250 tax credit for 2006 to cover work-related expenses, such as home computers, uniforms and supplies. The credit rises to $1,000 for the 2007 tax year.

Child-care money

The government also followed through on another of its five promises by introducing a $1,200-a-year child-care benefit for all children under the age of six.

The government said it will spend $3.7 billion on the program, starting when the first monthly cheques are mailed in July. The payments will continue until the month in which the child turns six.

"While the universal child-care benefit will support child-care choices by families, we also intend to invest in creating new child-care spaces," Flaherty said in his prepared remarks.

He said the budget includes $250 million, beginning next year, to create child-care spaces.

More cash for the military

Canada's military will see its budget increased by $5.3 billion over the next five years, including money to speed up recruitment of 13,000 regular armed forces and 10,000 more reservists.

The extra money for the armed forces will also go toward new equipment, such as transport planes to replace the country's fleet of aging C-130 Hercules planes.

In keeping with the government's stated focus on security, the budget also includes $303 million over two years for border security and $161 million over two years to expand the number of RCMP officers and hire additional federal prosecutors.

Business tax cuts

Flaherty said the Conservatives will retroactively eliminate the federal capital tax as of Jan. 1, 2006. The tax, which is charged at 0.125 per cent on taxable capital in excess of $50 million, was originally slated to be phased out in 2008.

In order to encourage Canadian companies to hire apprentices, the government is also introducing a non-refundable tax credit equal to up to 10 per cent of the wages paid to qualified workers. The credit will have a maximum of $2,000 per year.

Flaherty said the government will try to curb its expenses by cutting some programs deemed to no longer be serving their purpose.

Flaherty said the Treasury Board will aim to find $1 billion in savings for 2006-07 and 2007-08. Details about the cuts, which could affect department and agency employees and the programs they offer, are expected by the autumn.

After putting aside $3 billion in both this year and next for debt reduction, the government said it expects a surplus of roughly $600,000 for the current year and $1.4 billion the following year.