Cost of Indigenous legal claims expected to rise again

OTTAWA The federal government’s forthcoming annual public accounts will show how much more Ottawa expects to pay to settle legal claims made by Indigenous peoples and their communities.

The contingent liabilities section in last year’s public accounts estimated Ottawa would eventually have to pay almost $20 billion to cover 70 outstanding comprehensive Indigenous land claims, 528 smaller specific claims and thousands of other cases of litigation, including those related to the legacy of residential schools. The total is expected to grow again, as it has over the last few years.

The gradual climb of contingent liabilities is raising questions about how the payments could affect the federal bottom line. A source with knowledge of the government’s deliberations on Indigenous claims says Ottawa has grappled internally with how best to account for the climbing total.

The documents define contingent liability as “a potential debt which may become an actual financial obligation if certain events occur or fail to occur.”

Some observers believe the government has still underestimated how much Ottawa could be on the hook for, noting it could be at least four or five times larger.

Perry Bellegarde, national chief of the Assembly of First Nations, wants the Auditor General and other fiscal economists to help gauge just how much of a hit these claims will be for Ottawa.

He said it’s crucial outstanding claims are dealt with as soon as possible for two reasons: putting a stop to ballooning costs and providing a jolt of economic support for Indigenous communities.