No more use-it-or-lose-it funding for infrastructure on First Nations
As of April 1, 2018, First Nations will have the ability to carry forward federal funding for infrastructure programs from year to year, according to an announcement made at the Assembly of First Nations general assembly Tuesday.
“You don’t have to scramble now. You won’t have to panic now. You won’t have to make those crazy decisions,” Perry Bellegarde, AFN national chief said to other First Nations chiefs in attendance.
Previously, First Nations were required to spend all federal funds by the end of the fiscal year — the end of March — or any remaining money had to be returned.
The problem with that system, said Bellegarde, is it takes the government so long to dispense funding that First Nations weren’t getting access to it until November, December or sometimes as late as January.
“When the funds go back to Ottawa, it’s not because they weren’t needed, it’s because it wasn’t enough time to spend it properly,” said Bellegarde.
The announcement was made by Bellegarde and Carolyn Bennett, federal minister of Indigenous and northern affairs.
Bennett said once the new policy for infrastructure programs takes effect, an implementation plan for other programs will also be made.
She said the old paternalistic attitudes of the government resulted in a policy that “has made no sense” and acknowledged that more “fiscal flexibility and autonomy is necessary ” for First Nations to govern their communities well and be able to respond properly to the challenges that arise.
Being able to carry forward funds year to year means First Nations communities can begin infrastructure projects knowing they have the time and the money to finish them. But this is just one small step towards a bigger goal, said Bellegarde.
“The bigger issue is working towards long-term, sustainable, predictable funding,” he said. “There’s a huge socio-economic gap that exists in Canada and we’ve got to close that gap.”
Also contributing to that gap is the lack of funding for essential services on reserves. Currently, INAC’s operations and maintenance policy provides partial funding for services such as emergency management and access to clean drinking water, but requires First Nations pay the difference to fund those services. But Bellegarde said sometimes First Nations cannot afford to do so, and as a result go without these essential services.
“This policy does real harm and it’s holding First Nations back. We know that it’s totally unacceptable,” said Bellegarde.
Bennett announced the federal government’s intention to work with the AFN to make changes to the policy — which she said may have contributed to the inequities in funding, fire safety, education, water and waste water treatment and more in First Nations communities.
The policy “is outdated and does not reflect what First Nations need,” said Bennett. “So today we are beginning the work of working together to change that policy and that funding framework so it would be finally fair.”
Bellegarde and Bennett both acknowledged that a lot of work still needs to be done in order to close the socio-economic gap that exists, but emphasized the value of working together to create change.