Indigenous Services, Crown-Indigenous Relations table plans to cut spending

A Manitoba First Nations leader is demanding an‐ swers from the federal In‐ digenous affairs ministers after their departments tabled plans this month to cut hundreds of millions of dollars in spending, while forecasting a multi-billiondollar decrease over three years.

Cathy Merrick, grand chief of the Assembly of Manitoba Chiefs, in a Tuesday state‐ ment called it "unacceptable and irresponsible" for the ministers to cut funding when First Nations are al‐ ready in a constant state of emergency.

According to the latest de‐ partmental plans, Indigenous Services Canada and CrownIndigenous Relations intend to cut a combined $417 mil‐ lion from their budgets over three years, targeting bu‐ reaucratic inefficiencies, trav‐ el, consulting and some grants and contributions.

Meanwhile, Indigenous Services alone forecasts a broader $4.1-billion decrease in spending over the same period, as cash from past budgets runs out, or "sun‐ sets," including for child and family services, infrastruc‐ ture, Jordan's Principle and the Inuit Child First Initiative.

This means the Trudeau government faces tough choices on whether to renew this money in coming bud‐ gets, amid intensified pres‐ sure to spend more in other areas like defence and phar‐ macare.

The Assembly of Manito‐ ba Chiefs, which advocates for 62 First Nations, said any cuts will exacerbate already pronounced disparities in health and economic out‐ comes.

"Cutting federal funding when so many First Nations already struggle to meet their basic human needs is ir‐ responsible and morally rep‐ rehensible," said Merrick in the statement.

"This is not reconcilia‐ tion."

Canada also risks legal lia‐ bility if it fails to spend the necessary money on child and family services and Jor‐ dan's Principle, a program in‐ tended to ensure First Na‐ tions children can access es‐ sential health and social ser‐ vices, the statement added.

Cuts announced in 2023

The $417 million represents the two departments' efforts to help the Trudeau govern‐ ment shave $15.4 billion from budgets governmentwide, an initiative announced last year.

The Assembly of Manito‐ ba Chiefs urged Crown-In‐ digenous Relations Minister Gary Anandasangaree and Indigenous Services Minister Patty Hajdu to provide expla‐ nations for the cuts and be accountable for their implica‐

tions.

Hajdu previously promised the reductions wouldn't impact direct ser‐ vice delivery, which the as‐ sembly met with skepticism. The minister's office reiter‐ ated the pledge in a state‐ ment.

"We committed to no cuts to services, and we're deliver‐ ing on that," wrote press sec‐ retary Jennifer Kozelj.

"We're targeting opera‐ tional efficiencies, public ser‐ vant travels and departmen‐ tal transformation. We will al‐ so work in collaboration with Indigenous partners to iden‐ tify efficiencies in grants and contributions that are not ful‐ ly utilized."

New Democrat MP Niki Ashton rejected Hajdu's pledge as absurd, when pro‐ grams are already underfun‐ ded and overburdened.

"There's absolutely no way that a half-a-billion-dol‐ lar cut in Indigenous Services will not affect front-line ser‐ vices," she said.

"There's just no way. No‐ body believes that and I think it's deeply concerning that the Liberals are even expend‐ ing energy trying to convince us of that."

It may be possible to leave services untouched while cutting travel but the government will face tough calls when reducing grants and contributions, the feder‐ al parliamentary budget of‐ ficer said.

"It could be advocacy grants and contributions that they will reduce, but the proof will be in the pudding,"

Yves Giroux told CBC Indige‐ nous.

"I cannot see that many stakeholders being happy with the reduction in the grants and contributions that, presumably, they re‐ ceive."

Giroux, a neutral, nonpartisan official, said the de‐ tails are too vague to say at this point whether service delivery will or won't suffer.

Infrastructure gap esti‐ mated at $425B

Ashton wants Hajdu to re‐ verse the cuts and ensure cash for critical programs like Jordan's Principle is replen‐ ished. Indigenous organiza‐ tions, meanwhile, seek in‐ creases in federal cash, in particular for infrastructure.

The Liberals pledged to close the infrastructure gap in Indigenous communities by 2030, which recent esti‐ mates found would cost about $425 billion on re‐ serves and in Inuit territories.

The Assembly of First Na‐ tions pegged the on-reserve gap at $349.2 billion, while Inuit Tapiriit Kanatami seeks an infusion of $75.1 billion for Northern infrastructure, according to recent reports and pre-budget submissions.

Giroux said the Liberals could always maintain or in‐ crease spending on Indige‐ nous issues, even if it's fore‐ casted to decrease, if they borrow more, reduce spend‐ ing elsewhere or increase taxes. But he noted the Liber‐ al purse is under pressure from elsewhere, making for some tough calls.

The Canadian population is aging, creating increased demand for elderly benefits, while federal health transfer payments to provinces and territories are growing

Public debt charges are forecasted to hit $46.5 billion in the 2024-24 fiscal year, Giroux reported this month. That means Canada expects to pay more than double In‐ digenous Services' entire re‐ quested budget of $20.9 bil‐ lion solely on interest for loans.

More money may become available to Indigenous Ser‐ vices throughout the year to ensure it can deliver services, but it won't be easy, the budget officer said.

"There's not that much wiggle room."