News Release
First Nations-led legislation receives all party support in House of Commons as Bill now moves to the Senate

OTTAWA, ONTARIO (December 10, 2004) – First Nations have been leading an initiative that will provide a statutory base for four public institutions designed to assist First Nations in improving the investment climate and promoting economic growth in First Nation communities. In that regard, the First Nations Fiscal and Statistical Management Act (Bill C-20), received all-party support in the House of Commons today at Third Reading. Bill C-20 now moves to the Senate for further consideration.

C.T. (Manny) Jules, spokesperson of the First Nations Fiscal Institutions Initiative, called today’s all-party support in the House of Commons “a clear and unequivocal endorsement of the benefits of the legislation. This bill is about building infrastructure, attracting investment and creating jobs. Clearly, Members of Parliament have recognized that First Nations have not been able to fully participate in the Canadian economy. This is an important step toward removing these barriers. ”

The legislation will create four institutions which will be operated by and for First Nations. The proposed institutions include a finance authority, a tax commission, a financial management board and a statistical institute. The tax commission and finance authority will build upon the established reputations and expertise of the existing Indian Taxation Advisory Board and First Nations Finance Authority (FNFA). The Union of Ontario Indians and the BC First Nations Summit sponsor the First Nations Statistical Institute and Financial Management Board respectively.

These institutions will provide participating First Nations with the access to capital markets available to other governments. They will further strengthen the First Nations real property tax system and provide greater representation for taxpayers. The institutions will also improve the reliability of First Nation financial and statistical information, and build financial and information management capacity. In sum these institutions will improve the First Nation investment climate.

Over 100 First Nations currently levy property tax on their lands, generating over $44 million dollars a year in revenue. Bill C-20 will immediately offer these First Nations opportunities to strengthen their property tax systems and enable them to participate in debenture financing through the use of their property tax revenues. By pooling their tax revenue under the FNFA, First Nations will be able to leverage economies of scale into a better interest rate. Conceivably, there could even be a premium on First Nations-backed bonds, which could appeal to domestic and international investors wishing to make an ethical investment. Only participating First Nations whose financial management systems have been certified by the Financial Management Board will be able to access the FNFA debenture system.

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For more information, contact:

Agnes Papanastasiou
Public Affairs Officer
(613) 954-6201 or
mail@fnfi.ca

For more information on the proposed institutions, please contact:

First Nations Tax Commission - www.fntc.ca
First Nations Finance Authority - www.fnfa.ca
First Nations Financial Management Board - www.fnfmb.com
First Nations Statistics - www.firststats.ca