PACP Committee Report

Mr. David Christopherson, M.P.
Chair
Standing Committee on Public Accounts
House of Commons
Ottawa, Ontario, K1A 0A6

Dear Mr. Christopherson:

Pursuant to Standing Order 109 of the House of Commons, I am pleased on behalf of the Government of Canada to provide you with the following response to the Second Report of the Standing Committee on Public Accounts.

On behalf of my colleagues, the Minister of Human Resources and Skills Development (as Minister responsible for the Canada Mortgage and Housing Corporation), and the Minister of Health, I would like to acknowledge the Committee’s efforts in bringing further attention to the health and well-being of Canada’s First Nations peoples, particularly those resident on reserves.

I would also like to acknowledge the work of the Office of the Auditor General in providing Parliament, the Government of Canada, and Canadians with valuable insights into Canada’s approach to program delivery for First Nations on reserves. I consider the six-page preface to Chapter 4 of the 2011 Status Report of the Auditor General of Canada to be an important roadmap for Parliament in moving forward on First Nation issues.

In tabling the Report, the Committee called upon Aboriginal Affairs and Northern Development Canada, the Canada Mortgage and Housing Corporation, and Health Canada to address two recommendations. The first recommendation is that Aboriginal Affairs and Northern Development Canada, Canada Mortgage and Housing Corporation and Health Canada provide the Standing Committee on Public Accounts with a roadmap of specific actions, with timelines, that the departments intend to take to address the four structural impediments identified in Chapter 4 of the 2011 Status Report of the Auditor General of Canada. The second recommendation is that the departments identified in recommendation one provide the Standing Committee on Public Accounts with the implementation plans called for in recommendation 4.86 of Chapter 4 of the 2011 Status Report of the Auditor General of Canada.

I agree that many of the problems faced by First Nations are due to the structural impediments identified – the lack of clarity about service levels, lack of a legislative base, lack of an appropriate funding mechanism, and a lack of organizations to support local service delivery.

As noted in the preface to Chapter 4, all four impediments must be addressed before conditions on reserves will approach those existing elsewhere across Canada. In responding to the Committee’s first recommendation, I will highlight actions the Government is taking to address these structural impediments and will include timelines only when appropriate as some of the initiatives profiled require Parliamentary approval.

In addressing the Committee’s second recommendation, I will draw your attention to the many detailed reports that the Government provides to Parliament and Canadians that demonstrate the Government’s approach and progress achieved on First Nations issues.

Lack of clarity about service levels

The federal government supports many services on reserves that are normally provided by provincial, territorial and municipal governments off reserves. The Office of the Auditor General noted that while the federal government has funded the delivery of many programs and services, it has not clearly defined the type and level of services it supports.

The Government is working to address the lack of clarity about service levels by working with our First Nations and provincial partners to clarify standards, as well as roles and responsibilities.

In the context of elementary and secondary education, tripartite agreements in British Columbia, Nova Scotia, New Brunswick, Manitoba, Alberta, Prince Edward Island, and a sub-regional agreement with the Saskatoon Tribal Council have served to clarify roles and responsibilitiesto improve education outcomes for First Nation students in band-operated and provincial schools. More specifically the Government of Canada, the Government of British Columbia, and the First Nations Education Steering Committee (FNESC) signed a new Tripartite Education Framework Agreement on January 27, 2012, that defines the roles and responsibilities of the parties and formalizes the structures, systems and supports needed to deliver quality education in First Nation schools in British Columbia.

Through the Enhanced Prevention Focused Approach for First Nations Child and Family Services clarity about service levels and comparability of services and funding levels have been addressed at tripartite tables with the six provinces that have transitioned to the new approach.

Lack of a legislative base

As noted by the Office of the Auditor General, the federal government has often developed programs to support First Nations communities without establishing a legislative or regulatory framework for them. Instead, the federal government has developed programs and services for First Nations on the basis of policy. As a result, the services delivered under these programs are not always well defined and there is confusion about federal roles and responsibilities, including those related to funding.

This Government’s approach includes a broad spectrum of legislative initiatives. In the current session of Parliament, four bills have been introduced thus far: Bill S-2, Family Homes on Reserves and Matrimonial Interests or Rights Act; Bill C-27, First Nations Financial Transparency Act; Bill S-6, First Nations Elections Act; and Bill S-8, Safe Drinking Water for First Nations Act. These bills will contribute to the well-being of First Nations communities by improving social, economic and living conditions of First Nations, and by providing for integrity and accountability of First Nation electoral processes and governments.

Bill S-2 will provide people living on reserve with similar matrimonial real property rights and protections as other Canadians. Bill C-27 will support democratic, transparent and accountable First Nation governments by requiring that chiefs and councillors publish their salaries and expenses. Bill S-6 is an initiative that will help those First Nations that opt in to improve political stability by providing for longer terms of office for Chiefs and Councillors; removing the role of the Minister of Aboriginal Affairs and Northern Development in receiving, investigating and deciding on election appeals, and allowing for penalties for defined offences that obstruct the electoral process.

Finally, Bill S-8 will provide for the development of a regulatory regime, including enforceable standards for safe drinking water and the effective treatment of wastewater on First Nation lands, taking a vital step towards ensuring First Nations have the same health and safety protections for drinking water in their communities as other Canadians. In support of the continued development of First Nations water and wastewater systems while regulations are in development, Budget 2012 announced $330.8 million in further investments over two years to build and renovate water infrastructure on reserve and to support the development of a long-term strategy to improve water quality in First Nations communities.

The National Panel on First Nation Elementary and Secondary Education delivered its final report on February 8, 2012. The Panel’s recommendations include the creation of legislation that would outline responsibilities for each partner in the system. In response to the Panel’s report, the Government will work with willing partners to introduce a First Nation Education Act and have it in place for September 2014. The purpose of this legislation is to establish the structures and standards to support strong and accountable education systems on reserve. To help ensure readiness for the new First Nations education system to be outlined in the legislation, Budget 2012 announced investments of $100 million over three years for First Nations education to provide early literacy programming and other supports and services to First Nations schools and students, and to strengthen their relationships with provincial school systems. An additional $175 million was announced for school renovation and construction.

Lack of an appropriate funding mechanism

The Office of the Auditor General observed that there are challenges associated with the use of contribution agreements to fund programs and services for First Nations. For instance, agreements may not always focus on service standards or the results to be achieved; agreements must be renewed yearly and it is often unclear who is accountable to First Nations members for achieving improved outcomes. In addition, contribution agreements involve a significant reporting burden, and communities often have to use scarce administrative resources to respond to the numerous reporting requirements stipulated in their contribution agreements.

The Government of Canada recognizes that reliance on annual funding agreements and multiple accountabilities when funding is received from multiple sources can impede the provision of timely services and can limit the ability of First Nations to implement longer term development plans.

To address these concerns, Aboriginal Affairs and Northern Development Canada is implementing a risk-based approach to streamlining funding agreements, and reporting requirements. The General Assessment tool supports increased flexibility by assessing the capacity of recipients to access a wider range of funding approaches, including multi-year funding agreements. In addition, a pilot initiative with 11 First Nations communities is currently being implemented using a new approach to reporting which is increasing transparency and accountability at the community level by using the First Nations website as a reporting tool and addressing capacity issues created by the reporting burden.

Health Canada has introduced a series of funding models which have served to accelerate First Nations’ control over their health services. These funding models and their specific accountability and reporting requirements put responsibility for program performance, and the management tools to achieve strong results, directly in the hands of First Nation communities. Over the past four years, by consolidating agreements and introducing new funding models, the number of contribution agreements has been reduced from 1,700 to 1,300.

In addition to new funding models, Health Canada has introduced the Community-based Reporting Tool to reduce the reporting burden on recipients by consolidating reporting requirements, eliminating individual program reports, moving from quarterly to annual reporting periods, and limiting information requests from recipients.

In the outcome statement from the January 24, 2012 Crown-First Nations Gathering, Canada and First Nations committed to work on a renewed relationship that is based on movement toward a single, multi-year Government of Canada financial arrangement for First Nations with high-performing governance systems, and improved accountability provisions for all parties with financial self-sufficiency of First Nations as the end goal.

As outlined in Budget 2012, the Government will work to explore mechanisms to ensure stable, predictable and sustainable funding for First Nations elementary and secondary education.

Lack of organizations to support local service delivery

Provinces have established many organizations and structures to support local delivery of programs and services to communities, including school boards; health services boards, and social service organizations. These organizations can supply vital expertise, facilitate career advancement, and develop a means of efficient and effective delivery of services. As noted by the Office of the Auditor General, there are few similar organizations to support service delivery within First Nations communities.

The Government of Canada is working with partners to support local service delivery for First Nations on reserves. There are a number of examples of these efforts.

Under the British Columbia Tripartite Education Framework Agreement, the Government of Canada will provide an additional $15 million annually starting in September 2012 to support First Nation schools and programs, including ongoing support for the First Nations Education Steering Committee, which has committed to offer second-level services which will include some of the services offered by school boards in the provincial system. This is part of a broader approach that recognizes that improving educational outcomes is a responsibility shared with local First Nation organizations and provincial schools, districts and ministries. Further, Budget 2012 invests in the continued process of building capacity for the delivery of quality supports and services to First Nation schools and students, and in strengthening their relationships with provincial school systems.

The Memorandum of Understanding concerning collaboration to increase labour force participation of First Nations through Active Measures in Saskatchewan is an opportunity for First Nation communities to work in partnership with all levels of government to find ways for First Nation youth to become fully engaged in today's workforce. Further, Budget 2012 commits the Government to make progress by better aligning the on-reserve Income Assistance Program with provincial systems through improved compliance with program requirements.

The Government of Canada is delivering on its commitment to supporting First Nation communities in providing First Nation residents with safe, reliable and healthy drinking water. Through the Circuit Rider Training Program, regional organizations provide First Nation operators with ongoing, on-site training and mentoring on how to operate and maintain their drinking water and wastewater systems.

By contracting with the First Nations Technical Services Advisory Group, Aboriginal Affairs and Northern Development Canada has invested $10.1 million in broadband connectivity and required infrastructure to develop remote water monitoring capacity for First Nations water systems in Alberta. As of March 31, 2012, remote monitoring equipment is now installed and fully operational, providing real time monitoring of water quality to 57 First Nations water treatment plants.

In support of First Nations economic development and job creation, the Government of Canada provides financial support to the Canadian Executive Services Organization (CESO). Through a mentorship approach, CESO volunteers work in partnership with First Nations communities, business, administrative staff and leaders to transfer skills and provide ongoing coaching to assist with feasibility studies, marketing plans, bookkeeping, operational reviews, incorporation and sound financial management, which in turn help communities to achieve their economic development goals.

The Government of Canada is working with First Nations to address the issue of mould in on-reserve housing. Aboriginal Affairs and Northern Development Canada has supported pilot activities aimed at the identification and resolution of mould issues which provide an indication of the extent of the mould problems and the associated assessment and remediation costs. The lessons learned will be made available to all First Nations to help plan and manage mould assessment and take corrective action. From 2009-2011 investments under Canada's Economic Action Plan supported the renovation of homes containing mould.

The Government of Canada is clearly taking action to address the structural impediments identified in the 2011 Status Report of the Auditor General of Canada and highlighted in the Committee’s report.

The Government is responding to the Committee’s second recommendation by reporting on progress to Parliament and Canadians. Implementation plans on specific issues are addressed through Reports on Plans and Priorities, and Departmental Performance Reports tabled by each of the 34 departments and agencies that deliver programs and services to First Nations on reserves. These reports provide detailed annual updates on the Government’s priorities and results achieved.

In addition, the Fourth Report in Response to the Kelowna Accord Implementation Act includes a detailed account of Government actions in support of Aboriginal peoples over the entire five-year reporting period, and outlines the Government’s priorities with respect to Aboriginal issues as articulated in Budget 2012.

Further, the Government of Canada and the Assembly of First Nations are committed to working together to build on the momentum of the Crown-First Nations Gathering, and a progress report will be released no later than January 24, 2013.

In closing, while moving in the right direction, the Government recognizes that there is more to be done to achieve our goals. As Prime Minister Stephen Harper indicated at the Crown-First Nations Gathering,

Our goal is self-sufficient citizens and self-governing communities. Our goal is to promote improved governance. Our goal is much increased Aboriginal participation in the economy and in the country’s prosperity, and we have no illusion about the enormous work that lies ahead of us.

The Government of Canada cannot act alone, and it is my earnest hope that we are all prepared to play our roles, as Parliamentarians, across federal and provincial jurisdictions, and across public and private sector boundaries, and with our First Nations partners to develop practical approaches to realizing our shared priority of healthy, strong, and sustainable First Nations peoples and communities.

Sincerely,

John Duncan, PC, MP