Thank you, Chair.
We appreciate this opportunity to discuss chapter 4 of our March 2009 status report, entitled “Treaty Land Entitlement Obligations”. I'm accompanied today by Ronnie Campbell, assistant auditor general, and Frank Barrett, principal, both of whom are responsible for our work on aboriginal issues.
Treaty land entitlement agreements between the crown and first nations set out how the government will provide land to first nations that it failed to provide in accordance with historic treaties. The fulfillment of treaty obligations extends beyond the promise of land. Treaty rights are recognized and affirmed in the Constitution Act and, as such, are constitutionally protected.
Our office first examined the government's fulfillment of treaty land entitlement obligations in 2005. These obligations include the conversion of up to 1.4 million acres in Manitoba, and up to 2.7 million acres in Saskatchewan, to reserves once they have been selected for conversion. That audit specifically examined Indian and Northern Affairs Canada's progress in converting land selected under these agreements to reserve status in those two provinces. The audit also examined whether the department was managing the conversion process in a way that was consistent with its legal obligations to first nations.
The 2005 audit found a number of deficiencies in the department's management practices for meeting its obligations, such as inadequate planning and an absence of targets for land conversion. The audit found that these deficiencies limited the department's progress in converting lands to reserve status, in particular in Manitoba. Our 2005 audit found that about 58% of acres selected by first nations in Saskatchewan had been converted to reserve status, while only 12% of these lands had been converted in Manitoba. In that audit, we made eight recommendations, most of which focused on the need for the department to improve its management practices. The department agreed with our recommendations, and in 2006 the Minister of Indian Affairs committed the department to converting 150,000 acres of land in Manitoba to reserve status in each of the following four years.
Our recent audit examined the department's progress in converting land to reserve status and in implementing the recommendations from our 2005 report. We found that Indian and Northern Affairs Canada had made significant progress in converting land selected by first nations to reserve status.
Since 2005, the Department has converted over 315,000 acres to reserve status in the provinces of Saskatchewan and Manitoba. This represents a 42% increase in land conversions in just three years. In Manitoba alone, over 227,000 acres have been converted to reserves since our last audit.
This follow-up audit also found that the Department has made efforts to improve its communications with First Nations and work more closely with them on plans to convert outstanding land selections. However, our 2009 audit also found that Indian and Northern Affairs Canada has not made satisfactory progress toward implementing several of our recommendations for improving its management practices to meet its obligations to First Nations, in particular in Manitoba.
For instance, in that province, the Department has not developed a plan that outlines how it will manage its operations to process outstanding selections within a reasonable period of time. It has also not tracked processing times, and could not demonstrate that these times have improved over the last three years.
The continuing management weaknesses identified in this follow-up audit are of particular concern, as they relate to treaty obligations that Canada incurred more than a century ago. Our audit found that over 430 selections representing close to 650,000 acres of land remain to be converted in Manitoba. In Saskatchewan, over 700 selections representing 451,000 acres remain to be converted. Our audit concluded that without sustained management attention to correct the weaknesses we have identified, the department risks being unable to sustain its progress in converting land to reserve status.
We understand that you may also wish to discuss recent audits we have undertaken that focus on Indian and Northern Affairs Canada's responsibilities in Canada's north. In recent years we have conducted three audits in this area.
In November 2003, we reported on the department's progress in transferring federal responsibilities to the north. This audit found that the department's performance on implementation of both the Gwich'in and Inuit of Nunavut land claims left considerable room for improvement. We found the department's processes for managing its responsibilities under these agreements to be incomplete. They lacked clear milestones and feedback mechanisms to assist in meeting its obligations. Most notable was the department's focus on completing specific activities required in the land claim's implementation plans, rather than on respecting the spirit and intent of these agreements.
In April 2005, we reported on Indian and Northern Affairs Canada's development of non-renewable resources in the Northwest Territories. This audit concluded that the department was not adequately managing its responsibilities for approving the development of non-renewable resources in the Northwest Territories. The department failed to provide public boards playing a key role in the development of these resources with adequate direction and the appropriate management foundation necessary to carry out their responsibilities.
In October 2007 we reported on the Inuvialuit Final Agreement. We found that the federal government had not met some of its significant obligations under this agreement, often because it had not established the necessary processes and procedures, or identified who was responsible for taking various actions. The audit also found that 23 years after the agreement came into effect, Indian and Northern Affairs Canada still had not developed a strategy for implementing it and had taken no action to ensure that progress toward achieving the principles of the agreement was monitored.
Mr. Chair, some of our observations in both the Treaty Land Entitlement and Northern audits highlight the importance of critical factors that we identified in our 2006 Status Report. In that audit, we identified seven factors that appeared to have been critical in implementing our recommendations. The presence of some of these factors enabled the successful implementation of our recommendations. The absence of some of these factors hindered the implementation and, in turn, impeded significant change in the lives of First Nations people and Inuit.
The seven critical factors we identified in 2006 were: the need for sustained attention on the part of senior management to effect lasting change; the importance of coordination among federal organizations delivering similar programs; the need for meaningful consultation with First Nations; the value of developing capacity within First Nations communities; the importance of establishing First Nations institutions; the potential for conflicting roles of Indian and Northern Affairs Canada in its relations with First Nations; and the necessity for an appropriate legislative base for First Nations programs.
Our experience in conducting audits of Indian and Northern Affairs Canada has shown us the importance of these factors in ensuring success of first nations programs.
This concludes my opening statement. We will be pleased to answer any questions committee members may have.
Thank you.