Four First Nations Join Fiscal Management Act

Summary#

The Order Amending the Schedule to the First Nations Fiscal Management Act adds four First Nations to the list of governments that can use services under the First Nations Fiscal Management Act. The order was registered on January 25, 2022 and took effect on that day.

What it does#

• Adds the following First Nations to the schedule: Abegweit, Constance Lake, Odanak and Stswecem’c Xgat’tem First Nation.
• Lets these First Nations choose to use tools under the First Nations Fiscal Management Act, including:
  • setting up a property tax system under that Act (as an alternative to the existing option under section 83 of the Indian Act);
  • seeking certification of their financial performance and financial management systems; and
  • applying to join a bond financing regime to borrow money using their own revenue streams.
• Connects these First Nations with the national institutions that support those tools: the First Nations Finance Authority, the First Nations Tax Commission and the First Nations Financial Management Board.

Who's affected#

• The four named First Nations and the people who live in those communities.
• The national First Nation institutions named above, which may provide services if the First Nations choose to use them.
• Potentially governments, lenders or investors who might deal with these First Nations if they pursue property taxation or bond financing.

Why it matters#

• Joining the schedule gives these First Nations optional new ways to raise revenue, manage finances, and borrow for local infrastructure or development projects.
• That can improve local planning, accountability and access to capital without creating new federal costs for adding names to the schedule.
• This change happened at the request of each band council, so it expands choices for those First Nations rather than imposing new rules on them.