Three First Nations Join Fiscal Management Act

Summary#

This is the Order Amending the Schedule to the First Nations Fiscal Management Act (SOR/2021-29). It adds three First Nations to the list of communities that can use the programs and services under the First Nations Fiscal Management Act. The order took effect when it was registered on March 8, 2021.

What it does#

• Adds these three names to the schedule of the First Nations Fiscal Management Act:
  • K'atlodeeche First Nation
  • Mushuau Innu First Nation
  • Sheshatshiu Innu First Nation
• Lets those First Nations choose to use services tied to the Act, such as:
  • setting up a property tax system under the Act,
  • getting certified for financial management and performance,
  • accessing a First Nations bond financing regime to borrow against local revenue streams.
• The change was made at the request of the First Nations’ band councils. It does not force any action on them.

Who's affected#

• Directly affected:
  • Members and governments of K'atlodeeche First Nation, Mushuau Innu First Nation, and Sheshatshiu Innu First Nation.
• Indirectly involved:
  • The national institutions that support the Act: the First Nations Finance Authority, the First Nations Tax Commission, and the First Nations Financial Management Board.
• Others: Other First Nations across Canada may also be watching, since many communities have asked to be added to the schedule; but this order only applies to the three named communities.

Why it matters#

• Being on the schedule gives these First Nations new tools to raise and manage local revenue. That can make it easier to fund infrastructure, services, and local economic projects without relying only on federal programs.
• It can improve financial planning and accountability through certification programs. That can also make it simpler to borrow money for community projects.
• The change is voluntary and was requested by the communities themselves. There are no new costs to the federal government from simply adding names to the schedule.