Four First Nations Added to Fiscal Management Act

Summary#

This is an order that adds four First Nations to the list (the schedule) in the First Nations Fiscal Management Act. Being added lets those First Nations access a set of financial tools and services under the Act, such as property-tax systems and bond financing. The order was registered and came into force on May 27, 2022 (published in the Canada Gazette on June 8, 2022).

What it does#

• The Order Amending the Schedule to the First Nations Fiscal Management Act adds these First Nations to the Act’s schedule:
  • Big Grassy
  • Bonaparte First Nation
  • Hupacasath First Nation
  • Wuikinuxv Nation
• Because they are added to the schedule, these First Nations may, if they choose:
  • set up a property tax system under the First Nations Fiscal Management Act;
  • seek certification of their financial performance and financial management systems from national bodies;
  • apply to use a bond financing regime that lets them borrow against property-tax or other revenue streams.
• The national institutions that support these options include the First Nations Finance Authority, the First Nations Tax Commission, and the First Nations Financial Management Board.

Who's affected#

• The governments and residents of:
  • Big Grassy, Bonaparte First Nation, Hupacasath First Nation, and Wuikinuxv Nation — these communities can now access the Act’s tools.
• The three national institutions named above, which may work with those First Nations on taxes, financial management, or borrowing.
• Local businesses, contractors, and lenders in those communities could be affected if new projects, taxes, or financings go ahead.
• It is unclear which specific services each First Nation will use; joining the schedule simply makes the options available.

Why it matters#

• Joining the schedule gives those First Nations new ways to raise money for local priorities, such as housing, roads, utilities, or community facilities. For example, they could use property-tax revenue to back bonds and borrow for infrastructure.
• The Act also offers tools to strengthen financial management and reporting, which can help attract investment and plan long-term projects.
• This change is voluntary and follows requests from the band councils. There are no immediate costs tied to adding names to the schedule itself.