Six First Nations Join Fiscal Management Act

Summary#

The Order Amending the Schedule to the First Nations Fiscal Management Act (SOR/2023-164) adds six First Nations to the list of communities that can use services under the First Nations Fiscal Management Act. The order was registered and came into force on July 20, 2023, and was published in the Canada Gazette on August 2, 2023.

What it does#

• Adds the following First Nations to the schedule to the First Nations Fiscal Management Act: Batchewana First Nation, Eskasoni, Lyackson, Nation Huronne Wendat, Prophet River First Nation and Tahltan.
• Lets these First Nations choose to use tools and services created by the Act, for example:
  • setting up a property tax system under the Act and using those revenues for community projects;
  • seeking certification of their financial management and financial performance;
  • accessing a First Nations bond financing regime to borrow against revenue streams.
• Comes into force on the day it was registered: July 20, 2023.

Who's affected#

• The six named First Nations: Batchewana First Nation (Ontario), Eskasoni (Nova Scotia), Lyackson (British Columbia), Nation Huronne Wendat (Quebec), Prophet River First Nation (British Columbia) and Tahltan (British Columbia).
• The national institutions set up under the First Nations Fiscal Management Act that support these options: the First Nations Finance Authority, the First Nations Tax Commission and the First Nations Financial Management Board.
• Other First Nations considering the Act may watch this as an example, because the order was made after each band’s council requested to be added. It is not clear from the order whether any other groups beyond the six named will be directly affected.

Why it matters#

• Being on the Act’s schedule gives a First Nation optional tools to raise revenue, improve financial systems, and borrow for infrastructure. That can make it easier to fund local projects and economic development.
• The change is voluntary. Adding a First Nation to the schedule does not force it to change its current laws or tax system; it creates an option the community can use if it chooses.
• The order is an administrative step that responded to requests from the communities’ councils. There are no direct costs to the government reported for making the change.