BRIEF POSITION PAPER ON INDIAN GOVERNMENT SUPPORT PROGRAMS

BRIEF POSITION PAPER ON INDIAN GOVERNMENT SUPPORT PROGRAMS FOR A MEANINGFUL RENEWAL Presented by THE ASSEMBLY OF FIRST NATIONS OF QUEBEC AND LABRADOR THE ASSEMBLY OF EXECUTIVE DIRECTORS OF FIRST NATIONS OF QUEBEC THE ASSEMBLY OF EXECUTIVE DIRECTORS OF TRIBAL COUNCILS OF QUEBEC MAY 2009

Written by the Tribal Council of Mamuitun Under the supervision of the Drafting Committee: Mr. Daniel G. Nolett, Executive Director, Odanak First Nation Mr. Norm Odjick, Executive Director of the Tribal Council of the Algonquin Nation of Anishinabeg Mr. Sylvain Picard, RBA Executive Director Mr. Claude Picard, AFNQL Political Advisor Ms. Lise Kitstabish, Executive Director of the Council of the Abitibiwinni First Nation Mr. Lionel Picard, Executive Director of the Mamuitun Tribal Council Mr. Clément Bernard, Executive Director, Micmac of Gesgapegiag Band Council Mr. Christian Awashish, Executive Director of the Atikamekw of Opitciwan

Table of Contents WORD OF THE REGIONAL CHIEF OF THE AFNQL...1 WORDS FROM THE SPOKESPERSON OF THE ASSEMBLY OF EXECUTIVE DIRECTORS OF FIRST NATIONS OF QUEBEC...3 WORD OF THE SPOKESPERSON OF THE ASSEMBLY OF TRIBAL COUNCILS OF FIRST NATIONS OF QUEBEC...5 INTRODUCTION...7 GOVERNANCE AND AUTONOMY,...7 GIVING OURSELVES ALL THE LEVERS WE NEED...7 1 FOR A MEANINGFUL AND INSIGHTFUL REDESIGN...9 2 BAND SUPPORT FUNDING, ADAPTING GOVERNANCE SUPPORT... 10 U2.1U A FEW ELEMENTS OF THE HISTORICAL PROGRAM... 10 2.2 A FEW ELEMENTS OF THE BANDS SITUATION... 10 2.3 A FEW ELEMENTS RELATED TO THE DEVELOPMENT OF THE BANDS ADMINISTRATIVE WORKERS 12 2.4 A FEW ELEMENTS RELATED TO THE BANDS ADMINISTRATIVE MANAGEMENT OPERATIONS... 13 2.5 FOR A REFLECTION ON STATUS QUO FUNDING... 13 3 TRIBAL COUNCIL FUNDING, UPDATING AND ADAPTING THE FUNDING TO NEW REALITIES... 15 3.1 A WELL SUITED TOOL FOR STRENGTHENING CAPACITY AND REGIONAL DEVELOPMENT15 3.2 A FEW MAJOR CONCERNS REGARDING THE REDESIGN OF TRIBAL COUNCIL FUNDING 16 i

4 THE BAND EMPLOYEE BENEFITS PROGRAM, A COMMITTED REDESIGN, NEGATIVE AND WORRISOME IMPACTS ON THE FUTURE QUALITY OF LIFE OF THE EMPLOYEES OF ABORIGINAL PUBLIC ADMINISTRATIONS... 18 4.1 BRIEF HISTORICAL REVIEW... 18 4.2 A LEGITIMATE COST INCREASE... 18 4.3 INTENTIONS PARTICULARLY DISTURBING FOR FIRST NATIONS... 19 5 PROFESSIONAL AND INSTITUTIONAL DEVELOPMENT PROGRAM... 21 5.1 A BRIEF HISTORICAL REVIEW... 21 5.2 BETTER INTEGRATED FUNDING COMPONENTS... 21 6 BAND ADVISORY SERVICES PROGRAM... 23 6.1 START LISTENING TO THE BANDS CONCERNED BY THIS PROGRAM... 23 CONCLUSION... 24 SUMMARY OF RECOMMENDATIONS... 26

WORD OF THE REGIONAL CHIEF OF THE AFNQL On taking the time of measuring the impacts of the redesign Why (draft) a position paper on the program redesign undertaken by the Department of Indian Affairs and Northern Development Canada? Certainly not to contest a redesign of the programs but to look in to it in from the perspective of a partnership. Our participation in the consultation process, in spite of its limitations and incomplete characteristics, clearly proves that we consider that this program redesign is necessary. This being said, our perspectives regarding governance and management require that we here express our concerns regarding this redesign, the consultation process, the possible outcomes and the impacts for the First Nation governments of Quebec as a whole. Since the First Nations of Quebec have taken on many responsibilities, the Chiefs determination to ensure political, institutional, economic, social and cultural development of their communities has pivoted around the prospect of political autonomy. Many efforts were made to build governance even when the programs were transferred to First Nations without the means to do so. Throughout all the changes pertaining to governance and management, all our communities underwent changes and evolved. Although we have a number of success stories, we also have communities struggling with major problems that require significant and immediate support. We have mentioned these cases over and over again, whenever the opportunity arose. Aside from the huge challenges we have to address in education, health and the environment, to name a few,, the redesign of the programs remains important since it will undoubtedly have significant impacts on the future of services to our communities. This is why we believe that expressing our concerns in this paper is a must because we know that political autonomy lies in part within our capacity to assume the risks of the present. This capacity can be partly diminished by a program 1

redesign not adapted to an increasingly demanding reality. In order to ensure that such redesign is meaningful, our communities must be considered as partners in development and Nations who greatly contribute to the Canadian community as a whole. We must thus take all of the time we need to examine the changes to be implemented and especially to take the time we need to understand and interact with our members with regards to the impacts of said redesign. Ghislain Picard, Regional Chief of the Assembly of First Nations of Quebec and Labrador 2

WORDS FROM THE SPOKESPERSON OF THE ASSEMBLY OF EXECUTIVE DIRECTORS OF FIRST NATIONS OF QUEBEC For an adapted redesign In the framework of the consultation process on the redesign of the programs, a few communities and Tribal Councils were invited to answer various questions to facilitate the approach undertaken by the Department of Indian Affairs and Northern Development Canada. Beyond the limited numbers of Aboriginal stakeholders, we have trouble pinpointing precisely when, during the course of the consultation, the groups consulted and their authorities will be able to see results and therefore be able to react before the redesigned programs are implemented. The exercise conducted in the framework of the Band Employee Benefit Program is clear proof that the reform seems to be quite advanced and, in point of fact, dangerously so since the consultation process is not even completed. This position paper is sort of an opportunity for the Executive Directors of the Bands of the First Nations of Quebec to put an emphasis on the reality we manage within. Without getting deeply into the history of our local public administrations, we must at least mention here that when our communities took over the programs designed for them, there were no Aboriginal public administrations whatsoever. Everything had to be built in the context where resources and skills were lacking. Several bands, for various reasons, are still experiencing major problems in said context. The level of needs and the costs of service delivery can sometimes vary a lot, especially for geographically isolated communities. Let us mention briefly that among the Indian Government Support Programs, the goal of the Band Support Funding was to help First Nations to assume the costs of the local government and 3

service delivery in their respective communities. Many of the components of autonomous governance and management were not supported and are still less supported nowadays since our local public administrations have greatly evolved. A lot has changed since then! Our populations are growing steadily, services are increasing, needs in resources and skills are numerous and funding is not always adequate. For example, let s think about two components that are essential to the administrative development of our local public administrations: human resource services and technological development. The Band Support Program has never supported them. Even if we have succeeded in setting up autonomous public administrations, the challenges we have to address require that we pay very special attention to this program redesign. In the context of program evaluation and renewal, several questions submitted to the attention of the few stakeholders consulted have left us quite puzzled. There is talk of maintaining similar funding, merging programs, and increased accountability. Even if the relevance of the program redesign of our governments seems obvious to us, we wish that it allowed to better meet the real governance and management issues First Nations of Quebec are currently facing. Through this brief position paper, and beyond our concerns, we think it is important to raise a few questions and present a few recommendations because we wish this redesign would have real positive impact on the management of our organizations. Mr. Daniel G. Nolett, Spokesperson of the Assembly of Executive Directors of First Nations of Quebec 4

WORD OF THE SPOKESPERSON OF THE ASSEMBLY OF TRIBAL COUNCILS OF FIRST NATIONS OF QUEBEC Building the future together Since their creation, Tribal Councils have played a very important role in meeting different types of community needs. When the programs were transferred, communities that did not have the means to ensure the management of the different programs and services were able to count on their Tribal Council to administer and support, through skills and services, all activities related to these programs. Moreover, Tribal Councils have extensively contributed to the development of the communities, through their technical services and their organisational development services. They have closely followed the progress of their members and have thus been able to adjust their services according to each community s specific needs. Some of these Tribal Councils have been, and still are important enablers to the development actions of Aboriginal communities. We could list many of the success stories at this point; however this is not our goal. The redesign of Indian Government Support Programs raises questions in our minds and this is why we are committing ourselves to the development of this position paper, in cooperation with the AFNQL and the Assembly of Executive Directors of First Nations of Quebec. Tribal Councils that were called upon to participate in the DIAND s limited consultation on the redesign of the programs have been able to observe that the government still questions the Tribal Councils management autonomy. It is also clear that the government will not commit to increasing funding even if said funding has not budged since the Tribal Councils were created. 5

We hope to work together with all our members in order to closely follow the outcome of the consultation carried out by DIAND and to accurately determine the impacts of the redesign on the Tribal Councils of the First Nations of Quebec. Norm Odjick Spokesperson of the Assembly of Tribal Councils for the Quebec First Nations 6

Introduction Governance and Autonomy, Giving ourselves all the levers we need Before launching our reflection on the redesigning of the programs, it is important to set forth a few basic principles that should mark all work pertaining to the funding renewal of Aboriginal governments: Real recognition of government autonomy (operating leeway); Flexible measures adapted to the communities various realities; At the administrative level, assessment of the gaps between funding and needs (administrative deficits for under-financed services and absence of funding for the services required for the development of local governments At the governance level, more adequate support of the exercise of autonomy; Facilitation of access to our own sources of revenue. Aboriginal governments and their administrators must be capable of establishing the aspects required to move towards and achieve full autonomy. They are aware that their autonomy lies in their ability to establish and enjoy a solid economic basis for the full exercise of their responsibilities. The redesign of the programs must take into account the importance of updating the programs based on the bands new realities and it must facilitate equitable financial arrangements that will allow Aboriginal communities to fully attain their autonomy. Let us remember that the transfer of the programs was carried out quickly and that the setting up of the whole political and administrative apparatus occurred just as quickly. In less than thirty 7

years, communities have succeeded to assume significant responsibility over all the programs that INAC used to administer and also manage many other programs, services and projects related to their development, all this with very limited resources. Although Aboriginal communities have achieved a certain degree of administrative autonomy, have they succeeded in fitting in the practices of autonomous government they wish to achieve? One thing is sure: they have been doing everything in their power to reach their goal, but the framework of the relations with the federal government and the financial arrangements that are its trademark do not always facilitate all the steps First Nations want to take towards selfgovernment. Even if there has been some improvement over the last few years, there is still a long way to go. In the framework of this brief position paper, we will concisely examine the consultation process for the redesign, but will mainly focus on various thoughts about the Indian Government Support Programs. 8

1 0BFOR A MEANINGFUL AND INSIGHTFUL REDESIGN The document on the Redesign of Indian Government Support Programs» (INAC website), talks about «modernizing programs», and announces grants and contributions for the exercise of core governance functions similar to previous programs ; it also announces government capacity assessments and contributions for government capacity development will continue much like Professional and Institutional Development funding. No dramatic changes are expected while proposing, in the same breath, more relevant programs and that funding levels will not be reduced. Is this just the dusting off of old furniture? Is there a real wish to modernize and simplify the programs so they are better aligned with the current realities of Aboriginal communities? On the other hand, if the consultation process includes a stage where there will be work with an advisory group, there is no clear indication of a stage where First Nations would be granted a proper period of time to analyze and react to this modernization of the Indian Government Support Programs. We must not forget that the Aboriginal organizations that participated in this consultation did so on/of their own initiative and that none of them considered themselves as representative of the Quebec First Nations realities as a whole. This is why this position paper is so important: it has been adopted by the Assembly of Executive Directors of First Nations of Quebec, the Assembly of the Tribal Councils of the Quebec First Nations and by the Assembly of First Nations of Quebec and Labrador. 9

2 1Band Support Funding, adapting governance support 2.1 6BA FEW ELEMENTS OF THE HISTORICAL PROGRAM As the Department of Indian Affairs and Northern Development Canada reminds us, Band Support Funding has somewhat evolved over the years: consolidated in 1982 as a formula-based contribution, that is a formula based on the premise that bands require adequate levels of administrative support to properly administer local government responsibilities, the program was converted to grant funding in 1985; in 1989, the funding formula was updated in order to increase the minimum level of funding available to very small bands to enable them to recruit and retain essential program staff ; increase the maximum level of funding for bands managing very large programs to enable them to hire adequate numbers of program staff; and increase funding to extremely isolated bands to take into account unique cost factors related to program delivery ( Annex 4, Band Support Funding Program Policy). Let us add that it was last revised in 2005 to reflect changes in the Final Domestic Demand Implicit Price Index FDDIPI). The seven components of the funding formula are the following: Council Allowance, Basic Overhead, Income Support Funding Per Case Month, Federal/Provincial/Municipal Agreements Funding Variables, Service Staff, Audit and Professional Funding Variables, Remoteness and Environmental Indices, (idem, annex 4). We will not dwell on calculation factors but rather on the evolution of the bands situation. 2.2 7BA FEW ELEMENTS OF THE BANDS SITUATION The situation of the First Nations Bands of Québec is quite diversified. In the long march towards autonomy and governance, disparities are numerous. A few bands of Quebec have succeeded, up to a certain extent, to develop economic foundations that enable them to generate autonomous funds while others are still looking for and identifying potential economic 10

development avenues. Bands rarely have their own sources of revenue. That is to say that where the factors to assume Governance as understood by the Chiefs of the First Nations of Quebec are concerned, there still remains a lot to accomplish to create winning conditions. Bands that have access to certain autonomous funds often have to use them to cover administration deficits of the programs while at the same time trying to build a solid economic core. How can they reinvest when they have to cover administrative deficits or the absence of funding related to administrative responsibilities that are key to successfully managed programs? What can also be said of bands that do not have the means to cover administrative program deficits? Economic autonomy is one of the key foundations of First Nation autonomy, It will be important that this reform does not penalize the bands that can generate autonomous funds; and it will be vital that it enable those who do not have any to build governance that will allow them to ensure they can give their community the necessities required to establish their economic base. We must take the time to consolidate the economic bases in the communities who are beginning to emerge concretely with regards to business development and enable those who are experiencing serious financial distress to acquire the essential tools to improve their governance. In view of this, the Band Support Funding program must better meet bands governance development needs. Up to now, this program has not fostered band autonomy at all and does not adequately address First Nation political governance issues. Moreover, as we all know, absence of agreement and partnership, especially regarding natural resources, at the regional level, put First Nations at a disadvantage in the field of autonomous revenue. A. Through the redesign, the Band Support Funding Program should enable to better differentiate matters that come under political governance from matters that come under administrative management. B. Redesign should also take First Nation current governance issues, which program transfers have greatly complicated, into account. In this area, the lack of an increase of funding is, in our opinion, unacceptable. 11

2.3 8BA FEW ELEMENTS RELATED TO THE DEVELOPMENT OF THE BANDS ADMINISTRATIVE WORKERS When the local band governments were set up, requirements of the programs and direct services to the community, especially those pertaining to health and educations, had to be met first. In this day and age, many challenges must be met to find the proper resources and remain competitive employers in a context where several other governments face significant succession problems. Local governments of Quebec s Aboriginal communities have experienced significant growth. For the sake of good governance and the concern of ensuring increased as well as improved accountability towards our populations, an administrative infrastructure that could provide proper supervision and monitoring for healthy and efficient management of human and financial resources was required. In view of this, we must remember that accounting to our populations generates substantial costs generated by translations, website updates, and the production of various reports, in addition to all legal costs. As we all know, the Band Support Funding Program does not take all these realities or the reality of setting up human resource services in several Aboriginal public administrations into account. These services are essential and no financing factor takes them into account. In view of this situation and to update certain aspects of the financing formula related to band support, it would be important that: C. The draft design for change enables the update of certain aspects of the bands new administrative realities. D. Financing factors be revised by taking these realities into account. 12

2.4 9BA FEW ELEMENTS RELATED TO THE BANDS ADMINISTRATIVE MANAGEMENT OPERATIONS Another significant change has marked the development of local public administrations in Aboriginal communities: technological change. Canada-wide studies have contributed to draw a picture of technology in Aboriginal communities. They talked about bridging the digital gap or else presented the digital world as offering hope to Aboriginal people. Our public administrations must constantly deal with the use of financial management and human resource systems that require both implementation of new technologies and process reengineering to meet the new requirements of modern administration. For the smaller communities, the challenge is a complicated one to meet, and for isolated ones, introduction of these new technologies is extremely costly but remains even more essential. Communication and contact with partners and contributors require rapid adaptation to this type of development tool and our communities have a lot to gain in management and development autonomy through efficient use of such tools. To meet these new requirements, E. It would be vital to introduce new components in the Band Support Funding Program to facilitate the introduction and development of the tools essential to modern administrative management. 2.5 10BFOR A REFLECTION ON STATUS QUO FUNDING Even if the redesign of Indian Government Support Programs sometimes seems a mere formality since it is part of the natural cycle of government programs renewal, the underlying discourse is sometimes puzzling. Modernizing the approach, giving relevance, streamlining the programs, all this is, in all appearance, quite seductive. However, the non enhancement of the funding should worry us. Indeed, with the governance challenges our Chiefs must meet, the evolution of the 13

Band Support Funding Program has not really kept up with the rapid evolution of our local public administrations/governments. What seems essential today was not so 30 years ago. The absence of decrease in funding levels constitutes a minimum that is unacceptable in a context where tangible recognition of developmental requirements of modern governance is a must. The significant differences between the reality of the funding of this program and the realities of the bands must be taken into account in order to: F. Measure the impact of a status quo of the funding related to this program on the communities G. Measure the gaps between communities real management and governance costs and the funds granted as support measure. H. Pay special attention to the choices made in the framework of the redesign of the Band Support Funding Program in view of the potential impacts on the other programs reviewed within this same redesign of Indian Government Support. 14

3 2BTribal Council funding, updating and adapting the funding to new realities 3.1 1BA WELL SUITED TOOL FOR STRENGTHENING CAPACITY AND REGIONAL DEVELOPMENT When they were originally set up Quebec Tribal Councils came almost exclusively within the scope of the First Nations Tribal Council funding policy. Their mission and role have expanded throughout the years but the funding levels and formula have never been renewed accordingly. At the beginning, tribal councils answered to their member communities by taking into account their specific priorities or needs and also with regard to the services defined in the framework of the Tribal Council Funding Policy. Naturally, they still do. If the Tribal Council Funding Policy mostly reflects the nature of the services offered, it does not allow for the enhancement of new tribal council practices and service realities, which come more and more within the scope of a perspective of regional development agents. In certain cases, in particular for tribal councils to which band councils have vested the administration of several programs, the reality seems to us similar to the under-funding problem specific to the reality of band support. Funding, in these cases, is more related to band support, since in exercising of their authority they have to support their members in a more direct fashion by administering services to their communities. We must remember here that when the program transfers occurred, several communities did not have the capacity, resources and skills to address the administration of the programs, particularly as these program budget transfers did not come with the financing previously required when the DIAND managed them. A few 15

communities are still in this situation. We have already pointed out a few improvements that could be made to Band Support Funding. Tribal Councils that administer programs have similar needs. Tribal Councils that mainly manage staff and technical services consider that the policy would benefit greatly through modernization. Indeed, these Tribal Councils have become, as their members evolved, organizations that are increasingly useful with regards to consensus-building and regional development, In this capacity, they conduct and implement collective projects common to all their members. This is why their perspective of actions and service tends to lean towards regionalization. The growth of members local public administrations, the development of governance and autonomy, the taking over of many administrative responsibilities are often synonymous with even greater requirements where services are concerned and, in view of this, several components of the funding formula should be reviewed. 3.2 12BA FEW MAJOR CONCERNS REGARDING THE REDESIGN OF TRIBAL COUNCIL FUNDING During the consultation on the redesign, a few questions reveal perspectives of program mergers contemplated by the government, in particular the merger of tribal council funding with support funding. During various meetings held between Quebec Bands and Quebec Tribal Councils, several comments pertaining to this consultation convey the importance for the Quebec Tribal Councils to maintaining direct funding. Several of them are of the opinion that in a context where several bands are under-funded and experiencing great financial difficulties, tribal council funding must remain autonomous because such funding meets major capacity development needs and regional issues that are important to member communities. I. Maintaining autonomy of Tribal Council Funding. J. Open-up components of Tribal Council Funding 16

In June 2003, the Assembly of Tribal Councils produced an analysis of the operation of Tribal Councils and of their development opportunities, which was prepared by BDL conseillers en administration Inc. Regarding the Tribal Council Funding policy, this analysis already highlighted the importance of ensuring that from now on the formula will recognize all administrative costs and will also ensure that the amounts related to advisory units will recognize all expenses inherent to the services of a professional or a technical advisor, that the number of units (year/person); be increased to meet the needs of the current five consulting services and of the development opportunities, to ensure that their budgets will be indexed on a yearly basis, to ensure their capacity to offer competitive salaries to their employees (unofficial translation) (p. 25 of the above mentioned document). Little has changed since this June 2003 analysis. It is clear for us that the redesign should take previous analyses into account and allow for their update to facilitate a program renewal really adapted to Aboriginal needs. Tribal Council Funding has been renewed as status quo for a very long time. K. Modernize the funding formula by taking all relevant analyses and new service development realities into account 17

4 3BThe Band Employee Benefits Program, a committed redesign, negative and worrisome impacts on the future quality of life of the employees of Aboriginal public administrations 4.1 13BRIEF HISTORICAL REVIEW When the programs started to be transferred to First Nations, the INAC created, in 1979, the Régime des bénéfices autochtones (RBA) in cooperation with the Attikamekw-Montagnais Council (AMC). The federal government s ultimate goal was to attract and hold on to a skilled labour needed to devolve programs to communities. At the very beginning, it meant to attract federal civil servants interested in working in communities by offering them the same benefits they were already enjoying, particularly with regard to their pension plan. The Department of Indian Affairs and Northern Canada Development (DIAND) and Health Canada created the Band Employee Benefits Program.(BEBP) in 1984. This initiative was aimed at avoiding massive loss of important labour devolved to the management of the programs, especially in regards to teaching personnel. It goes without saying that the creation of the BEBP proved to be a vital tool for communities to be in charge of programs and services. 4.2 14BA LEGITIMATE COST INCREASE Since its creation in 1984, even if the BEBP was modified a few times, one exemption has always been maintained for the three existing benefit plans: the RBA, the Pension Plan for employees of the Mohawk Council of Kahnawake, and the Retirement plan for employees of the Fort Alexander Indian Band of Manitoba. The BEBP has always met with the government of Canada s objective, that is that all Canadian workers have access to an appropriate retirement plan. In 1991, the federal government prohibited new employers from adhering to a defined benefit pension plan. Fortunately, this did not affect the BEBP. 18

Please note that for employers and the federal government costs with regard to the plan have never increased since the creation of said plan. The employer s share of contributions has always remained the same: 1.82 times the employee s contribution. For the employee, the cost has remained at 5,5% of the salary for category 1 and 7,5% for category 2 (aboriginal employees). Increase in costs for the federal government is essentially related to the increase in number of BEBP eligible employers (from 18 in 1995 to 40 in 2008). Likewise, the number of BEBP eligible employees has gone from 812 in 1995 to 2000 in 2008. Employee payroll has also undergone quite a change going from 23,3 million in 1995 to 67,5 million in 2008. Increase in costs for the federal government is thus mainly due to an increase in BEBP eligible labour. This increase was inevitable and advisable in a context of evolution of local Aboriginal public administrations and of employees legitimate right to contribute to a pension plan. However, the financial crisis we have been experiencing for almost two years now coupled with low interest rates have created solvency deficits that require modifying the situation. This is why, starting on April 1rst, 2010, contribution rates on salary will go from 5,5 % to 6,25 % (category 1) and from 7,5 % to 8,5 % (category 2). As for the employer s contribution (including the federal government), it will remain the same (1.82 X employees contribution). 4.3 15BINTENTIONS PARTICULARLY DISTURBING FOR FIRST NATIONS In May 2008, the DIAND announced its intention of capping BEBP funding from April 1rst, 2008, to March 31, 2010, the date on which the programs must be renewed. This decision is more than surprising, particularly as the RBA had already established a defined benefit pension plan before the adoption of the BEBP and that the Department has committed to ensure the share of employers eligible under this pension plan. It is imperative that the federal government understand and accept the fact that employers funded by the BEBP for a defined benefit pension plan, as is the case for the RBA, have not had more advantage than other Aboriginal employers throughout Canada for the following reasons: 19

Before 1991, All Aboriginal employers eligible for federal funding of employer share could choose a defined benefit pension plan. All or substantially all chose not to do so for various personal reasons. Those who adhere to a defined benefit pension plan did so by taking the following two points for granted: that it was a pension plan similar to the one in force in the federal civil service, which is still the case, and that it would facilitate the hiring of and keeping a competent staff; that the federal government would respect its commitment to fully contribute to the pension plan employer s share the positions they will have deemed eligible. First Nations of Quebec are very worried about the federal government s clear intention of withdrawing and capping the funding. Normal growth of Aboriginal public administrations and equity of treatment of its employees are completely related to First Nations progress towards autonomy. Impact of a funding cap would be substantial since it would inevitably lead to additional administrative costs Aboriginal employers had not planned for considering the federal s firm commitments. The federal s withdrawing from contribution to the employer s share and capping of funding will have serious consequences on the future. A picture of First Nation employees and local public administrations is set in time and thus a much needed and essential evolution for the improvement of Aboriginal living conditions is interrupted. This will generate poverty for the future. In the framework of the redesign of Indian Government Funding, it is imperative that the Department keep in mind the importance of equity for Aboriginal employees and of support to their employers to maintain and contribute to the growth of their local public administrations with regard to the needs of their communities. L. Maintain commitments made to Aboriginal employers M. Maintain the bands capability to attract and keep on skilled and competent staff N. Facilitate the growth of Aboriginal public administrations in a context of independence and governance development. 20

5 4BProfessional and Institutional Development Program 5.1 16BA BRIEF HISTORICAL REVIEW The Professional and Institutional Development Program is one of the programs that is the result of the merging of old programs dedicated in particular to the training of Indian and Inuit managers and the Gathering Strength professional development programs. This program supports, among others, various projects or activities related to the development of human resources, governance systems or structures, management education, advisory support, community awareness and institutional support. Let us remember that the DIAND granted additional funds between 2006 and 2008 to strengthen the capacity of First Nations experiencing financial difficulty. This program is designed for various groups: Tribal Bands, Tribal Councils, Aboriginal organizations, and postsecondary educational institutions. 5.2 17BETTER INTEGRATED FUNDING COMPONENTS This program deserves special attention due to the number of groups that can benefit from it and its various components. Certain dimensions of this program should be better defined and targeted because it would result in directing funding towards groups or organizations better equipped to meet First Nation objectives. Maybe this could lead to program management cost reduction through the integration of certain targeted aspects into Band Support Funding and Tribal Council Funding programs without forgetting to integrate management costs of these components. For example, most Tribal Councils play a role in development and capacity strengthening, for their part, the bands themselves would gain if the components affecting governance systems and structures and community awareness were integrated into their own funding program. Are there too many targets within this program and are they all being properly met? 21

O. Review with First Nations the components of this program and integrate them effectively and efficiently into funding programs adapted to the goals and targets of the Professional and Institutional Development Program. 22

6 5Band Advisory Services Program 6.1 18BSTART LISTENING TO THE BANDS CONCERNED BY THIS PROGRAM In Quebec, the number of bands affected by the Band Advisory Services Program is not very high. In an assessment carried out in 2004 entitled ÉVALUATION OF THE TRIBAL COUNCIL FUNDING AND THE BAND ADVISORY SERVICES PROGRAM (200305), the Department recommends that Band Advisory Services funding be incorporated as a population-based component of the Band Support Funding grant to enable the same degree of access to advisory services currently available without the need for a separate program. It is easy to understand that this would result in management program savings. However, it would be important to ensure that the impacts of this change be evaluated by all bands concerned, particularly as they are few to benefit from said program. P. Allow bands concerned by this modification to analyse the real impacts it will have for their respective organizations. 23

Conclusion For a meaningful program redesign Open the door and be part of the solutions Mr. Ghislain Picard, Regional Chief of the Assembly of First Nations of Quebec and Mr. Daniel G. Nolett, spokesperson of the Assembly of Executive Directors of the First Nations of Quebec, expressed, in their comments at the beginning of this (memoir, essay, dissertation), the importance of treating First Nations and their organizations as partners throughout the whole program redesign process. As we reach the end of this brief (memoir, essay, dissertation), we believe it is important to reiterate the importance, in the short, middle and long run, of this redesigning of Indian Government Support Programs. We also wish to reiterate our commitment to participate fully in it as long as we will be able to do so by taking our political governance and administrative governance into account. This reform should not be trivialized and treated as a simple cyclical program renewal exercise. We must take this opportunity to reflect upon and analyze in depth how to go about truly modernizing funding approaches. The process must be open and progressive and must foster unrestrained participation of all bands as well as their organizations and assemblies concerned. Results of the consultation process on the redesign must be made available to all stakeholders concerned. Beyond the work of the limited consultation carried out in the field and the upcoming work with the advisory group set up by the DIAND, the redesign proposal will have to be submitted to the 24

attention large Aboriginal assemblies that will then be able to analyze it, measure its impacts and respond to with the first goal of meeting the real needs of the communities as a whole and contribute to improve the systems (related,relevant) to Indian Government Funding. A more complete exercise is in the interest of all parties. The DIAND will thus be able to make room for a real contribution on the part of First Nations who will then have the opportunity to better grasp the big picture of the financial aspects of the change to come. The redesign process must become a joint exercise of the department and First Nations towards healthy governance. For the time being, the approach undertaken in the framework of this program redesign sometimes gives us the impression that «the deck is stacked» and that this design exercise has not been undertaken with true openmindness towards First Nations full participation. 25

Summary of recommendations BAND SUPPORT FUNDING A. Through the redesign, the Band Support Funding Program should enable to better differentiate matters that come under political governance from matters that come under administrative management. B. Redesign should also take First Nation current governance issues, which program transfers have greatly complicated, into account. In this area, no increase in funding is, in our opinion, unacceptable. C. The draft design for change enables the update of certain aspects of the bands new administrative realities. D. Financing factors be revised by taking these realities into account. E. It would be vital to introduce new components in the Band Support Funding Program to facilitate the introduction an development of the tools essential to modern administrative management. F. Measure the impact of a status quo of the fund related to this program on the communities. G. Measure the gaps between communities real management and governance costs and the funds granted as support measure. H. Pay special attention to the choices made in the framework of the redesign of the Band Support Funding Program in view of the potential impacts the other programs reviewed within this same redesign of Indian Government Support. TRIBAL COUNCIL FUNDING 26

I. Maintain autonomy of Tribal Council Funding. J. Open up components of Tribal Council Funding. K. Modernize the funding formula by taking all relevant analyses and new service development realities into account BAND EMPLOYEE BENEFIT PROGRAM L. Maintain commitments made to Aboriginal employers M. Maintain the bands capability to attract and keep on skilled and competent staff N. Facilitate the growth of Aboriginal public administrations in a context of autonomy and governance development. PROFESSIONAL AND INSTITUTIONAL DEVELOPMENT PROGRAM O. Review with First Nations the components of this program and integrate them effectively and efficiently into funding programs adapted to the goals and targets of the Professional and Institutional Development Program. BAND ADVISORY SERVICES PROGRAM P. Allow bands concerned by this modification to analyse the real impacts it will have for their respective organizations. 27