DPR 2004-2005
Indian and Northern Affairs Canada and Canadian Polar Commission

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SECTION II — ANALYSIS OF PERFORMANCE BY STRATEGIC OUTCOME

Indian and Northern Affairs

II.1 Strategic Outcome: THE GOVERNMENT
Good governance and effective institutions for First Nations, Inuit and Northerners, built on co-operative relationships

What Is This Strategic Outcome About?

This Strategic Outcome encompasses helping First Nations and Inuit communities to develop effective governance and institutions that support achieving an improved quality of life. First Nations governments and Inuit communities are increasingly responsible for their own affairs as evidenced by devolution, self-government agreements, and new intergovernmental and Treaty relationships. These developments support First Nation and Inuit communities' efforts to develop clear accountabilities to citizens, and to help improve community social and economic conditions. INAC 's continued support of good governance and effective institutions assists First Nation and Inuit communities to benefit from economic development. At the same time, federal, provincial and territorial governments are building foundations for co-operative relationships with First Nation and Inuit communities.

Progress on the Aboriginal agenda and on northern institution-building contributes to the beginning of a social and cultural revitalization in northern communities and to strengthened partnerships essential to current and future economic development. Further attention to these priorities and to supporting the capacity of territorial governments to deliver programs and services within their jurisdiction is essential. Strong northern governance also has an important role in addressing circumpolar issues.

Financial Resources ($ millions)	Planned Spending	Total Authorities	Actual Spending
Governance	56.9	66.8	66.5
Institutions	473.9	466.3	464.2
Co-operative Relationships	217.2	208.0	183.9
Northern Governance	14.8	10.7	10.6

Human Resources (Full-time Equivalents)	Planned	Actual	Difference
Governance	47	44	(3)
Institutions	299	252	(47)
Co-operative Relationships	476	443	(33)
Northern Governance	60	41	(19)
Note: As per Treasury Board Guidelines, the full-time equivalents shown here represent an estimate of resources devoted wholly to this Strategic Outcome plus a pro-rata share of Departmental Management and Administration (dollars and full-time equivalents) based on the department's actual spending. In some cases, this number may appear high due to the very nature of the department's business, that is, managing financial relationships with service delivery largely devolved to our partners.

II.1.1 Program Activity — GOVERNANCE

What is this Program Activity? Fosters stronger governance through supporting legislative initiatives, programs, and policies and administrative mechanisms that promote stable, legitimate and effective First Nations governments and Inuit communities that are culturally relevant and accountable to their citizens.

Highlights of results for this Program Activity are listed below (see http://www.ainc-inac.gc.ca/rmr-dpr/gov_e.html for more details):

• Forty-two First Nations participated in governance initiatives and the Manitoba Capacity Development Initiative funded 44 projects for a total funding contribution of $2.84 million.
• The Band Support funding program authority was renewed for five years.
• The department continues to assist First Nations in developing and ratifying their own custom election codes under the Indian Act . As examples, in the Atlantic region, a custom conversion guide was made available; and in Ontario, information packages were sent out to First Nations.
• Practically all elections are now run by independent electoral officers.
• To facilitate greater flexibility in managing financial resources, the department has increased its use of flexible transfer agreements. In Quebec, 16 communities negotiated and signed multi-year agreements with the Quebec Regional Office.
• An increasing number of communities adopted financial management and accountability codes. The number of communities that are financially well managed according to audited statements continued to improve. For example, in 2004–2005, the percentage of audits that fully met auditing standards (called "unqualified") rose from 57 percent to 78 percent. In approximately 19 percent of cases, the auditor was satisfied with the financial statements as a whole, but had a reservation, or not enough information, about some particular aspect ("qualified" audits). The percentage of audits that were denied, indicating serious problems, fell from 17 percent to 3 percent in 2004–2005.

II.1.2 Program Activity — INSTITUTIONS

What is this Program Activity? Assists First Nations to meet the costs of local and self-government and the administration of departmentally funded services. This support is intended to provide a stable funding base for institutions that are well-populated by First Nations and Inuit, in order to facilitate effective community governance and the efficient delivery of services.

Highlights of results for this Program Activity are listed below (see http://www.ainc-inac.gc.ca/rmr-dpr/gov_e.html for more details):

• A range of institutions have supported First Nations in developing tools for effective governance through providing models of codes, hosting symposiums and exchanging best practices. Some examples of institutions that have participated in this work are the Aboriginal Financial Officers Association of Canada, Treaty 8 First Nations of Alberta and the Atlantic Policy Congress.
• Royal Assent was given on March 23, 2005, to establish fiscal and statistical institutions to advise First Nations governments. Implementation activities began as of that date.
• Planning and authorizations for implementing the National Centre for First Nations Governance were developed. Implementation activities will be ongoing.
• Support to the National Aboriginal Land Managers Association and Aboriginal Financial Officers Association of Canada continued throughout 2004–2005. These institutions assisted in improving the land management and financial capacities of First Nations.
• Annual, proposal-based support was provided for the development of education infrastructure and capacity through First Nations regional education authorities to deliver second-level, school board-type educational, administrative and professional services to schools on reserve.

II.1.3 Program Activity — CO-OPERATIVE RELATIONSHIPS

What is this Program Activity? Builds co-operative and productive intergovernmental and Treaty relationships with First Nations and Inuit to optimize the pursuit and attainment of shared objectives; the reconciliation of Aboriginal and other interests through researching, assessing, negotiating and implementing claims and self-government agreements; the furthering of a common understanding regarding historic Treaty relationships; and the development of legislative and administrative arrangements that reflect evolving governance capacities and relations.

Highlights of results for this Program Activity are listed below (see http://www.ainc-inac.gc.ca/rmr-dpr/gov_e.html for more details):

• The department continued to support the work of the Office of the Treaty Commissioner in Saskatchewan. As well, Canada was an active participant in the Nishnabe–Aski Nation, Treaty 6, Treaty 8 and Federation of Saskatchewan Indian Nations Treaty Tables.
• An evaluation was completed of the Office of the Treaty Commissioner, as well as a review of the Exploratory Treaty Table in Saskatchewan.
• Work is ongoing to establish the Claims Resolution Centre by fiscal year 2006–2007.
• The negotiation of five specific claims was completed in 2004–2005.
• Progress was made on completing comprehensive land claims and self-government agreements. In May 2004, the Westbank First Nation Self-Government Act was given Royal Assent. In January 2005, the Labrador Inuit Association Final Agreement was signed. In February 2005, the Tlicho Land Claim and Self-Government Act was given Royal Assent and the Kwanlin Dun First Nation Final and Self-Government Agreements were ratified. The Quatsimo Framework Agreement ( FWA ) was signed on April 20, 2004, and the Miawpukek Framework Agreement was initialled on December 9, 2004. The Tulita Framework Agreement was signed in March 2005. As well, substantive progress was made towards final agreements at many tables, including the Maa–Nulth, Tsawwassen, Sliammon and Lheidli T`enneh negotiations under the British Columbia Treaty Commission Process.
• During 2004–2005, the department signed implementation plans and fiscal agreements with the Kwanlin Dun First Nation in Yukon, the Labrador Inuit Association in Newfoundland and Labrador, and the Westbank First Nation in British Columbia. These agreements were set to come into effect in 2005–2006.
• Canada continued to participate in Implementation Committees in relation to comprehensive land claim and self-government agreements. After ten years of implementation activities, the implementation plan for the Sahtu Dene and Métis Agreement was renewed for a further 10 years.
• Support was provided for the Kwanlin Dun First Nation to develop its self-government constitution. This constitution was approved by the Kwanlin Dun on February 19, 2005.
• The department supported efforts for increased interaction between First Nations and Inuit communities to facilitate collaboration and aggregation. As examples, the department helped fund the Council of Yukon First Nations to work on Constitutional Renewal, the Manitoba First Nation Governance Network and the Saskatchewan Governance Network. Also, the department has become engaged in several intergovernmental forums. In Ontario, a Tripartite Agreement was struck among Minister Scott, Minister Bryant and Regional Chief Charles Fox to work towards building quality working relationships among First Nations, Canada and Ontario.

II.1.4 Program Activity — NORTHERN GOVERNANCE

What is this Program Activity? Supports strengthening northern governments through devolution of province-like responsibilities, effective intergovernmental mechanisms and management of strategic issues, as well as strengthened intergovernmental co-operation internationally on circumpolar issues.

Highlights of results for this Program Activity are listed below (see http://www.ainc-inac.gc.ca/rmr-dpr/gov_e.html for more details):

• Negotiations continued in 2004–2005 towards an Agreement in Principle ( AiP ) on devolution of province-like responsibilities in the Northwest Territories. In December 2004, the Prime Minister and the First Minister of the Northwest Territories announced a target of spring 2005 to complete an AiP on devolution and resource revenue sharing in the Northwest Territories and a target of 2006 to conclude a final devolution agreement. Significant progress was made in reaching agreements on a large number of complex issues and in drafting the AiP . Five issues remain outstanding, the most significant of which relates to financial concerns. The parties are optimistic that an AiP can be reached soon provided the few remaining issues can be resolved. Overall, progress towards devolution has been quite satisfactory.
• In December 2004, the Prime Minister announced that Canada would seek a mandate within a year to begin devolution negotiations in Nunavut. Preliminary meetings have taken place among INAC , the Government of Nunavut and Nunavut Tunngavik Incorporated to prepare for these negotiations.
• In December 2004, the Prime Minister and the three territorial First Ministers released the jointly developed "Framework for a Northern Strategy" designed to serve as the basis for consultations leading to the development of a national strategy for the North. These consultations took place during the winter and early spring in each territory as well as on a pan-northern basis. Discussions were held with northern Aboriginal governments and leaders at intergovernmental forums and other forums. The consultation process incorporated a variety of activities including ministerial visits, bilateral and multilateral meetings with key northern stakeholders as well as a questionnaire available electronically and in hard-copy format in Northern communities. Roundtables were also held on the theme of Sovereignty, Security and Circumpolar Co-operation and Climate Change to gather the views of a broad range of academics and other experts. The results of these activities are now being considered as governments work together to complete this version of the Northern Strategy.
• INAC regional offices were active participants in forums, working groups and committees involving territorial governments.
• INAC support to Canada's participation in the Arctic Council contributed to several Council-sponsored initiatives that further Canada's domestic policy priorities, including the Arctic Human Development Report, the Arctic Climate Impact Assessment and the Arctic Marine Strategic Plan. INAC engagement in bilateral co-operation with Russia supported the Government of Canada's commitment to reinvigorate the northern dimension of co-operation with Russia.
• The department continues to encourage interdepartmental co-operation and communication for the efficient resolution of First Nation, Inuit and Northern issues through its participation in all three Northern Regional Federal Councils.

Areas for Improvement and Lessons Learned

During the review period, it became clear that better awareness of the First Nations, Inuit, provincial, territorial, federal and private institutions that exist at present and a better understanding of what functions they perform are needed so that there can be greater co-operation among institutions and governments. This knowledge will also help to assess requirements for establishing new institutions. Improved coordination within the department, and among other federal government departments and other governments, is required to achieve this end.

Many years of implementing land claims and self-government agreements have demonstrated that fulfilling INAC 's obligations requires renewed relationships with First Nations and Inuit communities. Based on some of the challenges that have arisen, there is a need for increased clarification of the scope and nature of implementation plans, reviews and renewals.

Exploratory discussions with historic Treaty First Nations are helping to establish common understandings and renewed relationships with these groups.

Given the vastly different circumstances of Aboriginal peoples throughout Canada, a one-size-fits-all approach is not practical for addressing Aboriginal and Treaty rights of different groups in different parts of the country. Each Aboriginal group has its own culture, customs and traditions. In addition, provinces and territories have their own views and positions on resolving claims and accommodating self-government. Developments in constitutional law since 1982 are helping to define the nature and scope of Aboriginal and Treaty rights, challenging governments and Aboriginal groups to consider new approaches, such as specific recognition of Aboriginal rights, mechanisms for consulting with Aboriginal groups and accommodating their rights while negotiations are proceeding, and ways to reduce the length of time it takes to negotiate agreements.

Historic Treaties, land claims and self-government agreements establish a foundation for co-operative relationships that respect Aboriginal and Treaty rights and outstanding historical lawful obligations, provide certainty over rights to land and resources, and clarify the exercising of self-government powers. These co-operative relationships are achieved in part through negotiated arrangements. Comprehensive and specific claims and self-government negotiations are complex in nature and require a long-term commitment by all parties. They are frequently highly sensitive negotiations, which due to the nature and scope of initiatives may take many years to conclude. The bilateral, or tripartite, nature of relationship-building limits the federal team's ability to single-handedly determine the outcome of any negotiation. In other words, lack of progress in a negotiation process may be due to factors outside the control of the performance of any one party.

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