2003 November Report of the Auditor General of Canada

Indian and Northern Affairs Canada

Community Economic Development Program

47.8

Provides funding for staffing and overhead costs of community economic development organizations that are the delivery agents within First Nations for Indian and Northern Affairs Canada, Industry Canada, and Human Resources Development Canada programming. As well, program funding can be used to provide equity for businesses, employment, and job related training. Its goal is to generate long-term employment and business development opportunities for First Nations by enhancing their ability to manage skill development programs, institutional arrangements for economic development, and business enterprises.

Indian and Northern Affairs Canada

Economic Development Opportunity Fund

10.0

Provides equity funding to enable First Nations, Innu, and Inuit businesses to leverage conventional debt financing for business start-up or expansion on- and off-reserve. The funding is to complete the financing package with an equity contribution where no other financing can be obtained. The Department's contribution cannot exceed $500,000 or the amount contributed by the applicant.

Indian and Northern Affairs Canada

Resource Partnerships Program

11.0

Provides financial support to First Nations, Innu, and Inuit governments, organizations, and businesses to form partnerships with provincial/territorial governments and/or the private sector to participate in the planning of, and obtain economic benefits from, major regional resource development projects. The projects must be large-scale and multi-party in nature to qualify. Activities are focussed on natural resources, but can also include human resource development. The program also supports the design, development, and ongoing operation of multi-party economic development partnerships that include First Nations. Total federal government funding cannot exceed 50 percent of the total cost of eligible activities, with the exception of early strategic planning (which may be funded up to 90 percent).

Indian and Northern Affairs Canada

Resource Access Negotiations Program

10.0

Assists First Nation and Inuit communities to obtain technical expertise to carry out negotiations leading to agreements that enhance employment, business, and other economic benefits from major resource-based opportunities on- or off-reserve. Maximum departmental funding is limited to a proportion of project costs related to the benefit accruing to First Nations.

Indian and Northern Affairs Canada

Resources Acquisition Initiative

3.0

Provides equity funding to help First Nations, Innu, and Inuit businesses to pursue resource-based and related projects on- and off-reserve, as well as funding activities such as acquiring licences or permits granting access to resources. The objective is to enable the proponent to leverage conventional debt financing for the project. The funding is to complete the financing package with an equity contribution where no other financing can be obtained.

Indian and Northern Affairs Canada

Major Business Projects Program

10.0

Provides First Nation, Innu, and Inuit businesses with equity funding to allow them to leverage conventional debt financing for start-up or expansion of major industrial, commercial, or resource-based projects, costing over $2 million, on- or off-reserve. The Department's contribution must be between $500,000 and $3 million and may not exceed the proponent's equity contribution.

Indian and Northern Affairs Canada

Regional Partnerships Fund

19.0

Designed to secure First Nation and Inuit participation in, and expand economic benefits from, major regional economic infrastructure projects. Partnerships must include non-federal partners with a preference for private sector participation. Priority is given to regional projects with benefits for two or more First Nations. The Department's contribution will not exceed 66 percent of total project value.

Indian and Northern Affairs Canada

Industry Canada

First Nations Component of the Infrastructure Canada Program

21.6 (31.0 over 3 years 2001-04)

Provides cost-shared funding for physical capital infrastructure projects on-reserve (and in the Yukon). Half the funds are targeted at "green" infrastructure projects that include improving the quality of water and wastewater systems, solid waste management, and flood control. Secondary priorities include other infrastructure projects that meet such needs as better local transportation and tourism development. Some of these activities support economic development.

For green projects, First Nations are normally required to provide at least one sixth of the project cost. One third would come from Infrastructure Canada, and up to 50 percent from Indian and Northern Affairs Canada. For other projects, First Nations are normally required to provide at least one third of the project cost. One third would come from Infrastructure Canada, and one third from Indian and Northern Affairs funding.

Industry Canada

Aboriginal Business Canada

38.2

Supports innovation, trade and market expansion, tourism, youth entrepreneurship development, and strengthening Aboriginal financial and business development organizations. Provides financial assistance, information, resource materials, and referrals to other possible sources of financing or business support to new and existing entities, including Aboriginal Capital Corporations and Youth Business Initiatives. The maximum federal contribution varies from 40 percent to 75 percent of project costs.

Indian and Northern Affairs Canada

Marshall Response Initiative

30.3

In 2001, the federal government launched its long-term response to the Marshall decision. The Department's portion of the Marshall Response Initiative addresses broader issues relating to Aboriginal fishing that cannot be dealt with in the Fisheries and Oceans Canada response. In addition to funding a Mi'Kmaq and Maliseet Treaty Commission and research and negotiation for the First Nations, the Department also funds land additions to reserves, co-operative management structures for parks and environment, and economic development/diversification projects (such as recreational fishing lodges, eco-tourism initiatives, and acquisition of retail fish outlets), and related capacity building.

Fisheries and Oceans Canada

Aboriginal Fisheries Strategy

35.2

(2003-04)

Provides management and regulation of fishing by Aboriginal communities through negotiation of mutually acceptable and time-limited fisheries agreements between the Department and Aboriginal groups. On average, approximately 125 agreements are signed annually covering 235 Aboriginal communities. The program applies where the Department manages the fishery and where land claim settlements are not in place.

The strategy consists of a number of activities:

• Fisheries agreements related in particular to food, social, and ceremonial fisheries, which include negotiated, time-limited harvest plans that are fished under a communal licence. Strategy agreements may also contain co-operative arrangements for the management of the Aboriginal fishery by the group and Fisheries and Oceans Canada, such as stock assessments and fish habitat enhancement projects. The agreements may also provide for access to commercial fisheries under the Allocation Transfer Program.
• Allocation Transfer Program, which facilitates voluntary retirement of existing commercial licences and the issuance of communal commercial licences to eligible Aboriginal groups in a manner that does not add to existing effort on the resource.

Fisheries and Oceans Canada

Marshall Response Initiative

325.2 (total for 1999-00 to 2004-05).

In response to the Supreme Court's judgement in R. v. Marshall, Fisheries and Oceans Canada launched the Marshall Response Initiative. Under the Initiative, Fisheries and Oceans Canada negotiates agreements with affected First Nations to increase their access to the fisheries, develop their fishing capacity, and build a new framework for management of First Nation fishing, working together with the communities. The agreements may include

• access through a voluntary licence retirement program;
• purchase/construction of vessels and gear;
• training in navigation, seamanship, and sustainable fishing;
• start-up assistance for harbour and resource management; and
• wharf and fishing infrastructure construction.

The Initiative is time-limited. Affected First Nations have until 31 March 2004 to sign agreements. Delivery of the Initiative ends on 31 March 2006.