Opening Statement to the Standing Senate Committee on Aboriginal Peoples

Land Management and Environmental Protection on Reserves—Indian and Northern Affairs Canada and Environment Canada

(Chapter 6 - 2009 Fall Report of the Auditor General)

18 November 2009

Sheila Fraser, FCA
Auditor General of Canada

Thank you for this opportunity to discuss Chapter 6 of our November 2009 Report—Land Management and Environmental Protection on Reserves. I am accompanied by Ronnie Campbell, Assistant Auditor General, and Frank Barrett, Principal, both of whom are responsible for this audit.

Reserve lands are central to First Nations peoples’ history, cultural identity, and day-to-day activities. Mr. Chair, as your Committee will know, many First Nations are among the most economically deprived in the country. Their sustainable economic development depends on their access to and control over their land and natural resources, and on a clean and healthy environment.

In this audit, we examined how Indian and Northern Affairs Canada (INAC) and Environment Canada (EC) have carried out the federal government’s responsibilities for land management and environmental protection on reserve lands. This included looking at regulatory and non-regulatory measures used to manage the environment, and the support INAC provides to those First Nations wishing to assume more control of their reserve lands.

Provincial and municipal laws and regulations generally do not apply on reserves. Our audit found that there are few federal regulations in effect to protect the environment on reserves. As a result, residents of First Nation reserves do not have the same environmental protection as do other Canadians.

While the federal government has the authority to develop regulations on reserves, it has rarely used this authority to mitigate environmental threats that are regulated off reserves by provincial governments.

We also found that INAC has done little to monitor and enforce compliance with the regulations that do exist. For example, while there are regulations under the Indian Act that require a permit to be issued by INAC for anyone wishing to operate a landfill site on reserve lands, we found that the Department has issued few permits and is not equipped to conduct inspections, monitor compliance, or enforce regulations.

Mr. Chair, our audit also looked at INAC’s commitment to transfer control of land management to First Nations who want it and are ready to take on these responsibilities. This is part of an overall departmental approach to facilitate First Nations’ control over their communities.

INAC has provided options since the early 1980s for First Nations who considered that the Indian Act regime of land management was not meeting their needs. INAC has developed legislative and program options to support First Nations who wish to assume greater control of land management on their reserves. However, most First Nations lands are still managed by the Department under the Indian Act.

First Nations’ access to alternative land management regimes established by INAC does not meet the demand. Two programs that have been in place for decades still operate, with 95 First Nations participating; however, they have been closed to any additional First Nations since 2004. Instead, the Department has developed two other options for First Nations to assume more land management responsibilities.

The Reserve Land and Environment Management Program has remained a pilot program since its creation in 2005 and access has been limited. Similarly, there is a waiting list for First Nations who want to access the other alternative, the First Nations Land Management Act regime.

As well, our audit found that the Department provides too little access to training for First Nations in comparison with the land management responsibilities it is transferring to them if they operate under either of these regimes.

During our audit, officials from both INAC and Environment Canada cited a lack of funding as a key reason for not meeting some of their commitments.

Our audit made five recommendations. These included the need for INAC and Environment Canada to work together and with First Nations to develop the means for better environmental protection on reserves, and to assess their funding requirements to fulfill their land management responsibilities. It also included the need for INAC to provide greater access to its land management initiatives and land management training as required.

Your Committee may want to discuss with INAC and Environment Canada the funding they have available to deliver the programs we discuss in our audit. You may also want to ask these departments to provide an action plan to address the recommendations in our Chapter and to follow their progress in addressing the issues we raised in our audit.

Mr. Chair, this concludes my opening statement. We would be pleased to answer your Committee’s questions.