
The First Nations Resource Charge (FNRC) is one step closer to becoming a reality thanks to the endorsement of the Conservative Party of Canada, under the leadership of Pierre Poilievre.
Indigenous people in Canada have faced centuries of social and economic hardship.
Fortunately, this past month brought about a series of events poised to accelerate positive change in this respect.
“[The FNRC] will support their governments in receiving direct, secure, and stable fiscal revenues from resource projects on their lands, just like other governments,” wrote Chief Commissioner of the First Nations Tax Commission (FNTC) Manny Jules in a statement.
The FNRC was introduced as an idea in 2012 by the FNTC and interested First Nations groups. The FNRC proposed changes to the current case-by-case revenue sharing model for resource projects between First Nations and the Canadian government. The proposed plan allows First Nations to opt into the FNRC program, which will enable them to receive corporate taxes from resource projects on their land directly.
Guided by court findings in the 1970s, which recognized that First Nations people have an inherent right to revenue generated by using land and resources in their jurisdictions, the FNRC removes the Federal Government as a barrier to rightfully owed tax revenues.
It would enable First Nations to directly receive tax revenues from these projects, as opposed to having to go to the government to receive their share of funds.
To give you an illustration for better understanding—suppose a friend owes you $100. The current tax revenue structure would be equivalent to that friend giving the $100 to their uncle, and you having to contact their uncle to retrieve the money you’re owed. The unnecessary runaround makes no sense, and it isn’t fair. The FNRC would eliminate the middleman.
Gone would be the case-by-case negotiations we see now, and in would come a standardized process where the government no longer shares the tax revenue of these projects but rather cedes the taxes directly.
The Conservative Party of Canada, under Poilievre’s leadership, endorsed the FNRC, paving the way to accelerate pushing its implementation into law. Poilievre lauded the FNRC, highlighting the removal of redundant bureaucracy, the opt-in nature of the FNRC, and furthering respect of treaty rights, including the duty to consult.
If the FNRC were implemented tomorrow, resource-based projects on First Nations lands would be approved much quicker, improving our resource-based economy. More importantly, First Nations would get access to critical funds required to build better infrastructure for a stronger and more resilient future.
Tags
federal government, First Nations, Indigenous, Reconciliation, taxes
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