Auditor General's Report: The Federal Government Needs to Rethink How It Supports First Nations' Economic Development
On February 10, 2004, the annual Report of the Auditor General of Canada was tabled in the House of Commons. Two chapters of the Report are dedicated to the assessment of the federal government's performance towards First Nations. Chapter Eight examines the fulfillment of Indian and Northern Affairs Canada's (INAC) commitments under land claim agreements. Chapter Nine focuses on the federal government's role in supporting First Nations' economic development.
Land claim agreements
When assessing the fulfillment of INAC's responsibilities under land claim agreements, the Auditor General looked at two specific claims: the Gwich'in in the Northwest Territories and the Inuit in Nunavut. The audit found that INAC mistakenly defines success as fulfilling the specific obligations set out in the land claim agreements, and in terms of the meetings, events and activities held. The Report states that "we believe that success is more than meeting obligations" and that "results matter above all".
The Auditor also said that INAC focuses on fulfilling the letter of the land claims' agreements rather than their spirit. Further, she stated that meeting the spirit of the land claims agreements requires clarifying rights to lands and resources in a way that will help the economic growth of First Nations. She found that INAC has "contributed to a sense of frustration".
The Report emphasizes that land claims agreements are only the first step towards improved economic conditions for aboriginal nations. While all parties to the agreements are responsible for the results, INAC "must provide leadership to ensure lasting benefits".
Economic development
The recommendations in Chapter Nine were developed by the office of the Auditor General after examining the institutional arrangements for economic development in selected First Nations communities, and the role of the federal government in supporting those arrangements. Thirteen First Nations and four tribal councils and governments in five provinces participated in the study. The study identified several steps that the federal government should take to strengthen its support for First Nations' economic development.
In her Report, the Auditor General says that federal organizations need to rethink how they support First Nations' economic development. The Report notes that there are gaps in the support provided for the institutional arrangements of First Nations, and there is a general lack of co-ordination.
Further, the Report emphasizes the responsibility of federal organizations in assisting First Nations to overcome barriers and take control of their own economic destiny. The Auditor General recommends that federal support "be developed in consultation with First Nations and be useful to them in managing their own affairs". In addition, the Report states that federal support must be based on results and must ensure accountability to First Nations. The Report states that the framework of federal support needs to recognize the diversity of First Nations and move away from the "one size fits all" model of programming and funding.