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First Nations welcome mining but it needs to be fair, says Ontario regional chief

He'd like to see a way for First Nations to benefit from a mining tax credit that largely doesn't apply as it stands

Mining is important for improving the wellbeing of First Nations, but revenues from mining must be shared more equitably, said Chiefs of Ontario Regional Chief Isadore Day, at the opening ceremony for the Prospectors and Developers Association of Canada Convention in Toronto.

“I want to acknowledge that the work of PDAC has really moved forward the agenda of indigenous people working in mining,” said Day.

Day said Ontario and Canada must implement a nation-to-nation relationship and revenue sharing that have been recommended by the Royal Commission on Aboriginal Peoples and the Ipperwash Inquiry in 2007 neither government has so far implemented those recommendations.

“Contrary to popular belief, Canada’s First Nations welcome mining developments,” emphasized Day. And want to be able to share in the benefits - including revenue sharing a concept, that was advocated in the Federal Royal Commission into Aboriginal People and also the Provincial Ipperwash Commission.”

“These important recommendations about moving forward have not been fully implement, and I ask that you implement them now,” Day said with federal Minister of Natural Resources Jim Carr in the audience.

Still, Day pointed out, First Nations are not benefiting equitably from Canada’s mining policy.

“Minister Jim Carr spoke about the importance of the tax credit for flow through capital in encouraging mining exploration,“ said Day. “The shifting of that 15 percent tax credit is an important tool for the mining industry.”

Day said, he supports and understands the importance of the 15 percent tax credit, that benefit however, does not extend to First Nations because through treaties, First Nations do not pay taxes in the conventional sense.

“We have, however been taxed greatly by having our lands taken away from us,” said Day.

“I hope the Liberal government find away to include First Nations in the benefits of the mining tax credit,“ he said.

Day dispelled the notion of the “welfare First Nations person.”

“We were entrepreneurial and established trade with the newly arrived settlers,” noted Day. “Our guides showed the settlers the various routes and shared knowledge about the land. We were not subservient but partners.”

“We took risks, we were self reliant, we were indispensable,” added the Ontario regional chief. “We were an integral part of the building Canada and the economic engine of the settler communities.”

Day acknowledged the mining sector plays an important role in the lives of the indigenous people. And he was critical of the Indian Act and the system of reserve lands.

“That system has made First Nations people dependent and second class citizens,” noted Day.

Day quoted, George Manuel a leader of the Assembly of First Nations who in 1974 said: “The goal for all indigenous people is to recover the lands and rights that have been deprived from First Nations”.

“How do we restart the relationship between Canada and First Nations?“ asked Day. “The solutions are in the recommendations of the 1996 Royal Commission on Aboriginal People and the 2007 Ontario Ipperwash Inquiry.”

“These are still the benchmarks and they advocate, self government and sufficient land base for economic self sufficiency,” Day added. “One of the major recommendation in the Ontario Ipperwash Report includes a recommendation for revenue sharing.”

“I would ask everyone in this room, to remind the government of Ontario to remind them the clock is ticking on implementing revenue sharing with our people,” Day said.

Day emphasized the importance of establishing a government to government relation and revenue sharing when dealing with First Nations, and he addressed Carr directly in seeking some tangible benefits from the federal government such as a formula for proportionally sharing in the 15% tax credit on mining exploration.

Day suggested that a good place to start in developing policy towards that end is with PDAC.

“PDAC has the background information as to how we are going to advance that with strong economic policy commitment with Canada and Ontario.

Revenues from mining are important for First Nations because they hold the key to addressing many social concerns such as poverty, drug use and youth suicides Day told the audience.

For example, Day pointed out that under the Canada Health Act there is a six-per-cent escalator clause to ensure that every year extra money is provided to keep Canada’s health system working effectively.

First Nation health is administered through the Indian Act and Day pointed out that funding for items such as health has been capped at a two-per-cent increase. Day calculated that the discrepancy between funding for Canada’s health costs compared to the lack of funding for First Nations health is $30 billion over the last decade.

“Now if we were to take that $30 billion and apply it to the conditions in First Nations communities, education, health and industry we would not see such a big socio-economic gap between First Nations and the rest of Canada,” Day concluded.

Another area of importance that First Nations can lead the way is how to combine mining with water and groundwater protection.

Day said he remains confident that this government is commitment to the concept of nation to nation relations and revenue sharing.

“We must start now to renewing our relationships, to rebuilding our communities and offering hope to our children,” said Day.


Frank Giorno

About the Author: Frank Giorno

Frank Giorno worked as a city hall reporter for the Brandon Sun; freelanced for the Globe and Mail and the Toronto Star. He is the past editor of www.mininglifeonline.com and the newsletter of the Association of Italian Canadian Writers.
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