Minister pledges $110 million.

Five days after tabling his long-awaited First Nations governance act, Indian Affairs Minister Robert Nault told Windspeaker that his department will free up more than $100 million to help First Nations comply with the provisions of the act if or when it's passed into law.

The Disclosure was made on June 19 during a press conference conducted via a conference call with members of the Aboriginal press. The minister was available for only 30 minutes and there was little chance to ask followup questions. Attempts to reach the Assembly of First Nations for comment on this development were not successful.

"I was wondering how long it would take for someone to ask me that question," the minister said when he was asked who would pay to institute a long list of governance related functions. "We have done an analysis of what we think this will cost. Our preliminary assessment and one that we're fairly comfortable with at this point is about $110 million. We will be funding those changes through our money."

Some First Nation leaders had expressed concern that they would be expected to find the money to carry through on the changes the new act proposes to introduce.

"We realize that this will cost money and we're preparing ourselves to deal with that," Nault said. "To start with that. I've already signalled through increases to band support funding of some five per cent increase every year because this process is going to take us somewhere around 2006. So we have a number of years to continue to improve the capacity through band support funding for First Nation government to have the capacity and the quality of public servant necessary to develop these new institutions and the new codes that'll improve the ability for governments to make the decisions and take the responsibilities locally that they need to get on with improving their quality of life."

There are 633 First Nations in Canada. If each gets an equal share of the $110 million that share would be $173,775. Observers say it may not be enough.

The act calls for sweeping changes to sections of the Indian Act, the purpose of which is, as stated in the legislation, "to provide bands with more effective tools of governance on an interim basis pending the negotiation and implementation of the inherent right of self-government; to enable bands to respond more effectively to their particular needs and aspirations, including the ability to collaborate for certain purposes; and to enable bands to design and implement their own regimes in respect of leadership selection, administration of government and financial management and accountability, while providing rules for those bands that do not choose to do so."

The act contains four sections: band governance, powers of band councils, general, and transitional provisions.

In the band governance section, bands are given the option to implement any or all of three "codes," a leadership selection code, an administration of government code and a financial management or accountability code.

Bands that choose not to take advantage of this process before two years after the Bill becomes law will automatically be covered by "default codes" designed by Indian Affairs. The default codes will spell out the lowest levels of compliance the department expects. In order for a band to pass a code it must be in writing and approved by the community in a secret ballot vote that must include a minimum of 25 per cent of the eligible voters.

The default codes will be defined in detail in the regulations that will govern how the new law operates once it is passed. Those details are not yet available.

The codes are designed to make councils write down basic policies about community participation in council meetings, maintenance of records and access to records and other council information and other administrative details. Conflict of interest policies and access to financial reports, including a statement of what council members are paid, must also be defined in writing.

The powers of band councils section contains some new developments.

A band is recognized as a natural person under law and has the legal capacity to "enter into contracts and agreements; acquire, hold and dispose of rights and interests in property; raise, expend, invest and borrow money; sue or be sued; and do anything ancillary to the exercise of its legal capacity, rights, powers and privileges."

Municipal style powers of local regulation are also devolved to the band council under the act.

Band enforcement officers are given broad policing powers to enforce band laws. Fines for breaking band laws are limited to $10,000 or three months in jail, except for environmental infractions where the limit is $300,000 and six months. The Human Rights Act will also be amended so that its provisions apply on First Nations territory.

The act does not apply to bands under the Cree-Naskapi Act, the Nisga's Nation within the meaning of the Nisga'a Final Agreement Act, the Sechelt Indian Band or Yukon First Nations that have signed self government agreements.