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House of Commons Debates VOLUME 146 Ï NUMBER 184 Ï 1st SESSION Ï 41st PARLIAMENT OFFICIAL REPORT (HANSARD) Friday, November 23, 2012 Speaker: The Honourable Andrew Scheer CONTENTS (Table of Contents appears at back of this issue.) 12371 HOUSE OF COMMONS Friday, November 23, 2012 The House met at 10 a.m. gets passed, and the kinds of supports offered to tribal councils, in particular, and first nations governments in terms of reporting? Mrs. Carol Hughes: Mr. Speaker, I know my colleague from Prayers Nanaimo—Cowichan is a very hard worker and understands the first nations issues. GOVERNMENT ORDERS If the bill does pass, there will be a major impact on our first nations with those cuts. It will impact on the ability of first nations to Ï (1005) comply with the legislation that the government is putting forward. [English] I just received a copy of a newsletter from one of my first nations FIRST NATIONS FINANCIAL TRANSPARENCY ACT indicating that “The Resound is now going into its 11th year of The House resumed from November 20 consideration of Bill production. Our paper is sent to citizens of our community living C-27, An Act to enhance the financial accountability and away from home, as well as our local residents. We have grown transparency of First Nations, as reported (with amendment) from support for our paper today, and our paper enjoys 90% approval the committee, and of the motions in Group No. 1. rating from our citizens when it comes to receiving timely The Speaker: There are five minutes left for questions and information from the administration and council. We are a very comments for the hon. member for Algoma—Manitoulin—Kapus- transparent and accountable community. This is something Minister kasing. The hon. member for Winnipeg North. Duncan will be happy to hear”. Mr. Kevin Lamoureux (Winnipeg North, Lib.): Mr. Speaker, I have a question in regard to the whole issue of aboriginal They do not support Bill C-27. This is from Chief Shining Turtle. discussions. We have seen a number of bills that have been brought I know the minister is very well aware of Chief Shining Turtle. into the chamber related to that particular issue and we have The Speaker: I will remind the member not to use proper names consistently told the government that there needs to be a lot more of our colleagues. Even when quoting, members are still not allowed consultation prior to introduction of legislation. to do that. To what degree does the member feel that, prior to the bill actually being drafted, there was adequate consultation done on behalf of the The hon. member for Newton—North Delta. government? Ms. Jinny Jogindera Sims (Newton—North Delta, NDP): Mr. Mrs. Carol Hughes (Algoma—Manitoulin—Kapuskasing, Speaker, I thank the member for her very thoughtful speech on this NDP): Mr. Speaker, it is evident there has not been enough legislation that talks a lot about accountability, a topic my friends consultation done on this legislation or any legislation for that matter across the aisle do not know too much about. that the government has introduced that would impact first nations. As the member travels around her province and meets with many We believe there are already sufficient reporting processes in people from the first nations communities, what kind of concerns is place, talking about Bill C-27, and funding agreements could be she hearing? modified to address any worst case scenarios that arise. The government should have drawn up Bill C-27, as the member says, Mrs. Carol Hughes: Mr. Speaker, the concerns I hear are not with full consultation with first nations, which would have made the about the fact that the members are not getting information about the bill more complete and legitimate than it is. It should have consulted, financials. They are saying that they need affordable housing, that reflected on the advice of the Auditor General and kept the pressing they need their water issues addressed, that they need their education needs of Canada's first nations communities in mind as it determined issues addressed, which is important, and that they want consultation its legislative priorities. That would have served all involved much from the Conservative government when it comes to legislation that better. would impact on their community. They do not want MRP. I know Ms. Jean Crowder (Nanaimo—Cowichan, NDP): Mr. Speaker, the minister has received over 14,700 emails from Chief Shining does the member see problems ahead for the tribal councils and other Turtle on the issue of MRP. I can tell members that first nations are national aboriginal organizations with the funding cuts if Bill C-27 very passionate about being able to govern their own communities. 12372 COMMONS DEBATES November 23, 2012 Government Orders Ms. Kellie Leitch (Parliamentary Secretary to the Minister of Accounting Board of the Canadian Institute of Chartered Accoun- Human Resources and Skills Development and to the Minister of tants, which are referred to in the bill. Labour, CPC): Mr. Speaker, Bill C-27 would strengthen transpar- ency and accountability by requiring that the audited consolidated The new language used to define “consolidated financial financial statements and schedules of remuneration and expenses of statements” reads as follows: a first nation be shared with the members of each first nation “consolidated financial statements” means the financial statements of a First community, as well as the general public. Nation—prepared in accordance with generally accepted accounting principles— in which the assets, liabilities, equity, income, expenses and cash flows of the First Nation and of those entities that are required by those principles to be I know the committee made amendments to the bill, which helped included are presented as those of a single economic entity, as if the First Nation to clarify this point. However, I feel it is important to discuss the were a government reporting on its financial information. motivations behind the specific reference to band entities in Bill C-27. This definition includes a specific reference to the fact that the preparation of financial statements is to be done, not in accordance The consolidated financial statements of a first nation include the with the rules established by the government but by generally financial statements of the entity that, according to generally accepted accounting principles. These principles include the public accepted accounting principles, are required to be consolidated with sector accounting standards demanded by Ms. Wilson-Raybould. the first nation and to be presented as a single economic entity. It is, This would ensure that the same standards that apply to businesses therefore, necessary to ensure clarity around what constitutes an owned by other governments in Canada would apply to first nations entity for the purposes of this act. “Entity”, for the purposes of this governments in precisely the same way. Furthermore, this definition bill, is defined as a corporation or partnership, a joint venture or any also makes it clear that first nations are to be treated as governments other unincorporated association or organization. As an example, a in the manner in which their financial information is presented. band-owned business would be considered an entity under the proposed act. The intention of this bill has always been to put into legislation the same practices with respect to the treatment of band entities that are Members of first nations are ultimately the owners of any currently in place in the funding agreements. It is important for the businesses owned by their band and, as a result, should have a right users of financial statements, especially first nations members as to know what the values and activities of those businesses are. owners of those businesses but other users as well, to see summary Although some first nations may be reluctant to provide the full statements that capture the activities of their government. picture of their financial results for competitive reasons, it is important for the users of financial statements, especially first Ï (1010) nations members, to see summary statements that capture the range While we would encourage first nations to provide as much detail of activities of their government. as possible to their memberships about the specifics of band-owned Bill C-27 would require that an aggregate summary of the values entities, the overall objective of this bill does not require it. The and activities of the businesses that are consolidated into the financial information for those entities that are considered to be part financial statements of the first nations be published. This does not of the first nations overall economic activities would be aggregated. mean, however, that each individual business owned by the band We believe this will be enough, albeit a minimum. would need to be publishing its own detailed set of financial Bill C-27 may be seen by many progressive first nations as an statements. Instead, it is only the consolidated financial statements of opportunity to put into place or expand upon their own practices that the first nation to which the bill would apply. Any information aim to enhance the overall accountability of their government. In this concerning businesses would be highly aggregated and, in most way, the bill would serve as a catalyst for change in many cases, should not reveal any proprietary information. communities which would lead to greater confidence in many first AFN regional chief, Jody Wilson-Raybould, raised concerns about nations governments. the inclusion of band entities in Bill C-27. She said during her The challenge has been to find language that balances both the appearance at the committee that was studying this bill: need for precision in the legislative drafting with accounting ...while public sector accounting standards do deal with government business concepts that are both complex and constantly evolving.