In keeping with their campaign promise, the BC Liberal government recently concluded a province-wide referendum on treaty principles. Eight questions were put to approximately 2.1 million eligible voters in the spring; all eight questions of the referendum were endorsed with 'yes' votes. Two of the most controversial questions were that native self-government should be similar to municipal government and that current native tax exemptions be phased out.

According to native leaders and the Royal Commission on Aboriginal Peoples, native self-government means the right of native peoples to govern themselves by laws passed by their own institutions to the exclusion of laws passed by other governments in Canada (read: a quasi-sovereign status.) However, under the constitutional arrangements set out by the Constitution, there is no room for a third level of government.

Municipal government in Canada is delegated from senior levels of government, and is capable of being changed in the light of actual experience with how things work. Local government also has limitations on the powers it holds with established checks and balances, thus providing a greater degree of certainty and accountability.

It would appear, the federal government agrees. The First Nations Governance Act introduced in the House of Commons in June, establishes new rules for band elections, financial accountability, and a definition of legal capacity. While not perfect, this piece of legislation will move native governments to a more municipal style of government.
Over 87% of the validly cast votes in the BC referendum endorsed a municipal style of government for native governments as well.
The second controversial question dealt with native tax exemptions. One of the myths which circulated during the referendum process was that native tax exemptions were either a constitutional right or an issue that could only be dealt with by the federal government. The exemption enjoyed by natives living and working on reserves stems from legislation, not the Constitution.
The federal tax exemptions for natives are under the Indian Act. Provincially, tax exemptions for on reserve natives may be found in numerous pieces of provincial legislation - for example the Tobacco Tax Act and Social Service Tax Act. The Indian Act, like the provincial pieces of legislation, can be amended or abolished at anytime.

It is interesting to note that the Nisga'a Treaty - which is trumpeted by many native leaders as a template to follow - phases out native tax exemptions using the 'eight and twelve' principle. The intent of this principle is to phase-in provincial taxation after eight years and phase-in federal taxation after 12 years. This principle has been taken to the treaty negotiation table by both the provincial and federal negotiators for years.

By voting 'yes' on the taxation question, British Columbians have sent a strong message to the provincial and federal governments that taxes in British Columbia - and Canada - should be based on income, meaning if people do not pay taxes it should be because they are too poor to pay not because of their race or ancestry.
For the past 10 years, the provincial and federal governments have engaged in BC treaty negotiations using a set of negotiating principles that were created by a group of elites - representatives from the native community and provincial and federal governments.

To date, this process has cost the Canadian taxpayers $500 million dollars and no treaty has been signed. Until the referendum was conducted, the citizens of British Columbia had never been consulted or asked to vote on a set of negotiating principles.

The referendum spurred a heated debate in the province and across Canada. This debate was one of the most positive outcomes of the referendum as it helped foster a greater awareness of treaty negotiations and aboriginal rights. Not only did the referendum help educate the populous but it gave the citizens of BC a chance to vote directly on the issue of treaty principles. British Columbians needed their voices to be heard. After all, any finalized treaty will affect the citizens of this province, and Canada for generations.