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Newspaper Ads No Substitute for Action

Author: 1998/03/25
Canadian taxpayers should be furious at the latest attempt by Indian Affairs (INAC) to hoodwink taxpayers.

Of course we're speaking of INAC's massive placement of full-page newspaper ads which appeared in major dailies from coast-to-coast this past week.

The advertisements promote the government's response to the Royal Commission on Aboriginal Peoples and its action plan, Gathering Strength. These ads feature the Government's Statement of Reconciliation that was issued to Canada's Aboriginal Peoples on January 7, 1998.

In addition, the ads state: " - at the heart of the Action Plan is a commitment to address the needs of communities - including the development of mechanisms to recognize sustainable and accountable Aboriginal governments and institutions."

While this all looks good on paper, reality reveals a very different tale.

To start, our federal government pledged $350 million for a native healing fund. However, Canadian taxpayers have no guarantee that this money will actually get to its intended recipients.

The history of native funding is clouded in controversy. After spending tens of billions of dollars one-third of Native people on reserves still live in overcrowded conditions, one-half of the children still live in poverty, and alcoholism, suicide, illness and crime rates are three times higher than those for other Canadians.

Why One big reason is the lack of accountability. According to federal figures, over 80% of the government's expenditures were administered through band councils and other Native organizations.

And the feds continue to spend billions of tax dollars without any corresponding assurance that these dollars are being steered toward those truly in need.

And now INAC has confirmed that in Saskatchewan alone, 70 bands are more than $50 million in debt. Of these 70 bands, more than 35 have deficits, 3 are in a form of receivership, 6 are operating under a co-management regime and 34 have been asked to draft a plan to deal with their mountain of debt. Only 12 are actually balancing their books.

There are, of course, some Indian bands that are well managed, carry no debt, and are accountable to the average person living on the reserve. But allegations of corruption, nepotism, and bad management continue to grab headlines.

The CTF has heard tales of contracts for housing and renovations that are awarded without competition and information about the companies receiving these contracts is not being disclosed. Others remark that it is virtually impossible for rank-and-file band members to get copies of annual financial audits. It was even reported recently that some band leaders are being paid more than the Prime Minister.

Yet Minister Stewart and her officials continue throw good money after bad. If she truly wishes to bring accountability and transparency to Indian funding, a system of forensic and operational audits should be implemented immediately. Not only in Saskatchewan, but right across the country. These audits would use key performance indicators to determine the efficiency, effectiveness, and quality of the services being offered on reserves.

Its time to work on real solutions with our Aboriginal peoples instead of boosting the profits of the newspaper chains.

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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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