Halaw Management Group - which is based in British Columbia and handles native band funds - is attempting to buy General Motors Place in downtown Vancouver. The fact that a native band is attempting to buy real estate in downtown Vancouver is not an issue. What is an issue is that Halaw Management Group plans to petition the federal government to turn GM Place into an "urban reserve", thereby providing the building with a plethora of tax benefits.

An urban reserve is commercial land purchased by a native band in which the land then becomes designated as part of their reserve - regardless of where the band is located. Once urban reserve status has been achieved, the land is subject to all the provisions contained within the Indian Act, such as freedom from taxation. Urban reserves create two problems.

Unfair competition is the first. True, native bands negotiate an agreement with municipalities to pay fees for services - such as sidewalk and road maintenance - in lieu of the regular property taxes.

However, natives working on urban reserves do not pay income tax, so businesses can pay lower wages without the workers losing any take-home pay. Furthermore, a native-owned business would not have to pay sales taxes for goods and supplies delivered to their shop located on reserve land.

Native-owned businesses, native workers, and businesses operating in partnership with urban reserves have a clear and unreasonable advantage over the competition.

Obviously, the tax breaks would help the owners of GM Place reduce costs. But most of us realize there is no such thing as a free lunch, someone has to pick up the tab.

In fact, the citizens of Vancouver and the province will have to pick up the tab of approximately $1.8-million per year in property tax revenue. And, let's not forget the tax revenues lost due to tax breaks on labour and merchandise. That means higher taxes for the rest of us.

The second problem of urban reserves is once land is designated as an urban reserve land, it can no longer be disposed of without a majority band vote. Similar to other reserve land, it can only be transferred to the Crown. In the future, this restriction could be tough to swallow for a band investing in the fluid urban land market.

In the spring of 2002, GM Place owner, John McCaw asked the City of Vancouver and the provincial government for a break on taxes. This request was denied by both levels of government. The Vancouver City charter forbids the city from issuing any kind of financial benefit - tax break - to one citizen or one business over another. Rick Thorpe, Minister of Competition, Science and Enterprise stated "the door to business subsidies has been closed."

If a city charter is colour blind, so too should our country's legislation and policy. It is time to stop treating Canadians differently. It is time to phase out the freedom from taxation the Indian Act provides.

It is very important native Canadians enter the mainstream of Canada's economy. Viable business ventures are one way to achieve this. In a free market system, all players must be on an equal footing. Unfair competitive advantages, such as tax breaks, disrupt the system by off-loading the tax burden to other citizens and businesses.