For years, the 600 Mushuau Innu residents of Davis Inlet have experienced high rates of unemployment, suicide, substance abuse and substandard living conditions. At a cost to taxpayers of $152 million, the federal government is attempting to remedy the poor social and economic conditions, by relocating the Mushuau Innu of Davis Inlet, as they desire, 15 kilometres to Natuashish.

In 1996 the Department of Indian and Northern Affairs (INAC) announced its plan to relocate the Mushuau Innu. That year INAC, Newfoundland and Labrador and the Mushuau Innu Band signed the Mushuau Innu Relocation Agreement (MIRA). Under the agreement, INAC agreed to be responsible for all funding for the relocation planning, design, and construction. Newfoundland and Labrador would provide the land for the new community. The original estimate of the relocation project was $82 million.

As project leader for the relocation project, INAC has the ultimate authority for all decisions pertaining to Canada's interest in the project. INAC has delegated the overall implementation of the project to the control and direction of the Mushuau Innu, through a project manager selected by the Innu in consultation with INAC. Unfortunately, as noted in 2000 by the Auditor General of Canada, INAC did not evaluate the capacity of the Innu to manage such a large and complex project prior to establishing the roles of the parties under the MIRA.

Since construction on the new town began in 1997, the original estimate to build the community from scratch has ballooned from $82 million to $152 million, an increase of 46%. Originally scheduled to be complete in 2000 the construction project is now almost three years behind schedule and will not be complete until 2003.

What is more disturbing to taxpayers is that all the money spent to relocate the Mushuau Innu, may have little impact on the intended results - to fix the poor social and economic conditions.

According to an October 2000 Report of the Auditor General of Canada reporting on the MIRA project, "We found that success has been jeopardized because, among other things, there is little evidence that the Department [INAC] fully identified, adequately planned and effectively implemented the necessary measures to remedy the social pathologies. Consequently, there is a significant risk that the causes of these conditions will not be adequately addressed through the relocation. In this event, suffering will continue and substantial sums will have been spent without achieving intended results."

This will be the third relocation of the Mushuau Innu since 1947. Past relocations have been evidenced as contributing to the high level of social dysfunction of the community. Even in the new location of Natuashish, the 600 members will still be relatively isolated and segregated from other communities and the economy.

Despite taxpayers spending approximately $152 million on the relocation project to provide the Mushuau Innu with a modern community and modern amenities, the social and economic plight of the people may continue. Since a significant risk still remains that the high rates of unemployment, suicide and substance abuse will simply be transferred to the new location at Natuashish.