The Indian Act - Canadian Segregation
Author:
Tanis Fiss
2002/11/14
If native communities are to become economically self-sustaining, the native reserve land which is now held by the Crown must be transferred to individual band members living both on- and off-reserve.
For more than 130 years the Indian Act has segregated natives from Canadian society. By targeting one segment of Canadian society, the Act isolates natives from other Canadian citizens by placing them on reserves; thus the Act limits their ability to fully participate in the economy.
The Department of Indian Affairs and Northern Development (INAC) assumes the lead on behalf of the federal government in exercising Canada's jurisdiction under section 91(24) of the Canadian Constitution. This section states that the federal Parliament is given the power to legislate specifically for "Indians and lands reserved for Indians."
Fortunately there are no legal or constitutional barriers to ending the exercise of federal jurisdiction over Indians; the Constitution allows but does not require the federal government to legislate for Indians. Though the federal government has sole jurisdiction, that does not also mean that it must exercise it. Therefore, the federal government can abolish the Indian Act and the policies of segregation at any time.
The most imperative ingredient for native communities to have long-term economic viability is individual private property rights. The key to generating wealth and prosperity is easily identifiable individual property that can be leveraged for loans and wealth creation. Most Canadians can borrow against their own private property and thus capital is obtained to invest in new business ventures.
Unfortunately, the land which comprises a reserve is owned by the Crown and is controlled collectively by the native band council, not by individuals. This treatment of native Canadians under the Indian Act is unequal and is the reason why many people in native communities live in poverty.
The communal arrangement imposed by the Indian Act produces problems for native entrepreneurs. Business owners typically raise capital by providing their home or other real property as collateral. But since on-reserve native Canadians do not own their property in fee simple, it is extremely difficult to sell, mortgage or otherwise use the land as a source of debt financing. Therefore, the wealth of the land is under-utilized.
There are individuals who choose to hold property in a communal manner. For example, Hutterites choose to hold property in a communal manner. But, this is their choice, not an imposition.
Clearly, treating one group of Canadians differently is wrong both morally and intellectually. For the last 50 years the world has seen human rights legislation passed in a number of countries. All of this legislation has equality of rights and responsibility at its core. Nevertheless, Canada continues to move down the path of segregation and balkanization. If not reversed, this trend toward division, will only serve to weaken our cultural, political and economic fabric.
For native communities to become economically viable, the reserve land held by the Crown must be transferred to individual band members living both on- and off-reserve. It will then be up to individual native Canadians to decide if they want to transfer the land title into a communal arrangement or allow for the property to be owned and managed individually.