For more than 130 years, native Canadians have been segregated from Canadian society by the Indian Act. By having a piece of legislation that targets one segment of Canadian society, the Act segregates native Canadians from other Canadian citizens by their placement on reserves; thus the Act limits their ability to fully participate in the economy. Further, treating one group of Canadians differently is wrong both morally and intellectually.

Unfortunately, the recently introduced First Nations Fiscal and Statistical Management Act (FNFSMA) is another example of legislation that is targeted to one segment of Canadian society - native band governments. This legislation merely props up the oppressive Indian Act, thereby limiting economic growth. Moreover, it continues the segregation and unequal treatment of native Canadians.

If passed, the FNFSMA will enable native bands to issue municipal-style bonds to borrow funds for local infrastructure such as water and sewage. Native bands will collectively guarantee each other's credit using future revenue from the federal government, natural resources and from funds raised through property taxes.

The FNFSMA is mirrored after the highly successful Municipal Finance Authority of BC which permits municipalities to collectively guarantee each other's credit worthiness. To fully participate in the Canadian economic mainstream native governments should compete within the existing municipal financing system. To establish a separate bureaucracy and program is not an efficient use of tax dollars.

Current native governments rely heavily on fiscal transfer payments from government. There is little evidence that this trend would cease if the FNFSMA is passed, since only a few band governments have the economic resources to be self-sufficient.

In reality, it is more likely that a "cake and eat it too" environment will be created. This is because revenue generated through property taxes, or revenue from natural resources will not be deducted from the current federal funding received by native bands.

In addition to the federal government transfer payments, bands will use revenue generated from property taxes. At present, only 90 of the 630 native bands levy property tax. Most of the property tax is levied against non-native leaseholders. These non-native leaseholders, although contributing to the coffers of the native communities in which they live, have no vote in community elections. Where's the accountability for them

This initiative also intends to deal with the often high rates of interest bands face. The reason the interest rates are so high is due to the risk involved. This is because the Indian Act under section 89 shelters native property and assets located on reserves from any process of garnishee, execution or attachment for debts, damages and other obligations. Lenders and investors rightfully demand a risk premium to deal with this lack of security. But rather than addressing why the bands face such high interest rates - lack of property rights - the federal government continues to avoid the issue.

Clearly, treating one group of Canadians differently is wrong both morally and intellectually. The FNFSMA does nothing to change the current segregation faced by native communities. In fact, it entrenches the status quo.

As long as the Indian Act remains and separate legislation exists, the legal straightjacket that prevents native Canadians from assuming all the rights and responsibilities allowed other Canadian citizens will remain firmly fastened.