First Nation tax agreement negotiations with New Brunswick at a standstill: chief – New Brunswick | 24CA News

Talks over what’s going to exchange tax revenue-sharing agreements in New Brunswick have hit a wall, in line with one Mi’kmaq chief.

“I was at the table with the premier, there was no negotiating. It was, ‘This is what you’re going to do and this is what you’re going to get,’” stated Terry Richardson, the chief of Pabineau First Nation.

“Well, that’s not negotiating. How can we come up with something that’s acceptable for both sides?”

A collection of tax agreements have been signed with First Nations throughout New Brunswick over the earlier 30 years, permitting First Nations to maintain 95 per cent of provincial tax income collected at companies of their communities. The revenue-sharing agreements have been first created to make sure that companies in First Nations would cost provincial tax, making a stage enjoying discipline for companies on and off reserve.

Premier Blaine Higgs introduced the province would cancel these agreements in April of 2021 over issues that the agreements had strayed removed from the unique intention.

Higgs claimed that the agreements are slicing into provincial revenues and aren’t shared pretty throughout completely different communities. About 40 per cent of the revenues collected in 2019-20 went to communities with about two per cent of the entire First Nation inhabitants.

“This is money that would have gone to support hospitals, schools, social programs and roads to benefit all New Brunswickers, including First Nations,” Higgs stated on the time. “Our existing arrangement is clearly unsustainable, and our province cannot afford to ignore it any longer.”

When requested in regards to the agreements throughout a year-end interview, Higgs agreed that as governments, First Nations ought to be capable to gather some kind of income, however says the tax agreements are distinctive in that the cash being collected primarily comes from outdoors of these communities that in the end obtain the taxes.

“You have to understand that this revenue is generated from people travelling and using highways,” he stated.

“This isn’t just about the people that are living on a First Nation’s reserve, this is supported by the travelling public who are using our roads and our systems.”

After the agreements have been signed, some First Nations started constructing fuel stations or different companies meant to draw travellers or individuals from adjoining communities. Two of the communities which have seen probably the most profit from the agreements are the Madawaska and Sitansisk First Nations. The former has constructed fuel stations in shut proximity to the TransCanada freeway close to Edmundston, whereas the latter is enveloped by the town of Fredericton and has constructed fashionable companies to draw individuals from off-reserve.

Richardson says he agrees with the premier that the agreements aren’t sustainable over the long run, however communities at present depend on that income to supply companies not coated underneath different funding streams from the federal authorities.

“The current agreement gives communities the opportunity to address a lot of the shortfall in other funding,” he stated.

“In my community, we have a lot of elderly people who survive just on Old Age Security. I don’t know if you know what a person gets for old age, but you’re not going to live with the present grocery situation in the world.”

The income from the tax agreements permits Pabineau to supply stipends for elders, in addition to construct housing and supply First Nation-run safety and policing.

In the close to time period, Richardson has proposed retaining the agreements, however capping them. That would enable communities to proceed to supply these wanted companies whereas they appear to develop their economies and herald different sources of income.

He claims that Higgs rejected that suggestion, whereas pitching an alternate settlement the place the province would offer cash primarily based on the necessity for a listing of companies.

“The premier has come up with this paternalistic approach of, ‘I’ll give you money but you tell me where you spend it and you show me where you spend it,’” he stated.

“As I told the premier, does the federal government tell you where to spend your money? You pretty well have some liberty to spend that where it’s needed, so give us the same opportunity.”

The premier sees the battle in another way, claiming {that a} give attention to the present agreements is stopping progress on an alternate revenue-sharing settlement that might be primarily based on a minimize of pure useful resource revenues.

“They said, ‘Well, we just want the tax agreements.’ So it was like, let’s settle tax agreements and then let’s talk about this other stuff and we said, ‘Well, you said these are your priorities. So let’s figure out what standards you want to achieve and here’s the money to achieve that,’” Higgs stated.

“But that discussion never got anywhere because it always went back to, OK, maintain the tax agreements.”

The Mi’kmaq have till the top of subsequent 12 months to barter a brand new revenue-sharing settlement, whereas the Wolastoqey will see theirs finish on the finish of subsequent month.

Richardson stated the prospect of not having one thing to switch the previous offers is a scary one.

“If those agreements are gone I don’t know what’s going to happen in my community. I’m concerned, I’m worried,” he stated.

“When my elders reach that point where I can’t give them that money anymore and they’re starving and they’re having to go to the food banks, it’s the premier that’s going to have to be held accountable for that.”

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