KENORA- JUNE 18, 2010

GRAND COUNCIL TREATY #3 COMMENDS THE GOVERNMENT OF ONTARIO FOR MAKING GOOD ON ITS COMMITMENT TO PROTECT THE POINT OF SALE EXEMPTION BUT QUESTIONS THE “BRIDGE PROPOSAL” AND ITS IMPACT ON ELDERS AND LOW INCOME FAMILIES

NEWS

Grand Council Treaty #3 communities in Ontario rely heavily on the off-reserve stores found in Kenora, Red Lake, Fort Frances, Sioux Lookout and Dryden, Ontario.  “Our relationship with vendors in Treaty #3 territory need to be one of respect for our inherent and treaty rights,” states Chief Warren White of Naotkamegwanning First Nation.   “The Province of Ontario needs to be clear what is expected of Vendors during the two month period where the point of sale exemption should be in place but for the inability of the Canadian government to administer it.”

In the reaction to possibly losing this important accommodation of the inherent and treaty rights of the Anishinaabe communities in Treaty #3, a right for the protection of treaty property in the 55,000 square miles of the territory of the Anishinaabe, some important research was completed.   Dr. Fred Lazar highlighted how the loss of the point of sale exemption would hit already economic disadvantaged families across Ontario, but the stark results that would have befallen the Treaty #3 communities.  More than $667,000 in income, which is considered treaty property, would have been lost in Chief White’s community of Naotkamegwanning, this is income of single parent families, trapper’s, fishers, all dependent on off-reserve stores for their goods and services in the community of over 1100 people.

On September 1, 2010 both Canada and Ontario have agreed that the full implementation of the point of sale exemption would be available for Status Indians in Ontario.   This would mean that an individual with a valid Status card would not be required to pay the 8% of the HST that would be collected by the Government of Canada on behalf of Ontario within the Harmonized Sales Tax regime.    This practice has been in place since the sales tax was considered to be incapable of being levied against Status Indians more than 30 years ago because of section 91(24) of the Constitution Act, 1867 (“Indians and Lands reserved for Indians”) being Federal jurisdiction and the Federal Indian Act legislation.    This has been long-standing Federal and British policy, to protect the property of treaty Indians since the Royal Proclamation of 1763.

Ogichidaakwe Diane M. Kelly, the Grand Chief of 28 member communities associated with the Grand Council Treaty #3 is intending to take measures to ensure that the two months where it is proposed that Ontario will allow a “rebate” of any sales taxes paid by Status Indians because of the inability of fully implementing the HST point of sales exemption for Status Indians until September 1, 2010.    There is a two month window, where in fact, what Grand Council Treaty #3 demanded should not happen, will happen.   Single families, welfare recipients, traditional fishers and harvesters who can barely make ends meet because of Crown not willing to fully implement Treaty #3, will be forced to pay a 13% tax to fund Crown governments.  This is against Treaty #3 and will have an impact on the citizens of Treaty #3 communities who reside in Ontario.

Grand Council Treaty #3 had participated in the discussions over the week to negotiate this proposal and acknowledges the difficulty in achieving the full implementation of the point of sale exemption under the new regime.   At one point it was said that it would take 18 months to achieve the implementation, so it is certainly good news that the Government of Canada has committed to getting this done in 2 months.   Yet, there will still be impacts on low-income people in Ontario that hasn’t been properly accommodated over the summer.

First Nations in Ontario will continue to live under the “GST rules” of a point of sale exemption of the full Harmonized Sales Tax if the vendor delivers the good or service to a reserve.  In addition, the 13% tax is not administered by on-reserve vendors who will now have a significant competitive advantage if they had the same access to economic development funding and small business support that their off-reserve counterparts enjoy.    Grand Council Treaty #3 continues to push for more economic development funding and better employment and training programs to lift their citizens out of poverty.   Better fiscal relations between Canada, Ontario and Grand Council Treaty #3 is the end goal.

QUOTES:

“The citizens of Grand Council Treaty #3 that reside in Ontario should have confidence that every effort was taken to maintain this point of sale exemption,” stated Ogichidaakwe Diane Kelly, Grand Chief on behalf of 26 First Nations in Northwestern Ontario.  “We were extremely fortunate to find a path towards protecting the property of our citizens which is a treaty right in Treaty #3.   The point of sale exemption is key First Nations policy in Ontario and honours the commitment of the Crown to protect the interests of Treaty #3 communities as long as the sun shines and the grass grows, that is to say forever.”

“We will continue to advocate for a full implementation of Treaty #3 and a better understanding of the treaty by these Crown governments,” vows Grand Chief Diane Kelly.  “While we achieved maintaining the status quo, we need to serve notice to both Crown Governments that they ignore our rights and interest to the peril of the economy of Northwestern Ontario.   Couchiching First Nation proved that direct action worked, the First Nations in Ontario proved that direct action can move mountains in the HST battle, and it is a shame that the tool of last resort must be resorted to so much with the present Governments of Ontario and Canada.   Just and lasting reconciliation policy needs to have the fuller attention of these Crown representatives.”

For more information contact:  Darlene Curci, political.office@treaty3.ca  Telephone:  (807) 548-4214

Website:  http://www.treaty3.ca