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Shrinking tax base worrisome

Mayor concerned by the financial implications of First Nations removing land from municipal jurisdiction

Ottawa could make it easier for First Nations to buy land in other jurisdictions and remove it completely from any municipal taxation, something that could obviously have major implications for Delta.

"Whether or not the federal government is going to look at this as legislation, I don't know. That's why I've asked for a review of all the documents and the legislation, particularly federal legislation," said Mayor Lois Jackson.

The five-term mayor was responding to recommendations by the Standing Senate Committee on Aboriginal People, which has been examining how to improve the federal Additions to Reserve (ATR) policy. The policy is aimed at assisting First Nations wanting to add parcels outside their reserves for economic and community growth.

A hearing was held last year to discuss problems First Nations see in the current policy.

A subsequent report was released last fall by the committee, chaired by former senator Gerry St. Germain, titled Additions to Reserve: Expediting the Process. It notes that a key message conveyed by virtually all the witnesses was that although some positive change has occurred in recent years, major changes are required to the system.

The report, however, also states the committee concluded there is an urgent need for the federal government to improve Aboriginal Affairs and Northern Development Canada management practices to better deal with municipal and third-party interests, as well as exploring options for supporting First Nations in their negotiations.

Many witnesses at the hearing said the requirement of paying taxes to municipalities puts additional financial pressure on First Nations communities, thereby inhibiting their opportunity for economic development. The committee seemed to agree, noting benefits resulting from economic developments on First Nations' land outweigh any tax loss for municipalities.

It remains to be seen if the government will introduce legislation as a result of the committee's recommendations.

Last fall, St. Germain was a guest speaker at a Tsawwassen First Nation legislative session, where he urged the TFN to make every effort to add more land to its territory.

The TFN already added substantially to its land base when its historic urban treaty was signed just a few years ago and could add even more acreage if farming families in Brunswick Point eventually decide to sell their properties.

The families managed to buy back their farms that had been expropriated, but the TFN was granted the right of first refusal if those lands ever hit the market.

It's not clear if the TFN will purchase even more land elsewhere in Delta, especially when the First Nation's major commercial and industrial developments are completed.

Jackson is concerned what the Senate committee's recommendations could mean for Delta. It could result in the municipality's land base, as well as it tax base, shrinking if newly purchased properties become part of First Nation jurisdiction, she warned.

"We're not the only ones.

Local government has been left totally out of the loop. This is no aspersion on the Indian bands across this country, but local government has got to have a seat at this table. We could certainly lose municipal assets along the way, let alone municipal taxation. Our responsibility is to ensure the taxpayers' assets are protected," Jackson said.

A civic report is being prepared for council on the issue.