AFN criticizes budget

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OTTAWA - The following statement was made by the Assembly of First Nations in response to the federal government's budget tabled February 26:

1. The government's promise to facilitate economic self-reliance for Aboriginal people and its intention to reduce spending of discretionary non-statutory program dollars is a glaring contradiction. On one hand, the government says it is moving ahead with Indian self-government (apparently only through legislation) while on the other hand it has served notion that funding for Indian programming will be cut. While the cuts in themselves are likely to have a drastic negative effect on First Nations and their members we are being told that decisions on which programs are to be reduced will remain in the hands of bureaucrats. This will come at a time when the populations of First Nations are being increased in substantial numbers through recent changes to the Indian Act allowing for reinstatement. It is also clear that Indian housing, economic development, post secondary education and non-insured health benefits will be affected.

The reduction of the Federal deficit is a commendable goal but provisions in this budget do not properly distribute the accompanying burden.

The poor social and economic conditions of the First Nation communities and the fragile First Nations economics will be dealt a devastating blow.

2. The government is clearly signalling First Nations that self-government will come about only through legislation and not constitution entrenchment. This flies in the face of statements made by the Prime Minister during and after the 1985 First Ministers Conference on Aboriginal Rights. While we are working toward progress at the 1987 FMC, the last one called for in the 1982 Accord, we must also wonder about the government's motives given the budget proposal affecting First Nations. While a number of budget measures can be pointed out to back this suspicion, perhaps the most apparent one is the announced proposed amendment to the Indian Act to enable First Nations to levy municipal-type taxes on Indian lands. This proposal is not in the context of self-government as it is meant by the majority of First Nations. We have participated in good faith in the constitutional process in an effort to have our right to self-government entrenched. Instead, we are thrown this proposal out of the blue. As with the Neilsen Task Force Report, the so-called "Buffalo Jump" of the 80's, the government has not consulted with First Nations before announcing this planned change to the Indian Act. We have consistently demanded that no amendments be made without our input and prior consent. In this instance there has not been either.

3. The budget proposal to tighten federal loan guarantee rules will affect Indian economic development loans and loans for Indian housing. Loans to Indian farmers will also be affected. It is questionable that the government will be able to persuade private lenders to accept a greater share of risk when it comes to Indian projects. And, while

the thrust of the budget and the Mulroney government is based on private sector development there is little or no private sector in the Indian communities on which to build. The creation of this self-sustaining economy in Indian country depends, at this time, largely on federal spending on economic and business developments. That area of federal spending is discretionary and is generally targeted for reduction in spending. In short, there will be less money available for loans and loans will be more difficult to get.