Indian leaders to discuss federal budget 'bombshell'

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While Indian leaders and Treaty 6 representatives are gathering together with the Yellowhead Tribal Council and a representative of the Assembly of First Nations this week to discuss the budget "bombshell" dropped by Federal Finance Minister Michael Wilson that would allow Indian bands to levy municipal-type taxes, the instigator of the proposed legislation has come forward.

Chief Clarence Jules of the Kamloops band in British Columbia announced this week that he and Indian Affairs Minister David Crombie are working together on the proposedlegislation and he has personally contacted the bands across the country and has received more than 100 BCRs supporting the move.

In an interview from his Kamloops office, Chief Jules said the idea of the proposed legislation to allow bands to levy municipal-type taxes was suggested by a band-member after the band had discovered they were unable to raise monies to support an industrial sub-division built on surrendered Kamloops land.

"We needed a water-treatment plant and we were hoping the province would provide us with this facility because they were collecting taxes off the sub-division," he said.

However, 20 years of discussion with the province finally came to a head in 1981 after a tripartite study was carried out. The study suggested that the band could have a quasi-municipality under the provincial jurisdiction but the band felt they should be entitled to levy taxes without provincial involvement.

"We made our position clear that we came under federal jurisdiction," said Jules. "So we challenged the provincial government's authority to collect taxes on conditionally surrendered lands."

The band went to court in 1983 on the issue but lost the case because of the wording in Section 87 and other sections in the Indian act which differentiate between surrendered lands and regular reserve lands.

"We felt we were dealing with a similar situation as with the Bill C-31 legislation. We were trying to get back enfranchised Indian land and we need this new amendment to clarify any ambiguity that has arisen because of the wording of the Indian Act."

The new legislation will ensure that band councils have jurisdiction over both conditionally surrendered lands and reserve lands.

Although many Indian chiefs and leaders are expressing concern and confusion over the proposed legislation, Jules says he sent letters to all bands in Canada last January explaining the proposed legislation and requesting support for the amendment.

"I think a lot of the confusion arose because they didn't make the connection between our recommendation and what was said in Wilson's speech," he said.

The new legislation will enable bands to negotiate directly with provincial governments over the transfer of taxes levied by the provinces on non-Native citizens using the Indian lands.

"I will be meeting with the provincial government in the near future to iron out a few of these details," he said. "But I don't know what position they are going to be taking," he added.

The Indian Association of Alberta is currently preparing a paper on the budget and its implications and further discussion between the various treaty groups is continuing this week.