The AFN reports...Transfer of funds

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National Chief Matthew Coon Come has been saying for a long time that the way the Canadian public views spending on Aboriginal people has been skewed by political spinning and racist attitudes.

A report issued recently by the national chief's staff uses government numbers to make the case for that claim.

The Assembly of First Nations fact sheet, entitled The First Nations and Public Administration Expenditures, presents the numbers in what the AFN considers is a global context.

"The governments of the First Nations are not the only ones to benefit from federal transfer payments. Federal transfers to the provinces and territories can represent an important percentage of provincial revenues. For example, they account for 42 per cent of Newfoundland's provincial revenues."

The report points out that all Canadians benefit in some way from government spending but, for some reason, the talk about government "handouts" always focuses on Aboriginal people.

"In principle, all Canadian citizens are supposed to benefit from public services at a comparable level, regardless of where they live. That is why the federal government transferred approximately $44 billion to the provinces and territories in 2000-2001," the report said. "In theory, the principle under which all citizens of Canada are supposed to receive comparable public services, regardless of where they live, also applies to First Nations residents."

He suggests the amounts transferred to First Nations by the feds be seen in the same light as the Fiscal Equalization monies transferred to the provinces.

Transfers are paid through three major federal programs-the Canada Health and Social Transfer (CHST), the Fiscal Equalization Program, and Territorial Formula Financing (TFF).

The CHST is worth more than $31.5 billion and the assistance it provides to the provinces must be used for health, post-secondary education, social assistance and social services of its residents. The $1.4 billion TFF is used to compensate for the higher costs of providing public services in the north.

"As not all provinces have the same ability to generate revenues, the Fiscal Equalization Program has given the less prosperous provincial administrations $10.4 billion so that they can provide their citizens with public services at a level comparable to that in the other provinces," the report said.

AFN researchers analyzed government reports and concluded that total government transfers to individuals were close to $107 billion in 1999.

The report suggests that number makes the amount of money transferred to First Nations look small and even inadequate.

"Canadian public administrations continue to spend less money on First Nations than on Canadians," the report reads. "That is in spite of the persistent socio-economic disparity between the two groups, and contradictory to RCAP recommendations, to recommendations made by the Auditor General of Canada and, finally, with Ottawa's promises made in the last Speech from the Throne."