Blackfoot chief demands $1M compensation

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Blackfoot Chief Strater Crowfoot is demanding Ottawa pay his band compensation for legislative delays, which cost the band $1 million.

Crowfoot said government delays over the passage of Bill C-115, an amendment to the Indian Act, set back construction on a Blackfoot Reserve commercial and industrial project, which was scheduled to begin in April 1988.

He said because of "misunderstandings" between the department of justice and the department of Indian affairs with the wording of the bill it set back the project for 20 months. "Now the band has to bear over $1 million in extra costs."

In June 1988 when Bill C-115 was passed, it amended the Indian Act changing the concept of surrendered Indian land to one of designated Indian land.

This allows Indian reserves across Canada, which designate Indian land for economic development, to maintain jurisdiction over it for taxation purposes.

The bill also protects non-Native companies on designated Indian land from being taxed by the provincial government.

Crowfoot said his band hasn't had a problem with the provincial government taking surrendered Indian land, but the story is different in British Columbia, where the concept for Bill C-115 began.

Faced with taxation of surrendered land by the provincial government, Kamloops "Shuswar" Chief Many Jewels petitioned over 60 Indian bands across Canada to have the Indian Act changed.

"Chief Many Jewels was responsible for having the change made in the Indian Act to read designated land instead of surrendered land," said Crowfoot.

Chief Crowfoot said the Blackfoot band was the first to go through Bill C-115 and it caused them "nothing but problems."

Before then Indian affairs minister Pierre Cadieux -- he's now solicitor general -- would approve designated land, a head lease had to be signed.

"Our people had to accept the head lease. It actually meant we would surrender the land to a Blackfoot-owned corporation and they in turn would use the document to sub-lease designated land to businesses."

"We had assumed everything had already been taken care of with the passing of the bill by the department of justice and Indian affairs," said Crowfoot.

Faced with delays the band tried to get a temporary permit so they could start construction, but they were turned down.

"I couldn't believe it. Other tribes up north were doing simular projects like ours, such as the chopstick factory at Sturgeon Lake. Yet we could not get a permit.

"We were told we must go through Bill C-115. They said the process would not take very long. The whole thing took 20 months," he said angrily, adding the band agreed to go through Bill C-115 reluctantly.

Another problem arose with financial institutions.

"We found out our lease agreement was not acceptable to the banks we had approached for financial help. They were not comfortable with the wording."

"It was discouraging to us because we thought the department of justice people, who had given us the surrender documents, the designation documents, had cleared the documents with the financial institutions," Crowfoot noted.

The project was almost "scrubbed" because of the banks' refusal to accept the wording of the head lease.

Again we lobbied Ottawa to have the wording in the lease agreement changed, because the contract we had lined up could not go ahead without a guarantee from us that money was in place."

And time was short. The band had just 24 hours to have the lease agreement approved and signed.

"It was settled before the 24-hour deadline elapsed, but not before we put up $400,000 of our own money so the project wouldn't be delayed anymore," said Crowfoot.

Because of all the delays the Blackfoot band incurred significant legal costs and took a gamble without any firm loan agreement in place.

"Lucky for us the department of justice in Ottawa and Indian affairs approved the changes in the lease agreement," said Crowfoot.

Chief Crowfoot said his band will accept either compensation in th form of a lump sum payment, which would be used to reduce the long-term loan with Peace Hills Trust, or an annual contribution towards the band's operation and maintenance budget.

"The construction cost index has since gone up considerably and we lost potential revenues because of the long delay."

"And we have lost some credibility with our people because nothing happened for a long time with the project. It cost us a lot of pocket expenses," said the chief.