Budget increases funding to Natives

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Ottawa's 1994 budget appears to be a "good news story" for Canada's Natives, Indian Affairs' finance director general said.

The main estimates in funding to the Department of Indian and Northern Affairs in federal Finance Minister Paul Martin's Feb. 22 budget were slightly more than $5 billion, a net increase of almost $400 million, said Bill Austin.

The First Nations will also see an increase of about $256 million to support Indian, Inuit and Innu funding for essential services.

"That's in a world where the government's own growth is much less," he said.

Indian Affairs will see an eight per cent growth in funding between 1994 and 1995, whereas federal economic growth estimates for the next two years were pin-pointed at about one per cent.

A lot of the extra money awarded to the department will flow directly to Natives living on reserves, Austin said, mostly in the form of increased funding to education, social services, and tribal and band governments.

The Assembly of First Nations is still analyzing the document, said Grand Chief Ovide Mercredi. But it appears there were no increases in social services payments to Indian peoples.

"They are transferring social services payments to programs like land claims. They are only moving money around," he said.

But a 10-per-cent growth rate in the Aboriginal economic community over the last decade has outstripped national rates, which were only half that amount, Austin said.

An additional $70 million will go towards the further implementation of the Tungavik Federation of Nunavut Land Claim Agreement.

The Inuvialuit Regional Corporation will see an increase in its statutory loans of about $28 million in accordance with the Western Arctic Claim Settlement Act.

And the territorial governments will also receive an additional $51.1 million in transfer payments as a result of previous funding agreements.

Ottawa's Infrastructure Works Program also allotted $18 million to upgrade transportation and local services in Indian and Inuit communities in the territories.

Additional funds may also bed available mid-year for unforeseen costs such as new land claims.

Ottawa wants to boost total spending by two per cent in the next year to reach a total of $163 billion.