Ninth Annual (2023) Statutory Report Pursuant to Section 2 of the Indian Act Amendment and Replacement Act, Statutes of Canada, Chapter 38, 2014

1. Ongoing work to transfer services to Indigenous Peoples

The Government of Canada continues to support Indigenous Peoples on the path toward self-determination, to implement self-government, and to transition away from the Indian Act. Under the Department of Indigenous Services Act, Indigenous Services Canada is mandated to work towards the transfer of departmental responsibilities to Indigenous organizations. The transfer of services to Indigenous-led control and responsibility is intrinsically linked with the Government's commitment to advance self-determination, nation-to-nation, Inuit-to-Crown, and government-to-government relationships and reconciliation. With respect to its engagement with First Nations, service transfer includes considerations of how to move beyond the Indian Act.

The Government has been working with Indigenous partners to advance the process of transferring control over services to Indigenous Peoples. The environment in which the transfer of services is occurring is complex, with many different accountabilities, partners, service areas, delivery mechanisms, funding arrangements and requirements, and linkages with other systems. Indigenous Services Canada will continue to work with First Nations, Inuit, and Métis to determine pathways forward that reflect unique needs and choices of different communities.

Indigenous Services Canada is required to report annually to Parliament on progress towards fulfilling its mandate, including the progress made towards the transfer of responsibilities. The third annual report was tabled on October 7, 2022.

Specific to its partnerships with First Nations, Indigenous Services Canada is developing and implementing service transfer strategies when mandated by First Nations governments in response to First Nations' specific and unique needs, priorities, and capacity.

2. Health services

Indigenous Services Canada strives to improve Indigenous health outcomes, provide access to quality health services and support greater Indigenous control of the health system.

This includes the Government's ongoing work on the 2020 Speech from the Throne commitment to co-develop distinctions-based Indigenous health legislation with First Nations, Inuit, and Métis partners. In December 2020, the Government committed $15.6 million over two years to support this initiative. Budget 2021 reiterated the Government of Canada's commitment to the co-development of distinctions-based Indigenous health legislation with First Nations, Inuit, and Métis partners. To support this co-development process, an inclusive engagement approach has been underway across the country led by national and regional First Nations, Inuit, and Métis organizations. A national summary, a "What We Heard Report", is being developed and will inform the next phase of the initiative, the co-development of legislative options. While co-development of legislative options is underway on a distinctions basis, Indigenous Services Canada advances many other important initiatives to transform health systems and improve health services delivery with Indigenous partners.

Building on Budget 2021 investments, Budget 2022 committed significant funding to continue efforts to transform how health services are designed and delivered by First Nations communities. This included $30 million over four years starting in 2022-23, to build upon the success of the CAN Health Network, and expand it nationally to Quebec, the territories, and Indigenous communities. Budget 2022 is also providing $227.6 million over two years to maintain trauma-informed, culturally appropriate and Indigenous-led services to improve mental wellness and to further support Budget 2021's investment of $597.6 million over three years for distinctions-based mental wellness approaches for First Nations, Inuit and the Métis Nation.

Budget 2021 invested $107.1 million over three years in Health Transformation projects to support First Nations organizations and institutions to build capacity towards a transformed, and First Nations-governed health services delivery model that will enable the full transfer of control over federal health services to First Nations partners. This will ensure that communities receive health services that are responsive, effective, and culturally safe and that they are empowered to assume responsibility for the design, delivery, and management of health services currently provided by Indigenous Services Canada.

There are five projects currently underway:

• The Keewatinohk Inniniw Minoayawin Inc. ($23 million over two years) to support their work to provide health services and supports with 23 First Nations in northern Manitoba;
• The Southern Chiefs Organization ($5.9 million over two years) to support 34 First Nations in southern Manitoba establish a health authority which will govern and provide health services and programs;
• The Nishnawbe Aski Nation ($17.8 million over two years) to support 49 First Nations in northern Ontario to assume control over health services and to deliver these services and supports closer to home;
• The First Nations of Quebec and Labrador Health and Social Services Commission in Quebec ($5 million over two years) to establish an entity to provide health and social services to all First Nations in Quebec and Labrador; and,
• Tajikeimɨk ($8.96 million over two years) to support the development of a health and wellness authority working on behalf of the 13 Mi'kmaw communities in Nova Scotia.

This work builds off of the experience and successful full-scale transfer of the Department's regional health operations to the First Nations Health Authority in British Columbia in 2013.

In Saskatchewan, there are a number of Tribal Councils that have assumed control of the delivery of Environmental Public Health Services. These Tribal Councils include Battle River Treaty 6, File Hills Qu'Appelle Tribal Council, Saskatoon Tribal Council, and Prince Albert Grand Council. At least one or more environmental health officers are employed at each Tribal Council. They work with Indigenous Services Canada environmental officers by sharing resources and supporting education.

3. Education

The Government is committed to working in collaboration with Indigenous partners, provincial and territorial governments, to advance Indigenous control of Indigenous education, to support the delivery of programs and services that are tailored to the educational and cultural needs and priorities of Indigenous communities.

Budget 2021 announced $1.9 billion over five years in support of education-related investments and these investments will further advance First Nations education so that students on reserve receive high quality, culturally relevant education. Indigenous Services Canada has been supporting the establishment of Regional Education Agreements, a key tool introduced in 2019, to help advance First Nations self-determination by way of supporting First Nations in the design and implementation of their education vision and priorities.

Budget 2022 announced $310.6 million in new funding to support better student outcomes through the signing of the new education agreement with the First Nations Education Council of Quebec. In July 2022, the Grand Chiefs and Chiefs of the First Nations Education Council and the Minister of Indigenous Services signed an historic $1.1 billion education agreement. This agreement provides $1.1 billion over five years for communities, and allows for First Nations to implement education programs based on community models, priorities, and realities and have greater control over First Nations education for approximately 5,800 students in 22 communities in Quebec. The education needs of students, from kindergarten to Grade 12, will be ensured through this funding. The agreement will allow for:

• a culturally appropriate curriculum;
• improved funding for school transportation;
• recruitment and retention of more than 600 teachers and specialized resources;
• improved student success; and,
• increased student retention and high school graduation rates.

With the signing of this new education agreement, a total of nine regional education and education authority agreements have been signed between Canada and First Nation organizations as part of the new education transformation policy framework (based on 2021-22 student enrollment counts):

• the British Columbia Tripartite Education Agreement, which covers 153 First Nations with 100 schools on reserve, serving 10,687 students;
• the Kee Tas Kee Now Tribal Council Education Authority Regional Education Agreement, which covers five First Nations, with 6 schools on reserve, serving 1,119 students;
• the Sunchild Education Authority Regional Education Agreement, which covers one First Nation, with one school on reserve, serving 331 students;
• the Athabasca Denesuline Education Authority Agreement, which covers three First Nations, with four schools on reserve, serving 1,230 students;
• the Peter Ballantyne Education Authority agreement, which covers one First Nation, with eight schools on reserve, serving 2,116 students;
• the Whitecap Dakota Tripartite Regional Education Agreement, which covers one First Nation, with one school on reserve, serving 158 students;
• the Elsipogtog First Nation Education Authority, which covers one First Nation, with two schools on reserve, serving 549 students;
• the Treaty Education Alliance Transitional Agreement, which covers four First Nations, with 11 schools on-reserve, serving 771 students; and,
• the First Nations Education Council Agreement, which covers 22 First Nations with 24 schools on reserve, serving 6,147 students.

4. Reform of the First Nations Child and Family Services

The transformation of Indigenous child and family services is developing on two parallel and complementary paths. Both paths, the reform of the First Nations Child and Family Services Program (Program) and the implementation of An Act respecting First Nations, Inuit and Métis children, youth and families (the Act) focus on reducing the risk of children, youth, young adults and families coming into contact with the child protection system and keeping families together, through a new approach for child, young adult and their family's well-being.

Since the Act came into effect on January 1, 2020 the Government of Canada has continued to work towards advancing child and family services transfer to Indigenous communities. Efforts to support the reassumption of jurisdiction of child and family wellness to Indigenous governing bodies reflects progress on the Truth and Reconciliation Commission's Calls to Action 1 to 5, specifically Call to Action 4, which:

• affirms the inherent jurisdiction of First Nations, Inuit and Métis over child and family services solutions;
• contributes to the implementation of the United Nations Declaration on the Rights of Indigenous Peoples; and,
• establishes national principles such as best interests of the child, cultural continuity and substantive equality to help guide the provision of child and family services in relation to Indigenous children.

The Act is an important step toward comprehensive reform and the Government remains committed to pursuing nation-to-nation, government-to-government, and Inuit-Crown relationships based on the recognition of rights, cooperation and partnership with Indigenous Peoples in Canada.

As of December 2022, twenty-one Indigenous governing bodies have provided section 20(2) notice to enter into coordination agreements and exercise jurisdiction of child and family services. There are currently six Indigenous laws in effect: Cowessess First Nation in Saskatchewan, Wabaseemoong Independent Nations in Ontario, Peguis in Manitoba, Louis Bull Tribe in Alberta, Inuvialuit Regional Corporation in the Northwest Territories and Atikamekw d'Opitciwan in Quebec. Two coordination agreements have been finalized, Cowessess First Nation in Saskatchewan and Wabaseemoong Independent Nations in Ontario.

In order to establish the necessary transition and coordination measures, to ensure the effective exercise of jurisdiction by Indigenous Governing Bodies over child and family services, specific fiscal arrangements will be discussed at Coordination Agreement tables to secure long-term positive outcomes for Indigenous children, families, and communities. These funding arrangements will be reviewed with relevant parties on a periodic basis to determine the adequacy of funding, considering inflation and changes in need.

As part of the Government of Canada's funding commitment to support the implementation of the Act capacity-building funding is available to support Indigenous groups, communities and peoples and their Indigenous governing body wishing to:

• explore readiness to exercise jurisdiction; and,
• develop Indigenous child and family service legislation, systems, and programs prior to entering into coordination agreement discussions.

Proposals for capacity-building funding will not be interpreted as a notice of intent to exercise jurisdiction as specified under sections 20 (1) or 20 (2) of the Act.

On January 4, 2022, Canada reached two Agreements-in-Principle, one with the Assembly of First Nations and counsel representing the plaintiffs in the Moushoom and Trout class actions on compensation, and the other with the Assembly of First Nations, the First Nations Child and Family Caring Society, the Chiefs of Ontario and the Nishnawbe Aski Nation on long-term reform of First Nations child and family services and a renewed approach to Jordan's Principle to ensure that First Nations children do not face discrimination. The Agreements-in-Principle include:

• $20 billion in compensation for First Nations children on-reserve and in the Yukon, who were removed from their homes between April 1, 1991 and March 31, 2022, and for their parents and caregivers. This also includes compensation for those impacted by the government's narrow definition of Jordan's Principle between December 12, 2007 and November 2, 2017, as well as for children who did not receive or were delayed receiving an essential public service or product between April 1, 1991 and December 11, 2007; and,
• Approximately $20 billion, over five years, for long-term reform of the First Nations Child and Family Services program to ensure that the discrimination found by the CHRT never repeats itself. This includes funding to support young First Nations adults aging out of the child welfare system and prevention services to build on the multi-generational cultural strengths to help children and families in staying together that will be implemented as early as April 2022. There is also new funding for on-reserve housing to support these prevention initiatives.

On June 30, 2022, Canada signed a Final Settlement Agreement on compensation with the parties, which was then brought to the Canadian Human Rights Tribunal. Although the Tribunal found that the agreement is principled and carefully thought out, it indicated that there are four groups for which the agreement did not provide compensation to the level that its 2019 compensation order does. While the Tribunal did not rule that the settlement fully met its compensation order, the Government is committed to continue working with the parties to conclude a final settlement agreement as quickly as possible so that those who were harmed can be compensated.

With respect to the First Nations Child and Family Services Program, the parties are working towards a reformed program. On April 1, 2022, early program enhancements were implemented which added significant funding for the delivery of culturally appropriate prevention and wellbeing services that supports families and reduces the number of First Nations children in care. To date, approximately $2.7 billion in investments have been made, which is an 80% increase in funding from 2020-2021. That funding is being provided to First Nations and service providers in all provinces and the Yukon Territory for prevention, for First Nations representative services, and for the expansion of post-majority care services for young adults formerly in care up to their 26th birthday.

The Government of Canada has continued to work alongside Indigenous groups, communities and leadership, and with all provincial and territorial governments to support the delivery of child and family services to Indigenous children and families.

The Government of Canada has appealed to the Supreme Court of Canada the Quebec Court of Appeal's February 2022 decision that sections 21 and 22(3) of the Act are invalid. The Court will render a decision on the constitutional validity of the Act, including section 21 and 22(3), in the next 12-18 months.

Furthermore, Budget 2022 committed to:

• $11 billion over six years to continue to support Indigenous children and families and help Indigenous communities continue to grow and shape their future;
• $4.7 billion to support communities as they cope with their past and build a future where Indigenous children can thrive; and,
• $87.3 million over three years, starting in 2022-23, to enable Indigenous communities to continue to work with the federal government and the provinces and territories to support the implementation of Indigenous child welfare law.

5. Amendments to the Indian Act to eliminate sex-based inequities in registration

The Government of Canada is committed to engaging with First Nations and other partners on Bill S-3 and the removal of sex-based inequities in the registration provisions of the Indian Act. The implementation of S-3 is an important shift towards confronting Canada's history and redressing the historical wrongs. It is a shift that ensures that Canada continues to renew and rebuild its relationship with Indigenous Peoples based upon the affirmation of rights, respect, cooperation and partnership. The Final Report to Parliament on the Review of S-3 was tabled in December 2020. It found that while all known sex-based inequities in the registration provisions of the Indian Act have been eliminated, residual impacts of these historical sex-based laws and policies remain. As part of the continued implementation of Bill S-3, the Government continues engagement, communications, and outreach about registration in order to reach newly entitled individuals. The Government further committed $14.5 million over two years starting in 2021-22 to continue this work.

In 2021, the Nicholas v. AGC Charter litigation was filed by plaintiffs impacted by enfranchisement. In January 2022, Canada entered into an abeyance agreement with a view to introducing legislation to amend the Indian Act to address enfranchisement, individual deregistration by application, natal band membership, and outdated and offensive language.

As outlined in the Final Report to Parliament on the Review of S-3, the Government of Canada is seeking to amend the registration and band membership provisions of the Indian Act in order to address some remaining inequities and address their residual impacts in response to the Nicholas v. AGC claim. Bill C-38, An Act to amend the Indian Act (new registration entitlements), was introduced in the House of Commons on December 14, 2022, and seeks to address some of the remaining inequities in the registration and band membership provisions of the Indian Act. It would address four areas related to enfranchisement, individual deregistration, natal band re-affiliation and membership, and outdated and offensive language related to dependent persons. The proposed legislation also responds to longstanding concerns raised by First Nations and other individuals affected by the residual inequities that still remain in the Indian Act. For example, the Bill would ensure First Nations individuals with family histories of enfranchisement will be entitled to registration under the Indian Act, as well as transfer the right for registration to their descendants. The Government of Canada has also committed to co-develop and launch a collaborative consultation process on broader issues related to registration and band membership under the Indian Act, including the second-generation cut-off. These consultations are expected to start in early 2023. Further consultation with First Nations, Indigenous organizations who represent non-status First Nations, and other interested or impacted individuals will be required to co-develop options to address the broader suite of remaining issues in the registration and band membership provisions of the Indian Act.

6. Infrastructure

Infrastructure is critical to improving the quality of life of Indigenous peoples and their communities. To improve health and social outcomes for Indigenous Peoples, the Government of Canada invested over $2.7 billion to support housing through distinctions-based investments, in Indigenous communities since 2015. Budget 2021 provided $6 billion over five years to support community infrastructure projects in Indigenous communities, which includes the $4.3 billion Indigenous Community Infrastructure Fund.

Building on previous investments, Budget 2022 is providing $4.3 billion over seven years for improving and expanding Indigenous housing in Canada, which includes:

• $2.4 billion over five years to support First Nations housing on reserves;
• $565 million over five years to support housing in Self-Governing and Modern Treaty Holder First Nations communities;
• $845 million over seven years to support housing in Inuit communities; and,
• $190 million over seven years for housing in Métis communities.

Starting in 2022-23, Budget 2022 is investing $300 million over five years through the Canada Mortgage and Housing Corporation to co-develop and launch and Urban, Rural, and Northern Indigenous Housing Strategy. The Government of Canada acknowledges that socioeconomic gaps continue to remain large despite these investments, and remains committed to closing these gaps between Indigenous and non-Indigenous Peoples in Canada and supporting Indigenous communities.

The Government of Canada continues to be committed to supporting communities affected by the lack of safe drinking water. For example, the claims period for the Safe Drinking Water Settlement Agreement has been open for eligible First Nations and their members who are seeking compensation for being deprived of safe drinking water. The settlement agreement includes the following:

• approximately $1.5 billion in compensation for individuals deprived of clean drinking water;
• the creation of a $400 million First Nation Economic and Cultural Restoration Fund;
• a renewed commitment to Canada's Action Plan for the lifting of all long-term drinking water advisories;
• the creation of a First Nations Advisory Committee on Safe Drinking Water;
• support for First Nations to develop their own safe drinking water by-laws and initiatives;
• a commitment of at least $6 billion to support reliable access to safe drinking water on reserves; and,
• the modernization of Canada's First Nations drinking water legislation.

As part of the settlement agreement, the Safe Drinking Water for First Nations Act was repealed in June 2022 and the Government continues to work with partners to develop and introduce replacement legislation, in consultation with First Nations, and co-developed with the Assembly of First Nations.

7. Indigenous governance and capacity building

Progress towards service transfer relies on the capacity of Indigenous governments to implement community-driven, nation-based community development and planning initiatives that engage Indigenous Peoples in expressing their own strengths and visions for the future. The Indigenous Community Development National Strategy was co-developed through partnerships between representatives of First Nations, Indigenous organizations, Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada and includes an ongoing engagement process with Indigenous community advisors across regions. The National Strategy is designed to guide the Government of Canada in supporting Indigenous Peoples and communities according to their self-determined priorities. It can be applied in a flexible way to: meet unique and diverse regional needs with the goal of supporting planning and general capacity building; support community-to-community learning; break down silos within and between departments; and increase the federal public service's cultural competencies, which is in alignment with Indigenous Services Canada's mandatory Indigenous Cultural Competency Learning Policy.

Work is underway to increase awareness for, and implement the strategy on a national level, through the Indigenous Community Development National Strategy Working Group which includes participants from Indigenous Services Canada, Crown-Indigenous Relations and Northern Affairs Canada, as well as Indigenous Advisors from across Canada. This strategy and its principles will be an important horizontal framework in advancing service transfer in a way that meets the needs of Indigenous peoples at a community level and advances self-determination.

Other new initiatives such as the Community Development Wrap-around Initiative also support communities in developing plans and the capacity to implement them. Regional Offices have consistently indicated a definite change in mindset and practices when dealing with defaults. Through such initiatives as Communities in Focus and the Community Development Wrap-Around Initiative, Regions have now significantly increased the attention paid to communities approaching or facing default, and have placed diagnosing root causes, more frequent face-to-face meetings, closer collaboration with internal and external partners, and capacity building, at the core of their work with these communities.

The Department also acknowledges the importance of strong data to help guide development processes. Indigenous Services Canada is committed to supporting Indigenous partners to work with Provinces and Territories to improve the collection, monitoring and analysis of First Nations, Inuit and Métis data so that they can be shaped into meaningful policies and services for their peoples.

Indigenous Services Canada is committed to ensuring all communities are able to exercise self-determination; community-directed federal support to Indigenous workforces is critical. Funding for governance and capacity is provided through the Indigenous Governance and Capacity programs. These programs, along with the Indigenous Community Development National Strategy, are integral to supporting Indigenous communities on their path towards self-determination.

Indigenous Services Canada also continues to explore the interim recommendations of the Assembly of First Nations – Indigenous Services Canada Joint Advisory Committee on Fiscal Relations to further advance the new fiscal relationship. This includes: co-development of a mutual accountability framework supported by stronger First Nation-led institutions; continued work with First Nations to replace the Default Prevention and Management Policy with a new and proactive approach that supports capacity development in partnership with Indigenous-led organizations; and, collaboration with Indigenous leaders to finalize a National Outcome-Based Framework, including co-development of baseline indicators, to comprehensively measure and track the closure of socio-economic gaps.

8. First Nation leadership selection

The Government continues to work with First Nations in the development and implementation of electoral systems outside of the Indian Act. The First Nations Elections Act and First Nations Elections Regulations came into force on April 2, 2015 and there are 79 First Nations in Canada currently holding elections under the Act. The Act and Regulations were developed in collaboration with First Nations organizations to make improvements to First Nations election processes.

Under the First Nations Elections Act, a First Nation that holds its elections under the Indian Act election system may develop its own community election code and ask the Minister of Indigenous Services to issue an order that removes the First Nation from the application of the Act's electoral provisions. Currently, 366 First Nations in Canada hold their elections under a community election code.

Community or custom leadership selection processes are often documented in a community's election code, which provide the rules under which chiefs and councillors are chosen for those First Nations who are not under the Indian Act election rules. These codes vary depending on the First Nation and are often unique to the specific community.

Indigenous Services Canada is never involved in elections held under community or custom election processes, nor will it interpret, decide on the validity of the process, or resolve election appeals. The Department's role is limited to recording the election results provided by the First Nation. When a dispute arises concerning a community or custom election process, it must be resolved according to the related provisions in a community's election code, or by the courts.

9. Economic Reconciliation

Indigenous Services Canada has continued to work to close socioeconomic gaps and prioritize the economic prosperity of all Indigenous Peoples in Canada. The ability for Indigenous Peoples and Indigenous individuals to participate fully in the Canadian economy is key to improving socio-economic outcomes. Strong Indigenous economies and full involvement of Indigenous individuals in the Canadian economy also contribute to a strong Canadian economy. The COVID-19 pandemic represented a significant shock to the Canadian economy. It has compounded this gap while affecting areas such as employment. In the first few months of the pandemic, the unemployment rate among Indigenous individuals living off-reserve and in urban areas increased by seven per cent. It has also affected the ability for individuals to meet financial obligations.

There are 335 First Nations that have opted into the First Nations Fiscal Management Act, allowing them to work with the fiscal institutions and to assert their jurisdiction in the area of fiscal governance. In 2021 the Act was amended to allow First Nations that are borrowing members of the First Nations Finance Authority to borrow against tax revenues to secure capital for community investments and further amendments are being explored to expand and make operational improvements to the Act.

The Addition of Lands to Reserves and Reserve Creation Act facilitates the setting apart of land as reserve for the use and benefit of First Nations and the addition of land to reserves. As First Nations select lands to add to reserve or to create new reserves, they are able to increase the number of viable economic and social development opportunities in their communities. During the first half of 2022-23, ISC provided Budget 2021 funds to Indigenous organizations for institutional capacity building and service transfer activities as well as to ISC regional offices to support the completion of Additions to Reserve technical components (i.e., surveys, designations, environmental site assessments, etc.) that are required before a parcel of land can be converted to reserve status. These investments allow First Nation communities to take greater control of their reserve lands.

The Framework Agreement on First Nation Land Management is a nation-to-nation agreement that Canada ratified in 1999 with the passage of the First Nations Land Management Act. The Framework Agreement enables First Nations to opt-out of 44 sections of the Indian Act relating to land management. Through a community-driven process, First Nations develop their own land codes about land use, the environment and natural resources and take advantage of cultural and economic development opportunities with their new land management authorities. In the developmental stage a First Nation is provided funding and technical support to develop and conduct community consultations on the content of their land code, as well as hold a ratification vote on the final land code. There are 194 signatories to the Framework Agreement on First Nation Land Management, of which 101 are land code communities, with 60 First Nations who are active in the developmental stage.

Indigenous Services Canada continues to support Crown-Indigenous Relations and Northern Affairs Canada-led work with First Nations partners to simplify the First Nations Land Management Act and expand the Framework Agreement on First Nation Land Management, as requested by First Nations. Following Royal Assent on December 15, 2022, the existing Act was replaced with the Framework Agreement on First Nation Land Management Act to better recognize the negotiated Framework Agreement as the central document and source of authority for First Nation laws.

Indian Oil and Gas Canada manages and regulates oil and gas resources on designated First Nation lands across Canada. IOGC currently manages the oil and gas resources of First Nations with active oil and gas agreements. All funds collected on behalf of First Nations are placed in their trust accounts. The Agency operates pursuant to the Indian Oil and Gas Act, RSC 1985, c I-7 (Act) and the Indian Oil and Gas Regulations, SOR/20-19-196, which were modernized and came into force on August 1, 2019. It is a special operating agency within Indigenous Services Canada with a dual mandate to fulfill the Crown's fiduciary and statutory obligations related to the management of oil and gas resources on First Nation lands and to further First Nation initiatives to manage and control their oil and resources such as governance. Indian Oil and Gas Canada is currently working to replace environment provisions in the Indian Oil and Gas Regulations. Ongoing changes to the Indian Oil and Gas Regulations will allow the First Nations to exercise greater control over the oil and gas activity on First Nation land. Indian Oil and Gas Canada is also working with the Joint Technical Committee (a committee of the Indian Resource Council) to co-develop changes regarding the Surface and Exploration modules.

Indigenous Services Canada is working with partners to foster the full economic participation of Indigenous communities and entrepreneurs and assist in their prosperity by creating jobs and growing businesses. Working with Indigenous partners, the department supports improved access to capital for Indigenous communities and entrepreneurs while working to leverage public and private sector partnerships and investments.

By reducing barriers and increasing access to capital for First Nations, Inuit, and Métis entrepreneurs, the Aboriginal Entrepreneurship Program works to support Indigenous small and medium-sized entrepreneurs and increase the number of viable Indigenous-owned businesses in Canada. The Aboriginal Entrepreneurship Program provides approximately $34 million in annual funding for non-repayable equity contributions to enable commercial lending for entrepreneurs to start, expand or acquire a business, as well as diverse businesses services. It also supports loan interests, capacity building and training.

Since 2015, the Aboriginal Entrepreneurship Program has been administered by the National Aboriginal Capital Corporations Association and delivered through a network of 54 Indigenous Financial Institutions and five Métis Capital Corporations. In 2019, the program moved to a distinctions-based delivery model, with the Métis Capital Corporations also beginning to administer and deliver portions of the program. This distinctions-based approach marked a significant departure from the past where one overall Indigenous organization delivered the Aboriginal Entrepreneurship Program to First Nations, Métis and Inuit.

Indigenous Financial Institutions and Métis Capital Corporations will also gain a significant boost in lending capacity with the Indigenous Growth Fund. Launched in November 2021, the Indigenous Growth Fund is a $153 million Indigenous-led social impact fund designed to attract private capital and promote the sustainability of the Indigenous Financial Institutions network. Designed to attract private capital and promote the sustainability of the Indigenous Financial Institutions network by increasing the network's lending by $75 million annually, the fund has a highly technical structure and strict conditions that mirror capital market funds. Managed by the National Aboriginal Capital Corporations Association, the fund's current investors are the Government of Canada and Business Development Bank of Canada, Export Development Canada, Farm Credit Canada, and Block Inc., a technology company with a focus on financial services and the first private investment in the Indigenous Growth Fund. The Indigenous Growth Fund is a unique example of best practice in that it is a sustainable financing tool that was co-developed with the help of the Government of Canada in support of self-determination and economic reconciliation. It incorporates an innovative evergreen model that offers institutional and social impact investors a direct vehicle to contribute to economic reconciliation.

The Aboriginal Entrepreneurship Program will be an important complement to the Indigenous Growth Fund by helping entrepreneurs qualify for Indigenous Growth Fund-sourced loans from their Aboriginal Financial Institution or Métis Capital Corporation, and by ensuring this new source of financing is affordable.

Furthermore, as part of Budget 2022 measures, in October 2022 Indigenous Services Canada, the National Aboriginal Capital Corporations Association and Métis Capital Corporations are supporting Indigenous small and medium-size enterprises by forgiving up to 50 per cent of the COVID Indigenous Business Initiative loans, which provided much needed assistance during the pandemic and as the economy rebounds. These measures will benefit approximately 3,800 small and medium-sized businesses and entrepreneurs across the country and represent $82.5 million in loan forgiveness.

The Department is also working with interested communities to enhance their management over their finances by leveraging existing legislative authorities within the Indian Act, such as sections 64(1)(k) and 69 to provide for First Nations' control over their respective capital and revenue Band trust moneys. Since 2006, such applications of the Indian Act have resulted in the transfer of nearly $1.1 billion of capital Band moneys to First Nations. The Department continues to reach out to all First Nations with funds currently held in trust by Canada in order to support additional transfers of Band trust moneys.

10. Conclusion

Indigenous Services Canada's legislated mandate of closing socio-economic gaps and gradually transferring responsibilities to Indigenous control is, ultimately, about recognizing and affirming Indigenous Peoples' inherent right to self-determination. It is essential that work to meet this mandate respects the distinct needs and mandates of First Nations, Inuit, the Métis Nation and their citizens, and that it upholds treaty and Aboriginal rights, and federal obligations.

Indigenous Services Canada will continue to work with Indigenous partners on refining and increasing Indigenous access to quality services that are essential to closing socio-economic gaps. The department will do this by using co-developed initiatives that build community capacity and speak directly to the unique needs of the service users as we actively work towards the shared objective of transferring the full responsibility of design and delivery of culturally appropriate services to Indigenous control.

Achieving progress on transfer, as well as closing socio-economic gaps, will require continued investments to ensure future sustainability. Experience has shown that investing in services where Indigenous governments and organizations played a key role in their design and delivery leads to better outcomes for Indigenous individuals and Peoples. Supporting self-determination, we can have a positive impact on closing of socio-economic gaps between Indigenous peoples and non-Indigenous people in Canada.