Appearance before the Standing Committee on Public Accounts on OAG Report 3: Access to Safe Drinking Water in First Nations Communities, November 30th, 2023

Table of contents

1. Scenario Note

Logistics

Date: November 30th, 2023
Time: 11am – 12:40 p.m.
Location: Room 225–A West Block

Subject: Follow-up Study on Report 3, Access to Safe Drinking Water in First Nations Communities — Indigenous Services Canada, of the 2021 Reports 1 to 5 of the Auditor General of Canada.
Follow-up to Report, Socio-economic Gaps in First Nations Reserves—Indigenous Services Canada, (specifically on Education Information System)

Appearing

Indigenous Services Canada (ISC)

Minister Hajdu (First Hour)

ISC Officials:

  • DM Gina Wilson
  • SADM Joanne Wilkinson, RO
  • DG Nelson Barbosa, RO
  • Director Curtis Bergeron, RO
  • SrDir Jonathan Allen, ESDPP

Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC)

ADM Georgina Lloyd, NAO

Context on Committee Membership

MP Valerie Bradford (LIB – ONT) At the November 25, 2022 PACP appearance on emergency Management, she asked about unmet structural mitigation needs being met, especially the backlog of projects in Alberta and British Columbia, as well as what further work could be done by the Department without further resources.

MP Jean Yip (LIB – ONT) at the previous PACP meeting on Drinking Water asked about the Wastewater Hub model being used in Ontario (Hansard, June 14, 2022).

MP Maninder Sidhu (LIB – ONT) has spoken about the potential for nuclear power to be used as an alternative to diesel power in northern and remote communities (Hansard, June 7, 2022).

MP Peter Fragiskatos (LIB – ONT), Parliamentary Secretary National Revenue, has spoken on Indigenous issues including Indigenous over-representation in the correctional system (Hansard, October 19, 2018), Attawapiskat First Nation (Hansard, April 10, 2019), and supporting Indigenous cultural production (Hansard, June 13, 2022).

MP Brenda Shanahan (LIB – QC) at the June 14, 2022 PACP appearance, asked about complexities of water systems, especially those in remote areas.

MP John Williamson (CPC – NB) (Chair), has spoken regarding Atlantic fishing rights for Indigenous groups: "Indigenous communities are already a part of Canada's traditionally regulated fishing communities. It started small. It is growing, but it is happening. They hold licences. They adhere to DFO guidelines, and they follow the rules. When the government works in silos to change the rules of the game, it is working to undermine the progress that has already been made," (Hansard, October 19, 2020).

MP Stephen Ellis (CPC – NS), recently said in the House that "the final thing we need to really understand, as the government talks about preventive medicine, is that the government refuses to get clean water to indigenous nations in this country. It is shameful." (Hansard, February 8, 2023).

MP Michael Kram (CPC – SK) has spoken in support of Indigenous economic opportunities specific to the Alaska to Alberta railway (Hansard, November 2, 2020). At the November 25, 2022 PACP appearance, his questions focused on specific communities (Kasheschewan and Peguis), as well as how the Department tracks performance indicators in its Departmental Plans and Departmental Results Reports.

MP Kelly McCauley (CPC – AB) spoke about "setting targets for government contracts for indigenous businesses" relating to PPE contracts during the COVID-19 pandemic (Hansard, June 15, 2021). At the November 25, 2022 PACP appearance, he asked about the Department's shift from being reactive to being proactive in terms of emergency management. He also spoke in the House about recent OAG reports: "Indigenous Services Canada paid out hundreds of millions for remediation because it repeatedly ignored calls to fix infrastructure," (Hansard, December 7, 2022).

MP Nathalie Sinclair-Desgagné (BQ) (Vice-Chair), Critic for Public Accounts; Pandemic Programs; Economic Development Agencies, has been vocal in her advocacy for Québec-related issues. At the June 14, 2022 PACP appearance, she asked about the unacceptable delays in ending long-term drinking water advisories, and when the government would finally end the remaining advisories.

MP Blake Desjarlais (NDP – AB), Critic for Treasury Board; Diversity and Inclusion; Youth; Sport and Post-Secondary Education, is Indigenous, born in Edmonton and raised in the Fishing Lake Métis Settlement. At the June 2022 PACP meeting on drinking water, he asked about the delays in ending all drinking water advisories, as well as the need for full consultation and engagement beyond the AFN. He was critical of what he called unacceptable delays, and asked when all long-term drinking water advisories would be ended (Hansard, June 14, 2022).

Previous Appearances at PACP on OAG Report 3 — Access to Safe Drinking Water in First Nations Communities (April 29, 2021 and June 14, 2022)

This appearance will follow the Department's appearance at PACP in June 2022 (and April 2021) on the same subject. At the previous appearance the general themes of the questions from Committee Members included: meeting indicator targets set in Departmental Plans; delays in lifting all advisories and lack of results; regulatory and legislative updates; the Circuit Rider Training Program and water treatment plant operator recruitment and retention; recurring short-term advisories; complexities of water systems in remote areas; consultation and engagement; and wastewater treatment hub models.

There were four follow-ups stemming from the previous appearance (June 2022) which related to statistics on advisories; infrastructure spending; water system status updates; and, recurring advisories.

Socio-economic Gaps in First Nations Reserves – ISC

The committee will also question the minister concerning the report entitled Socio-economic Gaps in First Nations Reserves—Indigenous Services Canada, as the committee agreed that the response provided to the Committee by Indigenous Services Canada, indicating that it would send a final report on the Education Information System by 31 December 2024, was unsatisfactory. Thus, the Committee decided to invite the Department to appear before it to discuss this issue in the same meeting.

PACP Background

Pursuant to Standing Order 108(3) of the House of Commons, the mandate of the Standing Committee on Public Accounts is to review and report on:

  • The Public Accounts of Canada;
  • All reports of the Auditor General of Canada;
  • The Office of the Auditor General's Departmental Plan and Departmental Results Report; and,
  • Any other matter that the House of Commons shall, from time to time, refer to the Committee.

When the Speaker tables a report by the Auditor General in the House of Commons, it is automatically referred to the Public Accounts Committee. The Committee selects the chapters of the report it wants to study and calls the Auditor General and senior public servants from the audited organizations to appear before it to respond to the Office of the Auditor General's findings.

Related Audits

In the Media

'We have to fix it faster': 28 First Nations communities still under boil water advisories - Winnipeg | Globalnews.ca

Report indicates Canada has failed to provide clean drinking water to First Nations | CityNews Ottawa

Water is sacred to Indigenous people. They have been fighting to protect it for decades | CBC Radio

Human Rights Watch issues scathing report on Canada (aptnnews.ca)

World Report 2023: Canada | Human Rights Watch (hrw.org)

Meeting Proceedings

The meeting is scheduled for November 30th, 11 am to 1 pm. First hour will be Minister and officials and the second hour will be officials only.

The Chair will call the meeting to order and provide instructions for the meeting proceedings. He will then introduce the witnesses and invite the Minister to deliver opening remarks. This will be followed by a Q&A period (details below).

It is recommended that all speakers speak slowly and at an appropriate volume to ensure they are heard by the interpreters. All witnesses are asked to mute their microphones unless they are speaking.

Following the opening remarks, there will be rounds of questions from Committee members (as listed below). The rounds of questioning will repeat when the second panel commences in the second hour.

Committee members will pose their questions in the following order:

  • First round (6 minutes for each Party)
    • Conservative Party of Canada
    • Liberal Party of Canada
    • Bloc Québécois
    • New Democratic Party of Canada
  • Second round
    • Conservative Party of Canada (5 minutes)
    • Liberal Party of Canada (5 minutes)
    • Bloc Québécois (2.5 minutes)
    • New Democratic Party of Canada (2.5 minutes)
    • Conservative Party of Canada (5 minutes)
    • Liberal Party of Canada (5 minutes)

The meeting can be watched via ParlVU, however there may be an up to 70-second delay with the webcast.

Other Information for Appearing In-Person

  • Witnesses should arrive early to allow time for security screening. Screening could take 30 minutes or more for those without a Hill pass.

2. Opening Remarks

Check on delivery

Kwe kwe, hello, bonjour.

Before we begin, Mr. Chair I would like to acknowledge that we are meeting on the traditional unceded territory of the Anishnaabeg Algonquin People.

The Auditor General Report 3, on Access to Safe Drinking Water in First Nations Communities, provided recommendations for us to consider. We are working hard to do better for Indigenous communities.

Since 2015, First Nations, with support from Indigenous Services Canada, have lifted 143 long-term drinking water advisories, and 267 short-term drinking water advisories have been prevented from becoming long-term.

Action plans are in place in 26 communities to resolve the 28 active long-term advisories.

Other projects will require more time to complete, as complex challenges such as procuring resources, especially in remote communities, and extreme weather conditions continue to affect infrastructure projects across the country.

The solutions to address the lack of access to safe drinking water are unique to each First Nations community – this is not a "one plan fits all" approach. Plans have been developed for each community and we are currently working with communities on different stages of these plans to improve infrastructure and operations.

Despite the complexity, there are many examples of positive results and innovation being led by First Nations.

This June, Northwest Angle No. 33 in Ontario lifted three long-term drinking water advisories by leading the construction of a new centralized water treatment plant, replacing three outdated pump houses.

Another example is Okanagan Indian Band, where community leaders used an integrated project delivery approach to harness the talents of all participants and ensured accountability and environmental stewardship. The result was improved access to clean water and faster project delivery.

Mr. Chair, we know there is more work to do.

Over the next year, Indigenous Services Canada will continue to work with First Nations communities and organizations, other government departments, and financial institutions to define a new approach to how the department funds on-reserve infrastructure and to return decision-making to where it belongs – with First Nations communities.

Service transfer, in partnership with Indigenous Peoples, is critical to supporting Indigenous self-determination. It is the basis of all our work on access to safe drinking water.

A regulatory regime for safe drinking water in communities is one of your Committee's recommendations. We continue to work with First Nation rights holders, including Modern Treaty and Self-Governing First Nations, and First Nation organizations, on the advancement of new proposed First Nations drinking water and wastewater legislation, which would aim to address and prevent water infrastructure gaps and build a sustainable legal foundation for future generations.

Mr. Chair, I would also like to take this opportunity to discuss my Department's work in the area of education for First Nations students living on reserve. The Government of Canada is committed to supporting First Nations control of First Nations education so that First Nations students living on reserve, as well as Indigenous students pursuing post-secondary education, can receive a high-quality, culturally relevant education.

Indigenous Services Canada continues to work with First Nations, Inuit, and Métis Nation partners to refine Education programming and to address gaps.

The latest departmental results framework and indicators for education include input received from partners, and have been published in detail in the 2022–2023 Departmental Results Report. Co-developed visions, plans and measurement frameworks under Indigenous control are critical; and we are committed to continuing to work in partnership to align what we measure with what Indigenous partners want to see achieved.

Likewise, a new high school graduation rate methodology was introduced in 2022–2023 that responds to First Nations comments about a more representative baseline for student graduation, upon which to build First Nation-defined student outcomes that are not based on the non-Indigenous expectation for "on time" graduation, nor a "one size fits all" approach.

Mr. Chair, I would be happy to respond to questions from committee members.

Meegwetch. Thank you. Merci.

3. Overview of Report 3: Access to Safe Drinking Water in First Nations

Key Messages

  • The 2021 Office of the Auditor General's Report 3: Access to Safe Drinking Water in First Nations Communities found that the Department was not on track to eliminate all long-term drinking water advisories on public water systems in First Nations communities by March 31, 2021.
  • The Department's efforts were constrained by a number of issues, including an outdated policy and formula for funding the operation and maintenance of water infrastructure. Also, a regulatory regime was not yet in place for managing drinking water in First Nations communities. ISC was working to co-develop a new legislative framework with First Nations to ensure drinking water protection comparable to other communities across Canada.
  • Implementing sustainable solutions requires continued partnership between the Department and First Nations. Until these solutions are implemented, First Nations communities will continue to experience challenges in accessing safe drinking water.

Background

Overview of 2021 Report by the Office of the Auditor General (OAG)

  • In February 2021, the Office of the Auditor General tabled a report on access to safe drinking water in First Nations communities, with five recommendations for ISC to work with First Nations communities to strengthen efforts to eliminate all long-term drinking water advisories and prevent new ones from occurring.
  • The report focused on: whether ISC provided adequate support to First Nations communities to ensure access to safe drinking water; examining progress made to eliminate all long-term drinking water advisories on public water systems in First Nations communities; whether necessary funding was provided to operate and maintain drinking water infrastructure; and, reviewing the progress towards developing a regulatory regime for drinking water in First Nations communities.
  • ISC developed a detailed management response and action plan on how the Department was addressing the report's recommendations.

Overview of 2021 Report by the Standing Committee on Public Accounts

  • In April 2021, the Standing Committee on Public Accounts (the Committee) reviewed the Office of the Auditor General's audit and recommendations, as well as ISC's detailed management response and action plan. Further to this review, in June 2021, the Committee presented its own report, entitled Access to Safe Drinking Water in First Nations Communities with four recommended actions and associated deadlines. The Committee's report was re-adopted on February 8, 2022, following the Fall 2021 election. The report echoed the findings of the Auditor General's report and recommended that ISC provide the Committee with a series of reports over the next few years to report on progress related to each of the four recommended actions.
  • The Government Response, tabled in June 2022, addressed the Committee's four recommendations and included the first four progress reports requested by the Committee, outlining activities undertaken to date to improve access to safe drinking water in First Nations communities. It reflects the Minister of Indigenous Services' commitment to improving water infrastructure and building a sustainable foundation that ensures that First Nations communities have access to safe drinking water now and into the future. It also reflects the implementation of a historic settlement agreement resolving national class action litigation on safe drinking water in First Nations communities.

Current Status

  • ISC has been, and continues to work in partnership with First Nations partners to improve water infrastructure in First Nations communities and support access to safe, clean and reliable drinking water.
  • ISC continues to provide sustainable investments to address long-term advisories, prevent short-term advisories, expand delivery systems, build capacity of and retain local operators, support regular monitoring and testing, and support First Nations-led engagement processes to develop new water legislation.
  • The Department provides the OAG with regular status updates on the milestones and on-going activities included as per ISC's detailed action plan.
  • The Government Response was ratified at the Cabinet Committee on Operations.
  • ISC provided the three required annual progress reports to the Committee on March 31, 2023.

Recommendations from OAG and PACP reports, and ISC responses

2021 OAG Report Recommendations:

ISC should work with First Nations communities to strengthen efforts to eliminate all long-term drinking water advisories and prevent new ones from occurring.

ISC should work with First Nations communities to implement long-term solutions to ensure that water systems provide ongoing access to safe drinking water.

2021 PACP Report Recommendation:

Recommendation 1 – on resolving long-term drinking water advisories and implementing long-term solutions: On an annual basis, starting from March 31, 2022, to March 31, 2026, ISC should provide the Committee with a complete plan on its long-term strategy to ensure that drinking water systems are sustainable, including objectives, results and deadlines.

Department Response (including 2022 and 2023 Progress Reports):

  • On December 2, 2020, $309.8 million was announced to enhance work already underway to address outstanding long-term drinking water advisories, and mitigate delays, including those experienced recently as a result of the COVID-19 pandemic.
  • Budget 2021 committed an additional $1.043 billion over 2 years, starting in 2022-23, to support water and wastewater projects. The funding will enable ISC to continue to support the planning, procurement, construction, and commissioning of water and wastewater minor and major capital projects for both new builds, as well as system repairs and upgrades in First Nations communities.
  • Budget 2021 also announced $125.2 million over four years, beginning in 2022-23, and $31.3 million on-going thereafter to continue to support First Nations communities' reliable access to clean water and help ensure the safe delivery of health and social services in First Nations communities.
  • The Department agreed to continue to advocate for a continuation of program funding to ensure continued support for water and wastewater services in First Nations with the objective of obtaining long-term stable funding.
  • Budget 2022 committed $398 million over two years, starting in 2022-23, to support community infrastructure in First Nations communities, of which at least $247 million will be directed toward water and wastewater infrastructure.
  • This new funding will enable the completion of water and wastewater projects to ensure the lifting of long-term drinking water advisories and short-term drinking water advisories from public systems in First Nations communities. It will also support infrastructure projects to increase sustainable access to clean drinking water in First Nations communities.
  • As of November 16, 2023, First Nations, with the support of ISC, have lifted 143 long term drinking water advisories to date.
  • Initiatives are now underway in 28 communities to resolve the remaining 26 long-term drinking water advisories, and the Government of Canada is committed to completing long-term solutions where interim solutions have been used to provide clean water to communities sooner.
  • The initial report requested by the Committee was provided as part of the Government Response, tabled on June 9, 2022.
  • The second progress report was provided to the Committee on March 31, 2023.

2021 OAG Report Recommendation:

ISC should work with First Nations to proactively identify and address underlying deficiencies in water systems to prevent recurring advisories.

2021 PACP Report Recommendation:

Recommendation 2 - on detecting and proactively correcting problems: By September 30, 2022, ISC should provide the Committee with a report on the measures taken to detect and proactively correct the underlying deficiencies of water systems.

Department Response (including 2022 and 2023 Progress Reports):

  • The Department agreed to continue to work with First Nations to conduct performance inspections of water systems annually and asset condition assessments every three years to identify deficiencies. The Department will proactively work with communities to address those deficiencies and prevent recurring advisories.
  • The Department agreed to continue to support the development of a more holistic asset management approach that allows for better forecasting and the ability to account for future infrastructure investment requirements while engaging on operations and maintenance policy reform.
  • The report requested by the Committee has been provided as part of the Government Response, tabled on June 9, 2022.
  • No further reports are required by the Committee.

2021 OAG Report Recommendation:

ISC, in consultation with First Nations, should make it a priority to identify the amount of funding needed by First Nations to operate and maintain drinking water infrastructure, and amend the existing policy and funding formula to provide First Nations with sufficient funding to operate and maintain drinking water infrastructure.

2021 PACP Report Recommendation:

Recommendation 3 - on O&M funding: By April 30, 2022, ISC should provide the Committee with a report outlining the progress made to its funding policy and formula, including salaries, for operating and maintaining drinking water infrastructure in First Nations communities. A final report should also be provided by April 30, 2023.

Department Response (including 2022 and 2023 Progress Reports):

  • The Government of Canada recognizes the importance of operations and maintenance in ensuring First Nations communities have sustainable infrastructure. As part of Budget 2019, the Government of Canada invested $605.6 million over four years, with $184.9 million per year ongoing, to support the operations and maintenance of First Nations' community water and wastewater assets.
  • On December 2, 2020, an additional $1.5 billion was announced, which includes $616.3 million over six years, and $114.1 million ongoing, to increase the support provided for operations and maintenance of water and wastewater infrastructure in First Nations communities. With these new investments combined, by 2025 Canada will increase the annual funding it provides to support the operations and maintenance of water and wastewater systems on a permanent basis by almost four times.
  • With these new investments, ISC's funding support has been increased to 100 percent of formula funding, up from 80 percent, which will support First Nations to better sustain the approximately 1,200 water and wastewater systems across the country. ISC has amended the existing policy on O&M funding to reflect this change.
  • ISC has also updated the O&M calculation methodology to better account for O&M costs.
  • The Department agreed to continue to support operator training and retention and will work with partners to expand capacity building and operator support for First Nations. The Department agreed to continue to provide hands-on support to operators through the Circuit Rider Training Program.
  • Through Budget 2021, ISC expanded the Asset Management Program and implemented the comprehensive inspection program and the extended asset condition assessments as the national standard for inspections going forward.
  • The initial report requested by the Committee has been provided as part of the Government Response, tabled on June 9, 2022.
  • The final report was provided to the Committee on March 31, 2023.

2021 OAG Report Recommendation:

ISC, in consultation with First Nations, should develop and implement a regulatory regime for safe drinking water in First Nations communities.

2021 PACP Report Recommendation:

Recommendation 4 - on developing and implementing a regulatory regime: By April 30, 2022, and by April 30 annually thereafter until the adoption of a regulatory regime for safe drinking water in First Nations communities, ISC should provide the Committee with a report on the ongoing negotiations with First Nations communities to develop and implement a regulatory regime for safe drinking water in First Nations communities.

Department Response (including 2022 and 2023 Progress Reports):

  • The Department agreed to continue to support First Nations-led engagement processes for the review of the 2013 Safe Drinking Water for First Nations Act with the objective of developing and introducing new proposed First Nations drinking water and wastewater legislation in consultation with First Nations as committed in the Safe Drinking Water for First Nations Class Action Settlement Agreement.
  • On June 23, 2022, the 2013 Safe Drinking Water for First Nations Act was repealed, setting the stage for the development of replacement legislation.
  • Since 2018, the Government of Canada has been working with First Nations rights-holders and First Nation organizations, including the Assembly of First Nations, to engage on legislative reform.
  • In summer 2022, the Government of Canada enhanced its engagement with First Nations rights-holders, including Modern Treaty and Self-Governing First Nations, through their own representative institutions and First Nation organizations, including the Assembly of First Nations and the First Nations Advisory Committee on Safe Drinking Water, , to advance the development of proposed replacement legislation.
  • The initial report requested by the Committee was provided as part of the Government Response, tabled on June 9, 2022.]
  • The second progress report was provided to the Committee on March 31, 2023.

4. Office of the Auditor General Recommendations & Progress Towards Addressing the Recommendations

Key Messages

  • The Department welcomed the report on the important issue of safe drinking water in First Nations communities.
  • Each of the five recommendations set out in the report were aligned with actions the Government of Canada was undertaking, and continues to prioritize, to ensure every First Nations community has access to clean water.
  • Indigenous Services Canada (ISC) continues to work in partnership with First Nations partners to improve water infrastructure in First Nations communities and support access to safe, clean and reliable drinking water.

Background

  • The Office of the Auditor General Report included five recommendations:
    1. ISC should work with First Nations communities to strengthen efforts to eliminate all long‑term drinking water advisories and prevent new ones from occurring.
    2. ISC should work with First Nations communities to implement long-term solutions to ensure that water systems provide ongoing access to safe drinking water.
    3. ISC should work with First Nations to proactively identify and address underlying deficiencies in water systems to prevent recurring advisories.
    4. ISC, in consultation with First Nations, should make it a priority to identify the amount of funding needed by First Nations to operate and maintain drinking water infrastructure, and amend the existing policy and funding formula to provide First Nations with sufficient funding to operate and maintain drinking water infrastructure.
    5. ISC, in consultation with First Nations, should develop and implement a regulatory regime for safe drinking water in First Nations communities.

Current Status

The following actions have been completed or are underway to address Recommendations #1-4

  • Since November 2015, and as of November 24, 2023, 143 long-term drinking water advisories on public systems in First Nations communities have been lifted. Projects are now underway in 26 communities to resolve the remaining 28 advisories.
  • Where interim solutions have been put in place to provide clean water to communities sooner, long-term solutions are being implemented in each community to address their long-term water needs.
  • Budgets 2016, 2017, 2018, and 2019 and the 2020 Fall Economic Statement have made historic investments in First Nations water and wastewater infrastructure.
  • In addition, Budget 2021 committed an additional $1.043 billion over two years, starting in 2022–23, to support water and wastewater infrastructure projects. The funding will ensure that ISC can continue to support First Nations in the planning, procurement, construction, and commissioning of water and wastewater projects.
  • Budget 2022 committed $398 million over two years, starting in 2022–23, to support community infrastructure in First Nations communities, of which at least $247 million is expected to be directed toward water and wastewater infrastructure.
  • Most recently, on November 21st, 2023, the Federal Economic Statement announced $1.55 billion over two years, to support clean drinking water for First Nations. This funding represents an at-level renewal of the First Nations Water and Wastewater Enhancement Program (FNWWEP) for the next two years in order to ensure that water and wastewater projects continue without interruption.
  • As of September 30, 2023, with the support of federal funding, First Nations have launched 1,244 water and wastewater projects, including 124 new water and wastewater treatment plants and lagoons, and 851 projects to renovate or upgrade existing infrastructure.
  • The Department continues to support and prioritize long-term measures to ensure that First Nations have ongoing access to safe drinking water. Funding commitments since 2016 have provided First Nations communities with dedicated, long-term stable funding, including targeted funding to enhance capacity, training measures, and retain water and wastewater operators. This includes various capacity building initiatives such as the Circuit Rider Training Program, through investments of approximately $24 million annually.
  • ISC works with First Nations to conduct annual performance inspections of water systems and triennial asset condition assessments to identify deficiencies, and has expanded the extended asset condition reporting process to better support planning for operations and maintenance and recapitalization needs. Based on these assessments, ISC will continue to proactively work with communities to address those deficiencies and prevent recurring advisories.
  • As part of Budget 2019, the Government of Canada invested $605.6 million over four years, with $184.9 million per year ongoing, to support the operations and maintenance of First Nations' community water and wastewater assets.
  • On December 2, 2020, an additional $1.5 billion was announced, which included $616.3 million over six years, and $114.1 million per year ongoing, to increase the support provided for operations and maintenance of water and wastewater infrastructure in First Nations communities.
  • With these new investments combined, by 2025 Canada will increase the annual funding it provides to support the operations and maintenance of water and wastewater systems on a permanent basis by almost four times since 2016.
  • These additional funds enabled an increase to 100 percent, up from 80 percent, of formula-based funding for operations and maintenance, and support First Nations to better sustain the approximately 1,200 water and wastewater systems across the country.

Recommendation #5 — Develop and implement a regulatory regime for safe drinking water in First Nations communities

  • The Government of Canada continues to work in partnership with First Nations, not only to lift all long-term drinking water advisories but to build a robust legal foundation to increase sustainable access to clean drinking water in First Nation communities for generations to come.
  • As part of the 2021 Safe Drinking Water for First Nations Class Action Settlement Agreement, Canada is committed to making all reasonable efforts to develop and introduce new proposed legislation, in consultation with First Nations, to replace the repealed 2013 Safe Drinking Water for First Nations Act.
  • Since 2018, the Government of Canada has been working directly with rights-holders, including Modern Treaty and Self-Governing First Nations, through their own representative institutions and First Nation organizations, including the Assembly of First Nations, to help ensure new proposed legislation reflects First Nations needs and priorities.
  • Since February 2023, the Government of Canada has shared two consultation drafts of a legislative proposal with First Nation rights-holders and First Nation organizations to support the collaborative development of new proposed First Nations drinking water and wastewater legislation.
  • Following engagement on the consultation draft and the thorough feedback provided by partners, on July 21, 2023, an updated consultation draft was shared with First Nation rights-holders and First Nation organizations for additional comments and feedback.
  • It is anticipated that the proposed replacement legislation will include the ability to develop federal regulations for the safety of drinking water in First Nations communities.
  • Engagement is an ongoing process. The Government of Canada is committed to continuing to work with First Nation partners on new proposed drinking water and wastewater legislation that is reflective of feedback received while also addressing commitments made through the Safe Drinking Water for First Nations Class Action Settlement Agreement.

5. Detailed Action Plan

To the recommendations of the Report 3 – Access to Safe Drinking Water in First Nations Communities—ISC Report of the 2021 Reports 1 to 5 of the Auditor General of Canada

Report Ref. No. 1

OAG Recommendation: 3.40 - Indigenous Services Canada should work with First Nations communities to strengthen efforts to eliminate all long-term drinking water advisories and prevent new ones from occurring.

Departmental Response: In the Fall Economic Statement 2020, the Government of Canada committed an additional $309 million to continue the work to address all remaining long-term drinking water advisories as soon as possible. Indigenous Services Canada will continue to actively work with First Nations to address drinking water issues, including by assessing the impact of the coronavirus disease (COVID19) pandemic on timelines and supporting the advancement of projects in a way that respects public health measures. This work is a continuation of the ongoing strategy to address each and every long-term drinking water advisory on public systems on reserves.

The department will continue to support First Nations to prevent advisories from becoming long term by providing sustainable investments to address short-term advisories, expand delivery systems, build the capacity of and retain local water operators, and support regular monitoring and testing.

The department will continue to advocate for a continuation of program funding with central agencies to ensure continued support for water and wastewater services in First Nations with the objective of obtaining long-term stable funding.

Description of Final Expected Outcome/Result: All long-term drinking water advisories in effect on public systems on reserve since November 2015 are resolved.

Expected Final Completion Date: Fiscal year 2023–24, depending on progress on projects and COVID-19 pandemic health and safety measures.

Key Interim Milestones (Description/Dates):

1.1 – Through the LT DWA Action Plan, ISC will work with First Nations to invest $309 million towards projects to address all remaining LT DWAs on public systems on reserve (Expected Completion: March 2022)

  • New Status: Substantial Implementation
  • Revised or Completion Date: New expected completion date is March 2024
  • New Comment: As of September 9, 2022, $216.9 million of the $309 million in acceleration funding committed as part of the 2020 Fall Economic Statement has been allocated towards projects to address all remaining LT DWAs. Due to project delays as a result of the COVID-19 pandemic, the remaining funds will be allocated to continue projects throughout 2022–2024.
    • Risk Assessment Statement: Should the funding not be allocated to projects as planned, progress to lift the remaining LT DWAs will be slower than anticipated.
    • Impact: It will take longer for communities with a LT DWA in effect to have access to clean, safe drinking water.
    • Mitigation Strategy: ISC continues to work with First Nations to invest funding to support projects to address all remaining LT DWAs as soon as possible. ISC will invest all $309 million committed by March 2024.

1.2 – Through the LT DWA Action Plan, ISC will work with First Nations to invest future year program funding that may be obtained towards projects to address all remaining LT DWAs on public systems on reserve (on-going, depending on progress on projects and COVID-19 pandemic health and safety measures)

  • New Status: Preparations for Implementation
  • Revised or Completion Date: N/A
  • New Comment: Since fiscal year 2016–17, and as of September 30, 2023, approximately $835.9 million has been spent on 157 projects to address LT DWAs in First Nations communities. This includes funding spent on infrastructure repairs, upgrades and new construction projects. It does not include operations and maintenance funding or funding spent on operator support and capacity building to address LT DWAs.
  • Since November 2015, and as of November 16, 2023, First Nations, with support from ISC, have lifted 143 LT DWAs on public systems on reserves. Progress is demonstrated on ISC's website: Ending long-term drinking water advisories
  • Through historic investments since 2016, the Government of Canada has made over $5.6 billion in commitments to First Nations to upgrade water and wastewater infrastructure on reserve, to better support the operation and maintenance of systems, to improve the monitoring and testing of community drinking water, and to support ongoing efforts to eliminate and prevent long-term drinking water advisories. This includes Budget 2021, through which the Government of Canada has committed an additional $1.043 billion over 2 years, starting in 2022–2023, to support water and wastewater projects. These funds continue to support the planning, procurement, construction, and commissioning of water and wastewater projects, with projects to address LT DWAs being prioritized.
  • Budget 2022 committed $398 million over two years, starting in 2022–23, to support community infrastructure on reserve, of which at least $247 million will be directed toward water and wastewater infrastructure. This will support the completion of water and wastewater projects to ensure the lifting of long-term drinking water advisories and short-term drinking water advisories from public systems on reserve. The funding supports feasibility and design studies, and the construction, repair, or upgrade of water systems affected by a long-term or and short-term drinking water advisory, including long-term solutions.
    • Risk Assessment Statement: There is a risk that on-going impacts from the COVID-19 pandemic could delay progress being made on on-going projects.
    • Impact: As a result of project delays caused by the COVID-19 pandemic, it will take longer for projects to be completed and, therefore, for First Nations to have access to clean water.
    • Mitigation Strategy: ISC continues to work with First Nations to invest additional funding to support projects to address all remaining LT DWAs as soon as possible.

1.3 – Through the LT DWA Action Plan, ISC will continue to track ST DWAs, and support First Nations to address these advisories before they become long-term (ongoing)

  • New Status: Full Implementation
  • Revised or Completion Date: Actual Completion in December 2021
  • New Comment: Structures and processes are fully implemented and operating as intended. Since November 2015, and as of November 16, 2023, 267 short-term drinking water advisories were prevented from becoming long-term.

1.4 – Working with First Nations, new investments in O&M from Budget 2019 ($605.6 million over four years, starting in 2020–2021, and $184.9 million per year ongoing) and the 2020 Fall Economic Statement ($616.3 million over six years, and $114.1 million per year thereafter) will be used to stabilize funding for First Nations, the Circuit Rider Training Program and other Regional initiatives, including through the establishment of multi-year funding agreements to strengthen support programs (Expected Completion: July 2021)

  • New Status: Full Implementation
  • Revised or Completion Date: Actual Completion in September 2021
  • New Comment: For 2021–2022 a total of $316.9 million has been allocated to Regions and transferred to First Nations to cover 100% of operations and maintenance formula funding, up from 80%. O&M allocations provided this fiscal year will continue into the future, with adjustments for annual inflation and any new assets constructed. In future years, the total annual O&M funding will be provided in initial O&M budgets for April 1st.
  • Multi-year agreements for CRTP services are already in place in Alberta, British Columbia and Quebec regions, as well as with one CRTP service provider in Saskatchewan. With the exception of Atlantic region which has no plans to put multi-year CRTP agreements in place due to the work underway to establish the Atlantic First Nations Water Authority (AFNWA). Plans are in place to move to 5-year agreements when these come up for renewal.

1.5 – Working with First Nations, ISC will support improved operator salaries through better communication of typical salary ranges, and will encourage First Nations to allocate a portion of their increased O&M funding towards improving operator retention (Expected Completion: March 2022).

  • New Status: Preparations for Implementation
  • Revised or Completion Date: New expected completion date is March 2024
  • New Comment: The updated modernized formulas include funding for operator labour and benefits. The new O&M funding aims to provide operator remuneration that is similar to what an equivalently certified operator of a similarly classified facility off-reserve would be paid. On top of the formula-calculated O&M funding, support is also being provided for back-up operators and operator retention. The new O&M funding should help First Nations in adequately remunerating and retaining operators. Discretion is provided to enable communities to fund the operation and maintenance of their water and wastewater assets to best maintain their infrastructure and to meet the water and wastewater needs of their community. This includes determining operator salaries, as well as salaries for back-up operators.
  • The Department has undertaken an analysis of Census 2021 data to better understand the salaries of water operators on reserve. The median income of a water operator on reserve is $40,400 compared with $70,000 for water operators off reserve, about 42% less. The median investment income is $123 compared with $174 off reserve, about 29% less. Compared with the 2016 Census, the gap remains unchanged at 42% with off reserve water operators making an average of $66,600 and on reserve making $38,900. In order to close the gap, ISC will develop guidance for First Nations communities.
    • Risk Assessment Statement: Without guidance, water operators on reserve will continue to be underpaid and it will continue to be difficult to retain them.
    • Impact: Without action to better inform First Nations about the gap, it will be difficult to retain water operators and this can contribute to long-term drinking water advisories.
    • Mitigation Strategy: Budget 2019 and FES 2020 committed additional funds to increase support provided for O&M of water and wastewater infrastructure on reserves. Specifically, the additional funding will allow First Nations to improve water operator salaries and so better retain qualified operators in their communities and train new operators to build water maintenance capacity.

1.6 – Working with First Nations, ISC will ensure monitoring programs continue to provide a final check on the overall safety of drinking water at tap in public water systems, semi-public water systems, cisterns and individual wells in First Nations communities (ongoing).

  • New Status: Substantial Implementation
  • Revised or Completion Date: N/A
  • New Comment: All First Nations communities have access to trained personnel (Community-Based Drinking Water Quality Monitor or an Environmental Public Health Officer) to sample and test drinking water quality at the tap in all water systems, regardless of who funds the infrastructure. As a result of enhanced capacity, First Nations' and ISC's ability to detect potential problems sooner has improved.
  • Budget 2021 announced $125.2 million over four years, beginning in 2022–23, and $31.3 million on-going thereafter to continue to support First Nations communities' reliable access to clean water and to help ensure the safe delivery of health and social services on reserve. This is the first time funding for this important public health function has been stabilized since the 1970s.
    • Risk Assessment Statement: The funding in Budget 2021 only stabilized existing resources first established in 2003 and did not address the service delivery gap that has continued to grow due to infrastructure investments, population growth, climate change and other factors. Without continuing monitoring programs, there is a risk that unsafe water will be provided to communities.
    • Impact: First Nations could be exposed to unsafe drinking water.
    • Mitigation Strategy: Through Budget 2021, ISC has obtained continued funding for monitoring programs to support First Nations communities' reliable access to clean water. Planning is underway to address the remaining funding gap.

1.7 – ISC will continue to seek opportunities to obtain long-term stable funding for water and wastewater to ensure continued support beyond the $553.4 million in funding for FY 2021–22 committed in the 2020 Fall Economic Statement (ongoing).

  • New Status: Planning Stage
  • Revised or Completion Date: N/A
  • New Comment: As part of Budget 2021, the Government of Canada has committed an additional $1.043 billion over 2 years, starting in 2022–23, to support water and wastewater projects. The funding will enable Indigenous Services Canada to continue to support the planning, procurement, construction, and commissioning of water and wastewater minor and major capital projects for both new builds, as well as system repairs and upgrades in First Nations communities. In addition, Budget 2022 committed $398 million over two years, starting in 2022–23, to support community infrastructure on reserve, of which, at least $247 million will be directed toward water and wastewater infrastructure. This funding will support the completion of water and wastewater projects to ensure the lifting of long-term drinking water advisories and short-term drinking water advisories from public systems on reserve. It will also support infrastructure projects to increase sustainable access to clean drinking water on reserve. Additional planning is underway to obtain long-term stable funding beyond March 2024.
    • Risk Assessment Statement: Without long-term and stable funding for water and wastewater infrastructure, ISC will not be able to provide sustainable investments and work in partnership with communities to prevent and end drinking water advisories.
    • Impact: Lack of long-term and stable funding for water and wastewater may prevent ISC from supporting water and wastewater projects in First Nations communities.
    • Mitigation Strategy: ISC continues to seek opportunities to obtain future year program funding.

Report Ref. No. 2

OAG Recommendation: 3.54: Indigenous Services Canada should work with First Nations communities to implement long-term solutions to ensure that water systems in First Nations communities provide ongoing access to safe drinking water.

Departmental Response: Working with First Nations, Indigenous Services Canada will continue to support long-term measures to ensure that First Nations have ongoing access to safe drinking water.

Description of Final Expected Outcome/Result: Long-term solutions are in place to ensure sustainable access to potable water in all First Nations affected by a long-term drinking water advisory on a public system since 2015.

Expected Final Completion Date: Fiscal year 2025–26

Key Interim Milestones (Description/Dates):

2.1 – ISC will continue to work with First Nations to implement projects that address the long-term water needs of all communities affected by LT DWAs since 2015 (Expected Completion: March 2026).

  • New Status: Preparations for Implementation
  • Revised or Completion Date: N/A
  • New Comment: The department is supporting long-term solutions for all systems where LTDWAs were or will be lifted through interim solutions. These solutions are at varying stages of implementation, with many under construction.
    • Risk Assessment Statement: Without long-term solutions in place to address the root causes of long-term drinking water advisories, there is risk that these advisories will recur.
    • Impact: First Nations will not have access to clean drinking water in the long-term.
    • Mitigation Strategy: ISC continues to work with First Nations to invest funding to support projects to meet communities' long-term water needs.

2.2 – ISC will continue to seek opportunities to obtain long-term stable funding for water and wastewater to ensure continued support beyond the $553.4 million in funding for FY 2021–22 committed in the 2020 Fall Economic Statement (refer to item 1.7) (ongoing).

  • New Status: Planning Stage
  • Revised or Completion Date: Refer to Item 1.7
  • New Comment: Refer to Item 1.7

2.3 – Working with First Nations, new investments in O&M from Budget 2019 ($605.6 million over four years, starting in 2020–2021, and $184.9 million per year ongoing) and the 2020 Fall Economic Statement ($616.3 million over six years, and $114.1 million per year thereafter) will be used to stabilize funding for First Nations, the Circuit Rider Training Program and other Regional initiatives, including through establishment of multi-year funding agreements to strengthen support programs (refer to item 1.4) (Expected Completion: July 2021).

  • New Status: Full Implementation
  • Revised or Completion Date: Actual Completion: September 2021
  • New Comment: Refer to Item 1.4

2.4 – ISC will work with First Nations partners to continue to support capacity building and operator training initiatives, such as regional water and wastewater hubs, and will support new and/or expanded First Nation-led initiatives such as regional operator associations, and training programs (ongoing).

  • New Status: Substantial Implementation
  • Revised or Completion Date: N/A
  • New Comment: ISC is working with various organizations on building operator capacity, diversity, networks, and innovative approaches. Organizations include, but are not limited to: Assembly of First Nations, Circuit Rider Trainer Professional Association, as well as technical and/or regional water and wastewater organizations. ISC is also working to support operator recruitment through the Ontario First Nations Technical Services Corporation's Technical Youth Career Outreach Project, which promotes water operator careers.
  • On March 2, 2022, ISC launched a Call for Proposals to identify innovative capacity building measures to support water and wastewater operators on reserve. The call offered up to $500,000 in funding per project, lasting up to two years, for new or expanded capacity building initiatives such as outreach, engagement, scoping studies, research, and pilot projects.
  • Additional funding has also been allocated to regional offices to enable ISC to further support and expand additional operational capacity building initiatives. ISC had previously supported Res'eau's immersive training platform and Water Movement's online training videos. As well, ISC continues to support water and wastewater operator training through the Circuit Rider Training Program, the Ontario First Nations Technical Services Corporation's Technical Youth Career Outreach Project (TYCOP), phase 2 of the Native Women's Association of Canada's Watercarriers project, and the Hubs in Ontario.
    • Risk Assessment Statement: Without ISC-funded support, there is a risk that First Nations communities will not have, nor retain, trained and certified water operators who are key to ensuring access to clean drinking water and reliable infrastructure.
    • Impact: A lack of funding for training, certification, and maintenance capacity building may create challenges in retaining water operators or for operators to achieve the required certification levels.
    • Mitigation Strategy: Budget 2019 and FES 2020 committed additional funds to increase support provided for O&M of water and wastewater infrastructure on reserves. Specifically, the additional funding will allow First Nations to better recruit and retain qualified water operators in their communities, by providing the financial support needed to attract qualified operators with higher salaries and provide appropriate operator training and development. It will also allow for further targeted capacity building investments to organizations and in current programming and for the Circuit Rider Training Program.

2.5 – ISC will continue to support the AFN–led engagement process for the review of the 2013 Safe Drinking Water for First Nations Act. The current round of AFN-led engagements with First Nations were completed at the end of March 2021. Another round of engagements led by the AFN is expected in fiscal year 2021–22 (Expected Completion: March 2022 ).

  • New Status: Full Implementation
  • Revised or Completion Date: Actual Completion: March 2022
  • New Comment: ISC provided the AFN with $668,658 in funding to support another round of AFN-led engagement in fiscal year 2021–2022. ISC support for the AFN–led engagement process on review of the 2013 Safe Drinking Water for First Nations Act is complete.
  • On April 28, 2022, the proposed repeal of the 2013 Safe Drinking Water for First Nations Act was introduced in the House of Commons as a related measure in Budget Implementation Act, 2022, No. 1:
  • The repeal is under Part 5, Division 3 in the text of the Bill: Government Bill (House of Commons) C-19 (44-1) - First Reading - Budget Implementation Act, 2022, No. 1 - Parliament of Canada.

2.6 – ISC will co-develop a legislative framework through a Joint Working Group. Approval of legislation is required, to enable development of a regulatory framework (Expected Completion: December 2022).

  • New Status: Full Implementation
  • Revised or Completion Date: Actual Completion May 2023
  • New Comment: Work with the Assembly of First Nations to advance the development of proposed replacement legislation prior to potential introduction in Parliament has been completed.

2.7 – ISC will continue to support the AFN–led engagement process for the co‑development of a long-term strategy to ensure that drinking water systems are sustainable. The current round of AFN-led engagements with First Nations were completed at the end of March 2021, with further support to be provided in 2021–22 as the AFN-led engagement process continues (Expected completion: March 2022).

  • New Status: Obsolete
  • Revised or Completion Date: N/A
  • New Comment: The long-term strategy on water and wastewater is not something the AFN wishes to continue to pursue. Upcoming AFN engagements will now target broader discussions such as water legislation, long-term infrastructure plans, and closing the gap by 2030.
    • Risk Assessment Statement: Without a long-term strategy, there is a risk that water and wastewater priorities may be lost in the long-term infrastructure plans.
    • Impact: Without the long-term strategy, water and wastewater may not get the attention that is needed for overcoming long-term drinking water advisories.
    • Mitigation Strategy: ISC continues to work with the AFN around the infrastructure plans and will continue to ensure water and wastewater priorities are included.

2.8 – ISC will support the co-development of a long-term strategy for water and wastewater infrastructure (Expected Completion: Winter 2022-23).

  • New Status: Obsolete
  • Revised or Completion Date: N/A
  • New Comment: Refer to Item 2.7

Report Ref. No. 3

OAG Recommendation: 3.61: Indigenous Services Canada should work with First Nations to proactively identify and address underlying deficiencies in water systems to prevent recurring advisories.

Departmental Response: : Indigenous Services Canada will continue to work with First Nations to conduct performance inspections of water systems annually and asset condition assessments every 3 years to identify deficiencies. The department will proactively work with communities to address those deficiencies and prevent recurring advisories.

Through the funding announced as part of the Fall Economic Statement 2020, the department will further increase support for the operation and maintenance of water systems, enabling First Nations to better sustain their infrastructure. The department will continue to support operator training and retention and will work with partners to expand capacity building and operator support for First Nations. The department will continue to provide hands-on support to operators through the Circuit Rider Training Program.

The department will continue to support the First Nations–led engagement process for the development of a long-term strategy to ensure that drinking water systems are sustainable.

Furthermore, the department will continue to support the development of a more holistic asset management approach that allows for better forecasting and the ability to account for future infrastructure investment requirements while engaging on operations and maintenance policy reform.

Description of Final Expected Outcome/Result: Mechanisms are in place to improve the sustainability of water systems in First Nations communities.

Expected Final Completion Date: Fiscal year 2022–23

Key Interim Milestones (Description/Dates):

3.1 – ISC will continue to conduct performance inspections of water systems annually and asset condition assessments every three years, including expanding the extended asset condition assessment process to better support planning for O&M and recapitalization needs. Based on these assessments ISC will continue to work with communities to address any identified deficiencies, while respecting health and safety measures implemented by communities during the COVID-19 pandemic (ongoing)

  • New Status: Full Implementation
  • Revised or Completion Date: Actual completion: April 2023
  • New Comment: Working with First Nations communities and organizations, ISC continues to support annual performance inspections of water systems and triennial asset condition assessments.
  • ISC piloted the extended asset inspection program in fiscal year 2021–2022 and received positive feedback on the lifecycle needs information provided for each asset.
  • In fiscal 2022–2023, ISC implemented the extended asset inspections as the national standard for inspections of on-reserve ISC-funded assets. E-ACRS is fully implemented and the previous ACRS has been discontinued.

3.2 – ISC has allocated $140 million in one-time O&M top-ups to First Nations for fiscal year 2020–21 (2020 Fall Economic Statement increase to O&M funding) to bring funding levels up to (or beyond) 100% of formula funding. To allocate funding in future years, beginning in 2021–22, ISC will develop a new O&M funding methodology to better reflect actual O&M costs and support the ability to implement a new O&M policy (Expected Completion: July 2021).

  • New Status: Full Implementation
  • Revised or Completion Date: Actual completion: July 2021
  • New Comment: The O&M allocations for FY 2021–22 and FY 2022–23 have been determined based on an updated O&M formula that seeks to better account for O&M costs. The fundamental formula methodology does not change (unit cost x quantity x city centre index x remoteness index), but has been updated using data from recent industry costing studies and available regional cost data. Additionally, the indices (city centre and remoteness) have been modernized. The updated formula provides for new asset-based funding levels to address longstanding concerns raised by First Nations communities, including funding to reflect technological advances, industry best practices, applicable water and wastewater standards, and operator training, certification and retention.

3.3 – ISC will work with First Nations partners to continue to support capacity building and operator training initiatives, such as regional water and wastewater hubs, and will support new and/or expanded First Nation-led initiatives such as regional operator associations, and training programs (refer to item 2.4) (ongoing).

  • New Status: Substantial Implementation
  • Revised or Completion Date: Refer to Item 2.4
  • New Comment: Refer to Item 2.4

3.4 – ISC will continue to support the AFN–led engagement process for the co‑development of a long-term strategy to ensure that drinking water systems are sustainable. The current round of AFN-led engagements with First Nations were completed at the end of March 2021, with further support to be provided in 2021–22 as the AFN-led engagement process continues (refer to item 2.7) (Expected Completion: March 2022).

  • New Status: Obsolete
  • Revised or Completion Date: N/A
  • New Comment: Refer to Item 2.7

3.5 – ISC will support the co-development of a long-term strategy for water and wastewater infrastructure (refer to item 2.7) (Expected Completion: Winter 2022-23).

  • New Status: Obsolete
  • Revised or Completion Date: N/A
  • New Comment: Refer to Item 2.7

3.6 – ISC will continue to work with First Nations to advance O&M policy reform as part of broader work towards an asset management approach (Expected Completion: Summer 2022).

  • New Status: Full Implementation
  • Revised or Completion Date: Actual completion: April 2022
  • New Comment: ISC must advance O&M policy reform as part of broader work towards asset management to proactively identify and address underlying deficiencies in water systems to prevent recurring advisories.
  • Engagement on operation and maintenance policy reforms resulted in recommendations for a holistic approach to asset management including to implement a more comprehensive inspection program and to support asset management planning activities for First Nations.
  • Through Budget 2021, ISC expanded the Asset Management Program and implemented the comprehensive inspection program, the extended asset condition assessments as the national standard for inspections going forward. These inspections were piloted in 2021–2022 and are now being implemented (beginning April 2022). Enhancements to the Asset Management Program and comprehensive inspections support First Nations to better understand their assets current deficiencies, ongoing requirements and future lifecycle needs. The information provided through the comprehensive inspections provide First Nations with information needed for the development of their asset management plans. It should be noted that it will take time for the benefit of these new measures to be fully realized, as the inspections are done on a three-year cycle.

Report Ref. No. 4

OAG Recommendation: 3.77: Indigenous Services Canada, in consultation with First Nations, should make it a priority to

  • identify the amount of funding needed by First Nations to operate and maintain drinking water infrastructure
  • amend the existing policy and funding formula to provide First Nations with sufficient funding to operate and maintain drinking water infrastructure

Departmental Response: Indigenous Services Canada will continue to work with First Nations partners to ensure that sufficient water and wastewater operations and maintenance funding is provided and to amend associated policies.

Description of Final Expected Outcome/Result: A new O&M policy is co-developed with First Nations.

Expected Final Completion Date: Fiscal year 2022–23

Key Interim Milestones (Description/Dates):

4.1 – ISC has allocated $140 million in one-time O&M top-ups to First Nations for fiscal year 2020–21 (2020 Fall Economic Statement increase to O&M funding) to bring funding levels up to (or beyond) 100% of formula funding. To allocate funding in future years, beginning in 2021–22, ISC will develop a new O&M funding methodology to better reflect actual O&M costs and support the ability to implement a new O&M policy (refer to item 3.2) (Expected Completion: July 2021).

  • New Status: Full Implementation
  • Revised or Completion Date: Actual completion: July 2021
  • New Comment: Refer to Item 3.2

4.2 – ISC will continue to work with First Nations to advance O&M policy reform as part of broader work towards an asset management approach (refer to item 3.6) (Expected Completion: April 2023).

  • New Status: Full Implementation
  • Revised or Completion Date: Actual completion: April 2022
  • New Comment: Refer to Item 3.6

Report Ref. No. 5

OAG Recommendation: 3.90: Indigenous Services Canada, in consultation with First Nations, should develop and implement a regulatory regime for safe drinking water in First Nations communities.

Departmental Response: Indigenous Services Canada will continue to support the Assembly of First Nations in its lead role in the engagement process. The department will continue to work collaboratively and in full partnership with the Assembly of First Nations, other First Nations and First Nations organizations, and other federal departments to develop a legislative framework that can be presented to Cabinet. Once new legislation is passed, regulations can be developed.

Description of Final Expected Outcome/Result: A legislative framework is developed and best efforts will be made to introduce a new legislation that will support safe drinking water in First Nations communities, and that will be supported by First Nations.

Expected Final Completion Date: Fiscal year 2022–23

Key Interim Milestones (Description/Dates):

5.1 – ISC will continue to support the AFN–led engagement process for the review of the 2013 Safe Drinking Water for First Nations Act. The current round of AFN-led engagements with First Nations were completed at the end of March 2021, with further support to be provided in 2021–22 as the AFN-led engagement process continues (refer to item 2.5) (Expected Completion: March 2022).

  • New Status: Full Implementation
  • Revised or Completion Date: Actual completion: March 2022
  • New Comment: Refer to Item 2.5

5.2 – ISC will co-develop a legislative framework through a Joint Working Group. Approval of legislation is required, to enable development of a regulatory framework (refer to item 2.6) (Expected Completion: December 2022).

  • New Status: Full Implementation
  • Revised or Completion Date: Actual completion: May 2023
  • New Comment: Refer to Item 2.6

6. Progress Reports to the House of Commons Standing Committee on Public Accounts on Access to Safe Drinking Water in First Nations Communities

House of Commons Standing Committee on Public Accounts Recommendations

The House of Commons Standing Committee on Public Accounts' report entitled Access to Safe Drinking Water in First Nation Communities (June 2021) made the following recommendations:

Recommendation 1 – on resolving long-term drinking water advisories and implementing long-term solutions

  • That, by 31 March 2022, Indigenous Services Canada provide the House of Commons Standing Committee on Public Accounts with a complete plan on its long-term strategy to ensure that drinking water systems are sustainable, including objectives, results and deadlines. Both the plan and the findings on progress must be done in collaboration with First Nations communities. Results will include: (a) the amounts invested to resolve long-term drinking water advisories; (b) the current number of long-term advisories; and (c) the current number of short-term advisories. Reports should also be provided by 31 March 2023, 2024 and 2025. In addition, a final report should be provided by 31 March 2026 that outlines the long-term solutions that were implemented in all communities impacted by long-term drinking water advisories since 2015.

Recommendation 2 – on detecting and proactively correcting problems

  • That, by 30 September 2022, Indigenous Services Canada provide the House of Commons Standing Committee on Public Accounts with a report on the measures taken to detect and proactively correct the underlying deficiencies of water systems.
    *Note – this report was submitted in June 2022, and no further reports are required on this topic.

Recommendation 3 – on operations and maintenance funding

  • That, by 30 April 2022, Indigenous Services Canada provide the House of Commons Standing Committee on Public Accounts with a report outlining the progress made to its funding policy and formula, including salaries, for operating and maintaining drinking water infrastructure in First Nations communities. A final report should also be provided by 30 April 2023.

Recommendation 4 – on developing and implementing a regulatory regime

  • That, by 30 April 2022 at the latest and by 30 April on an annually recurring basis thereafter until the adoption of a regulatory regime for safe drinking water in First Nations communities, Indigenous Services Canada provide the House of Commons Standing Committee on Public Accounts with a report on the ongoing negotiations with First Nations communities to develop and implement this regulatory regime.

Introduction

The Government of Canada welcomed the Standing Committee on Public Accounts (the Committee) report, presented in June 2021 and re-adopted in February 2022, on the important issue of safe drinking water in First Nations communities. Improving access to clean, safe drinking water in First Nations communities is a key priority of the Government of Canada. The Minister of Indigenous Services tabled the Government Response in the House of Commons in June 2022. The Response included the first four reports requested by the Committee.

Presented herein are the three progress reports requested by the Committee:

  • Report 1 – Progress on resolving long-term drinking water advisories and implementing long-term solutions, due March 31, 2023;
  • Report 2 – Final report on operations and maintenance funding, due April 30, 2023; and,
  • Report 3 – Progress on developing and implementing a regulatory regime, due April 30, 2023.

Through these reports, the Government will demonstrate the efforts that have been made to date toward each of the recommended actions highlighted in the Committee's report as well as efforts Canada continues to make towards improving water infrastructure and building a sustainable foundation that ensures that First Nations communities have access to safe drinking water now and into the future.

Background

The Government of Canada works with First Nations partners to ensure all First Nations communities have reliable access to safe, clean water. On reserve, the provision of safe drinking water is a shared responsibility among First Nations communities and the Government of Canada. First Nations manage and operate their water and wastewater systems, and are responsible for the planning, design, procurement, construction, and operation and maintenance of the infrastructure. First Nations also monitor water and wastewater systems and issue and rescind drinking water advisories, typically on the recommendation of an Environmental Public Health Officer.

Indigenous Services Canada (ISC) provides advice and financial support to First Nations communities for their public water and wastewater systems, and ensures that drinking water quality verification monitoring programs are in place. To that end, ISC works directly with First Nations to assist communities in monitoring drinking water quality in all water systems at the tap. This includes providing advice and guidance about drinking water safety and wastewater disposal and reviewing infrastructure project proposals from a public health perspective. ISC also provides funding for water services and infrastructure, including the construction, upgrade, operation and maintenance of water treatment facilities on First Nations reserves. Funding is based on community plans and priorities and also supports the training and certification of water system operators.

Drinking water advisories are tools used to ensure public safety and represent a sign of a well-functioning public health prevention system. Drinking water advisories are issued to protect the public from drinking water that is potentially unsafe, or confirmed to be unsafe.

A short-term drinking water advisory (ST DWA) means there is a temporary water quality issue on a specific water system. A drinking water advisory that has been in effect for more than 12 months points to a more systemic issue and is referred to as a long-term drinking water advisory (LT DWA). Drinking water advisories are put in place for various reasons. For instance, a community may issue an advisory if there are problems with the overall water system, such as water line breaks, equipment failure, or poor filtration/disinfection during water treatment. Communities may also choose to issue a drinking water advisory as a precautionary measure, such as when there are emergency repairs in the water distribution system or if a community does not have a trained water system operator.

Since 2016, the Government of Canada has committed over $5.6 billion for First Nations to build and repair water and wastewater infrastructure and support effective management and maintenance of water systems on reserves. This includes commitments made as part of Budget 2021 of $1.043 billion over two years, starting in 2022–23, to support water and wastewater infrastructure projects. The funding will ensure that ISC can continue to support First Nations in the planning, procurement, construction, and commissioning of water and wastewater capital projects both for new builds, as well as system repairs and upgrades. Budget 2021 also announced an additional $125.2 million over four years, starting in 2022–23, and $31.3 million ongoing thereafter, to continue to support First Nations communities' reliable access to clean water and to help ensure the safe delivery of health and social services on reserve. This funding supports the continued provision of environmental public health services on reserve, including water quality monitoring programs. In addition, Budget 2022 committed $247 million over two years, starting in 2022–23, to support water and wastewater infrastructure and enable the completion of water and wastewater projects to ensure the lifting of LT DWAs and ST DWAs from public systems on reserve.

Since 2016, and as of December 31, 2022, more than $3.03 billion of targeted funding (excludes departmental operational funding and operations and maintenance (O&M) funding for First Nations) has been invested to support water and wastewater projects in 589 First Nations communities serving approximately 470,000 people. With support from the Government of Canada, First Nations have replaced or renovated water and wastewater infrastructure, built capacity by training operators, lifted LT DWAs, and prevented short-term advisories from becoming long term. First Nations have used Government of Canada funding to launch 1,058 water and wastewater projects, consisting of 123 new water and wastewater treatment plants and lagoons, 705 projects to renovate or upgrade existing infrastructure, 131 feasibility studies and design projects, and 99 supporting projects and initiatives such as operator training and support, development of source water protection plans, and other water and wastewater related studies and assessments.

The Government of Canada is committed to supporting First Nations in the daily operation and maintenance of their water and wastewater systems. Annually, ISC spends approximately $15.7 million to provide hands-on support for First Nations water and wastewater operator training through the Circuit Rider Training Program, as well as an additional $8.1 million for technical service delivery Hubs in the Ontario Region. As long-term capacity building supports, both the Circuit Rider Training Program and Regional Hubs in Ontario provide on-site training and mentoring services to First Nations operators directly in their communities. ISC also continues to work closely with First Nations partners and other partner organizations to expand capacity building measures and identify additional support measures for operator training and retention in First Nations communities.

Further demonstrating the Government's ongoing commitment to improve sustainable access to clean water in First Nations communities, on December 22, 2021, the courts approved a Settlement Agreement to resolve class action litigation related to safe drinking water in First Nations communities. This Safe Drinking Water for First Nations Class Action Settlement Agreement addresses important concerns identified by First Nations represented in the class action lawsuits. The terms of the settlement agreement include the following:

  • Approximately $1.5 billion in compensation for individuals deprived of clean drinking water during LT 
  • 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 LT 
  • 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 planned modernization of Canada's First Nations drinking water legislation.

ISC is also supporting Indigenous peoples to independently develop and deliver services to address the socio-economic conditions in their communities. ISC is working with First Nations on a community-by-community basis to develop and implement programs and initiatives that will increase capacity building and readiness for the transfer of service delivery, with an understanding of the need for a holistic, community- based approach. ISC is also building partnerships with First Nations organizations that have a mandate from their leadership to advance the shared objective of transferring infrastructure service delivery from ISC to First Nations. As of December 31, 2022, $89.4 million (excluding operating expenses) has been invested toward 196 programs and initiatives that support self-determination by building capacity and readiness.

At the regional level, the Atlantic First Nations Water Authority (AFNWA), through engagements with First Nations leadership, communities, and technicians, has finalized the creation of an opt-in First Nations-led utility to serve participating First Nations communities in the Atlantic region. In November 2022, the Minister of ISC and the Water Authority signed a Service Delivery Transfer Agreement which initiates the transfer of responsibility for the operation, maintenance, and capital upgrades of all water and wastewater assets in participating First Nations to the Indigenous-led AFNWA. The transfer agreement enables First Nations to now officially join the AFNWA after receiving approval from their community members. This first-ever agreement of its kind presents a new approach and funding model to support participating First Nations living on reserve in the Atlantic provinces to take full control of water and wastewater service delivery. Through Indigenous Services Canada, the federal government has committed approximately $257 million in funding for this work, including $173 million over 10 years from Budget 2022 that will provide sustainable funding for operations and capital programs.

Report 1 – Progress on resolving long-term drinking water advisories and implementing long-term solutions, due March 31, 2023

The Government of Canada and First Nations are working in partnership to improve access to clean drinking water and lift all LT DWAs on public systems on reserves as soon as possible.

Since Budget 2016, the Government of Canada has committed over $5.6 billion until 2025–26 to build and repair water and wastewater infrastructure and support effective management, operations and maintenance of water and wastewater systems on reserve. Most recently, Budget 2022 committed 247 million over two years, starting in 2022–23, to support water and wastewater infrastructure. This will support the completion of water and wastewater projects to ensure the lifting of LT DWAs and ST DWAs from public systems on reserve. It will also support infrastructure projects to increase sustainable access to clean drinking water on reserve. New funding will support feasibility and design studies, and the construction, repair, or upgrade of water systems affected by a long-term or short-term drinking water advisory, including long- term solutions.

As of December 31, 2022, more than $3.03 billion of targeted capital funding has been invested to support water and wastewater projects in 589 First Nations communities serving approximately 470,000 people. Of that, approximately $761.2 million has been spent on 150 projects to address long-term drinking water advisories in First Nations communities. This includes funding spent on infrastructure repairs, upgrades and new construction projects. It does not include O&M funding or funding spent on operator support and capacity building to address LT DWAs.

In November 2015, there were 105 LT DWAs in effect on public systems on reserves across the country. An additional 70 short-term advisories have become long-term since 2015. Short-term advisories can arise for a number of reasons such as water line breaks, equipment failure, and maintenance issues. While most of these situations are resolved quickly by the community operators, some advisories require more time to address due to the complex nature of the issues or the scope of the work required to fix the problem.

As of March 3, 2023, First Nations, with support from ISC, have lifted 138 LT DWAs, including seven in the past year, and deactivated five LT DWAs. This means that over 7,235 homes and 513 community buildings, previously under an advisory, now have access to reliable, clean drinking water. The work continues and initiatives are underway in 28 communities to resolve the remaining 32 LT DWAs. Where interim solutions have been put in place to provide clean water to communities, long-term solutions are being implemented, in each community to address their long-term water needs, the majority of which are under construction.

Resolving short-term advisories before they become long-term is an important part of the overall work to eliminate LT DWAs. Since November 2015, and as of March 3, 2023, 244 ST DWAs have been lifted, preventing them from becoming long term, including 29 in the last year. There are 12 ST DWAs in effect and work is underway to address these before they become long-term.

ISC is working in full partnership with First Nations communities, including with First Nations technical advisors and leaders, to support sustainable First Nations-led approaches to ensure that on-reserve water systems are safe. The solutions to address the lack of access to safe drinking water are unique to each First Nations community, and departmental officials work closely with each community to find the most appropriate solution. Water systems are sized based on the population they serve, and the most appropriate technology for producing clean potable water based on the source water to be treated is designed by qualified engineers contracted by the First Nation. Ultimately, the decision to put in place a particular solution is made by First Nation's leadership, as they are the managers and operators of their water and wastewater infrastructure.

Despite focused efforts, some challenges to the provision of clean drinking water remain. The COVID-19 pandemic has extended project completion timelines and affected the supply chain. Market conditions, which include high inflation and increased prices also delay project completion. Additionally, the availability of human resources, seasonal construction periods, shortened winter road seasons and geographical challenges are barriers to the timely completion of First Nation led projects.

Mitigation measures are in place to reduce these challenges, including expediting seasonal work, supporting First Nations in staggering project tenders and funding third party programs to support operator training and retention. For example, ISC's Circuit Rider Training Program (CRTP) provides hands-on training support for operators directly in First Nation communities.

First Nations are responsible for issuing and rescinding drinking water advisories, generally based on the advice of an Environmental Public Health Officer. Drinking water advisories are not always the result of a technical problem. Some communities already have clean drinking water, according to advice from an Environmental Public Health Officer, but are hesitant to lift advisories due to local considerations, such as awaiting the completion of long-term solutions.

In other instances, advisories remain in effect as a result of operational issues. Water operators are key to ensuring communities have access to clean drinking water and reliable infrastructure. As such, in conjunction with the significant investments made by the Government of Canada to enhance water and wastewater infrastructure on reserve, the Department continues to invest additional funding to support First Nations in creating and sustaining a qualified workforce of water and wastewater operators. ISC works closely with First Nations partners and partner organizations to enhance capacity building measures for operators on reserve.

The Department supports water and wastewater operators through a number of national and regional initiatives that support First Nations communities with building and retaining the capacity to operate, service, and maintain their water and wastewater systems. These initiatives also support operator training and retention.

Indigenous Services Canada is working in full partnership with First Nations communities, including with First Nations technical advisors and leaders, to support sustainable First Nations-led approaches to ensure that on-reserve water systems are safe. This includes Technical Services Advisory Group in Alberta (TSAG), the Ontario First Nations Technical Services Corporation (OFNTSC), the Atlantic First Nations Water Authority (AFNWA), and technical service delivery Hubs in Ontario, among others.

ISC's CRTP provides First Nations water and wastewater operators with hands-on training on how to operate, service, and maintain water and wastewater systems on reserve. This long-term capacity building program delivers on-site training and mentoring services to First Nation operators across Canada via third-party experts. Qualified experts may also assist First Nation operators in obtaining and maintaining their certification, and may provide advice to Chiefs and Councils on how to develop and maintain their own clean and safe water systems. In some communities, they may also provide 24/7 emergency support to operators. The program supports capacity in First Nations communities through: developing and maintaining capacity to manage systems; increasing reliability of systems; ensuring efficient operations; ensuring standards for health and safety are met; and, maximizing the use of existing infrastructure. There are 68 Circuit Rider Trainers employed through the program, supporting more than 700 systems operators in 505 participating First Nation communities.

In March 2022, ISC launched a Capacity Building Call for Proposals to identify innovative support measures for water and wastewater operators. The call offered applicants up to $500,000 in funding, over two years, for new or expanded initiatives addressing capacity building, operator supports, diversity and culture, and/or innovative solutions. The call received substantial interest with over 100 proposal submissions, from every region across the country. Proposals were received from First Nations communities, Tribal Councils, Indigenous organizations, technical services providers, universities/colleges, non-profit organizations, and other organizations. The capacity building initiatives recommended for funding by a committee, are now underway and include initiatives such as: training workshops for operators and managers; community outreach and awareness raising; internship programs; source water protection planning; youth education and outreach; and, development of a variety of training materials.

Moreover, ISC has supported and continues to support First Nations-informed initiatives in order to raise awareness, enhance community engagement, improve recruitment, and support water and wastewater operators working on reserve:

  • ISC has supported and provides support for operator training and support:
    • Circuit Rider Training Professional Association (CRTPA): to convene Trainers, Service Providers, and operators in an annual conference, and foster networking and shared learning experiences
    • Water Movement's Video Learning Library: free online training videos, featuring Indigenous water operators, operational troubleshooting techniques, best maintenance practices, and how-to videos to support equipment reliability and integrity, and traditional knowledge
    • Res'Eau Centre for Mobilization: the Operators' Walkthrough Laboratory (OWL), a mobile learning platform that offers real-world training on potable water treatment, system design, and operations; as well as a "hackathon" to engage youth in innovative and collaborative problem-solving on water issues on reserve
  • ISC has supported and provides supports to build capacity and diversity of water operators:
    • Ontario First Nations Technical Services Corporation's Technical Youth Career Outreach Program (TYCOP): to spotlight Indigenous role models, offer mentorship, and promote STEM careers for Indigenous youth
    • Native Women's Association of Canada's Water Carriers project: which amplifies the voices of Indigenous women and 2SLGBTQQIA+ peoples' as water protectors or water carriers, and offers to share traditional knowledge teachings on water following a series of traditional Sharing Circles online
    • Clan Mothers Turtle Lodge: a one-year pilot project to provide water operator training and certification for trauma survivors, including holistic wraparound supports.

The Department is closely tracking progress towards lifting the remaining LT DWAs on public systems on reserves. The Department also regularly publishes the latest information on LT DWAs that have been lifted and that remain in effect on public systems on reserves through the Government of Canada's "Ending long-term drinking water advisories" webpage.

Working with First Nations, ISC will ensure monitoring programs continue to provide a final check on the overall safety of drinking water at the tap in public water systems, semi-public water systems, cisterns and individual wells in First Nations communities.

Working with First Nations, ISC will continue to support long-term measures to ensure that First Nations communities have ongoing access to safe drinking water and to support the implementation of projects that address the long-term water needs of all communities affected by LT DWAs since 2015.

Report 2 – Final report on operations and maintenance funding, due April 30, 2023

The Government of Canada has committed to new investments in O&M funding, which will directly benefit communities. As part of Budget 2019, the Government of Canada invested $605.6 million over four years, starting in 2020–21, including an additional $184.9 million each year thereafter, to support the operations and maintenance of First Nations' community water and wastewater assets. In addition, as part of the 2020 Fall Economic Statement, the Government of Canada committed an additional $616.3 million over six years starting in 2020–21, and $114.1 million each year thereafter, to increase support for operations and maintenance of water and wastewater infrastructure on reserves. With these recent investments combined, by 2025-26 the Government of Canada will have increased the annual funding it provides to support the operations and maintenance of water and wastewater systems on a permanent basis by almost four hundred percent.

Historically, ISC funded the operations and maintenance of water and wastewater infrastructure based on a funding formula. As a subsidy, 80 percent of the formula amount was provided to First Nations. With these new investments, ISC's funding support has been increased to 100 percent of formula funding, which will support First Nations to better sustain the approximately 1,200 water and wastewater systems across the country. ISC has amended the existing policy on O&M funding to reflect this change.

ISC has also updated the O&M calculation methodology to better account for O&M costs. The fundamental formula methodology (unit cost x quantity x city centre index x remoteness index) has been updated using data from recent industry costing studies and available regional cost data. Additionally, the indices (city centre and remoteness) have been modernized. The updated formula provides for new asset-based funding levels to address longstanding concerns raised by First Nations communities, including funding to reflect technological advances, industry best practices, applicable water and wastewater standards, and operator training, certification and retention.

Generally, O&M funding should cover the cost components required to operate and maintain water or wastewater systems and associated equipment, including operator salary(ies), benefits and training; supplies and materials, including process chemicals and fuel; parts, tools and equipment required for everyday operations and maintenance activities; electricity and other utilities; contracted repair and maintenance services; and the full cost of Municipal-type Service Agreements for water and wastewater services.

The increase in O&M funding started flowing directly to First Nations with $140 million in O&M top-ups provided by the end of 2020–21. In 2021–22, First Nations received a total of $316.9 million for O&M, up from $109 million in 2018-19. O&M funding at this level will continue into the future, with adjustments for annual inflation and any new assets constructed.

As managers and operators of their water and wastewater systems, First Nations are responsible for determining salary levels of their water system operators. The increase in O&M funding aims to provide operator remuneration that is similar to what an equivalently certified operator of a similarly classified facility off-reserve would be paid. This will enable First Nations to better retain qualified water operators in their communities, including through improved salaries, according to First Nations priorities.

New investments in O&M from Budget 2019 and the 2020 Fall Economic Statement are being used to stabilize funding for the CRTP and other regional initiatives, including initiatives that target youth and women, which will strengthen the support provided to First Nations. Multi-year agreements for CRTP services are already in place in Alberta, British Columbia and Quebec regions, as well as with one CRTP service provider in Saskatchewan. With the exception of Atlantic region which has no plans to put multi-year CRTP agreements in place due to the work underway to establish the Atlantic First Nations Water Authority (AFNWA), plans are in place to move to 5-year agreements when these come up for renewal.

New approaches are needed in terms of funding the operations and maintenance of infrastructure on reserve. Recent investments in operations and maintenance provide an opportunity to make substantive progress towards Asset Management Reform – providing a predictable funding stream that allows for strategic decision-making built upon detailed asset information. The Department is working with First Nations to co-develop a new approach to operations and maintenance for all infrastructure on reserve, including water and wastewater.

Engagement on operation and maintenance policy reforms resulted in recommendations for a holistic approach to asset management including to implement a more comprehensive inspection program and to support asset management planning activities for First Nations.

Through Budget 2021, ISC expanded the Asset Management Program and implemented the comprehensive inspection program and the extended asset condition assessments as the national standard for inspections going forward. These inspections were piloted in 2021-2022 and have been broadly implemented beginning in April 2022. ISC's Asset Management Program is proposal based, and each First Nation is progressing at the speed that is right for them.

Enhancements to the Asset Management Program and comprehensive inspections support First Nations in better understanding their assets' current deficiencies, ongoing requirements, and future lifecycle needs. In addition, the information provided through the comprehensive inspections can also provide First Nations with information needed for the development of their asset management plans. It should be noted that it will take time for the benefit of these new measures to be fully realized, as the inspections are done on a three-year cycle.

Report 3 – Progress on developing and implementing a regulatory regime, due April 30, 2023

Ensuring lasting drinking water and wastewater infrastructure in First Nations communities requires a modern and effective legal regime.

The Safe Drinking Water for First Nations Act came into force in 2013, enabling the Government of Canada to develop federal regulations to support access to safe, clean and reliable drinking water, and the effective treatment of wastewater on reserve. First Nations repeatedly called for the repeal and replacement of the 2013 Safe Drinking Water for First Nations Act, citing: lack of adequate, predictable and sustainable funding; non-recognition of Aboriginal rights; potential infringements on Aboriginal and treaty rights; lack of proper protection of source water; and insufficient engagement.

On December 22, 2021, the Federal Court and the Court of Queen's Bench of Manitoba jointly approved the Safe Drinking Water for First Nations Class Action Settlement Agreement, which commits Canada to making all reasonable efforts to introduce legislation repealing the 2013 Safe Drinking Water for First Nations Act by March 31, 2022 and to develop and introduce replacement legislation, in consultation with First Nations, by December 31, 2022.

Through Budget 2022, the Government reaffirmed its commitment to repeal the 2013 Safe Drinking Water for First Nations Act and work with First Nations to develop replacement legislation.

On April 28, 2022, the proposed repeal of the 2013 Safe Drinking Water for First Nations Act was introduced in the Parliament of Canada as a related measure in Budget Implementation Act 2022, No. 1. The Bill received royal assent on June 23, 2022, formally repealing the 2013 Safe Drinking Water for First Nations Act and setting the stage for the development of replacement legislation.

Engagement

Since 2018, the Government of Canada has been engaging First Nations on legislative reforms to First Nations safe drinking water.

In summer 2022, the Government of Canada enhanced its engagement with First Nation rights holders, First Nation organizations, including the Assembly of First Nations, and Modern Treaty and Self-Governing Nations, to advance the development of proposed replacement legislation. This included working with the Assembly of First Nations to establish a Joint Working Group on Safe Drinking Water and Wastewater for First Nations Legislation to advance a framework for new proposed legislation. In winter 2023, an expanded Dialogue Table was created with the Assembly of First Nations to accelerate collaborative work on proposed replacement legislation.

First Nations continue to highlight the following key priorities: recognition of rights; sustainable funding for drinking water and wastewater services; proper protection of source water; and the need for ongoing engagement on water issues that affect First Nations.

Status and Next Steps

In February 2023, the Government of Canada shared a consultation draft of a legislative proposal for First Nations drinking water and wastewater and related infrastructure with all First Nations rights holders and First Nations organizations for review and feedback. Sharing this consultation draft represents an important milestone in engaging directly with First Nations rights holders and ensuring that federal laws are consistent with the United Nations Declaration on the Rights of Indigenous Peoples.

Should the legislative proposal receive royal assent, the Government of Canada will continue to work with First Nations rights holders and First Nation organizations, including the Assembly of First Nations, to implement the legislative proposal. This forward-looking work would include: support for First Nations law-making; consultation with First Nations on the creation of federal regulations and funding allocation decisions; bilateral and trilateral discussion tables to support entering into of government-to- government water agreements, and support for the creation of a First Nations-led water commission. Combined these measures would ensure the development and implementation of a regulatory regime for safe drinking water in First Nations communities that respects First Nation self-determination.

7. Updated Drinking Water Advisories in First Nations Communities and Timelines

Key Messages

  • The Government of Canada works with First Nations partners towards ensuring all First Nations communities have reliable access to clean water, and remains committed to lifting all long-term drinking water advisories in First Nations communities.
  • There are currently no long-term drinking water advisories in effect on public systems in First Nations communities in British Columbia, Alberta, Quebec, and the Atlantic Region.
  • In every community with a long-term drinking water advisory, there is an action plan in place to resolve it. Initiatives are now underway in 26 communities to resolve the remaining 28 long-term drinking water advisories, and the Government of Canada is committed to accelerating long-term solutions where interim solutions have been used to provide clean water to communities.

Background

Drinking Water Advisories

  • Responsibility for safe drinking water in First Nations communities is shared between First Nation communities and the Government of Canada.
  • First Nations are the owners and operators of their water and wastewater systems and are responsible for issuing or rescinding drinking water advisories, generally based on the advice of an environmental public health officer.
  • ISC provides advice and financial support to First Nation communities for their public water and wastewater systems and ensures that drinking water quality monitoring programs are in place.
  • Water needs are dynamic, and short-term advisories can arise for a number of reasons such as water line breaks, equipment failure, and maintenance or weather issues.
  • Resolving short-term advisories before they become long-term is an important part of the overall work to eliminate long-term drinking water advisories.
  • While most of these situations are resolved quickly by the community operators, ISC continues to work closely with those communities that require support.
  • Short-term drinking water advisories are put in place for various reasons such as water line breaks, equipment failure, or poor filtration/disinfection during water treatment.
  • Communities may also choose to issue a drinking water advisory as a precautionary measure, such as when there are emergency repairs in the water distribution system or if a community does not have a trained Water System Operator.
  • A drinking water advisory that has been in effect for more than 12 months can point to a more systemic issue and are referred to as long-term drinking water advisories.
  • For First Nation communities with a drinking water advisory currently in place, ISC provides supplies such as, bottled water, and hand sanitizer where needed.

Drinking Water Advisories and timelines

  • The COVID-19 pandemic, supply chain challenges and human resource shortages have extended completion timelines of infrastructure projects across the country. In some cases, this has had an effect on getting equipment and resources into communities, especially in remote and northern areas.
  • Additionally, other challenges common on any infrastructure project, have impacted project timelines. These factors include manufacturing and shipping delays for parts, shortened winter road seasons, weather and contractor coordination.

Current Status

Resolving long-term drinking water advisories

  • The Government of Canada continues to work in partnership with First Nations, as owners and operators of their water systems, not only to lift all long-term drinking water advisories on public systems in First Nations communities as quickly as possible, but to build a sustainable foundation and increase sustainable access to clean drinking water in First Nations communities for generations to come.
  • Since fiscal year 2016–17, and as of September 30, 2023, approximately $835.9 million has been spent on 157 projects to address long-term drinking water advisories in First Nation communities. This includes funding spent on infrastructure repairs, upgrades, and new construction projects. This funding does not include operations and maintenance funding, or funding spent on operator support and capacity building to address long-term drinking water advisories.
  • As of November 16, 2023, First Nations, with the support of ISC, have lifted 143 long term drinking water advisories to date, which means that over 8,030 homes and 583 community buildings now have access to reliable, clean drinking water.
  • In addition, 267 short-term advisories have been lifted before becoming long-term.
  • Initiatives to address all remaining long-term drinking water advisories are at various stages:
    • 7% are at the feasibility study phase
    • 0% are in design phase
    • 32% are under construction
    • 61% are complete and additional issues are being addressed
  • Contractor and human resources shortages, technical challenges and supply chain interruptions continue to create delays in meeting targets.
  • Progress has slowed over 2023–2024 as a result of these challenges, as well as the complex nature of the challenges affecting the ability to lift many of the remaining advisories. First Nations manage their projects, and progress is achieved at their pace.
  • Repairing, upgrading and constructing new infrastructure is only one aspect of producing clean water. If the advisory is the result of challenges in ensuring continuous safe operation, maintenance or oversight of the system, ISC provides support directly or funds First Nations organizations, such as tribal councils, to support the community in providing further training or assistance to operators.
  • As part of the 2020 Fall Economic Statement, an additional $309.8 million in funding was announced to support and accelerate on-going work to lift all long-term drinking water advisories on public systems in First Nations communities. This funding has enhanced work already underway to address outstanding long-term drinking water advisories and mitigate delays.
  • Budget 2022 committed $398 million over two years, starting in 2022–23, to support community infrastructure in First Nations communities, of which at least $247 million will be directed toward water and wastewater infrastructure. This funding continues to support the important work to complete water and wastewater projects to ensure the lifting of long-term and short-term drinking water advisories from public systems in First Nations communities.
  • As outlined in the Federal Economic Statement on November 21st, 2023, $1.55B over 2 years to is proposed to support clean drinking water for First Nations. This funding represents an at-level renewal of the First Nations Water and Wastewater Enhancement Program for the next two years in order to ensure that water and wastewater projects continue without interruption.
  • The Department continues to work in partnership with First Nations, not only to lift all long-term drinking water advisories on public systems in First Nations communities as quickly as possible, but to build a sustainable foundation and increase sustainable access to clean drinking water in First Nations communities for generations to come.

8. Overview of Operations and Maintenance Funding for Water and Wastewater

Key Messages

  • The Government of Canada recognizes the importance of operations and maintenance in ensuring First Nation communities have sustainable infrastructure. That is why as part of Budget 2019, the Government of Canada invested $605.6 million over four years, with $184.9 million per year ongoing, to support the operations and maintenance of First Nations' community water and wastewater assets.
  • On November 30, 2020, an additional $1.5 billion was announced as part of the 2020 Fall Economic Statement, which includes $616.3 million over six years, and $114.1 million per year ongoing, to increase the support provided for operations and maintenance of water and wastewater infrastructure on reserves.
  • In 2022-2023, the Department regularized operations and maintenance funding based on 100 per cent of the modernized formulas. By 2025, with these new investments combined, the Government of Canada will increase the annual funding it provides to support the operations and maintenance of water and wastewater systems on a permanent basis by almost four times.

Background

  • Responsibility for safe drinking water on reserves is shared between First Nation communities and the Government of Canada.
  • First Nations are responsible for the daily operation and maintenance of their water and wastewater systems, and decide how operations and maintenance funding is used in the community, including determining operator salaries.
  • As part of Budget 2019, the Government of Canada invested $605.6 million over four years, with $184.9 million per year ongoing, to support the operations and maintenance of First Nations' community water and wastewater assets.
  • On November 30, 2020, an additional $1.5 billion was announced as part of the 2020 Fall Economic Statement, which includes $616.3 million over six years, and $114.1 million per year ongoing, to increase the support provided for operations and maintenance of water and wastewater infrastructure on reserves.
  • The additional funds announced on November 30, 2020, will enable an increase to 100 per cent, up from 80 per cent, of formula-based funding for operations and maintenance, and will support First Nations to better sustain the approximately 1,200 water and wastewater systems across the country.
  • Specifically, the funding will allow First Nations to improve water operator salaries and so better retain qualified operators in their communities, train new operators to build water maintenance capacity, improve or maintain asset condition ratings, and ensure longer lifecycles for water assets.
  • ISC supports water and wastewater operators through a number of national and regional initiatives, including the Circuit Rider Training Program, which assists First Nation communities with building and retaining the capacity to operate, service, and maintain their water and wastewater systems.
  • Annually, the Department spends approximately $24 million to support First Nations water and wastewater operator training, including funding the Circuit Rider Training Program and Ontario Hubs.

Current Status

  • The increase in operations and maintenance funding announced as part of the 2020 Fall Economic Statement has already started flowing directly to First Nations.
  • All water and wastewater assets have modernized formulas that are being funded at 100 per cent including considerations for remoteness and are scheduled for annual updates to account for factors that impact costs.
  • The Department is aware that new approaches are needed in terms of funding the operations and maintenance of infrastructure on reserve.
  • Recent investments in operations and maintenance provide an opportunity to make substantive progress towards Asset Management Reform – providing a predictable funding stream that allows for strategic decision-making built upon detailed asset information.
  • ISC continues to support the development of a more holistic asset management approach that allows for better forecasting and the ability to account for future investment requirements, which enables effective operations and maintenance of infrastructure and better informs strategic planning and decision-making.
  • The Department is working with First Nations to co-develop a new approach to operations and maintenance for all infrastructure on reserve, including water and wastewater.

9. Overview of Water Operator Capacity Development

Key Messages

  • Water operators are key to ensuring communities have access to clean drinking water and reliable infrastructure.
  • As part of Budget 2019, the Government of Canada invested $605.6 million over four years, with $184.9 million per year ongoing to support the operations and maintenance of First Nations' community water and wastewater assets.
  • On December 2, 2020, an additional $1.5 billion was announced through FES 2020, which included $616.3 million over six years, and $114.1 million ongoing, to increase the support provided for operations and maintenance of water and wastewater infrastructure on reserves.
  • Increased operations and maintenance funding will enable First Nations to better retain qualified water operators in their communities, including through improved salaries, according to First Nations priorities.

Background

  • Indigenous Services Canada (ISC) is working in full partnership with First Nation communities, including with First Nations technical advisors and leaders, to support sustainable First Nations-led approaches to ensure that on-reserve water systems are safe. This includes Technical Services Advisory Group in Alberta, the Ontario First Nations Technical Services Corporation, the Atlantic First Nations Water Authority, and technical service delivery Hubs in Ontario.
  • This funding will support First Nations to better sustain the approximately 1,200 water and wastewater systems across the country. Specifically, this funding will allow First Nations to improve water operator salaries and better retain qualified operators in their communities, train new operators to build water maintenance capacity, improve or maintain asset condition ratings, and ensure longer lifecycles for water assets.
  • The Department conducted an analysis using 2016 Census data comparing on-reserve and off-reserve water and wastewater operator salaries and found a 42% wage gap. Recent investments in operations and maintenance funding aim to improve the gap.
  • While the increase in operations and maintenance funding will enable First Nations to support improved operator retention through wage increases and/or other support measures, ISC does not track or direct the amount of funding spent on operator salaries; First Nations are responsible for determining salary levels of their water system operators.

Current Status

  • ISC continues to support innovative solutions to improve the retention, recruitment, and capacity building of water and wastewater operators working on reserve to ensure First Nations communities have sustainable access to drinking water. A variety of these initiatives are detailed below.
  • The Circuit Rider Training Program (CRTRP) and Ontario Hubs — Annually, the Department spends approximately $24 million to provide First Nations water and wastewater operators with hands on training and 24/7 technical support to ensure First Nations can operate and maintain their water and wastewater infrastructure. Over 750 operators are supported and trained in approximately 540 First Nation communities across the country.
  • Technical Youth Career Outreach Program — ISC also provides funding to the Technical Youth Career Outreach Program (TYCOP), which aims to increase recruitment of First Nations' youth in Science, Technology, Engineering and Math (STEM) careers, including water and wastewater operators. TYCOP builds awareness for First Nations youth through outreach activities on reserve, including hosting two large annual career fairs and attending many others; travelling and delivering school presentations by Indigenous professionals; and, the development of a website with role model profiles and career guides for First Nations youth.
  • National First Nations Water Leadership Award — In 2018, Indigenous Services Canada established the National First Nations Water Leadership Award to recognize leadership and outstanding dedication to the advancement of clean and safe drinking water, including water operations and water sustainability, in First Nation communities.
  • This year, ISC received a record number of 30 nominations from across the country. The winner of the 2023 National First Nations Water Leadership Award was announced at the 14th annual BC and Yukon Water and Wastewater Operational Excellence conference in Vancouver in October 2023. Warren Brown of Lytton First Nation was recognized for his professionalism and compassion, and his continued dedication as a strong advocate for water operator education and training.
  • Capacity Building Call for Proposals — In March of 2022, ISC launched a Call for Proposals to identify innovative capacity-building measures to support water and wastewater operators on reserve. Proposals from First Nation communities, Tribal Councils, and other organizations were reviewed and 32 projects were funded to support water and wastewater operators across the country.
  • The call targeted initiatives that would address foundational capacity building (e.g., recruitment, retention, etc.), supporting operators (e.g., asset, operations, maintenance planning, etc.), diversity and cultural initiatives (e.g., to create safe and inclusive spaces, empower underrepresented peoples, etc.), as well as other innovative measures. Funded projects include a variety of training workshops for operators and managers; community outreach and awareness raising; internship programs; source water protection planning; youth education and outreach; and, development of a variety of training materials.
  • Clan Mothers' Water Operator Training Project — Through this project the Department actively seeks to engage and encourage underrepresented peoples in pursuing careers in water and wastewater operations, in order to diversify and support long-term recruitment, development, and retention of the existing water operator workforce.
  • Most recently, the Department supported a one-year pilot project with Clan Mothers to provide water operator training for 12 trauma survivors.
  • The pilot project will provide operator training, including holistic wraparound supports, Level 1 water operator certification, and work experience placements.

10. Safe Drinking Water Class Action Litigation

Key Messages

  • Indigenous Services Canada remains committed to renewing and strengthening Canada's relationship with First Nations, Inuit, and Métis communities to advance self-determination. The Government of Canada respects the right of Indigenous groups to seek the Court's assistance on the important issue of safe drinking water.
  • The Government of Canada welcomes the advancement of approaches to litigation that promote resolution and settlement in the spirit of reconciliation.
  • The Government of Canada is committed to ongoing implementation of the 2021 Safe Drinking Water for First Nations Class Action Settlement Agreement, including compensation for First Nations and their members for harms caused by long-term drinking water advisories, as well as forward looking measures to ensure access to safe drinking water for generations to come.
  • Where litigation is unavoidable, Canada's approach to litigation should be constructive, expeditious, and effective in assisting the court to provide direction.
  • The Government of Canada is committed to ongoing collaborative work with partners to improve access to high quality services for First Nations.

Background

Safe Drinking Water Litigation

Settled Class Actions

In November 2019, legal action was brought against the Government of Canada in two class actions (Curve Lake First Nation and Tataskweyak Cree Nation) on behalf of all First Nations and members on reserves that had a drinking water advisory for at least one year between November 1995 and June 2021. A settlement agreement was reached in September 2021 and approved by the courts in December 2021 (the agreement). Approximately 200 First Nations are signatory to the agreement. Canada's commitments in the agreement include approximately $1.5 billion in compensation for individuals, the creation of the First Nation Economic and Cultural Restoration Fund, the creation of the First Nations Advisory Committee, a renewed commitment to lift all long-term drinking water advisories, spending of at least $6 billion by 2030 to support access to safe drinking water on First Nations lands, and a commitment to make all reasonable efforts to develop replacement proposed safe drinking water legislation in consultation with First Nations. Implementation of these commitments is ongoing.

Shamattawa First Nation Class Action

The settled safe drinking water class actions covered a time period between 1995 and June 2021. On September 22, 2022, Chief Jordna Hill and Shamattawa First Nation filed a proposed class action lawsuit for continuing long-term drinking water advisories on the Shamattawa reserve beyond the June 2021 end date of the settled class action, and up to the present. The Shamattawa class action was certified by the Federal Court on March 14, 2023. Located in northern Manitoba, Shamattawa First Nation is home to 1,425 residents on the reserve and is only accessible by air or winter road. A boil water advisory for the Shamattawa Public Water System was declared in December 2018 and became a long-term drinking water advisory in December 2019 for approximately 160 homes and 14 community buildings.

Representative Actions (in abeyance)

Representative actions are cases related to safe drinking water that were brought before the court prior to the two class actions that were settled. These cases are still active but are in abeyance as the parties engage in discussions to explore potential resolution. In 2014, Tsuu T'ina Nation, Sucker Creek First Nation, Ermineskin Cree Nation, and Blood Tribe initiated litigation against Canada related to the conditions of safe drinking water access on their reserves. In August 2019, Okanagan Indian Band also filed litigation against Canada related to the conditions and access to safe drinking water.

Isnardy Proposed Class Action (inactive)

Michael Daryl Isnardy (Toosey First Nation in BC), filed a proposed class action in December 2019 as an individual plaintiff in the Federal Court, representing Aboriginal and First Nation persons unable to consume or use water from their community water systems on First Nation reserves. The proposed class action proceeding was amended in August 2020 to extend representation to all First Nations people (status and non-status), Inuit and Métis people living on and off reserve. The Isnardy proposed class action is currently inactive as the Court was advised of the death of the representative plaintiff. No new representative plaintiff has been identified.

Current Status

  • On December 22, 2021, the Federal Court and the Court of Queen's Bench of Manitoba issued a joint decision approving an agreement to settle class-action litigation related to safe drinking water in First Nations communities.
  • The terms of the Settlement Agreement include:
    • 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 in First nation communities; and
    • modernization of Canada's First Nations drinking water legislation.
  • The Government of Canada continues to work with all First Nations, including Tataskweyak, Curve Lake and Neskantaga, to address water concerns and develop sustainable, long-term solutions so that future generations do not have to worry about the safety of their drinking water.
  • In February 2023, the Courts approved an extension of the claims period for compensation from March 2023 to March 2024.

11. New Proposed First Nations Drinking Water and Wastewater Legislation

Key Messages

  • First Nations have long called for safe drinking water legislation that meets their needs and reflects their priorities. Effective legislation and a national regulatory regime are essential to support sustainable access to clean, safe and reliable drinking water in First Nations communities.
  • As part of the 2021 Safe Drinking Water for First Nations Class Action Settlement Agreement, the Government of Canada committed to making all reasonable efforts to develop and introduce new proposed legislation, in consultation with First Nations, to replace the repealed 2013 Safe Drinking Water for First Nations Act.
  • Aligned with the United Nations Declaration on the Rights of Indigenous Peoples, new proposed legislation is being developed through engagement that puts First Nation voices at the forefront. Indigenous Services Canada is working directly with First Nation rights-holders, including Modern Treaty and Self-Governing Nations, through their own representative institutions and First Nation organizations, including the Assembly of First Nations and First Nations Advisory Committee on Safe Drinking Water, to help ensure new proposed legislation is reflective of First Nations needs and priorities.

Background

Regulatory Regime for Safe Drinking Water

  • The 2013 Safe Drinking Water for First Nations Act provided for federal regulations to support First Nations' access to clean, reliable drinking water and effective treatment of wastewater on First Nation lands.
  • First Nations voiced concerns about the 2013 Act, citing: a lack of adequate, predictable and sustainable funding; lack of recognition of Aboriginal water rights; potential infringement of Aboriginal and treaty rights; lack of adequate source water protections; and insufficient engagement.
  • In response to these concerns, and as part of the 2021 Safe Drinking Water for First Nations Class Action Settlement Agreement, the Government of Canada repealed the 2013 Safe Drinking Water for First Nations Act on June 23, 2022.
  • Aligned with the Settlement Agreement, the Government of Canada committed to making all reasonable efforts to develop and introduce new proposed legislation, in consultation with First Nations, to replace the repealed 2013 Safe Drinking Water for First Nations Act.

Engagement on new proposed legislation

  • The Government of Canada has been engaging First Nation rights-holders and First Nation organizations on legislative reform related to safe drinking water since 2018.
  • First Nations continue to raise the following key priorities: recognition of rights; sustainable funding; source water protection; and the need for ongoing engagement on water issues that affect First Nations.
  • Since July 2022, the Government of Canada has enhanced engagement with provinces and territories on the multi-jurisdictional issue of source water protection, a key priority identified by First Nations.
  • Provinces and territories have expressed mutual interests in safe and clean water while emphasizing continued need to respect provincial jurisdiction.
  • On February 17, 2023, an initial consultation draft of the legislative proposal was shared with First Nation rights-holders and First Nation organizations to support collaborative development of new proposed First Nations drinking water and wastewater legislation.
  • Following engagement on the consultation draft and the thorough feedback provided by partners, on July 21, 2023, an updated consultation draft was shared with First Nation rights-holders and First Nation organizations for additional comments and feedback.
  • The initial and updated consultation drafts are also posted online to support broad review to help ensure new proposed legislation is reflective of First Nation needs and priorities.

Current Status

  • Engagement is an ongoing process. Indigenous Services Canada is committed to continuing to work with partners on new proposed First Nations drinking water and wastewater legislation that is reflective of feedback received while also implementing legislative commitments made through the 2021 Safe Drinking Water for First Nations Class Action Settlement Agreement.

12. Investments and Recent Successes

Key Messages

  • Through historic investments since 2016, the Government of Canada has made over $7.1 billion in commitments to First Nations to upgrade water and wastewater infrastructure in First Nations communities, to better support the operation and maintenance of systems, to improve the monitoring and testing of community drinking water, and to support ongoing efforts to eliminate and prevent long-term drinking water advisories.
  • The Government has continued to prioritize clean drinking water on reserve through its most recent investment of $1.55 billion over two years, announced in the 2023 Fall Economic Statement. This funding represents an at-level renewal of the First Nations Water and Wastewater Enhancement Program (FNWWEP) for the next two years in order to ensure that water and wastewater projects continue without interruption.
  • With the combined investments made as part of Budget 2019 and the 2020 Fall Economic Statement, by 2025 the Government of Canada will increase the annual funding it provides to support the operations and maintenance of water and wastewater systems on a permanent basis by almost four times.
  • Budget 2021 also announced $125.2 million over four years, beginning in 2022–23, and $31.3 million on-going thereafter to continue to support First Nations communities' reliable access to clean water and to help ensure the safe delivery of health and social services in First Nations communities. This is the first time funding for this important public health function has been stabilized since the 1970s.

Background

  • Budget 2016 provided $1.83 billion over five years, starting in 2016-2017, to improve water and wastewater infrastructure on reserves, ensure proper facility operations and maintenance, and strengthen capacity by enhancing the training of water system operators in First Nations communities. Budget 2016 also included $141.7 million in new funding to continue providing independent public health advice, guidance, and recommendations to improve drinking water monitoring and testing on reserves.
  • Budget 2017 provided $49.1 million over three years, starting in 2018-2019, to improve water and wastewater infrastructure in First Nations communities.
  • Budget 2018 provided $172.6 million over three years, starting in 2018-2019, to improve access to clean and safe drinking water in First Nations communities. Budget 2018 also provided support for repairs to high-risk water systems, recruitment, training and retention initiatives, and the establishment of innovative First Nations-led service delivery models.
  • Budget 2019 committed $739 million over five years, which includes: $133.4 million over two years, starting in 2019-2020, to support urgent repairs to vulnerable water and wastewater systems; $605.6 million over four years, starting in 2020–2021, and $184.9 million per year ongoing, to support the operations and maintenance of water and wastewater infrastructure in First Nations communities.
  • As part of the 2020 Fall Economic Statement, an additional $1.5 billion was announced to help meet the Government of Canada's commitment to clean drinking water in First Nations communities. Funding includes:
    • $616.3 million over six years, and $114.1 million per year ongoing thereafter, to increase the support provided for operations and maintenance of water and wastewater infrastructure in First Nations communities;
    • $553.4 million to continue funding water and wastewater infrastructure on reserve to prevent future drinking water advisories from occurring; and,
    • $309.8 million to support and accelerate on-going work to lift all long-term drinking water advisories on public systems in First Nations communities by helping to respond to project delays including those due to COVID-19.
  • Budget 2021 committed an additional $1.043 billion over two years, starting in 2022–23, to support water and wastewater projects. The funding will enable ISC to continue to support the planning, procurement, construction, and commissioning of water and wastewater projects for both new builds, as well as system repairs and upgrades in First Nations communities.
  • Budget 2021 also announced $125.2 million over four years, beginning in 2022–23, and $31.3 million on-going thereafter to continue to support First Nations communities' reliable access to clean water and to help ensure the safe delivery of health and social services on reserve. This is the first time funding for this important public health function has been stabilized since the 1970s.
  • Budget 2022 proposes to provide $398 million over two years, starting in 2022–23, to support community infrastructure on reserve, of which at least $247 million will be directed toward water and wastewater infrastructure.
  • Most recently, the Federal Economic Statement on November 21st, 2023 announced $1.55B over two years, to support clean drinking water for First Nations. This funding represents an at-level renewal of the First Nations Water and Wastewater Enhancement Program (FNWWEP) for the next two years in order to ensure that water and wastewater projects continue without interruption.
  • This new funding will enable the completion of water and wastewater projects to ensure the lifting of long-term drinking water advisories and short-term drinking water advisories from public systems in First Nations communities. It will also support infrastructure projects to increase sustainable access to clean drinking water in First Nations communities.
  • New funding will support feasibility and design studies, and the construction, repair, or upgrade of water systems affected by a long-term or short-term drinking water advisory, including long-term solutions.

Current Status

  • Since 2015, and as of November 16, 2023, with the support of ISC, First Nations have lifted 143 long term drinking water advisories to date, which means that over 8,030 homes and 583 community buildings now have access to reliable, clean drinking water.
  • As of September 30, 2023, more than $3.60 billion of targeted funds have been invested to support 1,244 water and wastewater projects, of which 547 are now complete and 591 are ongoing.
  • These projects will serve 471,000 people in 591 First Nations communities.
  • Of the 1,244 water and wastewater projects, a total of 975 projects are new water and wastewater treatment plants or lagoons, or renovations and upgrades to existing water and wastewater systems.

13. Transfer of ISC Water and Wastewater Infrastructure Responsibilities

Key Messages

  • Indigenous Services Canada (ISC) recognizes and supports Indigenous peoples' inherent right to self-determination and is continuing to work in partnership with Indigenous organizations across the country to advance First Nations-led approaches.
  • Since 2017, the Government of Canada has provided $108.89 million (until 2025–2026) to support engagements and institution building related to transferring housing and infrastructure services. Service transfer can include water and wastewater services that are designed based on Indigenous needs, priorities and pace.
  • To date, ISC has signed three Framework Agreements to facilitate the transfer of control of housing and infrastructure services to First Nations organizations. Two of these Framework Agreements include water and wastewater in their scope.

Background

Water and wastewater transfer initiatives

  • Since 2016, the Government of Canada has made significant investments in infrastructure projects on and off reserves for First Nations peoples and communities. More recent investments support building partnerships with First Nations organizations that will advance our shared objective of transformational change. These investments are currently administered by ISC. They include housing, schools, water and wastewater systems, roads, bridges and lot servicing.
  • First Nations organizations pursue transfer on a voluntary basis. The transfer of housing and infrastructure services to First Nations-led organizations is intended to accelerate the movement towards self-determination as well as to move decisions back to First Nations on funding and service delivery.
  • ISC is investing $53.8 million over eight years from Budget 2017, ending in 2025–2026, to support engagement and proof of concept work. This work contributed directly to the co-development of processes and discussions on the transfer of housing and infrastructure services to First Nation organizations.
  • Through Budget 2021, ISC is accessing $55.1 million over four years for institution building. This will support transfer organizations to build their capacity, detail their asset management plan, scope of service delivery and standards, as well as refining their business plan.
  • Budget 2022 announced $173.2 million in new funding over ten years to support the implementation of a Service Delivery Transfer Agreement with the Atlantic First Nations Water Authority. Implementation of the agreement commenced in late 2022.
  • The Water Authority currently controls and operates water and wastewater in 12 participating First Nations, with the remainder expected to join over fiscal year 2023–24.

Current Status

What ISC is doing

  • ISC is working with its partners so that First Nations can design and deliver infrastructure solutions from the ground up that best suit their needs. First Nations organizations, with a mandate from their leadership, are working with ISC on the development of service delivery models to transfer the care and control of housing and infrastructure service delivery.
  • ISC recognizes that First Nations communities' needs are unique. Respecting regional variations and individual communities and organizations' readiness is key in this collaborative approach.

Current infrastructure transfer initiatives

  • Several First Nations organizations are working toward assuming care and control over programs and services, including: water and wastewater facilities, education facilities, housing, solid waste management, road and bridge construction, energy system development, connectivity, cultural and recreational facility development, fire protection, planning and skills development associated with infrastructure management.
  • Active transfer tables that include only water and wastewater service delivery in their scope are the Atlantic First Nations Water Authority, the North Shore Mi'kmaq District Council in the Atlantic, and the Southern Chiefs' Organization in Manitoba
  • Other active transfer tables that are exploring housing and infrastructure transfer (not limited to water and wastewater) include: BC First Nations Housing & Infrastructure Council, Blackfoot Confederacy in Alberta, First Nations Capital Infrastructure Agency of Saskatchewan, The Confederacy of Mainland Mi'kmaq & in Nova Scotia, and the Chiefs of Ontario.

Atlantic First Nations Water Authority

  • One rapidly evolving example of transferring control of water and wastewater services is with the Atlantic First Nations Water Authority. The Water Authority will be undertaking water and wastewater services for up to 17 Indigenous communities in Nova Scotia, Prince Edward Island, and New Brunswick.
  • Following the signing of a Framework Agreement in 2020, ISC and the Water Authority have developed a Service Delivery Transfer Agreement that was signed in November 2022. The Water Authority is the first Indigenous-led water authority in Canada.
  • The Authority, once fully operational, will assume control, responsibility and liability for water and wastewater capital and services for up to 4500 households and businesses.
  • ISC is also working in partnership with the North Shore Mi'kmaq District Council (New Brunswick) in the development of a water utility model for their seven-member communities.
  • In addition, ISC is working with the Southern Chiefs Organization of Manitoba to scope out a potential water authority that would serve the 34 communities they represent.

Awards related to water and wastewater transfer initiatives

  • In May 2022, the Atlantic First Nations Water Authority won the Tereo Innovator Award at the 2022 Canadian Network of Asset Managers in London, Ontario. The Tereo Innovator Award is awarded to organizations that are demonstrating excellence in developing and implementing asset management approaches for business improvement.
  • In April 2022, the Atlantic First Nations Water Authority's engineering partner, Dillon Consulting Limited, and Atlantic First Nations Water Authority were honoured with a 2022 Engineering Excellence Award from the Association of Engineering Companies - New Brunswick (ACEC-NB) was awarded for its work on the development of 17 Asset Management Plans for water and wastewater systems in participating Atlantic First Nations Water Authority communities.
  • The Atlantic First Nations Water Authority and the ISC RO and ISC-FNHIB staff were awarded the Deputy Minister award in recognition of the innovation and partnership in the establishment of the Water Authority.

14. Successes, Innovative Approaches and Best Practices

Key Messages

  • Through historic investments since 2016, the Government of Canada has made over $7.1billion in commitments to First Nations to upgrade water and wastewater infrastructure on reserve, to better support the operation and maintenance of systems, to improve the monitoring and testing of community drinking water, and to support ongoing efforts to eliminate and prevent long-term drinking water advisories.
  • The Government of Canada has continued to prioritize water and wastewater infrastructure via the most recent investment of $1.5 billion in the Federal Economic Statement.
  • Long-term solutions to improve access to clean drinking water on reserves can only be developed and implemented in full partnership with First Nations. The Government of Canada will continue to support First Nations in implementing sustainable solutions that best suit their communities' needs.
  • Indigenous Services Canada is providing sustainable investments to prevent short-term advisories, lift long-term advisories, expand delivery systems, build capacity of, support and retain local water operators, and support regular monitoring and testing.

Background

  • ISC is working in full partnership with First Nation communities, including with First Nations technical advisors and leaders, to support sustainable First Nations-led approaches to ensure that on-reserve water systems are safe.
  • Beyond addressing long-term drinking water advisories and establishing service transfer agreements, the Department continues to actively work towards identifying and supporting innovative approaches in ensuring First Nations communities have access to sustainable drinking water.
  • This includes working directly with First Nations, Tribal Councils, and Indigenous Organizations to identify and fund culturally-appropriate and Indigenous-informed initiatives that support the sustainable access to water in First Nations communities directly.
  • Furthermore, with funding from Indigenous Services Canada, First Nations partners are determining new models of service delivery that meet their own diverse needs, priorities and approaches. All models are opt-in and must be supported by leadership.
  • Below are some examples of innovative approaches, best practices and successes led by First Nations and supported by ISC.

Current Status

Northwest Angle No. 33 lifts three long-term drinking water advisories

  • On June 14, 2023, Northwest Angle No. 33, located in Ontario, lifted three long-term drinking water advisories. Community members in this remote First Nation now have access to clean drinking water.
  • The First Nation led a project to build a centralized new water treatment plant, replacing three outdated pump houses.
  • The community overcame significant challenges to ensure the project could be delivered during the COVID-19 pandemic.
  • Operational supports are provided to community through the ISC-funded Hub delivered Anishinaabeg of Kabapikotawangag Resource (AKRC) Council.

Innovation leads to clean drinking water for Wawakepewin First Nation

  • In April 2022, the long-term drinking water advisory affecting Wawakapewin First Nation's Public Water System in Ontario was lifted. The advisory had been in effect since 2004.
  • The advisory was lifted following the drilling of two new wells and the installation of a modular water treatment plant to serve the community.
  • The project used a design-build approach to expedite completion. The plant was shipped to this ultra-remote First Nation over the winter road in 2021.
  • All 15 homes in the community now have access to safe, clean drinking water.

Last long-term drinking water advisory lifted in Mohawks of the Bay of Quinte

  • The long-term drinking water advisory affecting Mohawks of the Bay of Quinte First Nation's Public Works Garage in Ontario was lifted effective April 19, 2023. This was the last of six long-term advisories affecting public systems in this community.
  • The garage was connected to the newly extended water distribution system and is now receiving water from the community's centralized water treatment plant.
  • The lift was made possible through the water distribution system extension project the community is undertaking through Infrastructure Canada's Disaster Mitigation and Adaptation Fund.
  • Between January and March 2022, 5 LTDWAs were lifted in the community.

Clean drinking water and an award for Shoal Lake #40

  • In September 2019, a ground breaking ceremony was held in Shoal Lake 40 First Nation, Ontario to celebrate the awarding of the contract for construction of a water treatment and distribution system.
  • The project was designed as a pilot to see whether an Indigenous-specific tender process could better serve Indigenous communities.
  • The plant was built on time and on budget over 18 months, by a partnership between Shoal Lake #40's Kekekoziibih company and Sigfusson Northern Ltd.
  • Following completion of the project in the fall of 2021, seven long-term drinking water advisories that had been in place since February 1997 were lifted. The new plant provides a reliable supply of safe, clean drinking water to 292 residents.
  • The Ontario Public Works Association presented the 2022 Public Works Project of the Year for Small Municipalities and First Nations award to Shoal Lake #40 First Nation in May 2022.

National First Nations Water Leadership Award

  • In 2018, Indigenous Services Canada established the National First Nations Water Leadership Award to recognize leadership and outstanding dedication to the advancement of clean and safe drinking water, including water operations and water sustainability, in First Nation communities.
  • Brian Indian of Ojibways of Onigaming First Nation was the recipient of the 2022 National First Nations Water Leadership Award. As one of the only certified water operators in his community, Brian Indian has worked tirelessly to ensure his community's water remains safe to drink. He is using his 17 years of experience to mentor two operators-in-training and organizes "Water Awareness" days to educate youth in his community by providing tours of the water plant.
  • This year, ISC received a record number of 30 nominations from across the country. The winner of the 2023 National First Nations Water Leadership Award was announced at the 14th Annual BC and Yukon Water and Wastewater Operational Excellence conference in Vancouver in October 2023. Warren Brown of Lytton First Nation was recognized for his professionalism and compassion, and his continued dedication as a strong advocate for water operator education and training.

Innovative project delivery approach in Okanagan Indian Band

  • A project to improve access to clean drinking water was recently completed by the Okanagan Indian Band (OKIB) using an integrated project delivery approach.
  • This innovative approach brings together all project stakeholders, including the contractor, designer and First Nation, into a process that collaboratively harnesses the talents and insights of all participants to optimize project results.
  • OKIB worked with subject matter experts through this collaborative approach to improve water quality and ensure accountability and environmental stewardship throughout the process.
  • The First Nation has improved access to clean water for its community members through this innovative project, which enabled the project to be delivered faster than a typical project delivery method.

Procurement Pilots for Water and Wastewater Projects

  • From 2018 to 2021, ISC funded two Indigenous-specific tendering pilots for water and wastewater projects in Semiahmoo First Nation, BC and Shoal Lake #40 First Nation, ON.
  • The pilots provided an opportunity to assess whether Grants and Contributions funding for water and wastewater could be applied to Indigenous-specific tenders where only Indigenous firms were allowed to bid. This opportunity will help to identify whether revisions to the tendering policy to raise the threshold for Indigenous-specific tenders beyond $500,000 should be considered.
  • Evaluations of the Pilot's procurement process were undertaken by independent evaluators and overseen by the First Nations.
  • The evaluations assessed Treasury Board's requirements for procurement including sound contract management, best value, and competitiveness in their evaluations. The assessment yielded the following:
    • Both evaluations reported that contract management was effective and followed best practices. There was a suitable level of oversight and diligence by all parties.
    • Both demonstrated good value per dollar spent. The cost of the projects were consistent with previous similar projects. Semiahmoo extended the meaning of "best value" through the inclusion of additional value propositions outside of lowest valid bid; for example, Indigenous employment, inclusion, adherence to cultural protocols, and other indications of Indigenous value.
    • Both projects demonstrated that Indigenous-specific tenders for projects over $500,000 would provide extensive benefits for First Nations communities. These benefits include: increased self-determination and self-governance, social and economic community benefits, ensuring best value, capacity building, as well as meeting project deadlines and budget requirements.
  • The recognition of Indigenous self-determination was an important aspect of the pilots. For example, Shoal Lake #40 having control over the joint venture allowed them to ensure the project was completed on time during the COVID period as they were able to establish protocols the outside contractors had to meet. Otherwise, the project would have been delayed as outside contractors would not be allowed to come into the community.

Youth Engagement through the Technical Youth Career Outreach Program (TYCOP)

  • ISC also provides funding to the Ontario First Nations Technical Services Corporation's Technical Youth Career Outreach Program (TYCOP), which aims to increase recruitment of First Nations' youth in Science, Technology, Engineering and Math (STEM) careers, including water and wastewater operators.
  • TYCOP builds awareness of careers in STEM for First Nations youth through outreach activities on reserve. This includes hosting two large annual career fairs and attending many others; travelling and delivering school presentations by Indigenous professionals; and, the development of a website with role model profiles and career guides for First Nations youth.
  • Their latest work seeks to expand the reach of the mentorship program by connecting Indigenous mentors with students through an online platform, holding a national STEM summit with students from across the country, as well as expanding into west and east regions of Canada.

Engaging Trauma Survivors in Clan Mothers' Water Operator Training Pilot Project

  • The Department actively seeks to engage and encourage underrepresented peoples in pursuing careers in water and wastewater operations, in order to diversify and support long-term recruitment, development, and retention of the existing water operator workforce.
  • Most recently, the Department supported a one-year pilot project with Clan Mothers to provide water operator training for 12 trauma survivors.
  • The pilot project will provide operator training for trauma survivors, including holistic wraparound supports, Level 1 water operator certification, and work experience placements.
  • Established in 2015, Clan Mothers provides care to women and 2SLGBTQQIA+ people who have been impacted by the sex industry, human trafficking, exploitation, and intergenerational trauma by providing health and healing support, elder guidance, as well as career development and mentorship.

Capacity Building Call for Proposals

  • To support the Government of Canada's significant and historic investments in water and wastewater infrastructure, the Department has also supported a number of capacity building measures to support First Nations in creating and sustaining a qualified workforce of water and wastewater operators.
  • The Department launched its inaugural Capacity Building Call for Proposals in the Spring of 2022. The objective of the Call was to identify innovative initiatives to address current operator capacity challenges common to multiple regions, and to go beyond its usual partners and build new working relationships with a variety of Indigenous organizations and research institutions.
  • The Department offered applicants up to $500,000, over two years, in funding to support new or expanded capacity building initiatives that enhance the retention, recruitment and availability of water and wastewater operators working on reserve.
  • To broaden the scope and reach of the Call, several thematic target areas were supported in addition to capacity building. Proposals could address at least one of four target areas: foundational capacity building; sustaining operators; diversity and culture; or, developing and enhancing innovative solutions.
  • The Call was well-received and the Department received a total of 111 proposals from 101 applicants that included various submissions from First Nations communities, Tribal Councils, universities, colleges, non-profit organizations, and consulting firms.
  • Funded projects include a variety of training workshops for operators and managers; community outreach and awareness raising; internship programs; source water protection planning; youth education and outreach; and, development of a variety of training materials.
  • The Department is currently working on developing an approach for the next iteration of the Capacity Building Call for Proposals.

15. Infrastructure Modernization

Key Messages

  • The Government of Canada recognizes its role in working with partners to close social and economic inequities between Indigenous and non-Indigenous communities and is committed to closing infrastructure gaps in Indigenous communities by 2030.
  • Throughout 2022, Indigenous Services Canada (ISC) and Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) worked collaboratively with distinctions-based Indigenous partners to understand community infrastructure needs for closing the infrastructure gap.
  • ISC is currently seeking First Nations rights-holders advice on infrastructure policy modernization to lay the groundwork for the conditions needed to close the infrastructure gap in First Nations communities. Exploring how new financial tools could improve infrastructure service delivery – including more flexible funding arrangements to support First Nation self-determination –is a fundamental aspect of infrastructure modernization.

Background

  • While significant investments have been made to date and initiatives are underway to transfer infrastructure service delivery to First Nation communities, further work is required to transform infrastructure delivery so that it is equitable and focuses on self-determination, whole-of-government approaches to infrastructure delivery, and financial reforms that promote long-term, sustainable and predictable funding.
  • The department is exploring with partners, how to transform the way federal funding is invested in infrastructure in First Nations communities to return decision-making where it belongs – with First Nations communities themselves.
  • Proposed modernization seeks to simplify access to funding for infrastructure to better support meeting First Nations' needs for clean and safe drinking water, housing, schools, health facilities, and other community infrastructure.
  • Over the medium to long term, the department wants to support First Nations communities in gaining greater access to infrastructure programming across the government.
  • Infrastructure modernization must be designed to support ISC's long-term commitment of transferring responsibilities for service delivery to First Nations and First Nations organizations.

Current Status

  • Over the next year, ISC will continue to work with First Nations partners, other government departments and with financial institutions to define a bold, new approach to how the department funds infrastructure in First Nations communities.
  • Information provided by First Nations partners will inform future policy changes in terms of how ISC funds and delivers infrastructure programs, and also guide discussions on how the federal government funds First Nations infrastructure.

16. Closing the Infrastructure Gap

Key Messages

  • The Government of Canada has committed to closing the infrastructure gap in First Nations, Inuit and Métis communities by 2030.
  • As mandated through the 2020 Fall Economic Statement, Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada worked collaboratively with Indigenous organizations and communities to support an engagement process that provided the federal government with a better understanding of the infrastructure needs in Indigenous communities.
  • Indigenous Services Canada engaged with individual First Nations to identify their infrastructure needs. As of May 2023, 405 of the 564 First Nations submitted infrastructure needs lists, reflecting a response rate of 72%. The top categories of infrastructure needs identified by First Nations were community assets, housing, transportation infrastructure, water, wastewater and utilities, and emergency services. First Nations identified infrastructure projects with an estimated cost of $120 billion.

Background

  • ISC engaged individual First Nations in spring 2022 to understand infrastructure needs and order of paramountcy. This exercise saw a response rate of 72% (405/564) and estimated the cost of closing the First Nations infrastructure gap by 2030 to be $120 billion.
  • ISC also engaged with the Assembly of First Nations. In their report, they estimated that $349.2 billion was needed to close the First Nations infrastructure gap by 2030. The report called for moving away from project-based investment approaches, guaranteeing reliable funding as well as the co-development of a self-governed First Nation Infrastructure Bank, amongst others.
  • ISC also worked with Inuit Tapiriit Kanatami (ITK) who engaged the four Inuit regional Land Claims Organizations and submitted a report outlining priority infrastructure projects in Inuit Nunangat. ITK estimated that $55.3 billion over 10 years and $793.7 million annually would be required to support priority projects to narrow the infrastructure gap in Inuit Nunangat.
  • CIRNAC conducted engagement with the Métis National Council (MNC) and Manitoba Métis Federation (MMF) who identified infrastructure needs in their pre-Budget submissions. The MNC identified immediate infrastructure investment needs of $2.41 billion over 6 years while the MMF identified immediate investment needs of $299.2 million over 10 years.

Water and Wastewater – First Nation Community results

  • 337 First Nation communities made requests to ISC in relation to water and wastewater. These requests included assets such as water treatment plants, lift stations, and other related infrastructure.
  • The total value of these requests was $7 billion. Approximately $4.1 billion was for water requests while the remainder were for wastewater related projects.
  • Over 83% of the responding communities identified new assets or repairs to existing water, wastewater and utilities assets.
  • 51% of communities assigned a 'high' priority ranking to these assets on a top 10 list of infrastructure needs.
  • Specific examples that were submitted to ISC were: *redacted information*

Current Status

  • Indigenous Services Canada will provide First Nation communities with a detailed report on the information received during the Closing the Infrastructure Gap engagements in the coming months.

17. Education Programs Target and Results Reporting (Elementary and Secondary Program)

Key Messages

  • The 2022–2023 Indigenous Services Canada (ISC) Departmental Plan stated that targets for several departmental result indicators related to elementary/secondary and post-secondary education programs would be set by March 31, 2023. A target was set for each indicator, according to the commitment in the Departmental Plan, and this information was published in the 2022–2023 Departmental Results Report.
  • This work reflects the clear message from Indigenous partners that one-size-fits-all targets, set unilaterally by ISC, are unacceptable, and that co-developed visions, plans and measurement frameworks under Indigenous control are critical.
  • The newly established targets stand to anticipate and demonstrate progress while leaving space for Indigenous models to continue to develop and evolve, including through Indigenous-directed processes such as First Nation Regional Education Agreements and post-secondary education strategies.

Background

  • ISC's Elementary and Secondary Education Program supports full-day Kindergarten (ages four and five) to Grade 12 education for eligible First Nations students ordinarily resident on-reserve, by providing funding directly to First Nations recipients and education organizations designated by First Nations.
  • Additionally, ISC's Distinctions-based Post-Secondary Education strategies aim to help increase access to and enable success in post-secondary education for eligible First Nations, Inuit, and Métis Nation students. Through expanded post-secondary education funding, the department is working toward increasing the number of students and contributing to closing the education attainment gap.
  • In the 2023–2024 ISC Departmental Plan, the "Targets" and "Date to Achieve Targets" for several of the departmental result indicators related to the education service area stated "To be determined". Those targets have now been set and published in the 2022–23 Departmental Results Report which was subsequently released.
  • The Departmental Plan explains that First Nations have indicated a preference to develop regional results frameworks that better reflect and respond to their education goals and priorities, through the development of regional education agreements, for instance.
  • This has created challenges in developing a national results framework and setting targets at the national level with partners. Furthermore, engagement efforts with partners were impacted and delayed due to the COVID–19 pandemic.

Current Status

  • ISC continues to work with First Nations to refine ISC Education programming and to address gaps.

Program-Level Data

Departmental Results Report 2022 to 2023

Departmental Result 5:
Indigenous students receive an inclusive and quality education
Performance
indicators
Target Date to
achieve
target
2020–21
Actual
results
2021–22
Actual
results
2022–23
Actual
results
Number of First Nations students who are provided full-day kindergarten services in First Nations administered schools Maintain or increase results year over year starting in 2023–24 Table note 1 Maintain or increase results year over year starting in 2023–24Table note 1 7,859 7,587 8,446
Percentage of students attending First Nations administered schools who are taught at least one subject in a First Nations language Maintain or increase results year over year starting in 2023–24Table note 1 Maintain or increase results year over year starting in 2023–24Table note 1 90.7% 91.69% 93.64%
Percentage of First Nations on reserve students who graduate from secondary school (on-time graduation rate) Maintain or increase results year over year starting with 2022–23 established baseline Maintain or increase results year over year starting with 2022–23 established baseline Introduced in 2022–23 Introduced in 2022–23 26%Table note 2
Percentage of First Nations on reserve students who graduate from secondary school (extended-time graduation rate) Maintain or increase results year over year starting with 2022–23 established baseline Maintain or increase results year over year starting with 2022–23 established baseline Introduced in 2022–23 Introduced in 2022–23 44%Table note 2
Number of First Nations under a transformative model (e.g. regional education agreement or school board) Maintain or increase results year over year starting in 2023–24Table note 1 Maintain or increase results year over year starting in 2023–24Table note 1 180 184 206
Number of funded First Nations students who graduate with a post-secondary degree/diploma/certificate 4,110–4,494Table note 3 March 2025 1,434Table note 4 1,148Table note 4 1,664Table note 4
Number of funded Inuit students who graduate with a post-secondary degree/diploma/certificate 50Table note 5 March 2025Table note 5 Not available 110 277Table note 6
Number of funded Métis Nations students who graduate with a post-secondary degree/diploma/certificate Maintain or increase results year over year starting in 2023–24Table note 1 Maintain or increase results year over year starting in 2023–24Table note 1 Not available 1,254 713 Table note 7
Table note 1

Targets were set in March 2023 to maintain or increase results year over year starting in 2023–24 as the baseline.

Return to table note 1 referrer

Table note 2

A new cohort-based methodology was introduced for 2022–23, resulting in established baselines. This result is not directly comparable to the graduation rates previously reported by ISC due to the different methodologies used. Furthermore, given the fact that the school year and the fiscal year are not aligned, results can only be reported during the following fiscal year. The graduation rate represents the 2021–22 school year, as First Nations only report whether a student graduated from one school year at the start of the subsequent school year.

Return to table note 2 referrer

Table note 3

The target for First Nations students (4,110-4,494) was established with partners in 2022–23.

Return to table note 3 referrer

Table note 4

Results are based on data from reports received from recipients only and represent data from the previous fiscal year. Given the fact that the school year and the fiscal year are not aligned, results can only be reported in the following fiscal year. Only data in the Accepted (Final) state have been used for this indicator. It includes students funded to attend a program as part of the University and College Entrance Preparation Program. For 2020–21, at time of reporting, 42.5% of the First Nations Annual Register of Post-Secondary Education Students Report due or submitted had been moved to the Accepted (Final) state. For 2021–22, 40.39% had been moved to the Accepted (Final) state at the time of reporting. For 2022–23, 41.15% had been moved to the Accepted (Final) state at the time of reporting.

Return to table note 4 referrer

Table note 5

The target for Inuit students (50 by March 2025) was established with partners in 2022–23.

Return to table note 5 referrer

Table note 6

At time of reporting, 75% of the Inuit Post-Secondary Education Reports due or submitted had been moved to the Accepted (Final) state. Only data in the Accepted (Final) state have been used for this indicator. Given the fact that the school year and the fiscal year are not aligned, results can only be reported during the following fiscal year. This result refers to the 2021–22 school year.

Return to table note 6 referrer

Table note 7

Given the fact that the school year and the departmental fiscal year are not aligned, results can only be reported during the following fiscal year. This result refers to the 2021–22 school year and is based on data submitted to ISC by funding recipient partners. 2021–2022 was the first year in which data was reported under the Métis Nation Post-Secondary Education Strategy established through Budget 2019. ISC is engaging partners to discuss the data provided in both years shown in order to better understand implementation and outcomes at the recipient level. Any additional details will be noted in future reporting.

Return to table note 7 referrer

18. Graduation Rate Methodology (Elementary and Secondary Program)

Key Messages

  • A new methodology was introduced in 2022–2023 to calculate the percentage of on-reserve First Nations students funded through Indigenous Services Canada's (ISC) Elementary and Secondary Education Program who graduate from secondary school both "on time" and with "extended time".
  • The new methodology responds to concerns expressed by First Nations and better aligns with the pan-Canadian graduation rate methodology developed by Council of Ministers of Education of Canada and published annually by Statistics Canada.
  • In the 2022–2023 Departmental Results Report, the reported graduation rate within three years of entering grade 10 ("on time") is 26% and the graduation rate within five years of entering grade 10 ("extended-time") is 44%.
  • The reporting approach provides rates for two different cohorts of students to enable the department to report on the latest data available as well as time taken by additional educational pathways.
  • The 2022–2023 national rate serves as a new baseline for performance measurement.

Background

  • ISC's Elementary and Secondary Education Program supports full-day Kindergarten (ages four and five) to Grade 12 education for eligible First Nations students ordinarily resident on-reserve, by providing funding directly to First Nations recipients and education organizations designated by First Nations.
  • First Nations have been expressing concerns that the existing graduation rate methodology was not representative of their students' actual progress, achievements, and success.
  • That is why, in response to the 2018 Auditor General's report on Socio-Economic Gaps on First Nations Reserves that found that ISC's graduation rate for on-reserve First Nations students was "inaccurate" and "inconsistent with how most provincial governments calculate graduation rates, ISC consulted with the Council of Ministers of Education of Canada to develop a cohort-based graduation methodology.
  • The new methodology will respond to First Nation comments about a more representative baseline for student graduation, especially upon which to build First Nation-defined and controlled student outcomes stories. It also serves to emphasize the message from First Nation partners that First Nation students' education journey under First Nation control may not match expectations based in the non-Indigenous experience for "on time" graduation, nor a "one size fits all" approach.
  • The new cohort-based methodology also better aligns with the pan-Canadian graduation rate methodology developed by Council of Ministers of Education of Canada and published annually by Statistics Canada.
  • Previous Departmental Reports on Results (DRR) were based on the now-replaced previous methodology: 2019–2020 reported 41%, 2020–2021 reported 36.8%, 2021–2022 reported 34.19%. These results indicated a declining graduation rate were based on the flawed graduation rate methodology highlighted in the 2018 Auditor General's Report and First Nation partners.
  • In addition to its new graduation rate, ISC also monitors the highest level of educational attainment achieved by the 18-24 First Nations on reserve population, as reported by Statistics Canada. (Educational Attainment refers to the highest level of education that a person has successfully completed.)
  • While the education attainment gap between First Nations on reserve and non-Indigenous Canadians remains one of the highest, the gap is decreasing, going from over 50% in the 2006 Census, down to 44.5% in the 2016 Census and to 36.8% in the 2021 Census.

Current Status

  • The new graduation rate methodology is presented and reported against in ISC's 2022–2023 Departmental Report on Results, along with the newly-set target of "maintain or increase results year of year starting in 2023–2024". This will provide a baseline going forward in time.
  • ISC continues to work with First Nations to refine ISC Education programming and to address gaps.

19. Evolution of Targets, Metrics and Measurements at Indigenous Services Canada

Key Messages

  • ISC recognizes that its Departmental Result Indicators and targets have been fluctuating since the department was established. Changes in the indicators can be attributed to the reframing of existing indicators, removal of duplicates or challenges collecting/accessing the necessary data.
  • To support self-determination and service transfer, ISC is co-developing performance measures and targets with its Indigenous Partners for some Programs. These targets will be reported when co-development is complete.
  • ISC has renewed its Departmental Results Framework with an improved focus on outcomes and an assessment of indicators to strengthen its ability to measure and report on progress. It continues to build rigorous performance strategies at the Program level.

Background

  • The background of the Parliamentary Budget Officer (PBO) report can be found in Issue Sheet: Overview of PBO report and key findings.
  • It should be noted that the PBO report focuses on Departmental Results Indicators (DRIs), but additional context regarding both departmental and Program level indicators can be found below. Data collection and measures at the Program level must align with and support performance measurement at the departmental level.

Performance Measurement at ISC

  • The Departmental Results Indicators are identified in the Departmental Results Framework and can only be amended with the approval of the Secretary of the Treasury Board of Canada.
  • ISC reports annually on the Departmental Results Indicators through its Departmental Plan, Departmental Results Report, and via GCInfobase, a publicly available tool from TBS for information on government spending and results against plans and priorities. Publicly reported Program-level indicators are also reported on GCInfobase.
  • Targets for DRIs are set by the Programs and reported annually in the Departmental Plan. The Departmental Results Report provides actual DRI results achieved against the expected results set out in the Departmental Plan.
  • In its initial years, the department revised the DRIs to better align them with results and outcomes and changes in departmental Core Responsibilities.
  • On occasion, DRIs were removed to be reframed in improved language or replaced by more comprehensive DRIs. The 2019-20 fiscal year was a prime example of such revisions. For example, in this year, the following 3 DRIs were removed:
    • Percentage of First Nation and Inuit communities that control the design, delivery and management of health programs and services;
    • Percentage of students being educated under First Nation school boards (or other transformative models); and
    • Percentage of First Nation communities that run their own Child and Family Services.

These three DRIs were replaced by a new DRI, "Number of First Nation communities that have opted into a self-determined service agreement". This new DRI enabled flexibility to include different and expanding types of self-determined service agreements from multiple sectors as more communities assume service delivery in various areas e.g. housing, education, health, etc.
Similarly, the DRI "Percentage of First Nation communities that run their own Family and Community Well-Being programs" was replaced with "Percentage of First Nation communities offering family support services aimed at keeping families together" as it is all-encompassing.

  • DRIs were also removed if they reflected methodological challenges. For example, in 2019–20, the DRI "First Nations and Inuit life expectancy at birth" was removed because life expectancy is difficult to compare over time and across groups since there are different ways to estimate it and there have been changes in data availability. The ISC Chief Data Officer is currently collaborating with Statistics Canada to develop a methodology for life expectancy estimates that may be available for future performance measurement. Similarly, in 2022–23, the Departmental Indicator "Percentage of First Nations on reserve students who graduate from secondary school" was replaced with two new indicators that differentiate between students who graduate on-time versus extended-time. These indicators use a revised methodology to better reflect the realities of the path First Nations students take to reach secondary school graduation, in response to an Office of the Auditor General Report (Report 5—Socio-economic Gaps on First Nations Reserves).
  • DRIs were also removed if they were not well aligned with departmental results or better suited for program-level reporting. In the 2019-20 Departmental Plan, the DRI "Number of approved requests for products and services to support First Nation children under the Jordan's Principle Child First Initiative" was removed. However, it was retained at the Program level and reported on GC Infobase.
  • Some DRIs have targets measured annually on an on-going basis, and as per the TBS defined process, the date to achieve the target will automatically be set for the same month of the following year. For example, the indicator "Percentage of First Nations housing that is adequate as assessed and reported by First Nations" is set to 100% each year to retain line of sight and consistently measure progress year-over-year. This practice has been interpreted in the PBO report as the DRI having a target and date to complete inconsistent with the last observation.
  • For some targets, Canada is co-developing the target dates with its Indigenous Partners and these target dates cannot be set until co-development is complete. For example, for the DRI "Percentage of First Nations children on-reserve in care" targets and dates to achieve will be co-developed with First Nations partners by March 2024.

Challenges in Setting Targets

  • In the context of self-determined services, ISC is engaging with its Indigenous Partners to co-develop realistic targets in some Programs. Here, targets cannot be set solely by ISC as it would not be meaningful or relevant for the purpose or intent the program is meant to support. Examples include:
    • Urban Programming for Indigenous Peoples program taking measures to engage with its recipients with the ultimate objective of co-creating performance measures grounded in Indigenous methodologies and measures of success;
    • 10-year New Fiscal Relationship grant, whereby First Nations have the flexibility to design and deliver services based on their own plans and priorities;
    • Children and Family Services Program co-developing a Program performance measurement framework with First Nations partners; and
    • Education Programs where First Nations have indicated a preference to develop results frameworks that better reflect and respond to their education goals and priorities through the development of regional education agreements.

Challenges in Reporting Results

  • The COVID-19 pandemic caused significant delays in data collection by ISC and its Indigenous Partners. For example, in 2020–21, all annual performance inspections for Community Infrastructure were cancelled due to public health restrictions. These inspections were further delayed in 2021–22 and 2022–23 resulting in data becoming available in 2023-24.
  • The pandemic also affected external data resources that ISC relies on for reporting. For example, the Regional Health Survey by the First Nations Information Governance Centre provides the data to measure health-related indicators for First Nations on Reserve on a five-year basis. This survey was scheduled to take place in 2020 but has been delayed to 2023.
  • For some departmental indicators, ISC has made changes to its methodology to improve its performance measurement. For example, in the Elementary and Secondary School Education Program, a new graduation rate methodology was introduced in 2022–23 to calculate the Percentage of First Nations on reserve students who graduate from secondary school (on-time and extended-time). This new methodology, which uses a grade 10 cohort-based approach, was developed by the Canadian Education Statistics Council and published by Statistics Canada, as recommended by the Office of the Auditor General of Canada. Given that the timing of a school's academic year does not align with the government's fiscal year, data for this indicator is reported one year behind.

Current Status

  • ISC's 2023–24 Departmental Results Framework enables the strengthening of performance measurement and provides an opportunity to implement quality and relevant data, performance indicators and targets by service area that will be more reflective of outcomes to which ISC's Programs and services contribute.
  • For the 2023–24 Departmental Plan, Programs were challenged to set realistic but ambitious targets.
  • ISC is currently undergoing a comprehensive renewal of the Performance Information Profiles for all its Programs. As part of this renewal, ISC Programs will further assess the relevancy and usefulness of indicators for continued use.
  • ISC will be building further rigor in its performance measurement practices including periodic follow-ups on targets with Programs where applicable.

If pressed about the transition from 2022–23 DRF to 2023–24 DRF

For 2023–24, 34 Departmental Indicators Results Indicators have been identified. This is a reduction of 9 indicators from 2022–23 where 43 indicators were identified.

Of the 43 indicators reported in 2022–23:

  • 17 indicators were retained as-is.
  • 13 indicators were not retained as DRIs because they primarily measure outputs of services delivered, which in many cases do not meaningfully link ISC Programs to Departmental Results. These indicators will continue to be tracked publicly at the Program level in GCInfobase.
  • 13 were removed for other reasons such as duplication, reframing as new indicators to reflect distinctions or updated methodology or inclusion in Performance Information Profile at the program level

20. Annex A: An Update on the Socio-Economic Gaps Between Indigenous Peoples in Canada and the Non-Indigenous Population

In 2020, the Department's Annual Report to Parliament (Accessed March 24, 2023) focused on providing benchmark indicators to assess the nature and scope of the socio-economic gaps between Indigenous Peoples in Canada and the non-Indigenous population. New data on indicators related to income, employment, education, housing, foster care, Indigenous languages and incarceration are now available from the 2021 Census and the Adult Correctional Services Survey. For a complete overview of the main indicators for each domain see Appendix A.

Indigenous Peoples in Canada face significant and long-standing socioeconomic gaps when compared to non-Indigenous people. These gaps have been shaped by a long history of colonialism, discrimination, and marginalization, which have had a profound impact on Indigenous peoples and continue to affect their lives today. Despite the ongoing gaps, significant work is being done to narrow these gaps and improve conditions.

Income and Employment

  • Even after accounting for inflation, income was higher for all Indigenous identities and increased at a higher rate than that of the Non-Indigenous population and a large narrowing of the gap was observed for each of the Indigenous groups with increases ranging from $4,500 to $9,900 since 2015.
  • Although a similar proportion of individuals were employed in 2021 compared to 2016, those who were employed made more money even - bringing home an extra $800 to $4,200 a year in income after accounting for inflation.
  • Overall, 136,000 fewer Indigenous people living in a low-income situation since 2015.
  • Census 2026 will be important to determine whether there has been lasting changes of these gaps beyond the availability of government benefits during the COVID-19 pandemic.

Education

  • Overall, there were in 2021 80,280 more Indigenous people aged 25-64 with a high school level education since 2016.
  • From 2016 to 2021, an additional 47,980 Indigenous people obtained a university education. Despite these gains, the gaps in university completion with the Non-Indigenous population widened for all Indigenous groups from 15.9 to 22.9 percent.

Housing

  • The gaps in both the proportion of dwellings that were crowded or in need of major repair generally narrowed between census cycles. However, the narrowing of the gap in the proportion of dwellings that were crowded was due in part to increases in increased crowding for the Non-Indigenous population.
  • The greatest improvements in the number of crowded households was found for Registered Indians living on reserve going from 12,160 crowded households in 2016 to 10,705 in 2021, a difference of 1,455.
  • Similarly, 6,005 fewer households of Registered Indians living on reserve and 485 fewer households of Registered Indians living off reserve required major repairs to their dwelling.

Foster Care

  • As the census only collects data from private households, only children living in foster care in a private home are counted. This means those residing in institutions, group homes or other care arrangements are excluded from the census counts.
  • The proportion of Registered Indians, Non-status Indian and Métis children in foster care were actually fairly stable over the period. There was an almost one percentage point increase for Inuit children.
  • In total, there were 17,410 Indigenous children in foster care in 2016 compared to 17,320 in 2021.

Indigenous Languages

  • In 2021, 243,155 individuals could conduct a conversation in an Indigenous language, 188,905 people reported having at least one Indigenous mother tongue and 182,925 reported speaking an Indigenous language at home at least on a regular basis.
  • There were over 70 Indigenous languages spoken in Canada with over 20 (28.6 percent) of them having 500 or fewer people reporting speaking them as their mother tongue.Footnote 1

Incarceration

  • From 2016 to 2021, there was a slight increase in the proportion of Indigenous adults admitted to correctional services going from 29.9 percent in 2016 to 31.2 percent in 2021.
  • The total number of incarcerated adults dropped considerably during this time. Overall, number of incarcerated Indigenous adults fell from 74,823 in 2016 to 46,633 in 2021, a difference of 28,190 people.Footnote 2

Addressing socio-economic gaps between Indigenous and non-Indigenous peoples in areas such as income, employment, education, housing, foster care and incarceration is crucial for reconciliation. These gaps are a result of systemic barriers and inequalities that have led to the marginalization and oppression of Indigenous Peoples.

Appendix A

Overview of the change in the observed gap between Indigenous and non-Indigenous populations from 2016–2021 for all domain indicators, Indigenous and non-Indigenous populations, Canada

Median Individual Income (adjusted)
  Registered Indian on reserve Registered Indian off reserve Non-Status Indian Inuit Métis Non-Indigenous
2015 $ $22,100 $35,400 $37,400 $36,000 $44,300 $46,600
Difference Non-Indigenous Population -$24,500 -$11,200 -$9,200 -$10,600 -$2,300  
2020 $ $32,000 $42,000 $43,200 $42,800 $48,800 $50,400
Difference Non-Indigenous Population -$18,400 -$8,400 -$7,200 -$7,600 -$1,600  
5 Year Change $ $9,900 $6,600 $5,800 $6,800 $4,500 $3,800
% Change in the Gap -24.9% -25.0% -21.7% -28.3% -30.4%  
Result Size of Change in the Gap Large Large Large Large Large  
Direction of the Gap Narrowing Narrowing Narrowing Narrowing Narrowing  
Percentage Living in a Low-Income Situation
  Registered Indian on reserve Registered Indian off reserve Non-Status Indian Inuit Métis Non-Indigenous
2015 % 47.7% 30.3% 25.2% 22.3% 17.3% 13.8%
Difference Non-Indigenous Population 33.9% 16.5% 11.4% 8.5% 3.5%  
2020 % 31.3% 19.8% 16.8% 16.5% 12.6% 10.7%
Difference Non-Indigenous Population 20.6% 9.1% 6.1% 5.8% 1.9%  
5 Year Change % -16.4% -10.5% -8.4% -5.8% -4.7% -3.1%
% Change in the Gap -39.2% -44.8% -46.5% -31.8% -45.7%  
Result Size of Change in the Gap Large Large Large Large Large  
Direction of the Gap Narrowing Narrowing Narrowing Narrowing Narrowing  
Employment Rate
  Registered Indian on reserve Registered Indian off reserve Non-Status Indian Inuit Métis Non-Indigenous
2016 % 46.9% 60.2% 66.1% 57.4% 70.4% 76.0%
Difference Non-Indigenous Population -29.1% -15.8% -9.9% -18.6% -5.6%  
2021 % 47.1% 58.7% 64.8% 55.2% 69.1% 74.1%
Difference Non-Indigenous Population -27.0% -15.4% -9.3% -18.9% -5.0%  
5 Year Change % 0.2% -1.5% -1.3% -2.2% -1.3% -1.9%
% Change in the Gap -7.2% -2.5% -6.1% 1.6% -10.7%  
Result Size of Change in the Gap Small No change Small No change Small  
Direction of the Gap Narrowing Narrowing Narrowing  
Median Employment Income (adjusted)
  Registered Indian on reserve Registered Indian off reserve Non-Status Indian Inuit Métis Non-Indigenous
2015 $ $25,200 $38,300 $39,500 $35,400 $44,800 $46,200
Difference Non-Indigenous Population -$21,000 -$7,900 -$6,700 -$10,800 -$1,400  
2020 $ $29,400 $40,000 $40,400 $39,600 $45,600 $47,600
Difference Non-Indigenous Population -$18,200 -$7,600 -$7,200 -$8,000 -$2,000  
5 Year Change $ $4,200 $1,700 $900 $4,200 $800 $1,400
% Change in the Gap -13.3% -3.8% 7.5% -25.9% 42.9%  
Result Size of Change in the Gap Medium No change Small Large Large  
Direction of the Gap Narrowing Widening Narrowing Widening  
Percentage with at Least a High School Credential
  Registered Indian on reserve Registered Indian off reserve Non-Status Indian Inuit Métis Non-Indigenous
2016 % 57.0% 75.0% 80.3% 55.9% 82.3% 89.2%
Difference Non-Indigenous Population 32.2% -14.2% -8.9% -33.3% -6.9%  
2021 % 59.9% 78.2% 82.7% 56.0% 85.5% 90.7%
Difference Non-Indigenous Population -30.8% -12.5% -8.0% -34.7% -5.2%  
5 Year Change % 2.9% 3.2% 2.4% 0.1% 3.2% 1.5%
% Change in the Gap -4.3% -12.0% -10.1% 4.2% -24.6%  
Result Size of Change in the Gap No change Small Small No change Large  
Direction of the Gap Narrowing Narrowing Narrowing  
Percentage with a University Degree
  Registered Indian on reserve Registered Indian off reserve Non-Status Indian Inuit Métis Non-Indigenous
2016 % 5.4% 11.3% 11.9% 5.3% 13.6% 29.3%
Difference Non-Indigenous Population -23.9% -18.0% -17.4% -24.0% -15.7%  
2021 % 9.1% 15.7% 16.4% 7.6% 18.8% 37.0%
Difference Non-Indigenous Population -27.9% -21.3% -20.6% -29.4% -18.2%  
5 Year Change % 3.7% 4.4% 4.5% 2.3% 5.2% 7.7%
% Change in the Gap 16.7% 18.3% 18.4% 22.5% 15.9%  
Result Size of Change in the Gap Medium Medium Medium Large Medium  
Direction of the Gap Widening Widening Widening Widening Widening  
Percentage of Dwellings Classified as Crowded
  Registered Indian on reserve Registered Indian off reserve Non-Status Indian Inuit Métis Non-Indigenous
2016 % 12.7% 2.7% 1.1% 16.0% 0.8% 1.8%
Difference Non-Indigenous Population 10.9% 0.9% -0.7% 14.2% -1.0%  
2021 % 11.3% 2.8% 0.9% 13.9% 1.0% 2.3%
Difference Non-Indigenous Population 9.0% 0.5% -1.4% 11.6% -1.3%  
5 Year Change % -1.4% 0.1% -0.2% -2.1% 0.2% 0.5%
% Change in the Gap -17.4% -44.4% 100.0% -18.3% 30.0%  
Result Size of Change in the Gap Medium Large No Gap Medium No Gap  
Direction of the Gap Narrowing Narrowing Narrowing  
Percentage of Dwellings in Need of Major Repair
  Registered Indian on reserve Registered Indian off reserve Non-Status Indian Inuit Métis Non-Indigenous
2016 % 40.0% 12.2% 12.3% 21.8% 10.3% 6.0%
Difference Non-Indigenous Population 34.0% 6.2% 6.3% 15.8% 4.3%  
2021 % 34.0% 10.9% 10.7% 21.2% 9.4% 5.7%
Difference Non-Indigenous Population 28.3% 5.2% 5.0% 15.5% 3.7%  
5 Year Change % -6.0% -1.3% -1.6% -0.6% -0.9% -0.3%
% Change in the Gap -16.8% -16.1% -20.6% -1.9% -14.0%  
Result Size of Change in the Gap Medium Medium Large No Change Medium  
Direction of the Gap Narrowing Narrowing Narrowing Narrowing  
Percentage of Children Aged 0–17 in Foster Care
  Registered Indian
(total)
Non-Status Indian Inuit Métis Non-Indigenous
2016 % 4.5% 3.1% 2.4% 1.3% 0.3%
Difference Non-Indigenous Population 4.2% 2.8% 2.1% 1.0%  
2021 % 4.5% 3.0% 3.3% 1.2% 0.2%
Difference Non-Indigenous Population 4.3% 2.8% 3.1% 1.0%  
5 Year
Change
% 0.0% -0.1% 0.9% -0.1% -0.1%
% Change in the Gap 2.4% 0.0% 47.6% 0.0%  
Result Size of Change in the Gap No
change
No
change
Large No
Change
 
Direction of the Gap Widening  

Source: Indigenous Services Canada. Custom Tabulations, 2016 & 2021 Census of Population

Notes:

According to Cohen's conventions (Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences (2nd ed.). Hillsdale, NJ: Lawrence Erlbaum Associates), a percent change of 5 percent would be considered a small effect size, a percent change of 12.5 percent would be considered a medium effect size, and a percent change of 20 percent or more would be considered a large effect size.

The on/off reserve breakdown is not included for children in foster care as it may be misleading, since Registered Indian children living in foster care off reserve may come from families living on reserve.

21. Annex B – Supporting Indigenous-led Statistical Institutions

Key Messages

  • ISC recognizes that one key to addressing longstanding data gaps related to Indigenous Peoples is to support First Nations, Inuit, and Métis to collect, hold, and manage their own data.
  • Both the UN Declaration Act Action Plan and the Federal Data Strategy highlight the importance of supporting Indigenous data sovereignty as a whole-of-government priority.
  • Supported by $81.5 million announced in Budget 2021, ISC is proceeding with Phase 1 (2022–23 to 2024–25) of a Transformational Approach to Indigenous Data. The initiative is expected to take a minimum of three phases and six years of development, and will culminate in First Nations, Inuit, and Métis-led statistical capacity in the form of distinctions-based institutions, organizations, or functions that are structured and governed according to the unique needs and perspectives of each distinctions group.
  • In alignment with Canada's commitments under the United Nations Declaration on the Rights of Indigenous Peoples Act, Indigenous Services Canada's commitment to service transfer, the Transformational Approach to Indigenous Data focuses on advancing Indigenous data capacity to support the inherent strengths, resilience, and knowledge systems of Indigenous Peoples as a foundational component of Indigenous self-determination.

Background

  • The five work streams under the Transformational Approach to Indigenous Data are described below.
    • Stream 1: Readying ISC Data Transition ($9.5M): The objective of this work stream is to facilitate data sharing with Indigenous partners as a first step towards the eventual transfer of departmental data assets to Indigenous control along with related service delivery responsibilities.
    • Stream 2: Strengthening First Nations Data Capacity ($51.1M): The objective of this stream in Phase 1 is for First Nations, led by the First Nations Information Governance Centre (FNIGC) and its regional partners, to establish Data Champion Teams at the regional and national levels. These teams will engage with rights holders to develop detailed plans for the First Nations‑led, network of national and regional information governance centres (RIGCs) that was envisioned in the 2020 First Nations Data Governance Strategy (PDF), and will comprise the foundation on which that network will be established starting in Phase 2.
    • Stream 3: Strengthening Inuit Data Capacity ($4.0M): The objective of this stream is for Inuit, led by Inuit Tapiriit Kanatami (ITK), to develop an Inuit Data Strategy identifying their long-term data and data capacity needs. This work will align with and support the Inuit Nunangat Policy, and build upon ITK's 2018 National Inuit Strategy on Research (PDF), particularly Priority #4, which is "to ensure Inuit access, ownership, and control over data and information."
    • Stream 4: Strengthening Métis Nation Data Capacity ($4.0M): The objective of this stream is for the signatories to the Canada-Métis Nation Accord to develop Métis Nation data strategies identifying their long-term data and data capacity needs.
    • Stream 5: Engaging Statistics Canada to Support Indigenous Data Capacity ($13.0M): The objectives of this work stream are for Statistics Canada to support the Indigenous Delivery Partners in building Indigenous data capacity (as per streams 2–4), and to improve the visibility of Indigenous Peoples in Canada's national statistics.

Current Status

  • The Transformational Approach to Indigenous Data is featured in the Federal Data Strategy that was released on April 19, 2023. The strategy also highlights "Support for Indigenous data sovereignty" as one of its five desired outcomes.
  • The UN Declaration Act Action Plan (PDF) also includes support for Indigenous data sovereignty as cross-cutting priority.
  • Contribution agreements are in place with Indigenous partners and each is progressing on its 3-year work plan for Phase 1 of the Transformational Approach to Indigenous Data.
  • For the First Nations Information Governance Centre, the first phase of implementation started with the recruitment of First Nations-led Data Champion Teams – one in every region and at the national level – who will focus on the development of blueprints for their future centers prior to building them up in phase 2. These phase 1 blueprints will be for: the design of permanent, expert-driven regional data governance bodies, and the identification of data capacity building priorities.
    • At the national level, the Data Champion Team has begun to engage First Nations-led partner organizations to identify their priority needs as future users of the network, as well as to establish new collaboration frameworks with key federal departments, including with respect to data governance, access to First Nations data, data sharing and data transition.
  • Inuit Tapiriit Kanatami has made significant progress on its milestones, including scoping activities and baseline data needs assessments for ITK itself and the Inuit Treaty Organizations. ITK's National Inuit Data Management Committee has been making progress on developing their data strategy and ITK has been working with the four regions on regional data planning initiatives.
  • Regarding the Métis Nations, $3 million was allocated to the Métis National Council and its member organizations to support the development of a Métis Nation Data Strategy, and $1 million was allocated to the Manitoba Métis Federation to support the development of a Red River Métis Data Governance Strategy, which will identify their long-term data and data capacity needs. Following some delays in developing their proposals, Métis partners had established good momentum on implementing their work plans. The Métis National Council has created a technical Working Group to develop their data strategy.

If pressed about future phases of the Transformational Approach to Indigenous Data

  • ISC recognizes that supporting Indigenous data sovereignty and capacity is critical to successful service transfer and to supporting the exercise of Indigenous jurisdiction. Things like the UNDA Action Plan and the Federal Data Strategy demonstrate that this is a whole-of-government priority linked to Indigenous self-determination and nation-to-nation relationships.
  • ISC looks forward to supporting First Nations, Inuit, and Métis Nations as they develop their respective visions for data sovereignty.

22. Annex C – Supporting Indigenous-led Surveys: The Surveys on Indigenous Peoples

Key Messages

  • ISC recognizes that one key to addressing longstanding data gaps related to Indigenous Peoples is to support First Nations, Inuit, and Métis to collect, hold, and manage their own data.
  • Indigenous survey data is better if the surveys are Indigenous led. By promising greater cultural relevance of the questions and more culturally competent data collection and management processes, Indigenous-led surveys can achieve better data quality and ultimately empower Indigenous Peoples to tell their own stories based on their unique world views, and to design and deliver effective programs, policies, and services.
  • ISC funds several major Indigenous-led surveys, including the First Nations Regional Social Survey, which has been led since 2011 by the First Nations Information Governance Centre, in compliance with the First Nations principles of OCAP®.
  • It is incumbent upon the department to not only support Indigenous-led surveys, but to use the evidence they provide to guide our own decision-making. Doing this means working with Indigenous partners to access these data, and ensure we use them in a respectful and culturally competent way.

Background

The Surveys on Indigenous Peoples

  • The Surveys on Indigenous Peoples program was launched in November, 2011, following a redesign of the previous Aboriginal Peoples Survey that Statistics Canada had been conducting since 1991, but with increasingly difficulty in securing on-reserve participation.
  • As part of the redesign, ISC entered into a partnership with the First Nations Information Governance Centre (FNIGC) to conduct the on-reserve component, building on their established success conducting the First Nations Regional Health Survey (RHS) in compliance with the First Nations' principles of OCAP®. This new survey is known as the First Nations Regional Social Survey (RSS).
  • Statistics Canada continues to conduct the off-reserve component, which is now known as the Indigenous Peoples Survey, and which covers First Nations living off-reserve, Métis and Inuit.
  • Although the Surveys on Indigenous Peoples program was new, its inaugural cycle was deemed its fourth cycle, in recognition that Statistics Canada had conducted the Aboriginal Peoples Survey three times previously, in 1991, 2001, and 2006.
  • Following funding provided in Budget 2011, the initiative launched its fourth survey cycle (2011–12 to 2015–16) with the theme of Education and Employment, focusing on education and the transition to the labour force.
  • Funding for the surveys was then renewed for a fifth cycle (2015–16 to 2020–21) through Budget 2015, with the theme of Participation in the Economy, which focuses on Indigenous adults and the barriers and levers they face in the labour force.
  • The program achieved permanent funding through Budget 2019, and the sixth cycle (2021–22 to 2025–26) was launched with the theme of Children and Families, which explores barriers and levers to supporting Indigenous children and families to thrive.

Current Status

  • 2023–24 constitutes year three of the current five year survey cycle, based on the theme "Children and Families."
  • Statistics Canada completed collection of the 2022 Indigenous Peoples Survey in March 2023 for First Nations living off reserve, Inuit and Métis; and are currently working with the federal funding partners on the design of the data and research products that will be released starting in summer 2024.
  • The First Nations Information Governance Centre is currently designing the on-reserve survey, with plans to go into the field in fall 2024.
  • Statistics Canada and the First Nations Information Governance Centre continue to collaborate on various technical dimensions of their respective surveys to share best practices and troubleshoot potential issues, particularly with respect to challenges to data collection in the COVID–19 context.
  • Work has begun to determine a theme for the seventh survey cycle beginning in 2027. Federal funding partners are conducting internal engagement within their respective departments to solicit input on a theme.

23. Indigenous led data collection, analysis and indicator development

Key Messages

  • ISC's vision is to support and empower Indigenous peoples to independently deliver services and address the socio-economic conditions in their communities.
  • The environment in which ISC operates is shaped by a variety of factors that influence its current and future delivery of services including the expressed needs of our Indigenous partners, our support for Indigenous self-determination, and the transfer of responsibilities and jurisdiction to Indigenous partners.
  • Supporting Indigenous data sovereignty and capacity is critical to successful service transfer and to supporting the exercise of Indigenous jurisdiction.
  • ISC has taken steps towards better program alignment, expenditure management and reporting on results. Through the new 2023–24 Departmental Results Framework (DRF), ISC's reporting structure moves to a single Core Responsibility that focuses more on Indigenous Well-Being and Self-Determination than on more operational results relating to service delivery.
  • Through greater engagement with stakeholders we hope to harmonize the Department's performance frameworks, including those at the level of our programs, with the priorities of our Indigenous partners.
  • The departmental will, over time, move away from departmental results in the traditional sense of program outcomes to indicators in the context of mutual accountability, while supporting efforts to build capacity in First Nations to collect and analyze the outcomes of their programs.

Background & Current Status

  • The Department is pursuing engagement opportunities at the program level with the aim of aligning program results with the needs, priorities and shared outcomes of our Indigenous partners, as well as reducing reporting burden and leveraging and improving on other available data sources. To this end, ISC program representatives have been working, and will continue to work, with Partners to inform its performance frameworks, including their results, performance indicators and targets, for a number of our programs, including in the areas of Child and Family Services, and Urban Programming for Indigenous Peoples.
  • ISC has also proposed the development of a First Nation Child, Young People and Families Index in collaboration with experts from the Institute for Fiscal Studies and Development (IFSD), Nishnawbe Aski Nation (NAN), the First Nations Information Governance Centre (FNIGC), the National Advisory Committee on Child and Family Services (NAC), First Nations Health Authority (FNHA), and others who may be able to support in this effort. ISC hopes this approach would lead to clearer objectives, better collaboration, streamlined reporting and data collection processes, and address some of the structural drivers underlying the over-representation of First Nations children in care.
  • In addition to the context above, other activities and opportunities to move the department along the continuum of service towards service transfer leveraging performance measurement and data are outlined below.
    • There have been several calls for a comprehensive set of national-level indicators to track improvements in the well-being of First Nations. ISC is working with the Assembly of First Nations and First Nations to develop a National Outcome-Based Framework that would measure the closure of socio-economic gaps between First Nations and non-Indigenous Canadians.
    • Statistics Canada distinctions based survey and census data, including the Indigenous Peoples Survey, can provide important insights on socio-economic gaps. (See details in Annex A: Summary of Status of Socio-Economic Gaps).
    • Both the United Nations Declaration Act Action Plan and the Federal Data Strategy highlight the importance of supporting Indigenous data sovereignty as a whole-of-government priority. In alignment with Canada's commitments under the United Nations Declaration on the Rights of Indigenous Peoples Act, Indigenous Services Canada's commitment to service transfer, the Transformational Approach to Indigenous Data focuses on advancing Indigenous data capacity to support the inherent strengths, resilience, and knowledge systems of Indigenous Peoples as a foundational component of Indigenous self-determination (See Annex B: Supporting Indigenous-led statistical institutions).
    • Indigenous survey data is better if the surveys are Indigenous led. By promising greater cultural relevance of the questions and more culturally competent data collection and management processes, Indigenous-led surveys can achieve better data quality and ultimately empower Indigenous Peoples to tell their own stories based on their unique world views, and to design and deliver effective programs, policies, and services. (See Annex C: Supporting Indigenous-led Surveys: The Surveys on Indigenous Peoples)
    • ISC First Nation and Inuit health Branch (FNIHB) financially supports two national health surveys: (1) the First Nations Regional Health Survey (RHS), which is managed and conducted by the First Nations Information Governance Centre ($24.5M over 5 years), and (2) Qanuippitaa? National Inuit Health Survey (QNIHS) which is managed and conducted by Inuit Tapiriit Kanatami and the four Inuit Land Claim Organizations ($41M over 5 years). FNIHB draws heavily on RHS results for evidence-based program planning and policy development as well as for departmental reporting commitments.

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