Backgrounder
Proposed First Nations Commercial and Industrial Development Act (FNCIDA)

The Regulatory Gap

First Nations across Canada are increasingly developing plans for complex commercial and industrial development projects. These First Nations’ efforts are hindered by a lack of adequate regulations for commercial and industrial development on reserve land.

The gaps in question exist because current federal legislation fails to provide the necessary tools for regulating the increasingly large, complex and sophisticated commercial and industrial development projects that First Nations are now bringing forward to foster economic development on reserve lands.

These gaps contribute to regulatory uncertainty and can discourage investment, frustrating the objective shared by First Nations and the Government of Canada of expanding economic development on reserves.

Proposed First Nations Commercial and Industrial Development Act (FNCIDA)

Legislation is needed to close this gap and allow complex commercial and industrial projects to proceed.

The proposed First Nations Commercial and Industrial Development Act (FNCIDA) will allow the federal government to produce regulations for complex commercial and industrial development project on reserve. These regulations would essentially replicate provincial regulatory regimes. This would create compatibility with an existing provincial regime, and would increase certainty for the public and developers while minimizing costs.

Federal regulations will only be made under this Act at the request of participating First Nations. These regulations would be project-specific, developed in cooperation with the First Nation and the relevant province and would be limited in application to the particular lands described in the regulations.

These regulations would allow the government to have the province carry out the monitoring and enforcement of this new regulatory regime via an agreement between the federal government, the First Nation and the province.

This First Nation-led legislative initiative was developed in cooperation with five partnering First Nations (Squamish Nation of British Columbia, Fort McKay First Nation and Tsuu T’ina Nation of Alberta, Carry the Kettle First Nation of Saskatchewan and Fort William First Nation of Ontario). All five partnering First Nations have passed Band Council Resolutions in support of the legislative initiative, and each has plans for various commercial or industrial projects.

These five partnering First Nations have also taken a lead role in reaching out and engaging First Nation communities across Canada, providing information and soliciting support for the proposed legislation. Their efforts have included outreach with national and regional First Nations organizations, such as the Atlantic Policy Congress of First Nations Chiefs, who have indicated support for the proposed legislation.

Benefits

For First Nations, the proposed First Nations Commercial and Industrial Development Act will create many opportunities for economic development. Investors will have greater certainty about the regulations involved in developing major commercial or industrial projects on reserve, improving First Nations’ prospects for attracting major capital investment. The initiative will also enhance the potential rate of return from First Nations’ investments and will create jobs and business opportunities on reserve.

Provinces involved in the initiative will benefit from uniformity of regulations concerning major commercial and industrial development across the province. This legislation will provide for the adoption of regulations on reserve that are compatible with those applying off reserve. Also, major commercial and industrial projects will contribute to the economy of the surrounding region, increasing employment and generating tax revenue.

Major commercial and industrial development projects that will take place under this Act can contribute to the economy and create jobs. Also, risks to citizens and the environment will be minimized by ensuring adequate regulations are in place. This will benefit all Canadians.