First Nations Commercial and Industrial Development Act

The Regulatory Gap

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

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.

The First Nations Commercial and Industrial Development Act (FNCIDA)

The First Nations Commercial and Industrial Development Act (FNCIDA) was introduced in the House of Commons on November 2, 2005 and came into force on April 1, 2006. This legislation was needed to close the regulatory gap on reserves and allow complex commercial and industrial projects to proceed.

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 passed Band Council Resolutions in support of the legislative initiative, and some have advanced plans for various commercial or industrial projects using FNCIDA, including a wood fibre optimization plant in Fort William and a land title and strata property regulatory regime project in Squamish.

FNCIDA allows the federal government to produce regulations for complex commercial and industrial development projects on reserves. The Act essentially provides for the adoption of regulations on reserves that are compatible with those off reserves. This compatibility with existing provincial regulations increases certainty for the public and developers while minimizing costs.

Federal regulations are only made under FNCIDA at the request of participating First Nations. The regulations are project-specific, developed in cooperation with the First Nation and the relevant province, and are limited in application to the particular lands described in the project.

These regulations 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.

Benefits

For First Nations, FNCIDA has many opportunities for economic development. Major commercial and industrial development projects taking place under this Act will contribute to the economy and create jobs.

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. First Nations will benefit from a greater potential rate of return from their investments and from increased employment and business opportunities on their reserves. Provinces will benefit from uniformity of regulations concerning major commercial and industrial development within their borders.

By providing for regulatory certainty, FNCIDA is helping to more effectively balance economic development with environmental protection and social policy goals, thus promoting the sustainable use of reserve lands and resources for future generations. Also, major commercial and industrial projects contribute to the economy of the surrounding region, increasing employment and generating tax revenue. This will benefit all Canadians.

Further Information

• Frequently Asked Questions
• How does FNCIDA work?
• Process, Roles and Responsibilities
• Checklist for First Nations
• Glossary of Terms

If you are interested in FNCIDA and would like further information, please contact the Aboriginal Affairs and Northern Development Canada regional office closest to you or call 1-800-567-9604.