The Wolastoqey Nations of New Brunswick say they have achieved a small victory in getting the provincial government to change its tune about cancelling the tax-sharing agreements between the two.
In April, the Higgs government called a press conference and announced it would be cancelling the tax sharing agreements with First Nation communities in April 2022.
Madawaska First Nation Chief Patricia Bernard said in a press conference Friday that it was done without consulting First Nations communities.
The current agreement allows First Nations to keep 95 per cent of the gas and motive fuel tax, the provincial portion of the harmonized sales tax (HST) and tobacco taxes collected on-reserve for the first $8 million and 70 per cent after that threshold. In 1994, the first year it was introduced, the agreement was worth $28,000.
However, the government has back-tracked after the six communities moved to challenge the decision in the Court of Queen’s Bench, which was scheduled for Oct. 15.
“The Chiefs of the six Wolastoqey Nations are frustrated with Premier Blaine Higgs and his ministers for their repeated refusal to engage in meaningful discussions regarding the revenue-sharing agreements,” said Bernard.
The agreements were signed on a 10-year term, meaning they were in place until 2027.
“The actions of the Higgs government have put in jeopardy an important source of revenue that promotes economic development and job creation in First Nation communities and surrounding communities,” Bernard said.
The six communities said they are preparing to create their own tax regime.
“If these agreements do get cancelled, we will be asserting our own jurisdiction, we will be setting up taxation regimes and they may not be in line with what the provincial tax regimes currently are,” she said.
She said they are willing to negotiate on concessions they feel might be needed. Bernard said they are reasonable people.
“Premier Higgs is not very well-informed on the history of particularly our rights but also on the law, the law on jurisdiction, the federal-provincial split of responsibility — the fact that we might be located within the province of New Brunswick but we have a lot of authority and rights to create these types of regimes and I don’t think he’s quite informed or being well-informed as to what the consequences of what his actions are going to be,” she said, speaking to journalists.
Despite the strained relationship between the Indigenous communities and the province — especially after the government refused to recognize the National Day for Truth and Reconciliation as a statutory holiday — Bernard said she believes relationships can be repaired.
Higgs was not available for an interview on Friday, instead sending a statement by email.
“There was a difference of opinion on the termination date for the tax agreements,” the statement said. “The Parties agreed there would be benefit from a court order confirming certainty with respect to the termination date. The process has resulted in a mutually agreed to termination date of January 31, 2023.”
Higgs said the province is satisfied “that we have brought finality and certainty to this matter.”
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