Question Period Note: Comprehensive Land Claim Negotiation Loan Forgiveness and Reimbursement ($1.4 billion)

Indigenous peoples have an inherent right to self-government and they should never have to choose between exercising this right, and their financial security.

In 2018, our government replaced all loans for self-governing negotiations with grants and in 2019 we went one step further and invested 1.4 billion to forge all outstanding loans, and reimburse those that have repaid loans.

Every effort is being made to ensure that the full implementation of this forgiveness happens as quickly as possible.

Over 230 Indigenous communities can now invest in services, infrastructure, governance and economic development that will increase health and well-being for community members.

• Budget 2019 proposes funding of up to $1.4 billion to forgive all outstanding comprehensive land claim negotiation loans and to reimburse Indigenous governments that have already repaid these loans. Profile as follows:
o Up to $938 million (one-time accounting transaction) to forgive the outstanding book value of loans issued by Canada to Indigenous groups to support their participation in comprehensive land claim negotiations.
o Up to $491million ($98.2 million annually over five years starting in 2020-21) to reimburse the loan amounts repaid by modern treaty holders to Canada.
• Work to advance the Budget commitment is progressing well. In June 2019, the Treasury Board submission to implement this commitment was approved; reconciliation of amounts eligible to be reimbursed is almost completed; and in July and August 2019 letters were sent to all Indigenous groups confirming the path forward pending final approval of authorities.
• It is anticipated that the required accounting entry to reverse loan debt owed to Canada will be completed by the end of fiscal year 2019-20.
• Subject to annual appropriation of funds, reimbursement is scheduled to begin in fiscal year 2020-21 with equal installments being paid out over five years, as per the Budget announcement.

None