Question Period Note: Neskantaga First Nation – Water Shutdown

• Our Government is working to co-develop long term solutions to ensure clean drinking water for all First Nations communities.

• Contractors and technical staff have restored water service to the community and started the 14-day performance testing of the new water treatment system on November 29th. Repatriation planning is targeting mid-December for repatriation. The decision on repatriation is for the Chief to make.

• The First Nation has evacuated the community to Thunder Bay and we are working with partners to repatriate community members safely.

Approximately $25.5 million has been expended from 2001 to 2020 for Operations & Maintenance, capital, and minor capital on Neskantaga First Nation water and wastewater. ISC is providing over $16.44 million in funding for the water treatment plant project, which now includes repairs to the communities water distribution system and the wastewater collection system. Construction is substantially complete. Commissioning and performance testing started in December 2019, however maintenance issues arose with the wastewater. Work on the water treatment plant system was halted at the Chief’s direction, with plans to resume commissioning and performance testing in February 2020, with the aim to resolve the long-term drinking water advisory by April 2020. Plans to work on the system have been further delayed in response to the community’s COVID-19 access restrictions.
On October 16, 2020, Neskantaga Education Centre closed due to water flow issues. Leaks in the water distribution system were depleting the reservoir. The water treatment plant was being shut down at night to allow the reservoir to fill up and provide water during the day. Air locks from the system shutdowns limited the water flow to the school facility.
On October 19, 2020, ISC was made aware of issues with the First Nations water distribution system through posts to Twitter by Chief Moonias. ISC provided funding to Matawa for the purchase and delivery of bottled water for Neskantaga First Nation. ISC is working with the First Nation’s project team to advance the work required to complete the water treatment plant project and the repairs to the wastewater system and water distribution system.
On October 19, 2020, the Matawa Water and Wastewater Hub mobilized to investigate a sheen on the water in the community’s reservoir. The investigation included testing of the water to determine substance(s) that may being causing the sheen. Lab results indicated no traces of BTEX (benzene, toluene, ethylbenzene, xylene), which would signal harmful presence of gas, diesel, fuel oil, etc. However, elevated levels of hydrocarbons were detected, which could be traced to a refined mineral oil from the distribution pump. All cleaning and flushing has been completed.
On October 20, 2020, ISC received an official declaration of emergency from Neskantaga First Nation and was notified of their intent to self-evacuate residents to Thunder Bay.
On October 22, Chief and Council provided ISC with a list of conditions for the repatriation of Neskantaga community members. A response to the Chief’s conditions was sent, however Chief Moonias has since identified additional conditions. One of the Chief’s conditions is to conduct an immediate investigation into business practices of the contractors and engineering companies. ISC agreed to undertake the 3rd party investigation and a Statement of Work has been provided to a prospective contractor. The Terms of Reference for the investigation will be shared with the Chief on November 19. The scope of the investigation will cover fiscal years 1995-96 to 2020-21 and will focus on the evolution of Neskantaga First Nation’s public health and water crisis. Project activities will include literature reviews, interviews with Neskantaga First Nation, other First Nations, and departmental officials, and project file reviews.
On October 26, an ISC engineer flew to Neskantaga First Nation with Chief Moonias, Council and Matawa technical experts to determine the next steps for water treatment plant.
An October 27, Neskantaga Technical Meeting, including Chief Moonias, agreed on a short-term plan to bring the new water treatment plant on line to restore water to the First Nation in November 2020, although the Drinking Water Advisory would stay in place.
On November 13 Chief Moonias announced that a contractor working on reserve tested positive for COVID-19, with the risk of transmission to other on-reserve people being low. On November 15, all 51 COVID tests for those who are and have been in the community have returned negative. Flights are suspended unless they have approval from the Chief.
At the request of leadership and parents, a temporary school had been set up so that students have the instruction, space, and supplies that they need to continue their education while evacuated. As of November 15, the school and all recreational activities had been suspended due to concerns related to COVID-19. Programming resumed on November 25. The Department has deployed an Indigenous security team from Sheshegwaning First Nation and the Keepers of the Circle to deliver culturally appropriate security services and uniformed Thunder Bay police have been assigned to assist at the Victoria Inn.
On November 16, Chief Moonias sent a letter to ISC stating the evacuees require exclusive use of the Victoria Inn Hotel. ISC has approved exclusive use of the hotel and 261 people will be consolidated to the Victoria Inn as of November 23.
ISC is also providing support to the remaining members in the community. ISC has approved funding for the Independent First Nation Alliance (IFNA) to deploy to the community to feed pets, heat homes, and maintain critical community infrastructure. IFNA will demobilize on December 5, with continuity plans in place. The deployment of Canadian Rangers was also approved until December 14th.
Repatriation planning is targeting mid-December with First Nations consultant and contractors, along with Matawa and the Ontario Clean Water Agency working toward that date for clean, safe drinking water 24/7. The decision on repatriation is for the Chief to make.
In October 2020, ISC approved the First Nation’s request for additional funding in the amount of $4.2 million for the Neskantaga Water Treatment Plant Upgrade Project. This amount included an outstanding $1.9 million payment billed by Kingdom Construction Limited for work performed under their contract. The payment was not for any costs relating to damages as a result of the First Nation’s decision to terminate their contract with Kingdom Construction.
ISC provides funding directly to the First Nation for their approved infrastructure projects. The First Nation is responsible for administering the funding for the project within the terms of the funding agreement.
The Department does not provide funding to support legal claims brought against First Nations for decisions made by First Nations that are not in accordance with governing laws and regulations. The First Nation, at their discretion, may seek legal advice and assistance to support them in administering their contracts and making decisions that align with the requirements of the contract. ISC supports First Nations and gives advice and technical assistance whenever that is requested or required.
ISC is working directly with the leadership of Neskantaga First Nation and all supporting parties, to ensure that evacuees can return safely.

If Pressed on Evacuated Community Members

• All members of Neskantaga First Nation deserve the resources necessary to safely navigate this pandemic.

• Indigenous Services Canada has agreed to ensure evacuees at the Victoria Inn Hotel in Thunder Bay have exclusive access to the hotel.

• We will continue to work with the Provincial Emergency Operations Centre to ensure a secure and healthy environment for community members.
If Pressed on Third-Party Investigation
• We respect Neskantaga First Nation’s need to carefully consider a number of priorities.

• We remain committed to working closely with them and other engaged partners as plans are further developed.

• Canada is committed to working in partnership with Indigenous peoples in assuming control of the delivery of services at the pace and in the ways that they choose.

• Currently, ISC provides funding directly to First Nations for their approved infrastructure projects, and the First Nation is responsible for administering the funding for the project within the terms of the funding agreement.
If Pressed on the Current Water and Public Health Crisis
• We support Chief Moonias’ call for a second investigation into the contributing factors to the current water and public health crisis in Neskantaga First Nation.

• Work has begun to launch the Neskantaga specific assessment. It will cover fiscal years 1995-96 to 2020-21 and focus on the contributing factors that led to the current public health and water crisis in the community.

• The process will include co-developing the terms of reference and conducting interviews with Neskantaga First Nation, other First Nations with similar or comparable experiences, departmental officials, and documentation and project file reviews. We are working with Neskantaga to advance the project.
If Pressed on the Delay in Performance Testing of the Water Treatment Plant
• All Canadians should have access to safe, clean, and reliable drinking water.
• The First Nations consultant and contractors, along with Matawa and the Ontario Clean Water Agency, worked to restore water service for Neskantaga First Nation.

• The 14-day performance testing started on November 29th.

• We are working towards repatriation in mid-December, when clean, safe drinking water will be available. The decision on repatriation is for the Chief to make.

• We will continue to work with First Nation communities to end all long-term drinking water advisories on public systems on reserve
If Pressed on the Cost of Contractors
• In October 2020, we provided an additional $4.2 million to the First Nation, including $1.9 for payment billed by the First Nations’ previous contractor for work completed prior to their termination.
• The Department does not provide funding to support legal claims brought against First Nations for decisions made by First Nations that fall outside governing laws and regulations.

• The First Nation holds the agreements with contractors and are responsible for all related due diligence.