First Nations gambling revenue law passes legislature
Credit to Author: Rob Shaw| Date: Fri, 25 Oct 2019 23:11:52 +0000
VICTORIA — A law that sets aside a share of B.C.’s lottery revenues for First Nations communities has passed at the legislature, but with lingering concerns that the structure to administer the money is inefficient.
The bill, which directs seven per cent of the B.C. Lottery Corporation’s annual net income toward the province’s 203 First Nations for 25 years, was passed Thursday.
The formula amounts to roughly $100 million a year during the first two years. Half will be directly split with all First Nations. A further 40 per cent will be distributed by population. And the final 10 per cent will top up rural Indigenous communities in recognition that those in remote areas have special needs.
The annual funding will be distributed through a new limited partnership formed by First Nations that opt into the program. The partnership is expected to use about $1 million annually to pay for administration, auditing and reporting.
At least one First Nation says that’s an unnecessary and wasteful structure.
“Whenever possible there should be direct transfer between bands and government, because we’re short in every area imaginable when we are looking at service delivery to our people and every little bit counts,” said Chief Byron Louis of the Okanagan Indian Band.
“You start taking off a percentage for administration, rent, insurance and for every other thing it takes to set up an office, and that money could be spent in the communities providing some type of service.
“For me that’s the bottom line. To try and get as much as we can back to our members because they are the ones that hurt the most.”
The Opposition B.C. Liberals tried to amend the bill to cut out the limited partnership. But Attorney General David Eby rallied the NDP-Green MLAs to reject the change.
“There’s a benefit in having First Nations administer their own funds for themselves. It’s an opportunity for capacity-building,” said Eby. “Yeah, zero administration costs are fantastic, but they don’t exist. So if government is administering, it’s going to cost money. If the limited partnership is administering, it’s going to cost money.”
Eby said the structure was set after consultation with the First Nations Gaming Commission — the Union of B.C. Indian Chiefs, the B.C. Assembly of First Nations and the First Nations Leadership Summit
Chief Louis said if rank-and-file chiefs and councils were asked, they would likely have supported direct payment from government.
The final bill was supported by 72 MLAs. The sole exception was Kelowna-Lake Country MLA Norm Letnick, who said he voted against the bill on principle to support the Okanagan Indian Band, which is in his riding.
A further 27 First Nations have not yet signed on to the funding partnership, though Eby said it is unclear why.
The dedicated gambling funding has been a request of First Nations leaders for years. The government has billed it as another step in reconciliation efforts.
B.C. has long shared gambling revenues with local charities and non-profits through its community gaming grant program. While First Nations organizations could apply, First Nation governments were ineligible.
The money can be used for First Nations on projects that improve health and wellness, infrastructure safety, transportation and housing, economic development, education, language, culture, environmental protection, financial management and governance.