'Divide and conquer:' Higgs government signs another First Nation deal

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A small First Nation has signed a $4.2-million deal with the province after the Higgs government unilaterally cancelled its special tax revenue sharing agreement that the community counted on to fund public services.

Amlamgog, or Fort Folly First Nation, is the fourth out of 15 Indigenous communities in the province to sign a deal with the Progressive Conservative government following its controversial decision to end the unique and long-standing financial arrangements last year.

But the latest deal was deeply symbolic. The Mi’kmaq community near Dorchester in the province’s southeast was the first of New Brunswick’s First Nations to sign the special agreement 30 years ago before the Tory government nixed it.

Under the old terms, a First Nation received 95 per cent of funds collected from provincial sales, tobacco and fuel taxes, along with on-reserve gaming revenues, up to $8 million annually. Any revenue collected above $8 million would see the First Nation collect 70 per cent, with the rest going to provincial coffers.

We would have preferred to continue with the model we had with the tax agreements because we could determine on our own where the funds should be spent.

Rebecca Knockwood

But Premier Blaine Higgs has argued the agreements, unique in Canada, were unfair because they provided an advantage to First Nations businesses that other businesses didn’t have. And he said the lost tax revenues from those reserves, approaching $50 million in the last year of the deals, were needed for provincial services that everyone uses, such as hospitals and roads.

A political science professor called it a classic example of the Tory government pursuing a “divide and conquer” strategy when it came to Indigenous communities that are among the poorest in the province.

In a statement to Brunswick News, Amlamgog’s chief, Rebecca Knockwood, said the money would be used for important initiatives, such as affordable housing, salmon conservation, and better public transportation.

“We would have preferred to continue with the model we had with the tax agreements because we could determine on our own where the funds should be spent but the provincial government has said they have no interest in bringing those back,” the chief wrote by email. “We plan to have more discussions with the province on access to land, revenue sharing, and economic development opportunities.”

Knockwood was unavailable for an interview, but she told Brunswick News the money, to be spent over five years, would help pay for the preservation of salmon – a sacred fish for the Mi’kmaq – and badly needed public services in the First Nation, which has a registered population of 139. Most of those residents live off-reserve but still call Amlamgog home.

“The items in the agreement were identified as areas we wanted to see developed in Amlamgog,” she said. “In terms of salmon conservation, we are looking at developing our aquaculture abilities to increase the number of Inner Bay Atlantic Salmon in our traditional area. We will get some funding to improve our housing stock and will also be purchasing some electric cars, along with charging stations, to help with transporting community members to things like medical appointments.”

Mike Holland, the new minister of Indigenous Affairs, declined interview requests, much the same way his predecessor, Arlene Dunn, mostly turned down requests to speak to media on the deals being rolled out.

He issued a statement to Brunswick News instead.

“The recent agreement signed with Amlamgog First Nation is a great example of what can happen when two sides commit to collaboration,” Holland said. “I want to commend Chief Rebecca Knockwood and her council for taking this important step to provide long-term sustainability for the community and helping us work toward our goal of building a better New Brunswick by ensuring all First Nations can prosper.”

It was the fourth such agreement signed between the government and a First Nation since last June.

As soon as one of them breaks away and signs a deal, power goes to Higgs. They are stronger together.

Mario Levesque

Previous agreements had been reached with Neqotkuk (Tobique First Nation), Welamukotuk (Oromocto First Nation), and L’nui Menikuk (Indian Island First Nation).

The money is coming from the province’s Regional Development Corporation, a Crown agency funded through New Brunswickers’ tax dollars.

“It’s the old divide-and-conquer technique, right?” said Mario Levesque, a political science professor at Mount Allison University. “If the First Nations hold together and demand the agreements, there’s a lot more strength there. But then by Higgs cancelling the agreements and negotiating individually, he can provide less. That’s divide and conquer.”

Levesque compared the situation to Conservative prime minister Stephen Harper’s eight-year tenure that ended in 2015. Harper only held one first ministers’ meeting with provincial premiers.

“After he met with them the first time, he said, ‘I ain’t doing that again because they just like to gang up on me and hold me hostage.’ So instead he spoke with individual premiers and tried to work out agreements one on one. You see the same pattern here with Blaine Higgs.”

The academic said it was up to First Nations to talk to each other on the issue and plan and co-ordinate a strategy, warning that not every First Nation was equipped to negotiate with the province.

He said he could understand why four of them have signed deals – their communities are poor and there’s a persistent housing shortage – but argued it would make sense for them to appoint one or two strong Indigenous leaders as negotiators to represent all of them.

“As soon as one of them breaks away and signs a deal, power goes to Higgs. They are stronger together.”