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Indigenous

Canada’s Indigenous Model is Not Sustainable

Published

2 years ago

11 minute read

From the Frontier Centre for Public Policy

By Brian Giesbrecht

The stated purpose of the extra indigenous spending that has always been there, and the virtual explosion on indigenous spending since 2015 is meant to fix that problem. But these massive expenditures have now reached the point where they risk destabilizing the country.

Canada’s parliamentary budget officer, Yves Giroux has spoken out about the alarming rise in Canada’s contingent liabilities related to indigenous claims. Todays estimated 76 billion dollars is many times the 15 billion dollars it was when the Liberals took power in 2015.

This is one part only of the massive increase in spending on indigenous matters that has taken place since then.

Federal spending per indigenous person has always been much higher than spending per non-indigenous person. The higher level of spending has been justified because most indigenous people do much worse on virtually every health and social indicator than the mainstream population. Their health is poorer, and their lives are shorter.

This disparity was generally known as Canada’s “Indian problem”. That term is no longer fashionable, and the extra spending is now said to be necessary to achieve “reconciliation”. Regardless of the terms, what is clear is that since Confederation there has always existed a large rural and urban indigenous underclass that does poorly compared to the mainstream. The stated purpose of the extra indigenous spending that has always been there, and the virtual explosion on indigenous spending since 2015 is meant to fix that problem. But these massive expenditures have now reached the point where they risk destabilizing the country.

Perhaps it’s time for Canadians to ask if the “nation to nation” reconciliation plan that spending is based on is working. Is it fixing the problem?

A recent CBC report proves that it is not. Instead, the problems are getting worse.

The CBC investigated an indigenous community at St. Theresa Point where 24 people sometime share one house. Almost all of the houses in the community are crumbling and need to be replaced. Families struggle to achieve basic hygiene. Living conditions resemble what one would expect to find in a third world community, and not in wealthy, modern Canada.

St. Theresa Point is typical of hundreds of other Indian remote reserves. Most are almost totally dependent on the federal government for their survival. There is virtually no real employment. The poorest people in those communities are directly dependent on welfare checks, but even the chief, councillors and other employees receive their paycheques from the transfer payments sent by Ottawa. In reality almost everyone in the community is on welfare of some type.

Unlike in other rural communities, people on poor reserves tend not to move when economic opportunities decline. In small-town Canada, the rules are simple: If the towns or farms can’t supply enough jobs, one moves to the city where the jobs and careers are. But on remote reserves, most people stay put, even if there are no jobs or careers there for them. And most of those who do move to the city do not do well. A lack of education, poor job skills, and lack of motivation usually consign reserve residents who move to the mean parts of town where many end up in gangs, crime and prostitution. The result is that the people who stay in uneconomic remote reserves become more and more dependent. Low education levels sink even further. And succeeding generations become ever less likely to be able to provide for themselves and their families.

To make matters much worse, addiction problems are endemic. At one time, alcohol was the drug of choice. Now, amphetamines, fentanyl, and prescription drugs have been added to the list, with the family violence, sexual abuse, crime, teenage pregnancy and fetal alcohol births that inevitably follow from chronic drug use.

And reserve populations are growing. Although status Indians living on reserves currently comprise only about 1% of the total population, they are the country’s fastest growing demographic. The cost of operating these communities is crippling now, but in a few years, it will be completely unsustainable. Pretending that these desperately poor reserves are sovereign “nations” that will somehow magically become prosperous and self-supporting is a cruel joke on the young people hopelessly trapped on them. The prospect of hundreds of dependent reserves teeming with, unemployed, and largely unemployable young people, with massive social problems, is a frightening dystopia – hundreds of Gaza strips. But it is where we are headed. To make things even worse, the government-promoted false genocide and “missing children” narratives have made many of these people very angry.

Although there is no treaty right, or any other right to free housing on a reserve the reality is that if the government did not provide housing for the reserve residents, they would be unable to provide housing for themselves. The strange result is that Canadian taxpayers – many of whom will never be able to afford to buy a house themselves – pay through their tax dollars for houses for the rapidly growing reserve population. These houses deteriorate quickly, because they are considered “free” by the residents, and have to be fixed and replaced in a wasteful and expensive cycle.

And it is a national disgrace that most reserves are dead ends for most of the young people born into them.

The late Farley Mowat described northern indigenous settlements as “unguarded concentration camps”. That might be a somewhat harsh way to describe reserves, but at best most are human warehouses, plagued with social problems. The young people living there deserve some hope, and Canada’s current plan for them offers them none.

So, Canada’s current indigenous plan is clearly not working. Is there a better plan for success?

Maybe we should ask Wab Kinew, Manitoba’s new premier. He is indigenous and highly successful. How did he get there?

The formula is actually not complicated. It has nothing to do with massive welfare giveaways, “nation to nation” utopias, or incredibly expensive “reconciliation” projects. It definitely has nothing to do with staying in a community that lacks economic opportunities, and waiting for handouts. It involves education, hard work, and going where the jobs are. Kinew’s parents realized that a stable home and education were key. Wab did the rest. He worked his way up the ladder in the usual way, and went where the jobs were. He did that with his indigenous identity intact.

Not every young person has Kinew’s talent, but everyone can follow the formula that made Kinew, and many other indigenous achievers successful.

The alternative – spending ever increasing amounts on a steadily increasing list of demands from a growing dependent reserve population is not an option. We don’t need the parliamentary budget officer to tell us that it is not sustainable.

As for remote, uneconomic reserves, like St. Theresa Point, they should be gradually and humanely closed down. It has been recognized for many years that reserves long ago had served their purpose, and should be phased out. As far back as 1911, it was said:

“Department officials were increasingly coming to the view that reserves had outlived their usefulness. Frank Pedley suggested that they resulted in the isolation and segregation of Indians, and thereby hindered progress…and encouraged the tribal form of government.”

The reserve system was not ended in 1911 because the chiefs and ruling families refused to give up their privileged positions. It isn’t happening today for the same reasons. We still have the same Indian Act and reserve system that has held indigenous people back for almost 150 years. (Senior Ontario lawyer, Peter Best, describes the toxicity of the reserve system in his important book, There Is No Difference)

So, the long-term plan should be to find a way to overcome that resistance, and find a fair way to phase out reserves, and the antiquated Indian Act. The reserves that are economically viable can merge into existing rural municipalities, or become stand-alone municipalities. Opportunities should be made available for young people from uneconomic communities to move to job centres, and receive help to succeed there.

In the meantime, the example of Wab Kinew is proof that there has never been a better time or place than today’s Canada to be an educated and ambitious young indigenous person who is willing to study, work hard, and go where the jobs are.

Brian Giesbrecht is a retired judge and senior fellow at Frontier Centre for Public Policy

Watch Brian on Return to Reason here.

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Indigenous

Residential school burials controversy continues to fuel wave of church arsons, new data suggests

Published on December 21, 2025

By

Macdonald-Laurier Institute

By Edgardo Sepulveda for Inside Policy

Church arsons surged again in 2024 according to new data released by Statistics Canada—continuing a disturbing trend first uncovered by a Macdonald-Laurier Institute investigation published last year.

Scorched Earth: A quantitative analysis of arson at Canadian religious institutions and its threat to reconciliation, which I published last April, warned that the arson wave – almost certainly spurred by ongoing anger over potential unmarked burials of children at residential schools –would not disappear without concerted government policy intervention.

Unfortunately, my prediction is proving accurate.

Newly available custom data from Statistics Canada confirms that arsons in 2024 continued at nearly double the baseline level established from 2011–17.

This persistent elevation is particularly concerning given that arson is a dangerous crime with significant financial costs and, in the case of religious institutions, broader implications for Canadian society and political discourse. Most importantly for those committed to Indigenous reconciliation, the apparent lack of effective policy response risks undermining public support for reconciliation efforts—suggesting these crimes are not being treated with the seriousness they deserve, particularly because many targets are Catholic churches associated with residential school legacies.

Scorched Earth developed specific terms and a conceptual framework to analyze arsons at religious institutions. First, I refer to “potential unmarked burials” rather than other terminology, including “mass graves” – language suggesting verified remains and, potentially, the site of clandestine burials. Neither has been established. No remains have been verified at any of the 21 announced sites. The Tk’emlúps te Secwépemc First Nation revised its own characterization of the Kamloops, BC, announcements in May 2024 to “probable unmarked burial sites,” a significant shift from its initial May 2021 announcement of “remains of 215 children.” This precipitated announcement, together with some of the initial media coverage in Canada and elsewhere, likely contributed to the intensity of the arson response.

Second, the conceptual framework, updated with the latest Statistics Canada data, separates “baseline” from “excess” arson associated with specific shocks, such as the announcements. It shows that arsons at religious institutions have remained elevated since the initial spike in 2021. Based on careful geographic statistical analysis presented in Scorched Earth, I demonstrated that the most likely explanation for elevated arsons was a criminal response prompted by the 17 announcements of potential unmarked burials at former residential schools, beginning in Kamloops, B.C., in May 2021. Four additional announcements occurred in 2024, bringing the total to 21. While data through 2023 showed no detectable increase in arsons related to the Israel-Gaza conflict, analysis of 2024 data suggests this changed: arsons in response to that conflict now constitute a minority of the increase above baseline levels, with the majority remaining those related to announcements of potential unmarked burials.

Investigation and Prosecution Rates Remain Insufficient for Effective Deterrence

Statistics Canada’s newly released custom clearance data for arson at religious institutions provides the first comprehensive official view of law enforcement effectiveness in these cases, superseding the preliminary compilation included in Scorched Earth.

Crimes in Canada are considered “solved” when police identify a suspect with sufficient evidence to support charges. Cases are then classified as “cleared” through two mechanisms: laying charges (“cleared by charge”) or alternative processes such as diversion programs (“cleared otherwise”).

As Figure 2 illustrates, the cleared-by-charge rate for all arson averaged 13.1 per cent over the 2011–24 period. For religious institutions, the yearly average reached 14.4 per cent—marginally higher but still concerning. The clearance rate for religious institutions shows significant year-over-year variability, reflecting the smaller statistical base compared to all arsons. The “cleared otherwise” category adds an average of 4.7 per cent for both arson types.

While these low clearance rates align with those for other property crimes, the continuing elevated arson rate suggests they provide insufficient deterrence for either first-time or serial arsonists. Evidence from Scorched Earth indicates that sustained clearance rates in the mid-30 per cent range—achieved by the National Church Arson Task Force (NCATF) in the United States during the 1990s—effectively reduced church arsons targeting predominantly Black congregations in the American South.

While my statistical analysis indicates that announcements of potential unmarked burials likely motivated many incidents, this remains circumstantial evidence. Direct evidence would require confessions or explicit statements of rationale from arrested arsonists, or credible claims of responsibility from organized groups. Out of the 306 arsons at religious institutions over the 2021-24 period, 53 resulted in charges and 13 were cleared through alternative processes, totaling 64 cleared incidents—an overall clearance rate of 21 per cent.

A clearance rate at this level, while insufficient for effective deterrence, makes it unlikely that most arsons during this period resulted from organized political, ideological, or anti-religious campaigns. A coordinated campaign would likely be visible to investigators even at this clearance level. Since police identify suspects in far more cases than they prosecute, investigators develop a broader perspective on potential culprits than clearance rates alone suggest. Law enforcement officials have not provided any indication of such organized campaigns.

Federal and Provincial Funding Addresses Searches But Ignores Consequences

Neither federal nor provincial governments have introduced policy initiatives addressing elevated arson rates at religious institutions, despite substantial new funding for related matters.

Following the Kamloops announcement, the federal government launched the Residential Schools Missing Children Community Support program, providing $246 million to hundreds of communities, including for research and field investigations. Separately, British Columbia, Alberta, Ontario, and other provinces have committed hundreds of millions in additional dollars, including programs to address mental health effects from the search process and announcements.

This funding inventory highlights a significant policy gap: substantial resources address the cause—announcements of potential unmarked burials—while none target the effect: arsons at religious institutions.

Even viewed narrowly as a crime issue, recent government responses to other property crimes demonstrate available policy tools. When auto theft peaked in 2023, the federal government announced $121 million in federal support, convened a national summit with all levels of government and law enforcement, and released a National Action Plan by May 2024.

Policy Gaps and a Call to Action

The NCATF, created in response to arsons targeting Black churches in the 1990s United States, achieved clearance rates sufficient to reduce incidents. Canada possesses the same policy tools but has not deployed them for residential school-related arsons.

This is not a matter of capacity or institutional precedent. Recent government responses to other serious property crimes, such as auto theft, demonstrate that Canada can mobilize coordinated federal-provincial action when it chooses to. The apparent policy inaction since 2021 for residential school-related arsons must end.

Canada is not powerless to stop the arsonists. The policy recommendations set out in Scorched Earth continue to be valid:

  • Create a national or regional integrated police/fire investigations unit focused specifically on arson at religious institutions. This integrated unit would investigate arsons at all religious institutions—Christian, Muslim, Jewish, and others.
  • Improve Indigenous police and fire protection services, including to ensure full Indigenous participation in the integrated unit.
  • Complete the long-running project of building and maintaining a comprehensive and timely national and on-reserve database of fire statistics.

Law enforcement officials must thoroughly investigate and prosecute the arsonists. The attacks threaten reconciliation and full Indigenous equality—and they must be condemned by all Canadians.

Economist Edgardo Sepulveda has more than 30 years of experience advising clients in more than forty countries. He has written for Jacobin magazine, TVO Today, and the Alberta Federation of Labour, and has been lead author of three peer-reviewed academic articles in the last five years. He received his BA (Hon) from the University of British Columbia and his MA from Queen’s University, both in Economics. He established Sepulveda Consulting Inc. in 2006.

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Business

Storm clouds of uncertainty as BC courts deal another blow to industry and investment

Published on December 14, 2025

By

From the Fraser Institute

By Tegan Hill and Jason Clemens

Recent court decision adds to growing uncertainty in B.C.

A recent decision by the B.C. Court of Appeal further clouds private property rights and undermines investment in the province. Specifically, the court determined British Columbia’s mineral claims system did not follow the province’s Declaration on the Rights of Indigenous Peoples Act (DRIPA), which incorporated the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) into law.

DRIPA (2019) requires the B.C. provincial government to “take all measures necessary to ensure the laws of British Columbia are consistent with the Declaration,” meaning that all legislation in B.C. must conform to the principles outlined in the UNDRIP, which states that “Indigenous peoples have the right to the lands, territories and resources which they have traditionally owned, occupied or otherwise used or acquired.” The court’s ruling that the provincial government is not abiding by its own legislation (DRIPA) is the latest hit for the province in terms of ongoing uncertainty regarding property rights across the province, which will impose massive economic costs on all British Columbians until it’s resolved.

Consider the Cowichan First Nations legal case. The B.C. Supreme Court recently granted Aboriginal title to over 800 acres of land in Richmond valued at $2.5 billion, and where such aboriginal title is determined to exist, the court ruled that it is “prior and senior right” to other property interests. Put simply, the case puts private property at risk in BC.

The Eby government is appealing the case, yet it’s simultaneously negotiating bilateral agreements that similarly give First Nations priority rights over land swaths in B.C.

Consider Haida Gwaii, an archipelago on Canada’s west coast where around 5,000 people live—half of which are non-Haida. In April 2024, the Eby government granted Haida Aboriginal title over the land as part of a bilateral agreement. And while the agreement says private property must be honoured, private property rights are incompatible with communal Aboriginal title and it’s unclear how this conflict will be resolved.

Moreover, the Eby government attempted to pass legislation that effectively gives First Nations veto power over public land use in B.C. in 2024. While the legislation was rescinded after significant public backlash, the Eby’s government’s continued bilateral negotiations and proposed changes to other laws indicate it’s supportive of the general move towards Aboriginal title over significant parts of the province.

UNDRIP was adopted by the United Nations in 2007 and the B.C. Legislature adopted DRIPA in 2019. DRIPA requires that the government must secure “free, prior and informed consent” before approving projects on claimed land. Premier Eby is directly tied to DRIPA since he was the attorney general and actually drafted the interpretation memo.

The recent case centres around mineral exploration. Two First Nations groups—the Gitxaala Nation and the Ehattesaht First Nation—claimed the duty to consult was not adequately met and that granting mineral claims in their land “harms their cultural, spiritual, economic, and governance rights over their traditional territories,” which is inconsistent with DRIPA.

According to a 2024 survey of mining executives, more uncertainty is the last thing B.C. needs. Indeed, 76 per cent of respondents for B.C. said uncertainty around protected land and disputed land claims deters investment compared to only 29 per cent and 44 per cent (respectively) for Saskatchewan.

This series of developments have and will continue to fuel uncertainty in B.C. Who would move to or invest in B.C. when their private property, business, and investment is potentially at risk?

It’s no wonder British Columbians are leaving the province in droves. According to the B.C. Business Council, nearly 70,000 residents left B.C. for other parts of Canada last year. Similarly, business investment (inflation-adjusted) fell by nearly 5 per cent last year, exports and housing starts were down, and living standards in the province (as measured by per-person GDP) contracted in both 2023 and 2024.

B.C.’s recent developments will only worsen uncertainty in the province, deterring investment and leading to stagnant or even declining living standards for British Columbians. The Eby government should do its part to reaffirm private property rights, rather than continue fuelling uncertainty.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Jason Clemens

Executive Vice President, Fraser Institute
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