The Justice Building on Queen Street in Fredericton. (Image: Brad Perry)
New Brunswick is being sued for allegedly violating tax sharing agreements with First Nations regarding carbon taxes.
In a release, the Wolastoqey First Nations say the tax sharing agreements ensure goods sold on reserve to non-Indigenous people are subject to provincial taxes, and in return, a portion of that tax revenue goes back into Indigenous communities.
The Wolastoqey claim this also applies to carbon taxes, but say in their release that no carbon tax revenue has been shared with First Nations.
The release says this also applies to carbon taxes, however no carbon tax revenue has been shared with First Nations. The Wolastoqey First Nations allege the province is withholding $4.65 million in funding due to the carbon pricing plan.
“This is sadly consistent with the record of a government that clearly sees the challenges of Indigenous peoples through a lens of systemic racism,” said Madawaska First Nation Chief Patricia Bernard in the release.
“In a previous mandate, they tried to cancel these agreements altogether and now they are breaking them in part. If this isn’t stopped, the impact on the most vulnerable in our communities will be immeasurable.”
The Wolastoqey communities say a 90-day cancellation clause in the agreement was invoked in 2014 by then-finance minister Blaine Higgs, citing complaints from non-Indigenous retailers that the agreements were unfair.
Following a change of government, the agreements were renegotiated instead of being cancelled. The Wolastoqey communities say First Nations agreed to “significant concessions” in 2017, including a smaller share of revenue, in exchange for eliminating the cancellation cause.
The release said attempts for a meeting with the finance minister and a proposal to submit the dispute to the dispute resolution process were both turned down, making litigation necessary.
According to the release, St. Mary’s, Kingsclear, Woodstock, Tobique and Madawaska are parties to the court application. Oromocto First Nation also plans to join the application.
