Home Business Natoaganeg, province sign $18.1M deal, but loss of tax agreement still hurts, chief says

Natoaganeg, province sign $18.1M deal, but loss of tax agreement still hurts, chief says

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Natoaganeg, province sign $18.1M deal, but loss of tax agreement still hurts, chief says


The Mi’kmaw community of Natoaganeg, near Miramichi, has signed a new funding agreement with the New Brunswick government, but the parties to the agreement have different opinions about whether it’s a good substitute for former tax- revenue sharing. 

“This definitely isn’t a replacement for that … It’s like comparing apples with oranges. It’s probably even more extreme than that,” Natoaganeg Chief George Ginnish said in an interview on CBC’s Information Morning.

The Regional Development Corporation will provide more than $18.8 million over five years to support Natoaganeg’s social, environmental cultural and economic priorities, according to a government news release.

“Agreements like this can provide long-term financial sustainability for First Nations,” Réjean Savoie, Indigenous affairs minister and the minister responsible for the agency, says in the release.

The money is going toward construction of six housing units this year, a 45-unit subdivision within five years and planning for a few smaller community projects, said the chief.

“It meets a really urgent need that exists right now,” Ginnish said.

The community has a “huge” need for housing, said Ginnish — especially “emergency housing” for elders and families.

george ginnish
Chief George Ginnish said the agreement meets an urgent need, but is not a replacement for the tax-sharing agreement. (CBC)

This year, the band received 90 applications for social and subsidized housing, he said. Rentals in the surrounding area are “very limited” and “extremely expensive.”

The new subdivision represents Phase 2 of a five-phase growth plan.

Ginnish was quoted in the government news release saying the new agreement with the province was a step in the right direction and he looked forward to working together on other priorities.

Speaking to CBC, he said more discussion was needed about the future of that relationship.

Natoaganeg, formerly known as Eel Ground, has become the fifth First Nation to sign a “development agreement” with the province since June 2023, after Neqotkuk (Tobique), Welamukotuk (Oromocto), Amlamgog (Fort Folly) and L’nui Menikuk (Indian Island).

Savoie described it as “a new, modern partnership.”

Ginnish calls it, “a heck of an adjustment.”

Rejean Savoie
Indigenous Affairs Minister Réjean Savoie said the agreement represents a new, modern partnership. (Mikael Mayer/Radio-Canada)

The Higgs government announced in 2021, it would not renew agreements with First Nations to share revenue from retail taxes on fuel, tobacco and alcohol. The last agreements expired last year.

That revenue used to support many programs, including subsidized power rates, said Ginnish.

The cost of power now is “a real challenge,” he said.

“Many of our elders didn’t have the opportunity to work to generate pensions,” said the chief.

Natoaganeg was not as negatively affected as some other communities, Ginnish suggested.

It was still in the planning stages of making investments in the type of large infrastructure that some First Nations had already developed and are now on the hook for, he said.

“We didn’t expect — I know most didn’t — that this would be totally cancelled and that revenue stream would be gone.”

“It’s definitely a struggle. It hurts. It hurts big time,” said Ginnish.

But dwelling on what was probably doesn’t help, he said.

“We always look forward to what might be possible with new partners,” said Ginnish.

It means looking at that every option that’s out there, including wind energy projects, natural resources and other revenue streams, he said.

“We have a number of ideas about how things should be shared,” said Ginnish.

Discussions will continue on how economic growth can take place and Indigenous organizations will continue to push for some things they’ve talked about already, he said.

Natoaganeg is involved in a claim process to get reserve status for some off-reserve land, added the chief.

“Our community — just like all the others, I would imagine — are looking for economic opportunity to support their their nations,” he said.

“But you have to have a really willing partner to do that. And at this moment in time, New Brunswick is not willing to to do that.”

For his part, the provincial Indigenous Affairs and RDC minister said the government was “committed to working with other First Nations on further partnership opportunities.”



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