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Report: First Nations communities need $349 billion to close the infrastructure gap by 2030

Report: First Nations communities need $349 billion to close the infrastructure gap by 2030

By Mounira Magdy

Published: April 10, 2024

The Assembly of First Nations announced that the cost of closing the infrastructure gap in order to improve it will require half a trillion dollars by 2040 unless the federal government acts now.

The national advocacy organization said in a report released Tuesday that Canada must invest $349.2 billion now to ensure that First Nations and non-Indigenous communities have access to comparable infrastructure by 2030.

Closing this gap by 2030 is one of the commitments signed by Prime Minister Justin Trudeau to reconciliation – a promise the council chief said the Liberal government now risks walking away from.

Cindy Woodhouse Nebinaak said in a statement released Tuesday, "Without immediate and decisive action, First Nations risk facing more than 60 years of inadequate access to infrastructure, housing, and digital connectivity."

The council, which represents more than 600 First Nations chiefs across the country, was involved in developing the report with Prodigenous Services Canada and the Bty Group consulting firm.

The infrastructure gap report by 2030 includes housing, schools, water plants, roads, and other assets, including ports, docks, clinics, and digital connectivity.

The report links the massive deficit to decades of underfunding, federal failure, and unequal wealth distribution, and the report also serves as a comprehensive budget proposal, promising that seeping $349.2 billion will create more than 3.2 million jobs and boost Canada's GDP by more than $1 trillion.

Nebinaak said the government now has all the data it needs and is no longer able to make excuses for breaches and neglect because the report carries Canada's stamp of approval.

She added, "Promises have been made and must now be kept."

Indigenous Services Minister Patty Hajdu told reporters, after exiting a cabinet meeting in Parliament Hall following the report’s launch, “This still certainly remains the goal.”

She said that to achieve this, all orders of government and the private sector must work together, adding that in some cases there are practical challenges beyond funds that may currently exclude infrastructure projects.

However, the council expects the cost will not be met unless action is taken in the coming years due to economic pressures including inflation, construction costs, fuel prices, along with already deteriorating infrastructure.

Woodhouse Nebinaak said, “Our report shows that due to Canada's government inaction, the timeline for closing the gap is expected to be delayed until 2040, and the cost of closing the First Nations infrastructure and housing gap in 2040 will rise to $527.9 billion.”

The report does not discuss the infrastructure gap facing Métis and Inuit.

In its own report, the National Organization Tapiriit Kanatami estimates it will require $75.1 billion and more than 35 years to close the gap in Inuit regions.

The report includes federal housing announcements.

The council’s report comes just one week before the 2024 budget is set, following a series of pre-budget Trudeau announcements aimed at improving affordability and increasing housing supply in municipalities.

However, some proposed policies have faced criticism accusing the Prime Minister of encroaching on provincial jurisdiction such as municipal zoning and building regulation.

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