“It sets the tone for a better relationship” – WFN Sakum Tim Paul
On Thursday, Sept. 25, the six chiefs of the Wolastoqey Nation signed new revenue-sharing agreements with the Province of New Brunswick.
“It’s an economic partnership that will go a long way toward reconciliation,” said Wotstak First Nation Sakum (Chief) Tim Paul.
The agreements allow for the sharing of tax revenue from tobacco, gas and motive fuel, as well as the provincial portion of the harmonized sales tax generated by businesses within First Nations reserve lands.
The new agreement is tied to a sliding scale. Any tax revenue below $10 million will give 95 per cent to communities and five per cent to the provincial government. Tax revenue of $10 million or higher, but below $16 million, will give 70 per cent to communities and 30 per cent to the provincial government. Tax revenue above $16 million will be shared 50/50.
This approach is designed to ensure that tax revenues remain in the local community, supporting priorities such as housing, education, healthcare, and economic development. The agreements empower First Nation communities to address local needs with greater autonomy, while fostering stronger relationships with the provincial government.
“I’m happy that revenue is going to start coming back to the community, but that’s only one important part of today’s announcement,” said Sakum Paul. “The more important part is that this gives us hope for a new relationship going forward. This sets a positive tone for a better relationship in the realm of reconciliation.”
In 2021, former New Brunswick Premier Blaine Higgs pulled out of previously negotiated revenue agreements without warning, calling the tax agreements outdated, “unsustainable and unfair,” calling it a “two-tier tax system” that deprived schools, hospitals and other public services of much-needed funding.
The agreements were first signed in 1994 and renewed in 2017. Revenue sharing fuelled economic growth in Indigenous communities. In Wotstak, the funds helped pay for new sewer and water lines, housing, and other community projects.
“We are proud to have collaborated with chiefs on these agreements, which benefit Wolastoqey communities and grow shared prosperity for all New Brunswickers,” said Premier SusanHolt. “Our province flourishes when we work together. We are committed to building relationships between First Nations and our government, and we hope these agreements become an example for all provinces in Canada in our national efforts toward reconciliation, equity and right relations.”
Indigenous Affairs Minister Keith Chiasson said negotiating these agreements required courage, humility, wisdom, strength, and a willingness to engage in hard conversations on both sides.
“I am grateful to every chief who trusted us to sit at the negotiating table and figure out a wayforward,” said Chiasson. “Woliwon for demonstrating true partnership in action and in word. The legacy of these agreements will be in the growth, collaboration and collective prosperity of First Nations communities and the province of New Brunswick.”
“Our Elders talk about making decisions in the interests of the generations that came before and those that will follow us in the future,” said Sakum Paul. “Our communities will benefit economically from these agreements with crucial revenue to better support necessities like housing and education for future generations. They also move away from a paternalistic, top-down relationship. Government-to-government respect is founded in dignity and equity, and it is the way forward.”
The six Wolastoqey communities of Sitansisk (Saint Mary’s), Neqotkuk (Tobique), Bilijk (Kingsclear), Matawaskiyak (Madawaska), Welamukotuk (Oromocto), and Wotstak (Woodstock) signed agreements on Sept. 25, on behalf of the Wolastoq communities.
