What we examined (see Focus of the audit)

This audit focused on whether Fisheries and Oceans Canada, Parks Canada, and Aboriginal Affairs and Northern Development Canada were implementing selected obligations in the Labrador Inuit Land Claims Agreement (LILCA) and two related side agreements, the Fiscal Financing Agreement and the Labrador Inuit Park Impacts and Benefits Agreement for the Torngat Mountains National Park Reserve of Canada (Labrador Inuit Park Impacts and Benefits Agreement).

We also examined whether the above entities monitored the status of their obligations, and whether this information was shared with Aboriginal Affairs and Northern Development Canada to help it coordinate and report on the implementation of the LILCA.

We also examined whether the above entities plus Environment Canada tracked federal contracts issued in the Labrador Inuit Settlement Area and whether this information was shared with Aboriginal Affairs and Northern Development Canada for public reporting purposes, as required by the Treasury Board’s Contracting Policy.

Why we did this audit

This audit is important because implementing obligations contributes to promoting strong and self-reliant Inuit communities, improving the social well-being and economic prosperity of the Inuit people, and providing certainty to all parties with respect to resource development. Furthermore, implementing obligations can foster a collaborative relationship, which reduces the potential for litigation.

What we concluded

We concluded that federal government entities made progress implementing selected obligations in the Labrador Inuit Land Claims Agreement and two related side agreements, the Fiscal Financing Agreement and the Labrador Inuit Park Impacts and Benefits Agreement. However, there are challenges that need to be resolved. By providing direction and guidance, the Deputy Ministers’ Oversight Committee announced in July 2015 by the Minister of Aboriginal Affairs and Northern Development could help with some of the challenges experienced when implementing land claims agreement obligations.

What we found

Implementing obligations in the Labrador Inuit Land Claims Agreement

Overall, we found that the federal government made progress in implementing selected obligations in the Labrador Inuit Land Claims Agreement and related side agreements, but that some challenges remained. We found ongoing differences in interpretations between Fisheries and Oceans Canada and the Nunatsiavut Government over fisheries-related obligations. We also found that Parks Canada has acted upon commitments set out in the Labrador Inuit Park Impacts and Benefits Agreement, resulting in economic benefits including employment for the Labrador Inuit. Finally, we found that the Fiscal Financing Agreement signed by Aboriginal Affairs and Northern Development Canada provided financial support to the Nunatsiavut Government, which has been important for its self-government. However, the lack of a federal program for Inuit housing has affected the Nunatsiavut Government’s ability to fulfill housing responsibilities it received by signing this side agreement.

We also found that Aboriginal Affairs and Northern Development Canada’s system for tracking the status of obligations was not yet being used to its full potential; opportunities exist to expand the system to include benefits resulting from the implementation of obligations. A plan has been developed to expand the capabilities of the system to allow it to better support departments and agencies involved in implementing land claims agreements. We also found that the entities were not adequately tracking and sharing information on federal contracts for goods and services issued within the Labrador Inuit Settlement Area, as required by Treasury Board policy. As a result, Aboriginal Affairs and Northern Development Canada’s public reporting on federal contracting activities within the settlement area was incomplete.

These findings are important because failing to consistently implement obligations in the LILCA and related side agreements jeopardizes the certainty that parties to the agreements hoped to achieve. It also affects efforts by all parties to improve the social well-being and economic prosperity of the Labrador Inuit. Moreover, the federal government risks litigation if its obligations go unfulfilled.

• Progress was made implementing some obligations, but challenges remained regarding fisheries and housing

  Recommendation. Fisheries and Oceans Canada should work with the Nunatsiavut Government to clarify and agree on the intent of the obligations regarding the Nunatsiavut Government’s access to the northern shrimp fishery. They should also agree on what constitutes changes to the system for allocating commercial opportunities to fish. If the differences remain unresolved, the matter should be brought to the Dispute Resolution Board as provided for in the Labrador Inuit Land Claims Agreement.

  Recommendation. Fisheries and Oceans Canada should work with the Nunatsiavut Government to agree on the status of the obligation regarding communal harvesting in the Upper Lake Melville area. If the differences remain unresolved, the matter should be brought to the Dispute Resolution Board as provided for in the Labrador Inuit Land Claims Agreement.

  Recommendation. Parks Canada should finalize, with the Nunatsiavut Government, the memorandum of understanding on the presentation, management, and safekeeping of archaeological material found in the Torngat Mountains National Park of Canada.

  Recommendation. Aboriginal Affairs and Northern Development Canada, in cooperation with the Nunatsiavut Government, the Province of Newfoundland and Labrador, and other federal entities (such as the Canada Mortgage and Housing Corporation) should identify a solution to address the lack of a federal housing program for Inuit south of the 60th parallel.

• Systems for monitoring the status of obligations were inadequate

  Recommendation. Aboriginal Affairs and Northern Development Canada, in collaboration with other government departments and agencies, should set a firm deadline to validate obligations and complete improvements to the Treaty Obligation Monitoring System.

  Recommendation. Fisheries and Oceans Canada, Parks Canada, and Environment Canada should ensure that data related to contracts for goods and services in the Labrador Inuit Settlement Area is accurate and complete. These entities should also provide this information to Aboriginal Affairs and Northern Development Canada regularly for reporting through the publicly accessible CLCA.net database.

Entity Responses to Recommendations

The audited entities agree with our recommendations, and have responded (see List of Recommendations).

Related Information

For more information

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