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Grand Chief Stan Loutit, Band Chief Theresa Spence, MP Charlie Angus and NDP Interim leader Nycole Turmel listen to a resident of Attawapiskat. November 29, 2011.Adrian Wyld/The Canadian Press

Images of children and toddlers with skin rashes lying on mouldy mattresses in decrepit shacks, and families of 10 crammed into wood-frame tents with wood-burning stoves create a distinctly un-Canadian scene. But this is daily life in Attawapiskat.

Community leaders, claiming frustration with the federal government's response to their housing needs, declared an emergency last month and asked the Red Cross to step in. They say they are worried about surviving the winter in the remote northern community, located near James Bay, Ont. Generators, heaters, insulated sleeping mats, blankets and winter clothing were flown in to the Cree reserve of 1,800. But the tactic was also political, and it has succeeded in generating media attention, and opposition indignation.

Aboriginal Affairs Minister John Duncan responded Wednesday by announcing that Attawapiskat would be placed under third-party management. He has concerns about accountability, and wants to know how the $80-million the federal government has invested since 2006 has been spent.

While critics call this a crude attempt to deflect blame, placing the reserve in third-party management will hopefully bring clarity and transparency to the crisis. A 2010 audit identified a lack of oversight in how funds for housing were being dispersed, and noted Ottawa wasn't properly tracking housing projects. While there has been no evidence of misappropriation, the problem of mismanagement, if true, must be addressed. Effective First Nations governance is key to the community's long-term viability.

However, Ottawa also has a responsibility to First Nations people. Two years ago, a sewage backup pushed wastewater into many homes, prompting a costly evacuation, and indebting the community.

Aboriginal leaders say that more than one third of the $80-million has been used to send children to school off-reserve. The community's school was built on a diesel spill and had to be torn down. This year's federal housing allocation was only about $1-million -- that is enough to build four houses. Yet there are 314 people waiting for new homes.

The children and families of Attawapiskat deserve better. Canadians don't expect to encounter these scenes of poverty and devastation in their own backyard. But they also expect scarce public resources to be well-spent.

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