Ontario, federal government reach multibillion-dollar proposed treaty settlement with First Nations

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The federal and provincial governments have reached what is expected to be the largest negotiated treaty settlement in Ontario’s history, a deal that is set to cost billions and stretches back to a promise to First Nations in 1850.

The proposed out-of-court settlement with 21 Robinson Huron Treaty First Nations, which reside along Lake Huron from Sudbury to Sault Ste. Marie, stems from litigation first filed in 2014 against Canada and Ontario that argues the governments breached treaty obligations from more than 170 years ago.

The First Nations claim that under the Robinson Huron Treaty, the collective annuity – which guarantees a regular income – to community members and their beneficiaries should have increased over time as resource revenues also increased.

But the annuity only went up once, rising from approximately $1.70 a person in 1850, to about $4 in 1875, and hasn’t increased since.

A 2018 Ontario Superior Court found that the Crown is obligated to increase the annuities under the treaties to reflect resource revenue harvested from First Nations territory. Ontario appealed the decision but lost in 2021, and then appealed the case to the Supreme Court of Canada, with arguments set to be heard this fall.

Since April, 2022, the federal government, the province and the 21 Robinson Huron Treaty First Nations have been negotiating a resolution outside of the courts.

The proposed agreement is set to be announced Saturday by Ontario’s Indigenous Affairs Minister Greg Rickford and federal Minister of Crown-Indigenous Relations Marc Miller, alongside members of the First Nations communities. The funds to the First Nations are to be paid equally by Ottawa and the province.

“The proposed settlement is an opportunity for Canada and Ontario to provide compensation to address past claims and to honour their treaty obligations and will support the Robinson Huron First Nations to invest in a brighter future for their communities and grow the local economies in the treaty territory,” says a draft Ontario news release.

In a statement, Mr. Rickford called the agreement “an important step in settling historic annuities through respectful and meaningful negotiations.”

“Ontario is committed to renewing this important treaty relationship, and we would like to thank everyone involved as we continue to advance reconciliation and prosperity for Indigenous peoples,” he said.

The agreement is expected to be in the billions. But the final figure won’t be publicly released until September, once First Nations leadership consults with members and beneficiaries about the details. The governments also have to complete “internal reviews” before it is signed.

The settlement only relates to past annuities, and the government of Ontario says it will now explore future arrangements on treaty annuities.

Both the federal government and a spokesperson for the Robinson Huron Treaty Litigation Fund declined to comment before the announcement.