Squamish native lands near the Lions Gate Bridge in North Vancouver.JOHN LEHMANN
The federal government moved yesterday to make it easier for native bands to undertake large-scale commercial development on reserves by permitting the establishment of land registry systems that give comfort to investors.
But the Squamish Nation in British Columbia, which wants to develop prime real estate at the foot of Vancouver's Lion's Gate Bridge, says the changes do not go far enough. The band also wants the right to collect a property transfer tax, a levy that would be harmonized with the tax currently imposed by the province on the sale of lands that are not part of an aboriginal reserve.
"If we are to be truly self-sufficient, we will need all the modern tools of governance and public finance to ensure fair value for our lands," Squamish Chief Gibby Jacob told a news conference in Ottawa.
"As a people struggling to survive in a competitive and value-driven society, it is becoming increasingly important for us to weigh the costs of using a scarce resource - land - with the benefits we would get from development."
The federal government said late yesterday that it will talk further with native bands about potentially allowing them to levy the property transfer tax.
Meanwhile, Squamish officials said they are pleased with the new legislation. The changes, which would be instated only at the request of individual bands, amend the First Nations Commercial and Industrial Development Act to permit a land title and registry system to operate on reserve lands, essentially letting the bands transfer property rights to non-aboriginals.
Without that ability, the value of reserve lands has remained low.
The Squamish have several large developments planned for their reserves on the Burrard Inlet directly across from downtown Vancouver, a city which has arguably the hottest real estate market in Canada.
The first project will be condominium towers in Capilano. Developers will be given a 99-year lease to build on reserve land and, with the new law, they would be able to sell the condos along with the normal deeds and titles that apply to off-reserve properties.
But the Squamish also want to be able to collect a property transfer tax on the sale of those units at the current British Columbia rate, which is 1 per cent on the first $100,000 and 2 per cent on everything above that amount.
"The amendments introduced today take us only halfway to realizing our vision," Chief Gibby said. "It still denies us a revenue stream to support this regulatory regime."
The chief said the Burrard Inlet development will be "one of the most significant urban renewal projects in the world, providing oceanfront land for housing in a highly desirable neighbourhood." Most important, he said, the money from the project will be used to provide housing and services for the Squamish people.
Tom Flanagan, a political science professor and expert in aboriginal affairs with close ties to the federal Conservative government, accompanied Chief Gibby at the news conference.
Allowing native communities to collect property transfer taxes, he said, "is "a logical step in [the]progression towards giving first nations the ability to raise governmental revenues for themselves, thereby becoming less dependent on transfers from the federal government."