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Reserve Band Council Pay Reform Needed

Author: Colin Craig 2010/01/15

Imagine if you asked Greg Selinger how much he is paid to be Premier and he responded by telling you it’s none of your business. Unfortunately that’s the type of response that many reserve residents face in Canada when they question their band councils' pay. It’s time for the Department of Indian Affairs to do something about the situation.

Across Canada, people living off reserves can go on the internet and easily find out how much their MLA or Member of Parliament receives in tax dollars each year. Most large municipalities post the same information online for their council members, while smaller communities with less advanced web sites are usually quick to provide the information over the phone.

Unfortunately for band residents living on reserves, they don’t have the same luxury when it comes to transparency on the amount of pay their Chiefs and councillors decide to give themselves.

There have been numerous cases over the years of band councils deciding to pay themselves exorbitant salaries instead of flowing the funds along to community members. Recently, the CTF received audit statements from concerned residents on the Peguis Reserve which showed sky-high band council pay levels. We released the documents publicly and the story took on national interest.

The five members on the band’s council decided to pay themselves the taxable equivalent of approximately $295,000 to $439,000 in 2008-09. The figures were astronomical considering the community only has 7,200 residents and the Prime Minister of Canada “only” made $310,000 during the same year.

Had the salaries been capped at a generous $75,000 per council member per year (still way above what municipal councillors of similar sized communities earn) the band could have put over 230 band residents through the University of Manitoba annually. Needless to say, when the story broke, a number of band members were quoted in the media as suggesting other ways the money could have been better spent.

Unfortunately for those that speak out against such wasteful practices, there is often retribution for doing so. Band members from various reserves across Canada have told the Canadian Taxpayers Federation over the years that when people speak out, their names are often placed at the bottom of the list when it comes to home repairs or receiving financial assistance. Others have alleged physical abuse is sometimes inflicted for speaking out.

The entire reserve system has been a debacle from the start and can’t be fixed over night. However, when it comes to this issue, the problem is easier to fix.

The department of Indian Affairs should begin placing band council pay statements online for every reserve in the country as a condition of funding agreements. If the Chiefs and councillors don’t like it, they can explain to their residents why they want the information to stay secret.

This solution would provide transparency and protection for band residents. It would also bring elected band members’ pay disclosure in-line with virtually all other elected officials in the country.

Let’s be clear, not every band council is abusing their powers to decide their own pay, but certainly the good ones would have no problem disclosing their pay levels to the people they represent.
 
The status quo should not be an option.


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