Opponents of the federal government’s First Nations Financial Transparency Act (FNFTA) are quite upset. Many of their main objections to this important piece of legislation, which provides First Nations band members with the same level of political leadership fiscal transparency as other Canadians, are based on some fundamental misunderstandings about the FNFTA.

One prominent critic has suggested that the FNFTA is unnecessary, because previous legislation already gave First Nations members access to this information. So imagine if, for example, the Government of Ontario decided that it would provide government information to any Ontarian that wanted it, but not post it online (since only Ontarians have a right to it). All that would be required is for any Ontarian to go down to a special government office to take a look at the books – after providing their name and address. In theory this might give Ontarians access to the information, but in practice it would not.

Think this is just a hypothetical? Guess again. Dozens of First Nations band members approached the Canadian Taxpayers Federation asking for help because when they went to their band offices to get basic financial information. They asked for things like copies of budgets, audits, year-end financial statements or band council remuneration and they were, at best, given the runaround, and at worst, interrogated and then threatened.

While it is absolutely true that many bands already provided this information on the internet so that their members could anonymously access the data, too many bands did not.

As for non-band members accessing the information, whether it be a country, province, municipality or band, only the people living within a jurisdiction have the legal right to this information, but each and every individual with that right can also share it with whomever else they choose, including on the internet. What this means is that as a practical matter, posting information online is a simple and relatively inexpensive way to convey information in a way that protects anonymity.

Further, there’s a good argument to be made that sharing information across jurisdictions will lead to better outcomes for all. Sure, legally-speaking the people living in Ontario have no right to view the Saskatchewan government’s budget, but currently they can. It’s online for anyone in the world to see. Further, by sharing this information citizens can see how other governments operate and pick up best-practices.

Perhaps the most important objection to the FNFTA is with regard to disclosure of “personal” income of First Nations chiefs and band councillors. It’s a double standard, the argument goes, since provincial premiers and the prime minister do not have to disclose any income other than their salaries. So why should elected First Nations officials?

The short answer is, they don’t: if they have additional income that is derived from sources unrelated to band property, it isn’t covered by the FNFTA, and rightly so. For example, if a chief trades personally-owned stock on the internet, any money he or she makes isn’t subject to disclosure. Band members have no ownership stake in such income and therefore no right to know. But if a chief or band councillor has any additional income which is derived from property owned collectively by the whole band, it means that every band member, as a co-owner, is entitled to such information. In other words, the collective ownership of First Nations reserves – a legal feature not present off-reserve – gives all members of a First Nations band this right.

This is not a hypothetical. We have a real life example: The Kwikwetlam First Nation in British Columbia.  According to FNFTA critics, Kwikwetlam band members had no right to know that their chief carved himself out an $800,000 cut of an $8 million band land deal – money that would have otherwise flowed to the entire band, as part of a larger deal that affects the future legal rights of all band members. Incredibly, it wasn’t just rank-and-file band members who were left in the dark; not even the band council knew of this sweetheart deal. Band councillor Marvin Joe told the National Post “If it wasn’t for this new transparency act, I don’t think we ever would have known.”

The FNFTA is good news for First Nations band members everywhere, including the large number of excellent chiefs and councillors. It will empower First Nations to make informed decisions about their political leadership, and also allow them to engage on more equal footing with all Canadians, to build a more informed and fact-based dialogue on all sides. 

A version of this article previously appeared in the National Post.