The federal government has lost round one in its battle to impose the First Nations Financial Transparency Act, but the law is still on the books and funding is still being withheld to bands who refuse to comply.
On Friday, a federal court judge in Saskatoon handed down a 24-page ruling that put a halt to legal action against reserves and opened the door for another court challenge to restore funding.
The Onion Lake Cree nation was one of five bands to challenge the law during a federal court hearing in Saskatoon in August.
The ruling is a partial win. While it blocks legal action by the federal government, it does not restore the funding that was withheld for bands that refused to comply.
In court documents, the Onion Lake Cree Nation claims more than $1 million has been withheld, including money for new housing. Chief Wallace Fox is urging the federal government to restore funding and repeal the act.
“To me it is business as usual, and in good faith aboriginal affairs should be releasing those funds until the other court challenge is resolved,” he said.
Fox says if there is no action by the federal government, the band will seek an injunction to get the funding.
In Friday’s court ruling, Justice Robert Barnes criticized the federal government for its failure to consult, saying that will likely be a factor in future decisions. Fox is encouraged by that. He is also looking forward to working with a new federal government in Ottawa.
“Well it’s a breath of fresh air, let me put it that way,” he says. “I’ve met with all Prime Ministers during the last 30 years that I have been in leadership, except Steven Harper. I have requested meetings with him over the years, but to no avail.”
The Liberals voted against the First Nations Financial Transparency Act when it was passed.
The new government also promised to review the law and others that impact on First Nations.