Wolastoqey First Nations: Province thwarted by Court of Queen’s Bench

Press Release

A Court of Queen’s Bench judgement released on Friday has rebuked the Blaine Higgs government after it sought to circumvent signed tax revenue sharing agreements with the six Wolastoqey First Nations.

The ruling confirms the province’s clear obligation to share carbon tax revenues collected and remitted by on-reserve retailers with the First Nations.

It flies in the face of the Higgs government’s dogged attempts to claw back tax dollars that it is required to share with the First Nations under these agreements, and which are badly-needed in struggling First Nations communities.

“This is a clear win, and we hope this will now lead us down a new path of fairness when dealing with the Higgs government,’’ said Chief Tim Paul of the Woodstock First Nation. “As the Court recognized, these agreements, which were the product of detailed negotiations, bring material benefits to First Nations, and also the Crown – sometimes that point is forgotten.’’

The application, heard by Court of Queen’s Bench Justice Richard Petrie, was brought by the six Wolastoqey communities of Woodstock, Tobique, Madawaska, Oromocto, St. Mary’s and Kingsclear.

Tobique Chief Ross Perley said that under these agreements, the First Nations assist the Crown by ensuring that applicable taxes are collected and remitted. “Thanks to these agreements, the province received between five and 30 per cent of the taxes collected and the indigenous communities keep the balance,’’ he said. “The Higgs government was willing to undermine this mutually beneficial relationship to avoid investing in our communities.’’

The six First Nations argued that the province’s position – that it is not required to share carbon tax revenues collected and remitted by on-reserve retailers – is contrary to the agreements, some dating back to the 1990s. They were re-signed in 2017, to share tax revenues collected on reserves.

The Court accepted this argument, and dismissed the province’s argument that the carbon tax is not subject to the Finance Minister’s revenue sharing obligations. In fact, the updated 2017 agreements actually gave the province a larger share of revenue in exchange for long-term certainty for Wolastoqey communities.

Chief Patricia Bernard of the Madawaska Maliseet First Nation said the agreements are vital to the economic health of the communities and enhance a sense of accomplishment and pride.

“They are drivers of economic growth in local communities, both on and off reserve,’’ Chief Bernard said. “It is unfortunate that the minister forced us to bring this issue to court.’’

St. Mary’s Chief Allan Polchies said he was disappointed the issue had to go to court and could not have been resolved at the negotiation table. “We tried, repeatedly, to negotiate a resolution,’’ he said.

Oromocto Chief Shelley Sabattis said she is pleased that the Court’s decision confirms their clear contractual rights. “We hope that the Higgs government will now be prepared to move ahead with these agreements in a respectful and mutually beneficial way,’’ she said.

In years prior, the First Nations communities collected and remitted provincial sales tax revenues to the province, and those were shared back to the communities.

As recently as last week’s budget, the Higgs government has stubbornly attempted to circumvent this arrangement.

“Our agreements apply to any tax collected and stipulate the sharing,’’ Kingsclear Chief Gabriel Atwin said. “The games around that remittance must end with this decisive court victory.’’

Media Contact:

Logan Perley
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