Uncertainty looms in Wolastoqey community as N.B. tax-sharing agreement set to end

Tax-sharing agreements between Wolastoqey communities and the New Brunswick government end at the end of the month, and residents of Kingsclear First Nation aren't sure what that will mean for their community.

Jonathan Solomon, the community's event co-ordinator who handles youth sports, said the tax-sharing revenue was used to pay the registration fees for 75 athletes last year.

That allowed for children from the community also known as Bilijk, 13 kilometres west of Fredericton, to take part in dance, softball, hockey, soccer and baseball. He said those fees ranged from $300-$500. If that money doesn't stay in place to support youth, he said, it will have a huge impact.

"It's going to hurt our community," said Solomon. "It's going to hurt our children and it's going to hurt our children's future."

He adds that it would be a challenge to find other sources for funding.

Tony Atwin, 69, who retired after a 32-year career with the RCMP, said a top-up offered to seniors in the community which is funded by community's tax-sharing agreement helps make ends meet on a limited retiree's budget.

"I'm benefiting from their support and it makes it easier for me and my family," said Atwin.

He said the senior supplement isn't something someone can live on but can help pay for gas to grocery stores in Fredericton. Atwin said he might not be impacted by the cuts but he worries about other seniors in the community.

Tax-sharing agreements

In 1994, New Brunswick and First Nations in the province made tax-sharing agreements where stores on reserve would collect provincial taxes and the federal government would transfer the money back to the province.

The province would then remit 95 per cent of that on-reserve revenue back to a First Nation, up to $8 million, and 70 per cent beyond that.

In 2021, Premier Blaine Higgs informed First Nations the province would not continue the current tax-sharing agreement. The province has proposed five-year funding deals for housing, health, social assistance and education.

Keyaira Gruben, a band councillor with Bilijk, said the tax-sharing agreements helped pay for a new housing subdivision in the community, which was built in the last five years.

"The money that we make we deserve to spend it on our people," said Gruben.

Gruben said they've already trimmed their budget in preparation for possible changes, and worries they may not be able to help those most in need.

"I feel like this has the potential to further marginalize people who are already marginalized," said Gruben.

In an emailed statement to CBC News, New Brunswick's Aboriginal Affairs Minister Arlene Dunn said the province was committed to negotiating a new partnership with First Nations in the province.

"Funding provided to First Nations should benefit all First Nations in a fair and meaningful manner. We want a New Brunswick where all First Nation communities prosper," wrote Dunn.