Ottawa seeks judicial review of $40 billion Indigenous deal

The federal government is asking the court to review aspects of the $40 billion settlement agreement over discrimination in the Indigenous child welfare system — an agreement that the Canadian Human Rights Tribunal had rejected at the end of October.

The Human Rights Tribunal’s finding then called into question this historic settlement — the largest in Canadian history.

In 2019, the Canadian Human Rights Tribunal ordered the federal government to compensate children and families harmed by the system. The move came three years after its verdict that Ottawa had discriminated against First Nations children for years by failing to adequately fund child welfare services on reserve.

The federal government, the Assembly of First Nations and the lawyers involved in two class actions subsequently announced last January that an agreement had been reached to pay this compensation to the children and their families.

The $40 billion envelope was split into two $20 billion parts: one to compensate aggrieved First Nations families and the other to make long-term reforms to the current child welfare system. The court awarded compensation of $40,000 per child who suffered abuse of the system.

But on October 25, the Canadian Human Rights Tribunal concluded that this $40 billion agreement did not meet all the conditions of its initial judgment, and asked the parties to continue their negotiations. Ottawa is now seeking a judicial review of that decision.

No hindrance to compensation

In a summary of the decision, we can read that the court is concerned about the timeline established for the plaintiffs to opt out of the compensation program. He also wants reassurance that all eligible children will indeed receive their full share of $40,000.

In a joint statement on Wednesday, federal ministers of Indigenous Services, Crown-Indigenous Relations and Justice say the government-requested judicial review “will not impede work with the parties to determine how to distribute compensation.” to children and families in areas where there is agreement.

They add that the government will also continue to work on the aspect of the agreement that concerns long-term reform of Aboriginal child and family services.

But the Minister of Crown-Indigenous Relations, Marc Miller, recognizes that the government disagrees with certain elements of the judgment, which explains the request for an appeal.

His colleague Patty Hajdu, Minister of Indigenous Services, added that the clarifications made on appeal will give the government further guidance on how to move forward on this file. She concedes that it’s all complex, but says she’s hopeful the parties will find satisfactory common ground on both compensation and system reform.

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