The FRWG created a forum for open, interest-based discussion about the post-treaty fiscal relationship. The group explored the principles and elements underpinning this fiscal relationship, and framed specific fiscal issues within that broad relationship. For example, “accountability” could be viewed more widely than simply First Nations’ accountability for transfers to the funding government, and the tax exemption could be considered within the context of the overall fiscal relationship.

These discussions made possible the listing of all the components of the fiscal relationship and helped to emphasize the interrelationship between these components.

By articulating and discussing their respective interests relative to the fiscal relationship, the Parties increased their understanding of where interests converged and diverged.

In addition, interest-based discussions in a non-negotiating setting created a positive environment for:

	Sharing different perspectives regarding various components of the fiscal relationship;
	Allowing each Party to gain a greater understanding of the others’ interests;
	Exploring different approaches to developing a new fiscal relationship; and
	Identifying some ways to accommodate one another’s divergent interests.

It may be beneficial to individual tables to preface negotiations with these types of discussions.

The three options for structuring a fiscal relationship developed by the Parties allowed them to test assumptions about the complexity, scope and interrelated nature of the fiscal relationships among First Nation, federal and provincial governments, and about First Nations’ own contribution to the costs of self-government.

Through the profiling and modelling exercise, the Parties were able to set out the options in a spreadsheet format and generate summary results for each community profile.

The “user-friendly” version of the spreadsheet model, while not answering questions such as the amount of funding for programs and services, can provide a framework for the Parties to further explore fiscal options at individual negotiation tables.

The process followed by the FRWG also posed a number of challenges:

	The discussions took place in the context of ongoing treaty negotiations at individual tables.
	All the Parties found it difficult at times to move beyond their policy/mandate when assessing different approaches.

The discussion and analysis of fiscal issues in the FRWG’s final report and annexes are intended to provide a foundation to support negotiators at individual negotiation tables, and facilitate more detailed discussions commencing earlier in the negotiation process.


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