NB signs tax-sharing deals with First Nations in major step toward economic reconciliation

Fourteen First Nations signed an agreement with New Brunswick on Sept. 25. (Photo: Chief Bill Ward and Mi’gmawe’l Tplu’taqnn Inc./Facebook)

On Sept. 25, New Brunswick and 14 First Nations entered into new tax revenue-sharing agreements, restoring fiscal partnerships cut in 2021 and aiming to empower Indigenous communities economically.

Under the Wolastoqey deal, 95 per cent of on-reserve revenues under $10 million will return to the community. Between $10 million and $16 million, the share drops to 70 per cent.

And above that, a 50-50 split applies.

The Mi’kmaq arrangement is similar, except its 50-50 threshold is set at $18 million.

Chief Terry Richardson of Pabineau First Nation described the agreement as a national model.

“This is economic reconciliation in action … If First Nations prosper, the province prospers,” he said.

Chief George Ginnish of Natoaganeg (Eel Ground), a Mi’kmaq signatory, said the deal will restore flexibility.

“The revenue we will see from these agreements will allow each of our communities to determine how to create better opportunities for our members.”

Wolastoqey Chief Patricia Bernard of Madawaska Maliseet also noted the impact of lost funding.

“We have felt the impact of the absence of this revenue over the past four years.”

Premier Susan Holt hailed the agreements as a “benchmark for partnership, economic collaboration and reconciliation.”

She emphasized the government’s commitment to a government-to-government relationship based on respect.

The Minister of Indigenous Affairs, Keith Chiasson, praised chiefs for exercising courage and humility in the negotiations.

These new deals reversed a policy shift in 2021, when the previous government ended revenue-sharing, citing concerns over provincial fiscal burden. Critics had warned that the move stripped First Nations of economic autonomy and planning security.

The agreements require on-reserve retailers to match regional prices and submit monthly reports to the Department of Finance, ensuring accountability.

Observers say the sliding scale structure allows smaller communities to retain more local decision-making early on, without penalizing growing economies.

Still, challenges remain.

First Nations must now build fiscal capacity, governance structures and transparent decision systems to use these funds effectively. Some communities are already pointing to priorities like housing, health, infrastructure and education.

“There is nothing worse than as a leader in a community than having to say ‘No,’” said Chief Richardson. “This provides us some flexibility with issues now that we, as leaders, are encountering in our communities.”

With these renewed tax agreements, New Brunswick is testing a new paradigm—one where reconciliation is grounded in shared prosperity, not symbolic gestures.