Province had right to cancel $67.5M payout to Manitoba Metis Federation, lawyer argues

Lawyers for the Manitoba government saythe province waswithin its rights to quash a $67.5-million payout to the Manitoba Metis Federation forfuture hydroelectric development.

"With all due respect, Manitobahas the authority to intervene in the management of Crown corporations," government lawyer Maureen Killoransaid at Manitoba'sCourt of Queen's Bench on Thursday, the second day of a two-day hearing focused on the cancelled deal.

The Manitoba Metis Federation has taken Premier Brian Pallister's governmentto court for forcingManitoba Hydro to cancel the $67.5-million payment to the federation last year.

The agreement,initially struck between the federation, Hydro and the former NDP government, saw the MMF agreeto supportseveral Hydro projects.

It was ended bygovernment directivein March2018, with Pallister calling it "persuasion money" and arguingthe province shouldn't payMtis people in exchange for their silence.

He said the agreement was for discussion purposes and wasn't legally binding.

The Manitoba Metis Federation contendsthe government's actions were unconstitutional, and violate both the contract andIndigenousrights.

The two-day court hearing ended on Thursday, following submissions from the government.

'Adverse effects' not established: lawyer

Killoran argued the deal did not explain how the Mtis community would be detrimentally affected byfuture hydroelectric development.

"The major agreed points [of the deal] do not align with government policy. Far from it," she said. "It's $67.5 million to MMF, without defining, describing or identifying the adverse effects."

Killoransaid thegovernment did not actvindictively against the federation,which has a strained relationship with the province.

The province alsocancelledanearlier 2014 contract between itself, the Mtis federation, andHydro. That $20-million deal, referred to as the Turning the Page agreement, was in exchange for the federation's support forseveralHydro activities, includingthe BipoleIII transmission line and the Keeyaskgeneration project.

Manitoba Metis Federation lawyer Jason Madden said his client sought a legal recourse toshow the government cannot unilaterally trash dealsbecause it wants to.

"If Manitoba wanted to unravel that deal,there could have been ways for them to do that," Madden told the court, arguing the province had the chance to express its reservations and work toward a mutual solution.

'No one's going to negotiate anymore'

Outside court, Madden warned of a chilling effect ifgovernments can scrap contracts with Indigenous communitieson a whim.

"If they can tear up agreements that have been duly negotiated after decades, decades upon decades, just think about that no one's going to negotiate anymore. Reconciliation will be at a standstill."

Manitoba Metis Federation President David Chartrandsaid the implications of this court case could be felt nationwide.

If the judge rules in the province's favour, "it should sendshivers down anybody who thinks they have a solid agreement in their hands now," he said.

Court of Queen's Bench Justice GlennJoyal's final ruling is expected at a later date.