N.B. deal offers $22M for housing, roads projects in Neqotkuk First Nation

The New Brunswick government says it's struck a "first of its kind" agreementto help fund housing and roads projects in Neqotkuk First Nation.

According to a news release, the government will spend $22 million over five years to help buildhouses and fixroads in the northwestern Wolastoqey community, also known as Tobique.

Neqotkukwill also spend $8.2 million, with some of that coming from federal funding.

"Neqotkuk is pleased to partner with the province to address the housing shortage and crumbling roads in our community," said Chief Ross Perley,in the news release.

"Our community is facing ongoing challenges with homelessness, overcrowding and poor road conditions. This partnership is a positive step in the right direction. We look forward to continuing to work together on our other priorities."

CBC News was unable to contact Perley for further comment on Monday.

End of tax revenue sharing

The agreement appears to be the latest development in the province'scontroversial decision to replace tax revenue-sharing agreements it had withWolastoqey and Mi'kmaw First Nations.

In April 2021, the New Brunswick government announced it would not renew agreements with 13 Wolastoqey and Mi'kmawcommunities that saw retail taxes for fuel,tobacco and alcohol shared betweenthose communities and the province.

The agreements with Wolastoqey communities ended as of February, while those with Mi'kmawcommunities will end as of 2024.

In place since 1994, the agreements helped generate hundreds ofmillions in revenue for First Nations communities, and the decision to not renew them was strongly criticized by someWolastoqey leaders.

However, Premier Blaine Higgsdefended the move by saying the former agreements wereunfair, leading to some communities prospering more than others.

He saidthat they would be replaced with a new model that would see communities receive provincial fundingfor housing, health care, social assistance and education subject to terms set out by the province.

Aboriginal Affairs Minister Arlene Dunn reiterated that sentiment in a letter to Wolastoqey chiefs last December, in which she highlighted that thesecommunities generated a combined $326.5 million from 2003 to 2021, while Mi'kmawcommunities received a combined $45 million from 2004 to 2021.

Dunn also hinted at a similar disparity among Wolastoqey communities, with figures provided showing Madawaska First Nation generated $124 million over 17 years while Neqotkuk generated just $1 million.

Dunn also noted in her letter that Neqotkuk was the only community that hadprovided informationleading to thepreparation of terms for new a development agreement.

CBC News was unable to contact Dunn for comment on Monday, but in the news release she said she wants all First Nations in New Brunswick to prosper in "a new, modern economic partnership."