The chief of a tiny Mi'kmaq community in Nova Scotia defended Thursday the $1.7 million in salary and compensation she and three councillors received in 2008.

Chief Shirley Clarke declined to say what she and Glooscap First Nations councillors earned. (CBC)

Chief Shirley Clarke and the Glooscap First Nation came under the spotlight when the Canadian Taxpayers Federation unveiled federal documents last week that showed high salaries at many reserves across the country, including one East Coast band with 304 members that paid its chief $243,000 a year.

The federation didn't release the name of the band, but it was widely believed to be Glooscap, because the population numbers matched.

Until the news conference Thursday, Clarke had refused to confirm that it was her band or to say what the band's salaries were.

Clarke said she works hard for her money, and that it was unfair for the Taxpayers Federation to make public the salary information. The federation obtained the numbers through access-to-information requests.

"It has singled out native communities in a way that deepen prejudice and reinforces stereotypes, and that is not fair," she said.

Clarke confirmed that one councillor, Mike Halliday, received $978,000 in 2008, but she says much of it was business-contract revenue, not salary.

Numbers the band released Thursday showed that $718,000 was business revenue related to contracting work Halliday did for the band. The contracts were awarded by the council.

"Media reports suggest he was getting hundreds of thousands of dollars in taxpayer support," Clarke said. "In fact, that money was generated as business revenue here in our community."

Clarke said Halliday is an important entrepreneur in the community.

The chief is promising a review of current salaries in the new year, and better disclosure, including posting the figures online.

"I work hard, but I can always do better," Clarke said.

Residents had requested a meeting with band politicians after learning of their hefty salaries.

With files from The Canadian Press