The federal government is creating legislation aimed at improving the native land claims system and settling hundreds of long-standing disputes.

The proposed bill, announced Tuesday by Prime Minister Stephen Harper, will be tabled in the fall after a summer of discussions with native leaders from across Canada.

Prime Minister Stephen Harper shakes hands with Assembly of First Nations Chief Phil Fontaine as Aboriginal Affairs Minister Jim Prentice looks on in Ottawa on Tuesday.
(Tom Hanson/Canadian Press)

"I'm pleased to announce a complete package of reforms that will revolutionize the claims-resolution process," Harper said at a press conference in Ottawa.

The bill allocates $250 million a year for 10 years to land claim settlements and calls for the creation of a new independent tribunal that will make final decisions about disputes.

"Instead of letting disputes over land and compensation drag on forever, fuelling anger and frustration and uncertainty, they will be solved once and for all by impartial judges," Harper said.

He noted there are more than 800 unresolved land disputes in Canada and it takes an average of 13 years to process a claim. He said the federal government currently acts as both the judge and jury when it comes to resolving land claims, which is unacceptable.

Harper said the bill also proposes practical measures for quick resolution on all small claims, those worth less than $3 million. About half of the existing land claims are considered small, and these are bogging down the system, Harper said.

The bill calls for flexibility when dealing with large land claim disputes.

Harper also noted that the bill will transform the existing Indian Specific Claims Commission into a mediation body. The independent commission currently investigates disputes and makes recommendations, but has no power to make rulings.

'Hope for First Nations people': Fontaine

Harper was joined at the press conference by Indian Affairs Minister Jim Prentice and Assembly of First Nations National Chief Phil Fontaine, who shook Harper's hand after the announcement was made.

"This announcement today represents hope for First Nations people who have fought for decades for fair and just resolution on land claims," Fontaine said.

"This is a historic announcement, and there is history that needs to be corrected."

He said he was pleased that native people will be heavily involved in the discussions that will shape the final version of the bill.

The bill mirrors the recommendations made earlier this year by a Senate standing committee. If it is passed in the House of Commons in the fall and made into law, changes proposed in the bill are expected to take effect by 2008.

"Given its paramountcy, no time will be lost in getting this initiative underway," Prentice said.

Tuesday's announcement comes before the Assembly of First Nations' planned national day of action on June 29, which is designed to draw attention to outstanding land claims, and to the racism and poverty faced by First Nations communities.

Chief Terry Nelson of the Roseau River First Nation in Manitoba has threatened to block railway lines running through his community on the day of action.