14 May 2004 Agreements Between CPR and Nine BC First Nations Ratified Vancouver - The Government of Canada, the Canadian Pacific Railway (CPR) and the Adams Lake, Chawathil, Kanaka Bar, Leq'a:mel, Little Shuswap Lake, Neskonlith, Nicomen, Shuswap and Siska First Nations have ratified individual settlement agreements that resolve uncertainty surrounding the application of the property tax powers over the CPR right of way on these First Nations' reserves.   Chief Fred Sampson of the Siska Indian Band, speaking on behalf of the First Nations Chiefs, said "the agreements are a positive outcome of negotiations between the parties. These agreements will provide for a better relationship between the First Nations and CPR."   Under the settlement agreements, which come after more than two years of negotiations between CPR, the First Nations, the Government of Canada and the Indian Taxation Advisory Board (ITAB), First Nations' property tax jurisdiction and CPR's right to continue railway operations are confirmed. The First Nations will exercise their property tax powers in accordance with the Property Assessment and Taxation (Railway Right of Way) Regulations made under the Indian Act. Those regulations provide for predictable property tax levels that are comparable to tax levels off-reserve for CPR and for utilities located on the CPR right of way.   "These nine agreements are the product of co-operative dialogue between CPR, the First Nations and the federal government. The agreements will form the basis for strong, positive relationships between CPR and the First Nations, in keeping with CPR's commitment to improving relationships with our neighbours," said John Walsh, CPR's Vice-President of Real Estate and Supply Services, noting that CPR has now entered into property tax agreements with fourteen BC First Nations since 2001.   "ITAB strongly supports the mutual gains approach - negotiate rather than litigate. The resolution of this long-standing dispute provides these First Nations with much-needed tax revenues and provides CPR with the business certainty they need," said ITAB Chairman, Chief Strater Crowfoot.   The agreements for four First Nations (Chawathil, Kanaka Bar, Little Shuswap Lake and Nicomen) came into effect in December, 2003. As a result, CPR and other taxpayers on the CPR right of way through those First Nations' reserves will be paying property taxes for 2004 and subsequent years directly to those First Nations. The remaining five settlement agreements (for Adams Lake, Leq'a:mel, Neskonlith, Shuswap and Siska) were ratified by the First Nations on 11 Mar 2004, and are expected to come into force later in 2004.