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Get the Facts on the Devolution Transfer Agreement and the Resource Revenue Cap

The Devolution Transfer Agreement (DTA) is the agreement that transferred resource management responsibilities from the Government of Canada to the Government of Yukon in 2003 for water, land, forestry and minerals. The DTA outlines the offset arrangements for these resource revenues against Yukon’s Territorial Formula Financing (TFF) grant.

  • Yukon has a separate arrangement, the Canada-Yukon Oil and Gas Accord, which governs oil and gas resources including separate oil and gas revenue offset arrangements against Yukon's TFF grant.

What are the current resource revenue offset arrangements under the DTA?

Currently, for every dollar that these resource revenues exceed $3 million, the TFF grant is reduced by one dollar. In effect, Yukon’s net fiscal situation in regards to these resource revenues is capped at $3 million.

Why is Yukon interested in raising the cap?

The Yukon government has written to the federal government expressing interest in discussing the resource revenue offset arrangements for all resources. This is important because Yukon wants to ensure that all governments benefit from increased resource activity and revenues in the territory.

What was the federal government’s response?

Canada has agreed to change their arrangement to increase Yukon's share of resource revenues from mining, oil and gas. The next step will be to consult with First Nations on the specifics of the proposed arrangements. Find out more >>>

What about resource revenues for Yukon First Nations governments?

The Yukon government shares Crown royalties with First Nations. The Yukon government is consulting First Nations governments on its resource revenue offset arrangements. First Nations are in general agreement of the Yukon government bringing the issue forward to the federal government. Changes to Yukon’s resource revenue offset arrangements would result in more Crown royalties being shared with First Nations governments.

Crown royalty sharing between the Yukon government and Yukon First Nations governments is based on the formula in Chapter 23 of the Umbrella Final Agreement (UFA). Changing the Yukon’s resource revenue offset arrangements (cap) will not require amendments to the UFA.

Territorial Formula Financing (TFF) is an unconditional transfer payment from the Government of Canada to the Yukon government that enables the Yukon government to provide Yukoners with a range of public services reasonably comparable to those offered by provincial governments. The TFF grant helps to fund services such as hospitals, schools, roads and social services.

Financial Transfer Agreements (FTAs) are agreements negotiated between the Government of Canada and self-governing Yukon First Nations.