greyman,
Welcome to the Board, its nice to have a real First Nation's voice here. While I agree with you regarding the wastefulness of the current federal funding structure on Reserves, I don't agree with doing away with the reserves entirely. The model we have is clearly broken, but I don't think we should throw out the baby with the bathwater. I think its important to retain reserves so Native peoples still have a home base, so to speak. Under the numbered treaties, the reserves were never intended to last forever, they were designed to warehouse the older generations until the younger ones could be assimilated into Canadian society. It didn't work out that way, but one of the few useful things the reserve system accomplished was to allow Native peoples a refuge to keep being Native until such time as they could regain their voice. I think that's important, and that alone is enough reason to retain reserves.
But clearly the fund-the-band-council-and-hope-for-the-best approach doesn't work. If you've read any of my posts here you'll know I'm not big on the 'living treaties' nonsense, but here's one change I would like to see. Replace the $5 annual token per person payment with something real, like $5000. Allow reserve members access to the same social services and health care as all Canadians, regardless of location. Cut funding to band councils and allow Natives to construct their own governanace model on reserves. Let them tax and regulate themselves. As long as the money comes from Ottawa, people will tolerate the Chief in the Big SUV, once its their own money being wasted, accountability will follow. If the reserve can't generate enough funds to support itself, then people will move to town, simple as that. The reserve will still be there as a home base for the Band, but it will no longer be an atificially funded ghetto in the middle of nowhere.