The grand chief of the Assembly of First nations is calling for an "immediate and positive response" by Ottawa to deal with the contaminated water crisis on the Kashechewan reserve in northern Ontario.

Phil Fontaine said more funding and a new regulatory regime is needed to prevent such health catastrophes as the one that's been plaguing residents in the community of 1,900 on the shore of James Bay.

Fontaine said at least 100 reserves in Canada are under boil-water advisories, with some 40 of them in Ontario alone. Most often it's because of unstable chlorine levels, high uranium levels and E. coli contamination.

"The situation is entirely unacceptable," Fontaine told a news conference in Ottawa's Parliament Hill. "We can't afford to wait."

Prime Minister Paul Martin told reporters Thursday afternoon that immediate action will be taken, although he wouldn't specify the government's plans.

"Obviously it's unacceptable ... and the federal government must obviously accept this responsibility and we do so," Martin said.

"The solution is one that requires obviously working with local aboriginal government, working with the provincial government, but fundamentally this is our responsibility and we accept it and we are going to take action."

Fontaine said the assembly will be meeting Thursday evening with Indian Affairs Minister Andy Scott, who is expected to propose a package outlining government plans to mitigate the problem that's plagued the Kashechwan reserve for years.

Scott told The Canadian Press that the proposals will include moving the community.

When asked Thursday what his government will do for the Kashechewan people, Scott replied abruptly, "There'll be action taken today and you'll get it today."

Meanwhile, the first wave of evacuees from the water-contaminated reserve are being treated by Canadian Red Cross workers in Sudbury.

Chosen based on the severity of their skin problems, 74 reserve residents boarded two chartered Air Creebec planes bound for Sudbury late Wednesday -- a day after the province issued an evacuation order for the community of 1,900 on the shore of James Bay.

"We still have 110 people left with skin infections that need to go out today," Johnny Koosees, a crisis coordinator on the reserve, told CTV's Canada AM on Thursday.

Sudbury will be the temporary home for the first 250 evacuees from the community, who've been living in conditions comparable to those of some developing nations.

The city's mayor, Dave Courtemanche, said he expects two more planeloads of Kashechewan First Nation residents to arrive Thursday.

"There will be an ongoing assessment in terms of our capability and capacity to really take care of these people as they arrive," Courtemanche told CTV's Canada AM on Thursday.

An estimated 800 to 1,000 residents in total could be evacuated from the reserve, and flown to other cities including Timmins and Cochrane, Ont.

"Third World condition"

The Kashechewan reserve has been under a boil-water order for more than two years and has had other boil advisories over the last eight years.

Roughly half of the reserve's residents are suffering from skin infections such as scabies and impetigo, which are exacerbated by the high levels of chlorine being used to disinfect the water.

"We can't provide for potable water in the community," said Stan Louttit, Grand Chief for the James Bay Cree, including the Kashechewan reserve.

"Potable water is the basic right for every human being in the world. Kashechewan First Nation, being in the country of Canada, considered to be one of the wealthiest in the world, is in Third World condition."

Residents were warned two weeks ago to stop using the water altogether due to high levels of E. coli in the water supply -- the same bacteria that killed seven people in Walkerton five years ago.

The Ontario government responded Tuesday by declaring a state of emergency for the Kashechewan reserve and announcing the airlifts.

For those who are staying behind, the government is currently airlifting in about 700 bottles of water per day. People are using the bottled water for drinking, cooking and even washing, because they say if they don't they will suffer skin irritations.

The irritations are brought on by water contamination reportedly blamed on a deteriorating water treatment plant built downstream from a sewage lagoon.

Louttit called the bottled water a band-aid solution.

"That's not good enough. Would you accept that in your community? Why has this community had to live with this for the past couple of years?"

Native leaders want a new reserve built on another location for the Kashechewan people and they warn that there could be similar cases brewing in substandard water treatment plants on other reserves.

Political inaction

NDP MP Charlie Angus, who represents the reserve in his riding of Timmins-James Bay, blasted the federal government for its inaction as the community was degrading into a "cesspool."

He called on the prime minister to commit to building a new subdivision of between 450 and 500 houses on high ground, "because this community is in a situation where the entire infrastructure (has suffered from) underfunding and poor decisions by officials.

"There really is very little to salvage," said Angus, who also spoke at the Ottawa press conference Thursday.

He said Health Canada officials knew as far back as 1998 that E. coli and bacteria in the reserve's water exceeded safe levels, but "nothing was done" besides issuing boil water advisories.

Angus said since he took over the riding in 2004 (previously held by Liberal MP Réginald Bélair), the water issue has been a high priority.

He said he's been working on a solution with the Dept. of Indian Affairs, and that he seemed to have had a commitment from them. But, added, "the situation was deteriorating so fast, and movement wasn't happening fast enough."