Liberal Leader Bob Rae called the bleak conditions at the First Nations community of Attawapiskat 'our Third World' Saturday, during a visit to the reserve that has been hit by a housing crisis and other problems.

Attawapiskat Chief Theresa Spence and members of the band council took Rae, along with Liberal aboriginal affairs critic Carolyn Bennett, on a tour of the community, including various construction sites.

During the tour, Rae compared the living conditions on the reserve to the plight of residents in poverty-stricken nations.

"We talk a lot about the Third World, we talk about Haiti, we talk about poverty in other parts of the world," he said. "This is our Third World. It's right here at home. These are our fellow citizens."

The plight of residents in the northern Ontario community who were forced out of their homes by toxic mould and other problems has shocked Canadians and spurred politicians to hammer the government in question period over its management of reserves across the country.

Several families on the reserve live in un-insulated sheds and tents, without proper plumbing. More than 90 people have been living in one old construction trailer.

During Rae's visit, residents of the reserve unloaded emergency supplies -- including blankets and large containers and boxes marked "Humanitarian Aid" -- from pickup trucks at a health centre.

The health centre, which is about 4 kilometres outside the community, is being converted into a temporary home for about 20 families, the Red Cross said. They are expected to move on Dec. 23.

"Some of the living conditions here with the shacks that we're seeing here are pretty extreme," said John Saunders, director of disaster management for the Red Cross in Ontario. "But at the same time, it's certainly not unusual to many (aboriginal) communities across the country."

Attawapiskat hasn't had a permanent elementary school for 12 years, with students attending classes in portables ever since the previous school was shut down. Construction on a new school is expected to begin in the spring.

"Most Canadians just see the headlines and don't really understand some of the underlying issues," Rae said Saturday.

Aboriginal Affairs Minister John Duncan met with Spence on Thursday in Thunder Bay to try and hammer out a plan to deal with the community's many problems.

Ottawa and Attawapiskat have agreed on how best to deliver emergency aid, retrofit winter shelter and assemble 22 modular homes for families currently living in precarious housing, but are still at loggerheads over who controls the band's money.

Duncan suggested to the band that it will soon once again be in charge of its own finances -- something Spence has been pushing for, even to the point of threatening legal action against the government's decision to bring in a third-party manager.

The government is also asking the band to account for some $90 million in federal funding over the past five years. Spence and the band council say they already submit quarterly financial reports, which are made public.

With files from The Canadian Press