I would agree that or some ancient history residential schools stuff if this person appeared left/far left leaning. They are talking about the budget like the deficit matters though, so I suspect they are more right leaning and so are referring to what I proposed in my other response.
Yes, this is a common error made by many. You are looking at the residential school not so great days and grouping it in with the actually terrible pre WW2 days. They aren't the same, especially when talking about genocide vs abuse. Even if they were the same 50+ years ago is a very long time ago.
I also worry that you are making the follow up error made by many and trying to use things that happened 50+ years ago now to justify current bad outcomes, when the current bad outcomes stem largely from the utter institutional failure that is indigenous services and the corrupt fiefdoms that are the reserves.