 As head of the Indian Affairs Department Reed was also instrumental in implementing an illegal pass system which restricted Indigenous people from leaving their reserves without a temporary certificate from a government agent.He later overruled the North-West Mounted Police, who wanted to abolish the policy, but acknowledged in a letter that year the pass system was not grounded in law.In 1882, Reed was appointed as a member of the North-West Territorial Council; during his time on the council he filled in for the lieutenant governor in his absence.