The algebra of local and rigid symmetries of N = 16 supergravity in three dimensions is discussed in detail. The conserved charges associated with the rigid E8 symmetry are constructed and shown to be physical observables in that they weakly commute with all constraints. The phase-space variables, which render the constraints polynomial, are identified; they are related to the variables used in the SO(1,2) × SO(16)-invariant reformation of d = 11 supergravity. This indicates that Ashtekar's approach to canonical gravity can be generalized to higher dimensions if suitable matter degrees of freedom are added to gravity