Presentation to CCCC Bridging economic ties and trade between China and Canada through increased business development and exchanges among individual enterprises and First Nation communities and businesses.
The Opportunity… Aboriginal people in Canada control a significant and growing land and resource base. 26 modern treaties and self-government agreements, covering over 50 per cent of Canada's land mass, have been concluded with Aboriginal groups; many of these agreements provide Aboriginal communities with control and rights over the surface and subsurface resources. 585 First Nations live on a total land base of 3.5 million hectares, an area that has grown nearly 25% since 1990 and which is expected to continue growing through additions to reserve and land claims.
Successive Supreme Court of Canada decisions have affirmed the rights of Aboriginal people to be consulted about potential activities on their lands. Taken together, these factors have prompted governments and the private sector to engage Aboriginal communities more fully in the planning, development and implementation of natural resource projects. Indeed, some of the most significant projects in Canada are set to take place in or near Aboriginal communities, including the Ring of Fire in Northern Ontario ( $60 billion in estimated mineral value), the Mackenzie Valley Pipeline in the Northwest Territories ( $16.2 billion in estimated direct and indirect investments), the Northern Gateway Pipeline in British Columbia and Alberta ( $5.5 billion in proposed new investments), potash and other mineral developments in Saskatchewan ( $30 billion in announced investments), and mining developments in Northern Quebec ( $8.2 billion in proposed new investments).
The proximity of Canada’s untapped resource potential to Aboriginal communities is remarkable. These are just a few examples. One-quarter of Canada's discovered and undeveloped resources of conventional petroleum are found in Canada’s North, where Aboriginal people make up nearly 53% of the population and have settled claims that cover the majority of the territorial land and resource base. There are currently 24 advanced projects in the North representing $38 billion in potential new investment. If developed, these projects would directly support an estimated 8,000 full-time jobs.
Canada and its provinces are active in making wind energy the country’s next great economic opportunity. To ensure this happens, provinces are also upgrading its transmission infrastructure. A typical 500KV project cost $650 million while 230KV projects cost $325 million . Achieving the goal of providing 20 per cent of the country’s electricity needs with wind energy by the year 2025 will result in $79 billion in new investment, the creation of up to 52,000 new “green collar” jobs, and more than $165 million in new revenues for municipalities, many in rural areas hit hard by traditional resource declines.
Across Northern Quebec, much of which is covered under Modern Treaties with the Cree, Inuit and Naskapi, there are at least 11 proposed new mining projects. If these move ahead, $8.2 billion in new capital is expected to be invested, and lead to the creation of 11,000 construction jobs, and 4,000 jobs annually for the operation of the mines. The provincial government of British Columbia has committed to having three Liquid Natural Gas facilities in operation by 2020, with at least two of these on First Nations lands. These represent more than $20 billion in new direct investment, as many as 9,000 construction jobs, and approximately 800 long-term jobs.
Looking to the future, more than 600 major economic projects representing $650 billion in new investments are planned over the next 10 years across Canada. With approximately $315 billion worth of resource development projects scheduled to take place in or near Aboriginal communities, our involvement as participants, partners and proponents will only continue to grow
What’s Missing… Current evidence suggests that Aboriginal people are poorly positioned to fully benefit from the resource economy. A lack of business expertise delays, or prevents, the participation of some Aboriginal entrepreneurs and communities in opportunities resulting from nearby major projects and can also impede communities from pursuing partnerships, such as equity participation or joint ventures, with industry proponents.
Many Aboriginal communities and businesses lack the legal, scientific or technical expertise to negotiate fair agreements with industry proponents. The lack of adequate transportation, telecommunication and energy infrastructure in and around Aboriginal communities is an obstacle to economic development and limits the full participation of Aboriginal communities in major projects opportunities.
Why… Historically, First Nations have been effectively legislated out of the mainstream economy through the imposition of laws, regulations and “Indian policies” that were developed and imposed upon First Nations without their consultation or consent. While the Royal Proclamation of 1763 recognized Aboriginal rights and title and set a foundation for nation to nation relationships between the Crown and First Nations, the first consolidated Indian Act in 1876 – developed without First Nation consent or participation – set the framework that today, despite numerous legislative changes, has been preserved fundamentally intact.
Currently, there are over 600 First Nations with more than 2800 reserves comprising over three million hectares of reserve land across Canada, the majority of which are administered under the Indian Act by the Department of Aboriginal Affairs and Northern Development Canada (AANDC). The Indian Act regulates almost every aspect of community life for nearly 565,000 registered Indians. It defines who is an Indian and, among other matters, regulates band membership and government, taxation, lands and resources, estates and moneys management. Moreover, while legislation and regulations in off-reserve contexts typically evolve over time, the largely static Indian Act leaves on-reserve communities with outdated and paternalistic rules and procedures which have not kept pace with the modern economy.
What’s Needed… A specialist that can not only facilitate unique equity and project financing but, build capacity at the same time. A specialist who can facilitate equity funding on medium to large scale agreements up to $250M to Aboriginal communities. A specialist who can also facilitate financing for capital purchases up to $20M and debt service arrangements up to $50M for Aboriginal businesses.
The Solution… The solutions, frameworks and strategies are available. To effectively do business, you need to find the right people. The right people are Aboriginal people.
Aboriginal people who know: The Legal Landscape; The Government and Industry Contacts; The Decision Making Process of First Nation Communities; The Customary Practices of First Nation Communities; and, How To Get the Deal Done.
How to Engage… Through a Specialist - the strategy is simple. The specialist will act as the bridging PRINCIPAL in the Equity and Project Financing process along with acting as the lead facilitator assisting them in their Negotiations for the realization of a Project. We are that specialist!
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