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| Building First Nations
Economies Ontario Presents Economic Development Initiative
First Nations Chiefs, CEO's from businesses, banks and corporations, along with government officials, joined Attorney General Charles Harnick July 17, 1998 in announcing Ontario's much anticipated Aboriginal Economic Development Strategy. Mr. Harnick and Royal Bank of Canada Executive Vice President Charles Coffey, were joined by Chief Wellington Staats (Six Nations of the Grand River) and Chief Jim Leonard (Rainy River), Tom Morrison (CESO) and Michael Green of the Canadian Bankers Association to proclaim a new era of economic development and job creation for First Nations. FINE WORDS In the heart of Toronto's financial district high in the towers of Commerce Court West, a mood of optimism prevailed, although Chief Staats introduced some caution when he observed, "We've heard fine words here today. But I'm not sure how it's going to work." Some saw negative overtones in these comments, but the Chief was only stating a fact based on historical precedent. Beautiful words have been heard many times before and all too often not much has come from them. "In this time," he added, "we must try to make it
work. The old ways haven't been successful and we must try something
else. If not, we'll just Everyone from Grand Chief Fontaine, INAC Minister Jane Stewart to Premier Harris has been talking about partnerships recently and, in this venture, partnerships also figure significantly. Chief Leonard recounted how, during the 1970's, his community concluded that the old system of grants and handouts was not working and set out to form partnerships with the government and business communities. "It's still a struggle and many barriers remain but we've created partnerships in education, health and, with Minnesota, traditional fishing areas, "Partnerships work," he added. Mr. Coffey of the Royal Bank touched on an important point when he reminded the business community to listen, or your tongue will cause you to go deaf. Since before Confederation, Chiefs have been saying essentially the same thing to officials in Ottawa and Toronto. HISTORICAL PARTNERSHIPS The Attorney General relied on history to prove partnerships work. He noted that at the time of contact, the newly arrived Europeans formed partnerships with the First Nations for trade and military purposes. While both benefitted, the settlers soon embarked on a program of displacement. "Today, everyone has seen the folly of that path and," the Minister noted, "we have entered into a period of moral and social responsibility." The new basis for relationships between First Nations, the corporate sector and governments will be negotiation and renewal. He concluded, "First Nations deserve more. It's not a guilt trip, it's reality." All fine words - but what does it mean? THE PROGRAM: HIGHLIGHTS The new, five year, $11.8 million initiative, Working Partnerships, is designed to encourage more aboriginal partnerships with the corporate sector. It is the centre piece for Ontario's economic development strategy called Building Aboriginal Economies. In an effort to establish the right conditions for new investment and more jobs, Ontario has coordinated a framework of more than 30 government programs and services focused on four key areas: increasing partnerships, removing barriers, creating opportunities and improving access. INCREASING PARTNERSHIPS
Ontario plans to establish a Working Partnerships Committee and
to enlist the help of the aboriginal and non-aboriginal corporate
sector to Ontario will also assist the aboriginal community to understand the culture of corporate Ontario, while helping the Ontario business community understand First Nations. It will provide funding to aboriginal economic development organizations to hire staff to promote partnerships and develop business capacity at the community level. The province will also organize forums to bring together aboriginal businesses and communities with the corporate sector to create partnerships and take advantage of economic opportunities. Ontario plans to monitor implementation of Term and Condition #77 of the Timber Class Environmental Assessment, promote mining activity by negotiating mineral impact benefit agreements with Aboriginal communities and, when requested by the First Nations, waive its entitlement to 50% of mineral revenues earned on reserve lands under the 1924 Land Agreement. The significance of the new provincial approach to Condition #77 will have to be closely examined. Most First Nations take the position that until now the Ministry of Natural Resources (MNR) has failed to implement the spirit underlying Condition #77. With regard to the open provincial offer to waive the 50% interest in minerals, First Nations may wish to consider group or regional approaches in order to eliminate this long-standing irritant. The province will also work with aboriginal women's associations to support women's economic independence. REMOVING BARRIERS
Ontario will partner in the Aboriginal Entrepreneurial Spirit Program, developed by the Canadian Bankers Association. It is a 12-hour workshop to train instructors to assist First Nations entrepreneurs in defining the skills and training needed to start and operate a business. The Ontario Federation of Indian Friendship Centres will work with the Canadian Executive Services Organization to deliver training to off-reserve and urban aboriginal communities. Ontario will continue its Young Entrepreneurs Program delivered by the Ministry of Economic Development Trade and Tourism (MEDTT) inpartnership with the Royal Bank. Young aboriginal entrepreneurs will be exempted from having to take the MEDTT mandatory business training program if they have completed the Entrepreneurial Spirit Program. First Nations communities can apply for financial assistance through the Northern Ontario Heritage Fund Corporation for projects that support the development and marketing of regional tourism and infrastructure improvements in telecommunications and transportation. Through the Canada-Ontario Retrofit Agreement, the two levels of government will cooperate to bring indoor plumbing, sewage and electrification services to 35 remote northern communities by the year 2001. It is projected this will create over 3,000 local jobs over the lifetime of the agreement. Casino Rama net revenues will be an important source of capital for economic and community development. (see below Casino Rama Revenues) IMPROVING ACCESS
Ontario has committed its Ministries to work with aboriginal people to improve access to provincial programs and services related to economic development. A website will provide First Nations businesses, entrepreneurs and communities with information about economic development programs, services and resources. The Ministry of Northern Development and Mines will develop six area teams in Kenora, Thunder Bay, Sault Ste. Marie, Timmins, Sudbury and North Bay which will each include a specialist to work with aboriginal businesses and communities to help them identify economic opportunities, remove barriers and establish partnerships. Ontario's Ministry of Economic Development, Trade and Tourism has appointed an Aboriginal Affairs Coordinator to improve outreach to First Nations businesses and communities and to identify barriers to Ministry programs and services. The Ministry will also incorporate aboriginal marketing materials in Ontario trade shows and missions. CREATING OPPORTUNITIES
Ontario claims the creation of long term jobs is central to its economic renewal strategy. The old system whereby jobs disappeared as grants and funding dried up cannot continue. Few would disagree. ONAS is committed to work with First Nations to negotiate lasting and successful land claims agreements and they have recently presented a draft land claims policy document for First Nations and public consultation. The Ministry of Citizenship, Culture and Recreation has provided $1.1 million to invest in 31 community-based aboriginal businesses and planning projects. Funding decisions are made by PTO's, while program administration is provided by aboriginal organizations. Four of six current tenders for supplementary firefighting crews were awarded to First Nations businesses. During the 1997 fire season, more than 350 aboriginal people worked in fire operations in Ontario. Advice and technical assistance was provided by the Ministry of Natural Resources. MNR will continue to support a $1 million federal-provincial fund (CORDA) to help aboriginal communities get access to, develop, use and manage renewable natural resources. Ontario will encourage the growth of aboriginal tourism opportunities working in partnership with Aboriginal Business Canada. It has developed a database of aboriginal tourism products and services. CASINO RAMA REVENUES At a briefing session prior to the economic development announcement, Mr. Harnick reviewed the initiative for a small audience of Chiefs and representatives from First Nations organizations, including the Chiefs of Ontario office. Leroy Dolson, representing the Union of Ontario Indians, asked directly how this program would impact on net revenues from Casino Rama currently earmarked for First Nations use. Later, during the main session the question was asked again. Mr. Harnick noted that Casino Rama revenues would be utilized as an important source of capital, but he emphasized that First Nations for their benefit alone would control the fund, now at approximately $110 million. This suggests that any new funding for this economic development initiative should be drawn from the provincial Consolidated Revenue Fund (CRF) and not from the net revenues of Casino Rama.. However, it should be noted that 20% of gross revenues are already taken from Casino Rama and placed in the CRF. FIRST NATIONS INVOLVEMENT At the pre-session, Chief Staats asked about infrastructure problems in First Nation communities. He noted municipalities are funded 1/3 from Ottawa, 1/3 from the province and 1/3 from the municipality itself. Without a revenue generation capability, First Nations have been shut out of the infrastructure program. The Minister replied he hoped the Ontario strategy would help overcome that barrier to First Nations involvement. Regional Chief Bressette raised the issue of First Nations involvement in the creation of the whole Economic Development initiative. He also wanted assurance that aboriginal employees would be hired to work at the business centres established by Ontario. Mr. Harnick said, "The government wants to create employment opportunities. That's what the program is about." He suggested "Some changes may be required in the Indian Act to remove barriers and fully implement the initiative - something everyone has admitted is a major stumbling block to any First Nations economic initiatives, past and present. But," he emphasized, "First Nations input is essential to the success of the program." Over the coming months, the Ontario Native Affairs Secretariat will work with all partners to promote the strategy and implement the program. CONCERNS REMAIN Few would disagree the old system was a failure. While Chiefs may be prepared to work to make this initiative a success, a great deal depends on Ontario. How deeply is Ontario committed to make this program work and how deeply is it, and the corporate sector, prepared to listen to First Nations concerns when actual partnerships materialize? From the beginning, all Grand Chiefs have expressed concerns about First Nations involvement. While Mr. Harnick reports his office has discussed the program with over 500 individuals and groups, it remains unclear how much First Nations' input was absorbed and how deeply it will influence the individual programs when they are eventually implemented. There is also much more at stake. Training programs, information sessions and strategies to bring First Nations entrepreneurs and the corporate sector together will involve some adjustment on both sides. Will First Nations be asked to abandon traditional beliefs in the sustainable harvesting of resources? Will pressure be brought to bear on First Nations' timber interests to engage in clear-cutting and other wasteful management practices? Let's not forget the impact of mercury contamination that devastated the English-Wabigoon river system in Grand Council Treaty #3 Territory. The environment must be protected for the seventh generation. Most Chiefs may be prepared to accept that First Nations should adapt to new economic realities - but then, that is what First Nations have always done when given the opportunity. Most Chiefs have always been prepared to work with both levels of Canadian government. They will likely welcome partnerships based on mutually beneficial objectives. There are opportunities for everyone in Ontario. But, in the past, resources only seemed to benefit others, mainly in the south. Effective partnerships may allow some of that wealth to benefit those who actually live in the north. Ultimately, the economic development strategy entailed in this initiative will come face to face with Ontario's Lands For Life initiative. When this inevitably happens it will be seen if Ontario is truly committed to seeking accommodation with First Nations. At present there is deep concern among First Nations that Lands For Life will result in land and resource allocations that mostly favour non-aboriginal, southern interests. The value of Ontario's Building Aboriginal Economies strategy remains to be determined. Goodwill, integrity and compromise will determine how the policy translates into action. |
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