SQUAMISH, B.C.—In my six years as the chair of the First Nations Financial Management Board, I have spent many hours consulting First Nations and I have noticed big changes in those conversations.When I first started, the conversations were usually about fiduciary duty under the Indian Act. Today the conversations are about financial autonomy and the emerging aboriginal economy. This should not be a surprise because the board I represent and its governing legislation were initiatives originating with First Nations.
The current attention on major resource projects involving First Nations is timely. These projects represent an opportunity for aboriginal people to break free from dependency under the antiquated Indian Act.
If Canada’s economic future is tied to energy and natural resource exports, then the reality of First Nation participation needs to be embraced by all stakeholders. Participation in revenue sharing and securing equity participation are necessary elements of the impact benefits agreements that result from federal constitutional duty to consult and accommodate First Nations.
Some $500-billion in resource development projects in Canada involve land in the hands of First Nations. In addition, Canadian courts have steadfastly upheld the federal duty to consult aboriginal communities on all material matters.
Success of Canada’s economic strategy is linked to inclusion of First Nations in development of our economy.
The major issue that needs to be overcome is the current inability of First Nations to access the capital markets to raise debt and equity in the magnitude required for the major initiatives. It’s in the national interest for Ottawa and the provinces to support solutions to this problem such as loan guarantees.
First Nation participation in these projects, through a share of royalties and equity, will enable communities to plan and build healthy First Nation economies around the country.
Great examples of resource revenue sharing deals already exist—for example, the $3.4-billion agreement between the Grand Council of the Cree and Quebec in 2002. As well, British Columbia’s stance on revenue sharing toward new mining projects emphasizes a strong focus on community development to assist First Nations in achieving their social and economic goals.
Healthy and well-managed First Nation economies that break dependency on the Indian Act and empower First Nations to elevate living standards are in the best interests of all Canadians.
This is why top business leaders in non-aboriginal Canada such as John Manley, president of the Council of Chief Executives, have joined our National Chief Shawn Atleo, in urging governments to make First Nations direct beneficiaries of the country’s bounty of resources.
Let me point to the Prime Minister’s recent announcement of $6.2-billion in loan guarantees for the Muskrat Falls power project on the Lower Churchill River in Newfoundland-Labrador.
The Innu—after some hard bargaining—will receive five per cent of the royalties from this project and first crack at local job creation. This means years of steady, predictable revenue.
Loan guarantees represent far better value for money than the costs of litigations and land claim negotiations.
Unfortunately, there is a widespread perception in financial markets that projects involving First Nations have high risk despite a string of successes. Canada and provinces need to turn this perception around through their support. This is also where my organization comes in.
The First Nations Financial Management Board exists to offer support and guidance to First Nations in establishing capacity and confidence. Established under the First Nations Fiscal and Statistical Management Act, the board sets standards and offers certification.
Several First Nations have already taken advantage of our certification services to greatly reduce borrowing costs.
The Indian Act of 1876 was designed to keep First Nations dependent. The First Nations Fiscal and Statistical Management Act is designed to foster financial independence.
If Canada’s First Nations are able to be equity partners in the country’s growth, such projects as Northern Gateway and Ring of Fire have a much better chance of become reality.
Partnership and entrepreneurship trump confrontation and rhetoric every time.
Harold Calla is a member of the Squamish First Nation in B.C., and chair of the First Nations Financial Management Board.
Original Article
Source: hill times
Author: HAROLD CALLA
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