Aboriginal Marketplace Nov/Dec

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Volume 2 - Issue 6 ///// nov/dec 2013

2014

international

tourism conference

the business of cultural tourism + + naboc

prince rupert

lng

Promise, Peril & Solutions

First Nation fish plant surpasses $1.5 million in payroll

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///// COVER STORY 21 IATC ///// IN THIS ISSUE

10 Publisher 2G Group of Companies geoff@2ggroup.ca Managing Editor Marlon Louis editor@aboriginalmarketplace.com Design / Production Tina Skujins tina@2ggroup.ca Advertising Sales Marlon Louis editor@aboriginalmarketplace.com

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30

Contributors Paul Clements-Hunt, Neil Philcox, Keith Henry, Merle Alexander, Rochelle Saddleman, Miranda Stirling, Judith Sayers, Cheryl Brooks Chris Sankey, Tewanee Joseph, Frank Busch, Morgan Bamford, Terry G. Barnett and Noah M. Sarna

04

Access to Capital a year in review

10

National Aboriginal Business Opportunities Conference

13

New Relationship Trust (NRT) set to host the Young Entrepreneurs Symposium (YES) 2013 from December 9-12th in Vancouver BC!

15

THE POSSIBLE DEMISE OF FIRST NATIONS OPPORTUNITIES IN RENEWABLE ENERGY

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Unique Business Resources Centre opens in Prince Rupert, BC

22 24

The Squamish Lil’wat Cultural Centre Where rivers, mountains and people meet making progress Cando launches First Nations Municipal CEDI in partnership with Federation of Canadian Municipalities

26

FIRST NATION LIMITED PARTNERSHIPS AND BC PST

28

DIVIDED WE fall First Nations Must Come Together in the Great LNG Debate

30

NEWS RELEASE First Nation fish plant surpasses $1.5 million in payroll

2014 PRODUCTION SCHEDULE Jan/Feb, March/April, May/June, Aug/Sept, Oct/Nov & Dec/Jan (2015) Distribution Aboriginal Marketplace is published by 2G Group of Companies ©2012 all rights reserved. The magazine is distributed online in Canada and the United States. The views expressed in the Aboriginal Marketplace are those of the respective contributors and not necessarily those of the publisher or staff. www.aboriginalmarketplace.com

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///// features

07 Legal Eagle 08 Keeping it Riel

Aboriginal Marketplace - November/December 2013 3


“Yes, but what we really need is a firm that understands our values.” People who know First Nations, know BDO.

The First Nations Practice at BDO Striking a balance between tradition and economic growth isn’t always easy. With practical experience and a deep understanding of First Nations issues, BDO can work with you to develop your community while also preserving your way of life. Our dedicated professionals offer a range of strategic and analytic solutions to help you achieve results that will last for generations to come. Assurance | Accounting | Tax | Advisory www.bdo.ca BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.


Access to Capital A Year in Review By Paul Clements-Hunt & Neil Philcox The Blended Capital Group

O

n October 17th, 2013 the recently opened Coastal Business Resources Centre (www.thecbrc.ca) invited tenants and guest to an open house in Prince Rupert. The development of the centre as a training facility, meeting place and permanent office space for new and existing businesses in Prince Rupert is symbolic of the emphasis placed by its owner, the Metlakatla Development Corp. (MDC), on people, place and relationships. It also represents a tangible investment by MDC to purchase, renovate and lease the space. This commitment is based on an underlying confidence in the future of economic development in the traditional territory, and it is a fitting milestone to celebrate as 2013 draws to a close. The

pipelines, rail networks, energy transmission, processing facilities, etc.), and regional, municipal, and community impacts (e.g. roads, water/sewage, housing, etc.). However, infrastructure development requires significant capital investment, on-time/ on-budget project management, a stable revenue stream, and professional oversight, operations and management. The good news is that asset owners (sovereign wealth funds, pension funds, insurance groups, asset managers, banks) are all looking at infrastructure with renewed interest, and Aboriginal communities across the country are well positioned to participate in the development of infrastructure. But what steps can a community take to assess the need and/ or opportunity to participate?

Blended Capital Group is pleased to be a tenant in the centre, and we look forward to working with our fellow tenants and other parties committed to building a strong and sustainable economic future for the region. In 2013 we started a storyline about Access to Capital, beginning with a focus on infrastructure (Infrastructure: There’s No Bigger Conversation, March 2013). This story is a global one, with international trade ramifications (e.g. development of port infrastructure), national interest (e.g.

Firstly, assess the overall scope and scale of the need in and around the territory. For example, in the case of Prince Rupert, infrastructure development is needed at the international level (expansion of the container facility and upgrades to the coal terminal), the national level (railway upgrades, natural gas pipelines, industrial sites), and the local level (transportation, water/sewage). This assessment should also include a more specific determination of the needs of the Aboriginal community, and/or business development arm.

we continued the storyline with a focus on building a value proposition for a project or investment that goes beyond traditional financial metrics.

Aboriginal Marketplace - November/December 2013 5


in some cases, a capital plan may make more sense at a community or Nation level, versus capital raising strategies for individual projects. For example, a community that has established a solid framework for financial governance, accountability and management may choose to focus on financing the entire balance sheet.

Secondly, assess at what level the community aspires to participate (i.e. passively, reactively, or proactively). This assessment will be based on both the ambition of the community (e.g. to operate a utility company for a community and the surrounding area/ users), as well as the practical realties of the project, including what’s required to build, own, operate and finance the project. Passive participation may include the receipt of royalties under term agreed in an IBA. Reactive participation may include the lease of reserve land to a developer building industrial, commercial or residential property. Proactive participation includes (i) the identification of a 6 Aboriginal Marketplace - November/December 2013

specific need or opportunity by an Aboriginal community and/or business development arm, and (ii) the subsequent intent to meet the need or seize the opportunity (including land development, procurement/contracting opportunities, etc.). Thirdly, assess the specific elements of each project, and determine the capacity required to participate as intended. This assessment will ultimately help to define the extent to which a community and or business development arm will need to partner with other parties, versus going it alone. For each project assessment, financial capacity will be a critical component, amongst others. With

all three steps completed, a solid project and/ or implementation plan is required to move to the next level, including the development of a value proposition and capital raising strategy. Following the infrastructure theme, we continued the storyline with a focus on building a value proposition for a project or investment that goes beyond traditional financial metrics (Access to Capital: It’s More than Just Dollars and Sense, June/ July 2013). This approach is the next step to getting a project funded, after completing the three steps described above. In some cases, a capital plan may make more sense at a community or Nation level, versus capital raising strategies for individual projects. For example, a community that has established a solid framework for financial governance, accountability and management may choose to focus on financing the entire balance sheet. In this case, funders will focus their attention on reviewing the creditworthiness of the community or Nation to service additional debt incurred to finance new projects or investments. In straightforward terms, the question is: Will there be enough cash flow from existing and sources (e.g. taxes, royalties, dividends, revenues, etc.) to service interest and principal repayments? Finally, we concluded the storyline with a focus on understanding the investor universe, and the importance of a comprehensive risk/ reward assessment for prospective investors/ funders (Access to Capital: Understanding the Investor Universe, September/October 2013). The Blended Capital Group is well positioned to advise Aboriginal communities and/or their economic development arms on both the development of the best possible value proposition, as well the most effective strategies to identify, minimize and mitigate risk. All the best for the rest of 2013 and see you in 2014! To continue the conversation, please contact Neil Philcox at nbp@blendedcapital.com or view our website at www.blendedcapital.com.


Legal Eagle ///// Merle Alexander - Partner, Gowlings LLP Merle.alexander@gowlings.com

LNG – Promise, Peril and Solutions

I

n the afterglow of two recent First Nations LNG Summits hosted by the Tsimshian and Carrier Sekani Nations, any reasonable Aboriginal leader must wonder if liquefied natural gas facilities (“LNG”) and natural gas pipelines (“NG Pipelines”) are all promise or peril. It is likely both. Do you want to hear the good news or bad news, first? The Perils Let’s get the perils out of the way. The upstream peril is increasingly clear. Most of us were keeping ourselves willfully blind by not asking the simple questions: “where is all the gas coming from?” and “how is it produced?” The first answer is straightforward. The upstream Territory and origin of the gas is primarily from Treaty 8 (“T8”) Territory in N.E. BC. Presentations at the Carrier Sekani Summit disclosed that there is already tremendous coal mining, oil development, wind energy and the threat of the Site C hydro dam for T8 Nations. Any honest observer can conclude that T8’s territory is near saturation with development. We all heard many Leaders voice in pointed terms that natural gas development without a cumulative effects analysis and a land use plan could devastate the environment. There seems to be no Crown plan. Second question: How is the gas produced? It is created by a process that hydraulically fractures shale rock. In its simplicity, they drill shale rock and push trade secret chemical and sand mixtures down the

drill holes. The mixture allows for the shale to fracture and gas is produced. The peril lies in the unknown short, mid and long term effects on the local sources of water, habitat, air quality and wildlife. If there were an all-knowing oracle that could truly tell us what the long term effects will be on N.E. BC, then and only then, would we really know whether it can be developed “responsibly”. The peril is in the unknown. The peril is combining an unknown development in an intensively developed region. It is almost insulting to develop this natural gas and apply the UNDRIP requirement of Free Prior Informed Consent. How can we be “informed” if there is so much unknown?

revenue from Governments and financial benefits like employment, contracts and other economic benefits the financial accommodation for First Nations, directly and indirectly, on pipeline corridors and in the upstream (Treaty 8) and downstream export (Coastal First Nations) could be billions of dollars. This financial promise could be a generation changing event. This financial promise might transform the Aboriginal economies of Northern BC permanently.

The Solution First Nations are unjustly portrayed as obstacles to natural resource development. Internationally, our own Governments and headlines are continuing a depiction The Promises of a new “Indian problem”. Of course, the OK. Now, before I am labeled as being characterization comes only from a place of “radical, anti-development or even Adrian ignorance and lack of due diligence, but that Dix”, let’s talk about that promise? It is a is another article. promise that makes lottery commercials Let’s talk solutions. Aboriginal and look unambitious. The promise lies in the Crown Governments are at a crossroads. potential financial investment in Aboriginal There is an absolute need for Leadership for territories within BC. A recent financial all our Peoples. In my opinion, the solution model created by Delbert Natrass, a former lies in the corridors of the LNG Summit. pipeline CFO, estimated that the revenue The call for a cumulative effects analysis and generated by even one hypothetical LNG/NG land use planning offers a concrete long term Pipeline proposal at 24 mm tonnes of LNG solution. Natural gas development can occur over 25 years could be as follows: but not all types of development can continue To put the model in perspective, a on the current pace. If the revenue estimates BC government $45 to $55 Billion are even close, the profits Federal government $10 to $20 Billion from natural gas outweigh Municipal governments $5 to $6 Billion all other development Energy Companies $40 to $110 Billion occurring in the N.E. Pipeline Company $2 to $3 Billion of British Columbia. In Total Revenue/Profit $100 to $190 Billion more pointed terms, the Governments might sampling of the 5 major proposed NG immediately stop the issuance of any new Pipelines is 107 mm tonnes of LNG. So, the coal mine permits (and phase out existing model is a sustainable long term proposal. ones in 5 years), put the Site C project What could First Nations reasonably back on the shelf, and immediately put an expect as equitable portion of this profit? accelerated land use planning process in The truth is that First Nations have not place. You might also conclude that only two yet successfully negotiated on both the of the proposed natural gas pipelines should Government-to-Government and First advance and consider creating a single or Nation-to-Industry fronts in the pipeline two pipeline corridor routes that have First context, so there is some uncertainty. For Nation and Crown support. sake of argument when considering, a In its simplicity, we need a plan, if we are combination of equity in projects, share of to have a solution. Aboriginal Marketplace - November/December 2013 7


keeping it riel ///// Keith Henry - President, BC Métis Federation k.henry@bcmetis.com

Keeping It

Riel I

am writing this edition as we once again witness new developments in Canada. From the recent UN rapporteur visit to the increasing tension in New Brunswick there seems to be renewed frustration and concerns rising in Aboriginal people across the country. At the heart of these issues is no real understanding of one another and relationships built on mistrust, misunderstandings, and lack of respect. It is from this perspective that I draw attention to a few items from a Métis perspective. I have coauthored this edition with my good Métis friend Joe Desjarlais and we recall a phrase from an old western movie, “There is iron in your words.” Words grounded in principled ideas and actions that stand up under scrutiny. When the UN representative was in Canada the Métis National Council (MNC) and Manitoba Métis Federation (MMF) leaders submitted documents that have no ‘iron in their words.’ These politicians and their affiliates pretend to be the voice of all Métis people and communities in the “homeland.” They quote the UN rapporteur in earlier reports in 2004, citing the lack of recognition for Aboriginal people and their traditional ways in areas like natural resources, governance and resolution of land claims. They put out some recommendations, yet these are countered by their own ideas and actions that work to marginalize and dispossess. The lack of an ethical core is striking as their solutions are disconnected from the reality of ongoing human rights violations and discrimination that Métis people and diverse nations with claims to sovereignty face. The following few points best describe the situation.

1. The first clue to this divergence is that MNC and their affiliates sign agreements with mainstream governments with policies that limit dynamic and fluid Métis identities: They maintain a standard

8 Aboriginal Marketplace - November/December 2013

narrative of political Métis as an exclusive, homogeneous and geographically bound peoples whose rights flow from the Crown, an exclusive terminology and restrictive definitions to defend their privileged political position and limit access to ‘being Métis. They attempt to define Métis in an artificial manner that satisfies a government’s rights-based agenda (ie: creation of rights-bearing citizens), which amounts to an identity by negation (the “everything but” approach) that fixes identity in time and space. However, the same limited political definition has also been utilized by the Canadian government to entrench strict representations of Métis identity into law, thereby systematically discriminating against all other ways of being Métis in Canada. Everyone who disagrees with their singular approach to Métis nationalism is deemed ‘outsiders.’ Their zero-sum brand of identity politics and racially charged governance and registry processes has made it difficult to entertain broader definitions of being Métis. Because of their actions, Métis people have thus become the basis of a constructed Canadian identity from which Métis organizations and government agencies can administrate all Métis peoples based on exclusive jurisdiction to certain rights. The effect has been that Métis agency (the ability of Métis to shape Canadian society) has been restricted to that of an ethnic interest group that has to compete for scarce government resources. 2. Another red flag is that these Métis leaders have not held mainstream governments accountable for wasting public funds on a failing organization in BC called the Métis Nation BC (MNBC). They did not inform the rapporteur about the utter lack of transparency and denial

Iron in Your Words


in the face of financial mismanagement such as evidenced by their governance organizations such as MNBC, or the lack of meaningful consultation in major policy decisions. I believe the UN rapporteur would also be interested in the manipulation of programs to serve political agendas, or legal action against engaged citizens. 3. Yet another problem is that these Métis politicians selectively ignore the history of human rights violations toward Métis people. Let’s not forget that the context for the UN rapporteur visit is a history of human rights violations in Canada toward Aboriginal people. Current governments are the focus of legitimate human rights cases among Métis people in British Columbia, a documented case of discrimination against Métis yet to be resolved. The MNC and MMF conveniently fail to acknowledge this to the United Nations. 4. These groups distort the historical significance of Métis-specific court cases in their public commentary for political reasons to champion their brand of identity politics.

Once we get beyond the surface, no amount of rhetoric can hide the facts. There are many people in a growing movement of Métis people who believe in a new kind of Métis politics.

In reference to Powley v. Canada, (2003) as example, this Supreme court case has been uncritically heralded by these affiliate MNC organizations. For instance, the Metis Nation of Ontario (MNO) recently declared that Powley was “groundbreaking,” a “new era” of recognition of Métis rights, and the “affirmation of our right to harvest.” To recognize that 2013 marks the 10th anniversary of the landmark Powley decision, the MNO is apparently holding special commemorations on November 15 in conjunction with this year’s Louis Riel Day ceremonies in Toronto. In other words, Louis Riel by association is branded the hero of all ‘Powley compliant,’ objectively verifiable, ‘rights bearing’ citizens, a politically charged story with ‘selective histories’ championed by MNO and affiliates, of course. Though the Powley Supreme court ruling could just as easily have led to an exploration of many ways of being Métis through a shared sense of belonging, Powley has become less about establishing Métis collective rights and more about refining processes for establishing which individuals can exercise these rights. The historic Métis land claims case ruling in Manitoba was decided earlier this year. By not arguing for and establishing the validity of a ‘pre-existing’ Métis sovereignty, the MMF provided the courts with a limited remedy for

Métis peoples in this case. It could very well be that Métis people covered by s31 and s32 of the Manitoba Act are well compensated but ‘homeless’ rights-bearing citizens of Canada. In this sense, Métis legal identity originates from an individual’s ability to access the rights of a disadvantaged ethnic group rather than the Aboriginal right to self-determination, self sufficiency and self-government. Finally, the recent Daniels case ruled in January 2013. The unspoken reality is that extending the legal definition of Métis beyond the Powley Test and by defining Métis as s.91 Indians, Daniels brings Métis communities into conversation with broader legal discussions on the nation-to-nation relationship as defined in the historical treaty process. By stark contrast, their own policies of the MNC and affiliates discount the full weight of Canada’s treaty relationship, a relationship informed by dignity, respect and consent. The many different ways of ‘being Métis’ present a huge challenge to political, legal and historical imagination of Métis communities across Canada. The fear of the ‘many different ways of ‘being Métis’ is the biggest impediment to establishing Métis “Nations” as coherent communities of historical difference and as meaningful partners in Confederation. From all indications, it appears that the rapporteur should be made aware that Canada’s preference is to continue to rationalize Métis identity; its government system is well equipped with mechanisms that take diverse nations with claims to sovereignty and turn them into rights-bearing citizens. This submission of the MNC and the MMF has not challenged the dominant narrative that tends to consolidate Métis identity into a single national paradigm or marginalize Métis peoples in a footnote to the past. Their core beliefs about the nature of Métis people in Canada result in words and actions that deny the real concerns and aspirations Métis people face and this will not withstand the ‘refining fire.’ Once we get beyond the surface, no amount of rhetoric can hide the facts. There are many people in a growing movement of Métis people who believe in a new kind of Métis politics, where our policies are linked to ethics, to place, to community, to friendship and belonging, and a real language to describe ourselves to others. Thank you for considering the situation critically and your opinions are welcomed and valued.

Aboriginal Marketplace - November/December 2013 9


National Aboriginal Business Opportunities Conference prince rupert | april 29th - May 1st, 2014 At the beautiful north coast meeting & convention centre, British Columbia Rochelle Saddleman - Conference/Client Relations manager 2g group - rochelle@2ggroup.ca

T

he National Aboriginal Business Opportunities Conference (NABOC) tour will once again stop in Prince Rupert for the 4th Annual NABOC event with hosts Chief Harold Leighton of Metlakatla First Nation and Mayor Garry Reece of Lax Kw’alaams First Nation. From April 29th – May 1st, 2014, Prince Rupert will become Canada’s #1 business hot spot as NABOC will welcome over 100 First Nation communities and a similar amount of private sector companies who all have a focus on creating joint ventures, partnerships, and long-lasting business relationships with one another. Guests will travel from across Canada, Asia, Europe, and the USA for 3 great days of business networking. As NABOC is renowned as a gathering place for business leaders, all groups share common interests in creating their own opportunities, and getting involved in the upcoming projects scheduled to take place in the Pacific Northwest. Projects such as the Northwest Transmission Line, the LNG, Potash and wood pellet terminals, along with the energy and mining developments will create excellent opportunities for local First Nations, local municipalities and private sector groups. “Since the first NABOC Prince Rupert event in 2010, over 60 billion dollars’ worth of

investments are now slated to happen within the next ten years in the region and with all of the upcoming projects, we’ll certainly see that increase by the time we run the 2014 event,” says Geoff Greenwell, CEO of Aboriginal Marketplace Events. These projects will not only translate into an increase in employment opportunities, but also an increase in education and training program opportunities in the Northern region. The Coastal Training Centre (CTC) located in Prince Rupert, will be ready to meet with industry groups at the NABOC event to offer education and training support to meet labour market demands for the upcoming projects. The CTC will be looking for partnerships to leverage money for First Nations training

opportunities to support the upcoming projects. “Projects that were only topics of discussion at NABOC 2010 are now starting to gain momentum and come to fruition as many companies have since then established successful and positive partnerships with the Coast Tsimshian. First Nation groups in the North of BC are now demonstrating the way to do business with large private sector groups, and are working closely to establish partnerships in a constructive and respectful manner which will be beneficial for all groups involved” says Greenwell. Ryan Leighton, the Director of Operations for the Metlakatla Development Corporation commented that “NABOC has become

Each year Aboriginal Marketplace Events will continue to showcase existing partnerships and focus on creating new ones through the NABOC Conference Tour. 10 Aboriginal Marketplace - November/December 2013


NABOC has become the most important First Nations/ private sector business conference in northern BC, our development corporation gets great profile and exposure from it.

TOP: Murray Porter was a big hit at NABOC Prince Rupert 2013 Middle: The Crest Hotel dining area RIGHT: L to R, Lori Simcox and Brenda Baptiste of TsleilWaututh Nation had lots of fun at the banquet with Loleen MacDonald of the government of Alberta

the most important First Nations/private sector business conference in northern BC, our development corporation gets great profile and exposure from it”. There is much to gain from attending an event such as NABOC. At the very least, groups are coming together to build upon the partnerships they have, but also to establish new ones. “The NABOC event is an important venue, it brings together communities, industry and likeminded business people under one roof, where together they are signing multimillion dollar contracts for projects that are employing local people and investing into the communities,” commented Chris Sankey, Human Resource Committee Chair and Councillor of the Lax Kw’alaams Band. Each year, companies attend the NABOC Prince Rupert event in hopes of establishing equitable and beneficial relationships with local First Nations. The communities’ doors are open for business and they are actively seeking successful joint ventures and partnerships with private sector groups. Neil Philcox co-founder of The Blended Capital Group has attended every NABOC event since inception and stated, “NABOC is an energetic gathering of Aboriginal leaders, industry participants and entrepreneurial talent. It is an important opportunity to learn from those who have successfully established new business ventures, and to support leaders who are building stronger economic foundations for their communities. The Blended Capital Group attends all NABOC events and we look forward to the upcoming 2014 event in Prince Rupert.” Each year Aboriginal Marketplace Events will continue to showcase existing partnerships and focus on creating new ones through the NABOC Conference Tour. Not only has this become the most popular business networking event in northern BC, numerous multimillion dollar projects have been created based on relationships formed at this unique conference. If you’re looking to expand and/or open up your business in the North and are interested in creating successful joint ventures and partnerships with local First Nation groups, then you don’t want to miss this event. Join the movers and shakers of the North at the Northwest Convention Centre for NABOC Prince Rupert. For more information on the NABOC Tour go to www.2ggroup.ca Aboriginal Marketplace - November/December 2013 11


The Trial of Louis Riel 47th Year of Production!

November 15 & 16

New Westminster, BC The Columbia Theatre, 530 Columbia Street Friday, November 15th, 2013 School Performance Curtain at 1:00 pm

$12 Student Admission $45 General Admission

Gala Reception & Performance Doors Open at 6:00 pm Curtain at 7:30 pm

$55 Admission & Gala Reception

Saturday, November 16th, 2013 Louis Riel Day Performance Curtain at 1:00 pm $45 General Admission

Reenactment of Canada’srMost Famous Trial with RielCo Productions Inc. Presented by

To purchase tickets and for more information visit www.ravenevents.ca or call 1-604-483-3532. 12 Aboriginal Marketplace - November/December 2013


New Relationship Trust (NRT)

set to host the Young Entrepreneurs symposium (YES) 2013 from December 9-12th in Vancouver BC! by: Miranda Stirling

Y

ES brings young Aboriginal entrepreneurs and entrepreneurs-tobe together with business leaders and role models to help foster the skills, knowledge and networks they need to be the business leaders of tomorrow. NRT continues to host this amazing event where young aspiring Aboriginal entrepreneurs from across Canada come together to compete in a unique business competition. The three-day event is challenge-based. Teams of delegates participate in a series of competitions designed to help build skills and gain valuable business knowledge. The Symposium is neither a training exercise nor a workshop, but an interactive event where teams come together to build skills and learn from business experts on a wide range of topics. Cash prizes are awarded to the top three teams. Delegates have ample opportunity to mingle with First Nation, Canadian and international business leaders and role models in a setting that provides an optimum mix of mentoring, networking, competition and fun. 19-30 year old Aboriginals from Across Canada December 9th – 12th 2013-09-27 Radisson Hotel Vancouver Airport Hosted by New Relationship Trust 200 budding Aboriginal business people 19-30 years of age from across Canada are expected to attend YES, which will feature a motivational line-up of panelists and speakers from a variety of backgrounds, many of which have supported YES in previous years. Recognizing the need to support productive contributors to Canada’s future economy, the New Relationship Trust hosts this event to unlock the immense potential of young Aboriginal people in business. YES provides an opportunity for young entrepreneurs to raise their profile in the business world, highlighting their skills, driving attitude and innovative ideas. YES is also an

opportunity to connect with peers, building the business network of tomorrow’s influencers. Delegates have access to top-level business acumen delivered by seasoned entrepreneurs that is absorbed to further personal and professional development. At YES, young Aboriginal entrepreneurs sharpen their vision and add confidence to their dreams. The motivational attributes of this dynamic event cannot be overstated. Past participants have called YES “life-changing,” “inspiring,” and a “once-in-a-lifetime opportunity.” To sponsor this amazing event or to register go to www.YES2013. ca. If you have any questions contact Miranda Stirling, Events Manager at New Relationship Trust 1-877-922-3338 mstirling@nrtf.ca

Photographer: Fred Cattroll - YES National 2012 Delegate team Aboriginal Marketplace - November/December 2013 13


Coastal Wood Connection Ltd. is looking for first nations wood products for new Chinese markets.

if your community or forestry company has lumber for sale please contact Chris Sankey of CWC at chris@thecbrc.ca or toll free 855-863-1797 cwc is interested in buying lumber from all across canada!


FIRST NATIONS OPPORTUNITIES

Kekinusuqs - Judith Sayers

THE POSSIBLE DEMISE OF IN RENEWABLE ENERGY

Integrated Resource Plan a Bust for First Nations and Renewable Energy Industry By: Kekinusuqs Judith Sayers (edited by Cheryl Brooks)

F

irst Nations involvement in the renewable energy sector has been building momentum across BC over the past 10 years. To support this momentum, the BC Government established Clean Energy objectives. When BC Hydro released its Integrated Resource Plan (IRP) in August 2013, it did not reflect these objectives as it does not provide opportunities for First Nations to produce renewable energy in the next 20 years. As a matter of fact, the Clean Energy industry which provides 15% of the power on the grid today is not even included as an energy supplier. This is rather shocking when you look at promises made to First Nations, financial support provided to date, the need to reduce green house gases by 2050 and the amount of revenue and jobs the Clean Energy sector brings to BC. Renewable energy development is a growing worldwide trend. It is an industry that First Nations have embraced since the early 2000’s. It is within the environmental standards of First Nations and as an emerging industry is easier for new businesses to compete in and provides opportunities to develop Industry/First Nation partnerships. Governments have already put in place programs that support the development of varying types of renewable energy, especially in areas where First Nations are replacing diesel generation. Approximately 125 First Nations out of the 203 First Nations in BC benefit from forms of involvement from ownership to revenue sharing iin renewable energy projects.. When the BC Government formed the Green Energy Task Force in 2009, First Nations representatives were involved in order to ensure there were practical provisions to encourage opportunities for First Nations. When it was introduced in 2010, the Clean Energy Act included an objective “to foster the development of first nation and rural communities through

the use and development of clean or renewable resources.” It also established a First Nations Clean Energy Business fund that was to be used for revenue sharing from 50% of the revenues from land and water of “new” projects and to facilitate the participation of First Nations in the clean energy sector. To date, 70 First Nations have received $4.0 million from the fund for feasibility studies, analysis, planning and equity investments to participate in the clean energy business. The Tahltan, Squamish and Tla-o-qui-aht Nations have all entered into revenue sharing agreements for revenues produced by new projects within their territories under this fund. What is the future of the Clean Energy fund if there are no new projects? First Nations across BC have taken advantage of the opportunity to plan, develop, construct and operate renewable energy projects. The list of First Nations being owners in these projects includes: shishalh, Sts’ailes, Squamish, Sliammon, Kanaka Bar, Klahoose, Kwakiutl, Namgis, Tahltan, Tla-o-qui-aht, Halfway River, West Moberly, Kitselas, Hupacasath and Taku. Tseil-Waututh is involved in manufacturing wind turbines as a support to this industry. T’souke is a leader in solar power. Their involvement along with 70 other First Nations who were financed to pursue potential projects confirms the depth and interest of First Nations in this very important sector. Additionally, First Nations have negotiated renewable energy opportunities in their treaty agreements – will these now be meaningless? The Standing Offer Program (SOP) for projects under 15 megawatts will continue but now has delays of up to 2 years, downsizing or terminating any Electricity Purchase Agreements already agreed to. Renewals are uncertain. The SOP limits First Nations to smaller projects and developing bioenergy or wind energy projects

would not fit within such small amounts of power. BC Hydro and the BC Government must live up to the commitments they made and these commitments must be reflected in the IRP. They could be achieved by requiring 50% Clean Energy for LNG plants or by maintaining a clean energy strategy which would help offset the greenhouse gases that will be emitted through powering LNG with natural gas. The IRP could design a specific First Nation call for power or use net metering. There are many solutions that the BC Government, BC Hydro and First Nations could come up with if there is a political will. First Nations will not be silenced on the demise of the opportunities in the Clean Energy sector that has brought so many benefits to First Nations. Why should LNG be the only focus of this province when there is a more sustainable route to follow? Through the IRP consultations, many First Nations have sent messages to the government and BC Hydro that the Clean Energy industry is one where First Nations have found success and it must continue for when a First Nation succeeds, it brings benefits to the entire region. The Province keeps talking about reconciliation and this sector provides an economically practical and tangible opportunity to support reconciliation. The Province talks about a New Relationship; this sector could build a strong New Relationship in clean energy and through this work create models and relationships for moving forward in other areas. We call upon the Province of British Columbia to re-affirm its commitment to First Nations Involvement in Clean Energy and we call upon BC Hydro to revitalize this commitment through its inclusion in the Integrated Resource Plan. First Nations in BC would see this as progress towards reconciliation and a New Relationship. Aboriginal Marketplace - November/December 2013 15


Unique Business Resources Centre opens in Prince Rupert, BC

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etlakatla Development Corporation (MDC) and Greenwell Asset Management have formed a joint venture with a 7,000 square foot office building in Prince Rupert on the north coast of British Columbia. The building was originally the home of the first Native fishing coop to be formed in the region and was significantly renovated in 2008 to become an office building. The new Coastal Business Resources Centre (CBRC) opened on September 1st and is providing a home to a large group of companies including Urban Systems Ltd, Pacific Northwest LNG, Fortis BC, Tenaska Power, Watson Island Development Corporation, 2G Group, Blackfish Enterprise Ltd, Metlakatla Development Corporation, Fraser River Pile and Dredge, the Gateway Infrastructure Group, the Blended Capital Group, Vero Management Inc, KCD Consulting, Ecora Resource and Engineering

16 Aboriginal Marketplace - November/December 2013

Bruce Falstead - Fortis BC, Glen Ohs - Corix, Maynard Angus - Prince Rupert Port Authority, Chris Sankey – Blackfish Enterprise and Geoff Greenwell of 2G Group enjoying some conversation at the open house

Group, Tewanee Consulting Group, Coastal Training Centre, Pinpoint Consulting Inc and Masterton Land Services. On October 17th the CBRC hosted an open house for people interested in meeting the

tenants as well as networking with over 70 local businesses who attended. Guests were given tours of the building and there was some great dialogue and energy generated at the event. The primary goal behind setting up the


The primary goal behind setting up the CBRC was to bring much needed business expertise to the north coast region to assist with the upcoming LNG mega projects.

CBRC was to bring much needed business expertise to the north coast region to assist with the upcoming LNG mega projects. With several global companies vying for the rights to build LNG terminals in the Prince Rupert harbor there is the potential for as much as $60 Billion to be invested. Private sector investment on this scale has never happened before in the history of BC and there will be a need for thousands of skilled workers and an army of consultants to pull off even one of these projects. The Metlakatla Development Corporation has literally been under siege for the last 2 years from private sector groups wishing to partner with them and get in on these potentially lucrative LNG projects. To try to make communication more effective they made a decision to try and incorporate many of their project partners and suppliers into the CBRC so

that meetings could be scheduled more easily and regularly. Another important aspect of the CBRC is the Coastal Training Centre, a private post-secondary school operated by MDC, with a focus on providing industry related training programs to local residents wishing to find work in LNG related industries. For more information go to

www.thecbrc.ca

the

.ca

COASTALBUSINESSRESOURCESCENTRE

coastal Training Centre

LNG, tanker

Aboriginal Marketplace - November/December 2013 17


The Squamish Lil’wat Cultural Centre Where rivers, mountains and people meet.

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or thousands of years, the place where the Squamish Lil’wat Cultural Centre (SLCC) is located truly has been a place where rivers, mountains and people meet. Located in the busy resort town of Whistler, BC, this place has been an active and popular location for a very, very long time. The Whistler area is traditional territory for the Squamish Nation and Lil’wat Nation; recently a ceremonial bowl was found nearby that is currently on display at the SLCC and has been dated at over 1,500 years old. The selection of Whistler as the host (along with Vancouver) for the 2010 Olympic and Paralympic Winter Games was a catalyst for many things. Amongst the highway improvements and construction of sport facilities and athlete villages there was also investment in cultural components. In Whistler, the most significant cultural facility to come to life as a direct result of the Games was the SLCC, a cultural centre owned and operated by the two Nations who traditionally lived and thrived in this area. Several awards have been earned by this centre over the five years it has been open to the public including the prestigious National Cultural Tourism Award from the Tourism Industry Association of Canada in 2010 as well as twice being named the Cultural Centre and Attraction of the Year by Aboriginal Tourism British Columbia. The SLCC is designed to deliver cultural experiences, providing meaningful and positive awareness of First Nations culture and also instigating a rebirth and revitalization of cultural practices amongst the indigenous people of the area. These goals are critically important to the Nation members of Squamish and Lil’wat and are the guiding principles

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Several awards have been earned by this centre over the five years it has been open to the public including the prestigious National Cultural Tourism Award from the Tourism Industry Association of Canada in 2010.


SLCC – Winter Night by Photographer: Brad Kasselman coastphoto.com

of the exhibits, programming and cultural delivery offered at this facility. The venue is over 30,000 square feet and includes extensive exhibition areas, an 80-seat theatre, retail and gallery space, a café and a traditional long house and pit house. The original SLCC business plan was designed to invite the two million plus annual visitors that come to Whistler to enjoy the mountains and the natural beauty of the area to also discover the rich cultural traditions and knowledge of this area. The centre has discovered, however, that the vast majority of these resort visitors are more interested in remaining outdoors pursuing more high-energy activities. The pre-opening estimates anticipated five to seven percent of visitors to Whistler would become paying guests to the centre however the reality is that the actual number over the past five years is closer to about one and a half to two percent.

“Our direct-to-consumer marketing is primarily focused on in-resort guests because we are very fortunate to be located within a popular and increasingly busy resort destination” explains Casey Vanden Heuvel, the Executive Director of the SLCC. “We also have come to realize that we need to inspire visitation through creative means in order to attract an audience who are not likely planning on visiting a museum or cultural centre during their visit to Whistler.” said Vanden Heuvel. The centre has found solid and steady attendance growth through travel industry partnerships, in particular with tour operators who are looking for a cultural experience with the option to include an affordable in-house catered meal and a chance to browse in a great gift shop and fine art gallery. Gwen Baudisch, the Sales and Marketing Manager of the SLCC

identified a key success factor: “Tour groups coming to Whistler are looking for unique, locally flavoured, authentic experiences that are affordable and can easily handle groups who often have tight schedules. We have found that we are very well positioned to satisfy that demand and deliver a special and memorable experience to the guests.” The SLCC has recently expanded its covered outdoor deck area primarily to cater to group tours and events. The venue overall hosts over 75 special events including weddings, corporate gatherings and festivals. That memorable guest experience is provided by First Nations front-line staff who are from the Squamish or Lil’wat Nations and are all trained in-house through the award-winning Aboriginal Youth Ambassador Program. The curriculum includes extensive customer service training as well as techniques in delivering cultural knowledge to guests who are interested in learning but may not have any previous understanding of local indigenous traditions or ways of life. Executive Director Vanden Heuvel explains “Our key difference to most other cultural facilities is that we are focused on a person to person cultural exchange with our guests, giving our guests extensive time and direct interaction with our First Nations staff who share their first-hand knowledge and pride of their culture. It is truly authentic and wonderfully enlightening to our guests. Our guest feedback is clear; our staff is at the core of a very personal and memorable experience.”

Aboriginal Marketplace - November/December 2013 19


IN pARTNERSHIp wITH

INvITESyOUTO THE 2014

INTERNATIONAL ABORIGINAL TOURISM CONFERENCE

BEING HELd AT THE SqUAMISH LIL’wAT CULTURAL CENTRE & THE FAIRMONT CHâTEAU wHISTLER, BRITISH COLUMBIA, CANAdA - ApRIL 15TH - 16TH

CONFERENCE HIGHLIGHTS INCLUdE: > effective marketing of indigenous cultural tourism > creating authentic cultural destinations and experiences > best practices & success stories in indigenous cultural tourism Delegates shoulD fly into the VancouVer international airport where shuttle serVice has been arrangeD to whistler booK your accoMMoDations online at the fairMont château whistler website

use the following Discount coDe linK: https://resweb.passKey.coM/go/iatc2014

a b o r i g i n a l m a r k e t p l a c e . c o m for information & to register please contact rochelle saddleman toll free: 855.307.5291 or rochelle@aboriginalmarketplace.com


Dear Friends, AtBC is in final preparation as the co-host for the third International Aboriginal Tourism Conference (IATC) being held April 15th - 16th 2014 at the Squamish Lil’wat Cultural Centre & the Fairmont Château hotel in Whistler, BC. AtBC is proud to partner with 2GGroup as the event planners for IATC. The conference is filling with delegates from throughout Canada and international locations. It is in this excitement that I write to thank so many of you for the support to attend and learn more about the Aboriginal cultural tourism industry. The success of IATC is critical to the vision of AtBC and other leaders who continue to value the importance of building an authentic, consistent and competitive Aboriginal tourism industry. This conference is the only international Aboriginal tourism conference in Canada that provides delegates essential industry information such as ideas on training, product development and marketing. It is this vision within AtBC where IATC will become the annual tourism industry event for any Aboriginal community, entrepreneur, or non Aboriginal partner to attend. AtBC is proud to recognize and honour cultural tourism businesses who continue to excel each tourism season. On behalf of the AtBC board and staff and our partners I extend my sincere appreciation to so many of our friends and partners for ensuring the third International Aboriginal Tourism Conference will be a huge success. I especially want to recognize the partnerships with our event planners 2GGroup for ensuring another great conference. I look forward to seeing all of you soon! Thank you

Keith Henry Chief Executive Officer Aboriginal Tourism Association of British Columbia

Aboriginal Marketplace - November/December 2013 21


making progress Frank Busch - Director of Information & Marketing, First Nations Finance Authority - fbusch@fnfa.ca

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s 2013 begins to wind down, it is impressive to look back at what has been achieved this year. When the year began there were 14 member communities of the First Nations Finance Authority. By fall there were 25 members and it is estimated that there may be as many as 32 by the time 2014 rolls around. No doubt many First Nations Leadership and Administrators have discovered the effectiveness of financing their projects with their Own Source Revenues. With strong endorsements from First Nations leaders like Chief Terrance Paul of Membertou First Nation in Nova Scotia and Chief Clarence Louie of the Osoyoos Indian Band in British Colombia, First Nations from coast to coast to coast are seeing that it really works! While many of our Borrowing Members have opted to re-finance existing debt, ground is being turned on new projects as well. Tzeachten First Nation in Chilliwack, BC has just completed the first public facility fully financed by the First Nations Finance Authority. The Tzeachten Multipurpose Recreation Centre facility boasts a state of the art commercial kitchen, boardroom, and offices inside and a new 1 km track, playground and outdoor exercise equipment outside, which complement the Tzeachten Sports field’s 2 baseball diamonds and 2 soccer fields. “Tzeachten is extremely proud of its accomplishment in successfully completing this state-of-the-art facility,” says James Atebe, General Manager for Tzeachten First Nation. “I would like to thank Tzeachten Council, staff, all

Coast of Nova Scotia Canada

stakeholders including the First Nations Finance Authority, and contractors who contributed to the success of the project!” Under the same financing arrangement,

endorsements from First Nations leaders like Chief Terrance Paul of Membertou First Nation in Nova Scotia and Chief Clarence Louie of the Osoyoos Indian Band in British Colombia, First Nations from coast to coast to coast are seeing that it really works! 22 Aboriginal Marketplace - November/December 2013

construction continues on a new 7-plex social housing unit as well as some community infrastructure upgrades. Other projects are in the works and loan requests from Borrowing Members are being processed. The First Nations Finance Authority arranges financing for projects chosen by the First Nation governments in fitting with their community plans. While the First Nations Finance Authority can provide advice and share best practices, it is not our place to decide what the community needs. That is for the First Nation to determine, as it is the local communities and their leadership who are in the best position to decide what their community needs. The First


Chief Terrance Paul of Membertou First Nation in Nova Scotia

Nations Finance Authority assists First Nations who become Borrowing Members to leverage their Own Source Revenues in order to finance their own projects. While other funding models can often over emphasis “desired” social or economic benefits and can be subject to trends or fads, the First Nations Finance Authority sticks to the fundamentals. Refinancing of retail debt opens up cash

flows and makes development possible. Developing infrastructure improves quality of life for community members and attracts investment. Investment creates employment and generates wealth while alleviating social problems. Our motto of “Helping First Nations communities build their own futures on their own terms” is as relevant today as it was when our legislation took effect in 2006. Leveraging Own Source Revenues means that the First Nation has paid for the development with their own money and is truly in control of their own future. Unlike conditional grants, there are no strings attached to moneys borrowed through the First Nations Finance Authority and loans are only limited by the leveragability of the First Nations revenue streams. As development occurs, new revenue streams are opened up and can then be leveraged for additional projects. The next few months promise to be the best yet, as the First Nations Finance Authority expects to complete all remaining capital market processes. This will allow for the first ever First Nations Finance Authority Bond to be issued, raising an estimated $100 million from the Capital Markets. It is very important to everyone at the First Nations Finance Authority that no eligible First Nation gets left behind, and we anticipate welcoming many new members in 2014.

Learn a Career While Earning a Living become a tradesperson Studying for a trade means spending about 80% of your time working in the trade and 20% in class, letting you earn while you learn. After passing Red Seal certification, many trades let you work anywhere in Canada without further certification.

Skilled Trades Your Ticket to Choices. w w w. i t a b c . c a Aboriginal Marketplace - November/December 2013 23


Cando launches First Nations – Municipal CEDI in partnership with Federation of Canadian Municipalities

BY: Morgan Bamford, CEDI Program Coordinator

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ando launched the First Nations – Municipal Community Economic Development Initiative (CEDI) in partnership with the Federation of Canadian Municipalities (FCM) at its 20th annual National Conference held at the Fort Garry Hotel in Winnipeg on October 29, 2013. CEDI will work with six focus pairs of First Nations and adjacent municipalities across Canada to develop joint community economic development plans or strategies. From September to November, these six pairs will participate in a joint community needs assessment visit before confirming their participation. To date, two community pairings have confirmed their participation with support from their local elected councils: Eagle Village First Nation with Ville de Témiscaming, Québec, and the Sawridge First Nation with the Town of Slave Lake and the Municipal District of Slave River

24 Aboriginal Marketplace - November/December 2013

No. 124, Alberta (three-way pairing). Four other focus community pairings in British Columbia, Manitoba, Ontario and New Brunswick are pending confirmation. Cando and the Federation of Canadian Municipalities (FCM) solicited interest in CEDI through a survey released to their memberships late in 2012. From an overwhelming survey response of more than 280, 28 pairs were shortlisted and from that, six pairings were selected to be CEDI focus pairs. CEDI focus communities have been selected to represent a range of geographies, economic sectors and existing levels of relationships and partnership with the goal that most First Nations and municipalities in Canada will be able to see themselves and their own circumstances reflected in the experiences of the CEDI focus communities. Community Economic Development (CED) is local development that is holistic,

community-driven, and interconnected. It is not just about profits and jobs, but takes into account the long-term benefits or drawbacks to the people in the community, their culture, and the environment. Although both Municipalities and First Nations across Canada engage in community economic development planning and activities, often they end up doing so in parallel as a result of operating within different jurisdictions. Both First Nations and municipalities have a great opportunity to work together and improve regional economic development prospects, including employment opportunities, external investment and long-term sustainability, while enhancing relationships with their neighbours. Within the program, the six focus community pairings will participate in joint relationship-building workshops to enhance their understanding of one another,


Municipal and First Nation staff and elected officials pose for a photo following a CEDI needs assessment visit with the District of Kent and the Seabird Island First Nation, British Columbia. At right is Helen Patterson, CEDI Program Manager, FCM.

Staff and elected officials of the Town of Slave Lake and the Sawridge First Nation, Alberta participating in a CEDI needs assessment visit. At centre is Morgan Bamford, CEDI Program Coordinator, Cando

Unless we move forward together, nothing will change. Their leaders and our municipal councils must move toward a collaborative approach to problem solving. We need to better understand the challenges they face.

strategic planning sessions to work towards the development of a joint economic development plan or strategy, and a peer mentorship component in which volunteer peer mentors skilled in community economic development will provide support to communities. In addition, communities will have the opportunity to access modest community capacity building grants to support their work in the program and to take part in study tours to learn directly from communities engaged in relevant community economic development initiatives. At the heart of CEDI is its Community of Practice, a growing network of Aboriginal and non-Aboriginal economic development practitioners, elected officials, government staff, academics and others with an

interest in joint municipal – First Nations community economic development, with the six CEDI focus communities located at its centre. As the program develops further, there will be opportunities for Community of Practice members to take learning and best practices away from the program and contribute their own knowledge and insight where it makes sense to do so. CEDI will develop three knowledge products to assist focus communities, the Community of Practice and all others interested in exploring joint First Nation-municipal community economic development. These include first, a CEDI Toolkit with tools, resources, templates and case studies, second, a series of CEDI Solution Sheets targeted at specific issues in joint community economic development,

and third, an ongoing CEDI Website with detailed information about CEDI focus communities, best practices and stories from the program. The three knowledge products will play an important role in CEDI’s Community of Practice. CEDI is a unique partnership of Cando (the Council for the Advancement of Native Development Officers), based in Edmonton, and the Federation of Canadian Municipalities (FCM), based in Ottawa. Cando has been providing services to and building economic development capacity among its members, mainly practicing Economic Development Officers (EDOs) working in Aboriginal communities and organizations, since the early 1990s. FCM has been the national voice of municipal government since 1901 and advocates for its member municipalities by listening, uniting and influencing policy decisions, particularly at the federal level. More than 90 per cent of Canada’s population lives in an FCM member community, which number more than 2000 across the country. FCM and Cando were natural choices for implementing partners for the initiative, given their respective roles in the municipalities and Aboriginal communities across Canada. FCM brings experience with its own program focusing on First Nations – Municipal collaboration, the First Nations – Municipal Community Infrastructure Partnership Program (CIPP). Operating since 2010, CIPP provides facilitated workshops, resources and support to pairings of First Nations and adjacent municipalities across Canada looking to develop or revisit joint municipal service agreements covering areas such as water, wastewater, solid waste and emergency services protection. To date, CIPP has delivered over 60 workshops and led to 25 signed service agreements. CEDI is funded by Aboriginal Affairs and Northern Development Canada over a 3-year term. The program began in April 2013 and will run through to the end of March 2016, while the engagement period for the program’s focus communities is expected to run from late fall 2013 to fall 2015. CEDI is run by Program Manager Helen Patterson of FCM and Program Coordinator Morgan Bamford of Cando. CEDI is currently building its pool of eligible volunteer Peer Mentors. To find out more about becoming a volunteer Peer Mentor, to join the Community of Practice or for any more information about the program, please contact Morgan Bamford, CEDI Program Coordinator at Cando, by calling toll free 1-800-463-9300 or emailing morgan. bamford@edo.ca. The CEDI program website can be accessed at www.edo.ca/cedi. Aboriginal Marketplace - November/December 2013 25


article First published by the Canadian Tax Foundation in (2013) 21:9 Canadian Tax Highlights).

FIRST NATION LIMITED PARTNERSHIPS AND BC PST by Terry G. Barnett and Noah M. Sarna Thorsteinssons LLP, Vancouver

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irst Nations enterprises are commonly structured as limited partnerships to cap the potential liability of investors. The limited partners that hold 99.9 percent of the partnership interests generally include First Nations bands or individuals and non-First Nations participants. The general partner that holds the sliver 0.1 percent is almost always a corporation. Whether limited partnerships that involve First Nations qualify for the Indian Act exemption from transaction-based taxes is called into question by a recent decision in each of British Columbia and Saskatchewan. Under pre-HST BC provincial sales tax (PST), British Columbia viewed a limited partnership that involved a First Nation as exempt under section 87 of the Indian Act to the extent of its interest in the partnership. In contrast, Saskatchewan took the position that a limited partnership, at law, did not qualify for the exemption but administratively permitted an exemption if, for example, the limited partnership did not engage in off-reserve activities. In Edenvale Restoration Specialists Ltd. (2013 BCCA 85), the BCCA concluded that the old BC PST applied to 100 percent of an asset transfer to a limited partnership by a corporation that held a 15-percent limited partnership interest. Because of the earlier BCCA decision in Seven Mile Dam Contractors ((1979), 104 DLR (3d) 274), it was assumed in British Columbia that partners had an undivided ownership interest in partnership assets and thus an asset purchase by a partnership was a purchase by each partner. A sale by a partner did not occur to the extent that his interest in the assets did not change. Thus the corporate seller in Edenvale expected to be relieved from collecting sales tax on the transfer to the extent of its 15-percent limited partnership interest. The seller’s victory at the BCSC was reversed by the BCCA, which focused on the Social Service Tax Act’s taxation of a purchaser. The definition of purchaser under the old BC PST (and the reinstated PST) included a person who acquires goods for its own use and an agent who acquired goods on behalf of a principal. Based on the law of limited partnerships, the partnership agreement, and a strict textual reading of the legislation, the BCCA concluded that the limited partners were not purchasers as defined because they lacked power to undertake a purchase for the partnership: the general partner acquired the assets as the limited partnership’s agent and thus was the purchaser for sales tax purposes. The general partner was not the same person as the seller that held the 15-percent limited

26 Aboriginal Marketplace - November/December 2013

partnership interest; thus 100 percent of the assets were disposed of for sales tax purposes. Edenvale was cited by the Saskatchewan Court of Queen’s Bench in a Saskatchewan PST appeal (Tron Power Limited Partnership, 2013 SKQB 179). Tron was the general partner of a limited partnership of which the English River First Nation held 99.9 percent as limited partner. The partnership was responsible for “managing the economic development activities of English River First Nation”. Because the limited partnership conducted off-reserve activities, Saskatchewan’s


BCCA said that this follows regardless of any beneficial interest that a limited partner has in the partnership assets. Furthermore, the BCCA decision plainly rests on the fact that the general partner acts as an agent: the principal must be the limited partner(s). Longstanding BC law clearly says that a partner has an ownership interest in partnership assets and that despite distinctions between a general partnership and a limited partnership the limited partners hold some kind of interest in the partnership assets. Section 87 of the Indian Act exempts the interest of the First Nation in personal property situated on a reserve without elaborating on the nature of that interest. If there is any doubt as to whether limited partners hold an interest in partnership assets, there is apparently no barrier to specifically providing for an interest in the limited partnership agreement. These decisions have potential implications for not only the three PSTs in western Canada: all provinces have transaction-based taxes on fuel, tobacco, and other products, and HST provinces typically have taxes on the sale of used vehicles, boats, and aircrafts. British Columbia has said informally that it will apply Edenvale and Tron in interpreting section 87 of the Indian Act in relation to First Nations limited partnerships that operate in the province. It remains to be seen whether other provinces will follow suit in the application of their transactionbased taxes. In the meantime, First Nations are seeking to restructure their business activities in order to preserve the limited liability offered by a limited partnership and also to maintain the Indian Act tax exemption.

First Nations are seeking to restructure their business activities in order to preserve the limited liability offered by a limited partnership and also to maintain the Indian Act tax exemption.

administrative policy did not exempt it from sales tax even though it was owned by First Nations; Tron, the general partner, was thus assessed for sales tax on purchases made for the partnership. The SKQB rejected Tron’s appeal and cited Edenvale for the proposition that the purchaser for the purposes of Saskatchewan PST was the corporate general partner. The SKQB said that in a limited partnership the general partner is the assets’ purchaser and owner and the Indian Act exemption did not apply because on the facts the

general partner was a corporation. With respect, it appears that the decision in Tron was based on a misreading of the BCCA decision in Edenvale. The BCCA decision did not rest on the fact that the general partner was the partnership assets’ owner, but rather on the definition of purchaser in the old BC PST legislation and the apparent legislative intent to tax the person - principal or agent - engaged in the act of purchasing. The intended effect seemed to be to ensure that the payer of the tax was the person who actually made the purchase and the

Aboriginal Marketplace - November/December 2013 27


DIVIDED WE fall

First Nations Must Come Together in the Great LNG Debate By: Tewanee Joseph tJoseph@tewaneegroup.com

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t has rightly been called a100-billion-dollar frenzy. Served up, every day, in page-one headlines, radio reports, rumours, and more rumours. Pipelines, liquid natural gas (LNG) terminals, ports and the prospect of the world’s biggest LNG-ready container ships nosing into Douglas Channel. Astronomical sums. Billion-dollar promises. And dreams of a brighter future based on high-paying, high-skilled jobs that will give First Nations entry into Canada’s economic mainstream. But, something else is happening here. On the streets of Terrace, at the dock in Port Edward and on the busy streets at Fort St. John, there is a queasy sense of uncertainty.

28 Aboriginal Marketplace - November/December 2013


Consider:

> Not all the projects will get built. There are too many and they depend on international market forces of supply and demand as well as financing from offshore investors. For the 40 or more First Nations in B.C. likely to be affected, there is a new player in the game: deep-pocket private industry with head offices in Calgary, Houston, Beijing, Amsterdam and Kuala Lumpur. Compared to governments here in Canada — consider the glacial pace of land claims — these and other companies move at warp speed. If a

each First Nation must be willing to step up to the microphone and say “this is what we want.” Beyond rumour, few facts. And no one is talking. A vacuum to make everyone edgy, even as cabinet ministers and teams of consultants come and go from the Terrace airport. Myself included. What is going on? Some know but won’t say. And some say but don’t know. Little wonder then people — Aboriginal and non-Aboriginal — are confused. Even as they wonder how their communities might benefit from the potential opportunities of LNG without destroying sacred land and aquatic ecosystems in their territories. If any of the proposed pipelines, LNG plants and other resource activities come on stream, massive change will affect everyone. Some First Nations, of course, may choose not to participate in any of the projects, to say “no.” And that, of course, is their right. Others may say “no” to some projects, “yes” to others. Or parts of others. A complicated situation then, making many nervous.

project doesn’t fit their needs, they simply collapse the deal and move on to another country. > Given Canada’s shameful colonial history, First Nations have every right to be leery and mistrustful. Who could blame them for being cautious? > With the many challenges facing them, First Nations require sound advice and the financial resources to engage petrochemical engineers and analysts. These and other issues have the potential to derail resource development. But there is always hope. And the first glimmer of a new way of doing business. Let me explain: Two weeks ago, I was honoured to be invited, along with representatives from the Four Host First Nations (FHFN) from the 2010 Vancouver Olympics, to make a presentation to the First Nations Liquid Natural Gas (LNG) Summit. We shared our story of collaboration — with each other and with the more than 90 partners — from across the country. During

those heady days in the run-up to the Games, and on a tight deadline, we came up with a structure and approach that allowed for a broad consensus. No longer the dime store Indian, we did it ourselves. We brushed aside destructive stereotypes and sneery asides and got it done. Working together, we forged a new way of doing business. Each Nation was able to pursue the interests of its community while, at the same time, agreeing to a common approach. This formula allowed us to come up with a framework that would enable us to deal directly with the Olympic committee, our non-Aboriginal neighbours, businesses and people from around the world. We had to have rules; we had to set and meet deadlines. It worked. And many, many people still benefit to this day. As a result of our full participation in the Games FHFN set a highwater mark for Human Rights. As full partners, we helped to plan, host and stage the event. Our success was based on recognition of traditional territories, the right to be involved in decision making at the highest level, and the right to self-determination. The $200-million spent on Indigenous Peoples during the Games directly resulted in a series of legacies for the direct benefit of the FHFN and Aboriginal Peoples across Canada: skills, employment, contracts, youth programs and many others. As many have noted, we put an Aboriginal face on the Games. I am convinced that some of these lessons learned can help in the proposed LNG projects so that First Nations receive the financial benefits as well as respect and recognition they are owed.

Consider:

> For starters, each First Nation must be willing to step up to the microphone and say “this is what we want.” Economists call this enlightened self interest. And it makes good sense. Without a community plan, or some kind of blueprint going forward, it will be difficult to capitalize on LNG opportunities or protect their sacred lands and waters. > First Nations should consider an alliance with their neighbours. There is always strength in numbers and there may well be economies of scale. A large state-of-the-art health centre for example, might serve a wide area — and be far more effective than two small medical stations. > Working together, First Nations can pool their financial resources in order to hire the technical talent they need. > The stakes are high. First Nations will need to be at the top of their game, or run the risk of being picked off, one by one. Today, there are many reasons to be hopeful. If we stand together that is…. United. Aboriginal Marketplace - November/December 2013 29


NE W S RELEASE

First Nation fish plant surpasses $1.5 million in payroll

L

ax Kw’alaams, B.C. – September 11, 2013 – The Lax Kw’alaams First Nation in Northern B.C. has reached an economic milestone: at the beginning of September, the band’s fish processing plant reached an annual payroll of $1.5 million, the band announced today. It is the largest fish freezing facility on the West Coast. “This is a landmark for the Lax Kw’alaams,” says Robert Hughes, village councilor. “Nearly all of the employment-age band members living at Lax Kw’alaams are now working with the fishery in one form or another. The fishing economy is providing a sustainable way for the band to support itself. We have effectively achieved full employment in the community. This is in large part due to DFO’s (Department of Fisheries and Ocean) PICFI program.” Following a $10 million renovation in 2012, the state-of-the-art fish plant now employs about 225 workers in the village of Lax Kw’alaams – as many as four generations working side-by-side. The fishery also provides employment and skills training for about 150 fishing boat crew members in the community. “The jobs and incomes that the fish plant has generated are empowering community members to invest in their families, educations and communities. We’re starting to see local businesses flourish thanks to the effect of those incomes,” says Hughes. “The fish plant has been a win-win for the community.” “The success of the fish plant is directly related to the ability of Lax Kw’alaams to work with DFO and the Pacific Integrated Commercial Fisheries Initiative (PICFI) program,” says Mayor Garry Reece. The Mayor explained that PICFI was implemented by Fisheries and Oceans Canada in 2007, and provides the Lax Kw’alaams and other First Nations with access to commercial fishing licenses. PICFI licenses are ‘communal.’ They cannot be sold or encumbered by debt – a method of control in the mainstream fishing industry. The band flows these licenses through directly to professional harvesters in the community. PICFI has been a real benefit to the community and community members. In the 2013 season alone so far, the salmon output of the fish plant alone has been about 5.5 million pounds. This fish came to Lax Kw’alaams 30 Aboriginal Marketplace - November/December 2013

TOP: Doreen Mather are all about maximizing return to producer,” BOTTOM FROM LEFT TO RIGHT: Alysia Wesley, explained Mr. Black. Brett Ross & Arthur Henry, Fish Plant workers Mr. Black went on to explain that the handling fish

enterprises are working with other aboriginal groups on the Skeena and Nass rivers that also produce sustainable, certified wild salmon. Mr. Black explained that “return to producer” is the credo when dealing with all sources. “First Nations producing even a modest number of well cared for, sustainably caught salmon will see excellent returns if these fish are placed into the correct markets,” he says. Mr. Black also reported very good returns of salmon caviar produced at the plant in

The jobs and incomes that the fish plant has generated are empowering community members to invest in their families, educations and communities. as a result of a strategic alliance between the Tsimshian people at Metlakatla, Alaska and Lax Kw’alaams. “Metlakatla and Lax Kw’alaams are all same families,” explained Mayor Reece. “The strategic alliance is natural and beneficial to all.” Norm Black, the fish plant’s general manager, explained that Lax Kw’alaams is the only company operating in South East Alaska that has paid for all the fish produced (rather than just paying a deposit as the other industry players do) and did not limit landings or cut off fishermen, even when production was at its heaviest. “We

Lax Kw’alaams. “We start the process of caviar production within hours of the fish leaving the water.” The result is reported to be a consistently premium product in demand in Europe and other countries. Mr. Black concluded by saying that if the consumer is confused as to which wild fish are sustainable, caught by First Nation producers in a fair trade environment, the consumer should always chose salmon originating from the Skeena or Nass rivers. He points out that darker, watermarked skin is a sure sign of a river caught fish.


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