Métis Nation Economic Development Strategy John Weinstein Métis National Council The focus of today s discussions will be the Métis Nation Economic Development Strategy. Work on the Strategy began in 2009 with the first of three Métis Economic Development Symposiums that brought together Métis leaders and management of Métis Nation economic development corporations, the Federal Minister of Indigenous Affairs, then the Hon. Chuck Strahl, and his counterparts from the five western-most provinces, and industry representatives to discuss best practices and collaborative approaches in support of Métis Nation economic development goals. When we started the Symposiums, there was a Métis Nation capital corporation in each of the prairie provinces but none in Ontario and B.C, There was one equity capital provider, the Clarence Campeau Development Fund in Saskatchewan. There were no impact benefit or collaboration agreements between industry and Métis communities and mounting frustration over the lack of progress on major projects consultation and accommodation resulting from the delayed and inconsistent application of Duty to Consult to Métis communities. The MNC s Governing Members were heavily involved in skills development and employment programming and administered about $50 million annually in funding under the Aboriginal Skills and Employment Training Strategy or ASETS. The initial Symposium in 2009, followed by ones in 2011 and 2015, and many engagement sessions across the Métis homeland in between, contributed to a growing awareness of the impressive track record of the Métis Nation governments and their affiliated institutions in business and labor force development and the power of collaborative approaches and partnerships with the Métis Nation, governments and industry in overcoming challenges and capitalizing on opportunity. The Symposiums and regional engagement sessions served as showcases for the progress that was being achieved in many areas and encouraged similar initiatives across the Métis Nation homeland.
2 The gap in the network of capital corporations was partially filled when the Province of Ontario committed to capitalize the Métis Voyageur Development Fund. The MNC and the three capital corporations on the prairies also worked with the federal government to establish a fund that would enable the capital corporations to enter the mid-range loan market of $250,000-$1 million, something that had been blocked by the $250,000 cap on their loans. New Métis Nation equity investment funds were emerging as well such as the Métis Economic Development Fund in Manitoba. Many of the major corporations participating in our engagement sessions were concluding collaboration agreements with Métis communities enabling their greater participation in projects ranging from gold mines in Ontario, hydro transmission in Manitoba, uranium mines in Saskatchewan, and oil and gas projects in Alberta and BC. The important work of the Métis Nation ASETS holders and educational and training institutes in forging labour market partnerships including projects under the Strategic Partnership Fund were showcased. The findings and recommendations coming out of the MEDS process are contained in the four MEDS reports in your kits. They break down into the four key components of the Strategy: business development including access to capital and procurement; labour force development; expanded participation in major projects; and strengthening Méts Nation economic development institutions. By the time of the third Symposium in 2015, the federal government and the Métis Nation were prepared to formalize and strengthen the work on the Strategy and these four key elements in the form of a Métis Economic Development Accord that was signed at MEDSII in 2015 by Minister Valcourt and President Chartier. Later that year during the federal election campaign, the Liberals committed to spend $25 million for developing and implementing the Strategy and indeed federal Budget 2016 provided for $25 million for the Métis Nation Economic Development Strategy, the first time the Métis Nation was ever specifically identified in a federal budget and testimony to the successes which were being achieved in the economic development sectors. The funding from Budget 2016 is being used in various ways to develop and implement the Strategy.
3 I say develop and implement because even as some of the objectives are being achieved, new opportunities and needs are surfacing that requires us to modify the Strategy in areas like clean growth, a key feature of Canada s climate change strategy, and housing. Some of the funds are being used to support growth of the capital corporations which, on the prairies are still working off the initial capital from the 1980s and early 90s, capital which they have rolled over many times over in new loans. We will be hearing from the management of some of these corporations shortly- Steven Morse from Ontario, Mike Ivy from Alberta and Tristant Zachow from Saskatchewan. Part of the funds went to filling the final gap in the network of capital corporations and we re all looking forward to hearing from Dale Drown Métis Nation BC on the steps they are taking to launch their capital corporation. The Strategy also seeks to support the growth of equity capital groups that respond to the demand for long-term patient capital from growth-oriented Métis businesses. We will be hearing from the CEO of one of these equity capital providers, John Coutris of the Métis Economic Development Fund. Another dimension of equity investment that is being addressed by the funding involves the Governing Members themselves. It should be remembered that Governing Members are growing significant assets of their own, including businesses, and are in a position to undertake projects that will not only add to their assets and provide income stream but also generate training, employment and contracting opportunities for their people. Al Benoit of the Manitoba Métis Federation will take us through some of the projects being planned by the MMF. Governing Members can also leverage their relationship with government and industry and capitalize on investment opportunities that wouldn t be available to individual entrepreneurs. Marc LeClair in the procurement session will show how the MMF has leveraged its relationship with Manitoba Hydro to generate significant contracts for its construction arm N4. Part of Budget 2016 funds is going to MNC to work with Governing Members and their economic development corporations on economic policy including this forum and future engagements with industry and government.
4 With the assistance of Myers Norris Penny, we have been working on another investment opportunity particular to the Governing Members or their financial institutions that would enable them to take an equity interest in major resource development projects through equipment and infrastructure used in these projects. In its report to the MNC that is included in your kits, MNP identifies those banks, credit unions and private equity groups that would provide financing for key pieces of equipment and infrastructure for these projects that include minority Métis ownership and a long-term service contract with the developer. A number of Governing Members have informed me of offers for this type of equity participation from major project proponents crossing their territory so it is something we will be keeping an eye on, again a source of valuable assets and income stream for the Governing Members. The MNC has also been working with MNP on long-term sustainability of loan capital providers. A logical starting point for this is the Business Development Bank of Canada which has an Aboriginal Business financing unit with a mandate to make loans to Aboriginal entrepreneurs as well as to invest in Indigenous economic development corporations. BDC has not fulfilled the second part of that mandate, preferring to restrict itself to loans to individual Indigenous businesses. It has done syndicated lending with our capital corporations but it has tendency to cherry pick or some would say poach the stronger clients of capital corporations while avoiding the higher risk clients. This poses a real threat to developmental lenders such as capital corporations who need a mix of low and high risk clients to survive. We have approached BDC with a number of proposals to facilitate their investment in capital corporations. One involved them buying the loans of capital corporations which would continue to administer them for a free and whose capital would be freed up to make new loans. After expressing interest, BDC backed down and proposed another pilot which basically amounted to a form of expedited syndication of loans which would significantly boost the volume of loans but wouldn t compensate the capital corporations for their additional work.
5 So this is one area where MNC will be working with Governing Members and capital corporations to bring about a shift in policy at the federal level that can enable BDC to help with long-term sustainability of Métis financial institutions instead of undermining them. In dealing with economic policy issues such as this, we are able to benefit from collaborative relationships we have with partners in the private sector. The Canadian Chamber of Commerce and its affiliates have done groundbreaking studies on Métis Nation labor force development and Duty to Consult and contributed greatly to the MEDS symposiums and regional engagement sessions over the years, advocating for a rights-based Métis Nation-specific approach to economic development. In its most recent report, Ten-ways-to-Build a Canada that Wins, included in the kit, the Chamber has included in that top ten list the need for improved access to capital for Indigenous entrepreneuers. Susanna Cluff-Clyburne from the Chamber s Ottawa headquarters is a key player in the Chamber s policy work and we all look forward to hearing about the Chamber s latest initiative. Interestingly, the Chamber s report states its intention to look into programs offered by BDC to determine if they could be improved to better meet the needs of Indigenous entrepreneurs so you know they are looking in the right direction. The report will also advocate that Indigenous entrepreneurs have the tools necessary to establish credit ratings so they can explore various sources of financing. On that note, we will be hearing from Murray Rowe Jr., President of the Forrest Green Group of Companies that specializes in credit rating. Murray will be joined by JP Beaupre, Sr. Manager Global Partnerships at BlackBerry. Murray and JP will speak to the issue of generating and securing reliable data. We all know through the experience of the Métis Nation registries, how important it is to generate and secure reliable data. This data is also key to the evidence-based research and policy approach of the Trudeau government. It wants to deal with the Métis Nation, for sure, and through its whole of government approach, the doors are being opened to work with Ministers such as Health, Housing and the President of the Treasury Board whose doors were largely closed in the past but, in considering major investments in the Métis Nation, they require reliable data.
6 We know we can t rely on Statistics Canada census data because that is based strictly on self-identification and not actual membership in the Métis Nation so tends to distort the picture of how the Métis are doing economically which we also know can work against the Métis Nation in its dealing with governments. So the big challenge for us will be to generate reliable and secure data from Métis Nation information systems. Murray s firm specializes in gathering and analyzing such data for risk assessment and credit score purposes and has developed tools for assisting First Nations consumers and businesses. Blackberry has transformed itself from a smart phone manufacturer into software company specializing in securing data and its applications are used by corporations and governments worldwide including the smart phone makers. We are all becoming familiar with the problem of hacking of data and communications systems and rapidly growing Métis governments are not immune. So we can look forward to a presentation from Murray and JP on big data solutions to some of the challenges Métis Nation is facing in the current environment of evidence-based research and policy development. In the afternoon, we move into that area of the economic development strategy dealing with major projects. The election of the Trudeau government and its commitment to a rights reconciliation and nation-to-nation relationship with the Métis Nation has led to land claims settlement negotiations in Manitoba and regional tables across the homeland to deal with s.35 rights and self-government. The agreements resulting from these negotiations will have positive economic impact on the Métis Nation. The Trudeau government s relationship reset with the Métis Nation, First Nations and Inuit is also reflected in the changing legal and regulatory landscape surrounding major projects. Kathy Hodgson-Smith and Kyle Vermette will explain how this new landscape is shaping up and the role of the Métis Nation in the approval process for major projects. Joining them will be Brian McGuigan of the Canadian Association of Petroleum Producers.
7 Brian, while working for energy firm Cenovus negotiated one of the first industry collaboration agreements with a Métis community and is now working to find areas where the energy industry and Métis Nation can find common ground in the legal and regulatory process surrounding major projects. Al Benoit from the MMF will present on Duty to Consult. He is becoming a globetrotter on this topic and, on behalf of the Métis Nation, brought his insights as part of the Canadian delegation headed by Natural Resources Minister Carr to Mexico where they informed discussions on how Duty to Consult practices could be applied to the relationship between Canadian mining and energy firms active in the region and local Indigenous peoples. The Strategy priority area of labor force development won t be highlighted today as it was dealt with at separate conference on ASETS renewal. Suffice it to say that the Métis Nation is working with ESDC on a Métis-specific employment and training accord as successor to ASETS and this accord will be a priority topic for the Permanent Bilateral Mechanism involving the PM, a number of his ministers and the Métis Nation leadership when they meet on April 13 in the first of Métis Nation-Crown Summits. As progress is made under this bilateral process with the Trudeau government, new elements will be added to the Strategy. Housing is an area where Governing Members housing corporations had acquired significant expertise and assets under federal programs in the 1970s and 80s but were adversely affected when the Chretien government transferred social housing to the Provinces, leading to a sharp decline in new social housing starts and quality in the Métis community. Canada Mortgage and Housing Corporation (CMHC) and INAC have been working with the Métis Nation to develop a Métis Nation-specific housing strategy as part of the new National Housing Strategy. We know how the housing sector has been a key driver of the Canadian economy in recent years and how much it contributes to economic growth. We anticipate that the Métis Nation-Crown summit will kickstart work on investments to improve Métis housing conditions and advance Métis delivery and control of affordable housing. A final note, with a bilateral process in place with the Trudeau government, it will be imperative to translate the priorities and policies of the work under the Métis Nation Economic Development Strategy into actionable items in the federal budget.
8 Last year it was the Strategy itself that found its way into the budget. Next week, we will be looking for items related to a number of Métis Nation economic priorities in the federal budget. These include: an expansion of the Métis Nation endowments that provide scholarships and bursaries to post-secondary students and are an important part of building human capital; a Métis Nation set-aside in a new and expanded Urban Aboriginal Strategy which can be reprofiled to support Métis economic development; and permanent and expanded core governance funding under a new government-togovernment fiscal relationship with Ottawa that will strengthen the ability of Métis Nation governments to deliver economic development. It will be the responsibility of all of us here today who work in the area of economic development to ensure that the best possible plans and business case are developed for the Métis Nation leaders for their use in dealing with the Prime Minister and his ministers on Métis Nation economic development. -