Proceedings of the Standing Senate Committee on
Aboriginal Peoples
Issue 6 - Evidence - Meeting of September 28, 2006 - Morning
THUNDER BAY, Thursday, September 28, 2006
The Standing Senate Committee on Aboriginal Peoples met this day at 11:20 a.m. to examine and report on the involvement of Aboriginal communities and businesses in economic development activities in Canada.
Senator Gerry St. Germain (Chairman) in the chair.
[English]
The Chairman: Ladies and gentlemen, I am Gerry St. Germain. As Chair of the Standing Committee on Aboriginal Peoples, it is my pleasure to welcome all of you to today's hearings, here in Thunder Bay. First, I wish to thank the Ojibway people on whose ancestral lands we gather, specifically the Fort William First Nation.
Honourable senators, elders and guests, members of the audience, our committee has been mandated to study the involvement of Aboriginal communities and businesses in economic development activity in Canada. This study started in the last parliament under the leadership of our colleague, Senator Sibbeston, who was the chair of the committee at the time.
We have heard from many witness in Ottawa, and then held public hearings last fall in British Columbia and Alberta. Senator Sibbeston and I have also visited some locations in the Northwest Territories in March of 2005. This week we were in Lac La Ronge, on Monday, on a fact finding mission. On Tuesday, the committee was in Saskatoon for a full day of public hearings, and we spent yesterday in Winnipeg. Today we will hear from a number of witnesses here in Thunder Bay before returning to Ottawa where more evidence will be gathered.
In undertaking this study, the committee's objective is to determine the conditions that foster or hinder development in Aboriginal communities.
For our witnesses today, we will begin with Mr. Tom Morris. Unfortunately, we did have a cancellation. Grand Chief Stan Louttit from the Mushkegowuk Council was not able to attend. As a result, we thank you, Mr. Morris, for moving your time up because, as you know, we are moving fast across the country. We have to go back to Winnipeg tonight.
Tom Morris, President and CEO, Wasaya Airways: I am president and CEO of Wasaya Airways Limited Partnership. I am from Kitchenuhmaykoosib, which was formally Big Trout Lake First Nation. I have been involved in economic and business development within our region, Northwestern Ontario, for the last 25 years. My presentation will be focused mainly from a business perspective rather than from a political perspective.
I am pleased to have this opportunity to address the Standing Senate Committee and I thank you for your invitation. Today, my presentation is for the purpose of illustrating just how essential human partnerships have been to the formation, the start-up and ongoing Aboriginal business that is known as Wasaya Airways LP. Hopefully, I can share some history and insight about our business operations, both past and present, that may inspire others who wish to contribute toward successful Aboriginal economic success.
Wasaya Group Inc. is a successful partnership between nine remote First Nations communities. These communities are only accessible year round by air transportation. Wasaya Group Inc., our parent company, has the following subsidiaries: Wasaya Airways LP, started as a small float plane operation about 17 years ago and now with a fleet of 19 aircraft and 270 employees is providing passenger service, freight and fuel deliveries to remote communities, as well as charter services within North America; Wasaya Petroleum LP, a supplier of bulk fuel and petroleum products; and Wasaya Prop Shop LP, an overhaul and maintenance facility for aircraft propellers and brakes, with clients from as far away as Africa, Great Britain and South Korea. Within our structure we also have Wasaya Community Economic Development Corporation, which provides consultation and training services to Wasaya communities in the area of economic initiatives and transportation initiatives, including seasonal and all-weather roads. Wasaya also has a not- for-profit division called Wee Chee Way Win Inc. that is involved in financially supporting communities in social wellness activities. Of these entities, Wasaya Airways is our largest revenue stream.
The original adventure began in 1987 as a vision of one of the First Nation elders, Mr. Albert Mamakwa, who recommended that the remote communities join together to develop a joint economic plan. The vision included the retention of revenue generated by our own community members, the provision of vital services by First Nations to First Nations, the generation of employment and training opportunities for our youth and generating a source of funding to initiate community-based health and wellness activities such as recreation and social events. After much consultation and research, it was decided that the communities should form a company that would start off by providing essential aviation services to the region.
Gathering strength from this elder's vision, the communities approached V.Kelner Airways Limited, which, at the time. was a small float plane operation based out of Pickle Lake. After many long months of exploring possible business scenarios, we partnered with Kelner in 1989, and in exchange for $49 in pocket cash and exclusive air- freighting rights to our communities, we received 49 per cent of that business, the small air freight business. That is how we got our start, from $49.
With a $49 investment and the promise of loyal First Nation support, the Wasaya-Kelner revenues went from 3.6 million to 15 million in four short years. Last year our revenues were in excess of 50 million as an Aboriginal aviation company. The new partnership was also structured to allow the gradual buyout of Kelner owners, and in 1989 Wasaya Airways achieved 100 per cent First Nation ownership. The community support of Wasaya allowed their investment to remain and grow within their own company and that allowed the Aboriginal shareholders, as well as all participants, to enjoy the aviation services that are absolutely vital to the survival of northern remote isolated communities. The Wasaya Founding Principles Guidelines document spells out our First Nations' approach to doing business. From the outset we agreed that politics would never be allowed to interfere or take priority over the business, nor would we allow the Wasaya guidelines to be compromised. In the past, we have witnessed many businesses fail through the mixing of politics and agreed that this would not dictate our direction.
I might add at this time that each Wasaya owner community is represented by their elected Chief. We call this group of chiefs, the Wasaya Chiefs, and collectively they are the Wasaya Partnership. All of our various boards also include elders who are appointed from their communities to support our chiefs and business leaders in their decision making process. The elders also serve as mediators to help resolve disputes so that an acceptable solution is arrived at for the benefit of all. I commend our chiefs who, while holding political office, exercise restraint by not mixing politics with running their communities' Wasaya business. I commend our elders who have occupied positions as our spiritual and practical advisors.
In addition to transporting passengers, Wasaya Airways sells and transports bulk fuel to run Hydro One's generating stations in Northwestern Ontario. We also transport the goods sold in the community stores. Everything has to be flown into the community stores, medical supplies provided by health centres, building materials used in construction and maintenance and the list goes on. Selecting a product or service to market and having the right market is critical to success.
The years that followed the initial success of the joint venture between Kelner and Wasaya served as formative years for many First Nations people to learn the aviation business from the ground up. We partnered with many gifted individuals who provided guidance, direction and served to mentor many of our people to become adept at facing competition and adversity in both the business and political fields. We formed valuable relationships with lawyers, accounting firms, aviation industry consultants and bankers, most of whom were non-Aboriginal people. We worked many long hours with this pool of talent to find solutions to the situations that we faced in the highly competitive and complex industry.
As we grew as Aboriginal business owners and managers, we gained the trust and respect from our peers in the industry. We have developed a core group of both Aboriginal and non-Aboriginal managers that provide strength and leadership on behalf of our shareholders.
The one word that stands out in my mind as a major factor in fostering and achieving a level of success is the word respect. As a group of First Nations, we have held great respect for the pilots and aviation companies that flew our people and goods in and out of our communities. We made them to feel welcome at our feasts and with our cultural- based system of honouring guests, especially those who have and continue to serve the needs of our communities. We have greatly respected all of those who have merited positions of authority through their hard work, and we have strived to pattern ourselves after these role models. We have studied successful ventures and have endeavored to utilize their strategies, where possible. We have studied other businesses strengths and weaknesses, and we have learned to avoid the mistakes of those who have tried and failed.
During the years, we have seen many companies in the aviation business fail, especially after increased business costs associated with 9/11. However, as we have become more independent and comfortable with our own First Nation experience levels, we are able to place our people in key positions within the company to ensure that our original vision and focus is maintained. We saw our Aboriginal staffing levels increase from 4 per cent in 1996 to almost 30 per cent in 2004. Still today, our operations are a continued partnership between Aboriginal and non-Aboriginal employees, customers, levels of government and various agencies. The goodwill that Wasaya generated throughout the years by maintaining its integrity and reliability throughout the industry have been the subject of many media articles and has generated interest from coast to coast and even to countries as far away as Germany.
This past summer has seen our company provide tourists with Aboriginal cuisine and cultural dancing demonstrations. For the past few years, we have partnered with Moccasin Trails sport fishing tours out of Chicago, U.S., to provide Aboriginal fly-in fishing camps in Northwestern Ontario with a steady stream of clients. We have partnered with Wawatay Native Communications to provide an in-flight magazine that portrays stories of Aboriginal people and those that work with them. One of the magazines' young aboriginal writers recently won a national media award for her work. This is an example of how far reaching the impact of a successful Aboriginal venture can be.
Thus far, I have spoken of our success; however, I would like to point out some of the barriers we have faced.
Our territory in Northwestern Ontario is home to one of the poorest groups of people in the whole of Canada. We do not have any revenue generating agreements such as the Cree have in Quebec. We do not have any revenue generating agreements from oil resources like those in Alberta or Southern Ontario; nor land agreements like they have in B.C. and Manitoba; nor revenue agreements such as the Dene or the Nunavut territory. The Aboriginal people of Northwestern Ontario to date have not benefited from any resource-based agreements and, therefore, the startup rate and success rate for Aboriginal business is poor also.
In addition, we have had to meet all of the requirements of a banking industry without the help of government funding. In fact, as an Aboriginal company operating in the poorest region in Northwestern Ontario, we have faced the toughest scrutiny by investment stakeholders.
Typical stereotyping of First Nations by Canadians is one issue that we face on a daily basis. When we met with many financial institutions, it was as if they too were expecting us to fail in whatever we proposed. Through our determination, we have proven these stereotypes false and established a model for others to follow.
There was a time in 1999 when we had to cancel our scheduled passenger service or risk losing the whole of our Wasaya partnership. Our competitors were receiving a disproportionate share of government business. Although we offered superior equipment and lower fares, we were virtually given just scraps of the multi-million dollar yearly contracts our competition received. Thankfully, during this great trial, our communities allowed us to make this sound decision to shut down the scheduled service and reject a politically imposed decision that would have bled our company to death. In the years to come, we were able to, once again, offer scheduled passenger service and we eventually went public with the information concerning the disproportionate government contracts that continued to impact our market share until 2005. I believe that going public caused some positive changes to occur in the bureaucracy that moved toward a levelling of the playing field in our region.
A major barrier we faced was a limited marketplace with limited growth and expanding competition — even those who come and go impact our business. Again, I refer to the term ``respect'' and would like to comment that we have always treated our competitors with respect. We appreciate the times we have shared equipment, moved each other's clients and trained together in various venues. This is a good attribute for aspiring business people to learn. Our respectful relationships enabled us to enter negotiations with our major competitor to buy the northern routes, which we had been competing over for many years.
In completing this $16-million acquisition in 2003, we were able to expand our operation by an estimated 30 per cent and became the leading provider of aviation services in the region. We were helped by a $2.5-million federal grant through Indian and Northern Affairs Canada, which we used to acquire additional aircraft.
In closing, I would like to say that a business has to be run as a business. We got where we are today, from $49, by good business decision making, having strong management, as well as developing the initial partnerships that we had with non-First Nation partners to train our people to obtain management roles within the entity. Through this process of patience and learning, we have gradually developed key Aboriginal management to help ensure the original vision of Wasaya is foremost as we forge ahead. Meegwetch.
Senator Sibbeston: Mr. Morris, you have presented us with a very inspiring story. It is good to see Aboriginal people becoming involved in business. The study that we are undertaking is to examine Aboriginal business, how they started and to identify the elements of success. Why did you succeed while other Aboriginal people do not succeed? I would like to you to tell me the thought processes and the attitude that went into starting the business. In the Northwest Territories, where I come from, there are some pockets of Aboriginal communities that see business as a way of the future. I also believe that any society, any group needs to be involved in business as an alternative. Children are being trained on computers, and everybody likes to drive new Ford trucks, so money has to come from somewhere. I am wondering about your situation: How did people get inspired or motivated to get involved in business? Was it very difficult?
Mr. Morris: Initially the communities had to come together as a group. As well, the communities had to put their support toward the venture, and I believe, as First Nation communities, they have a lot of respect for what the entity was going to be doing within our region. Most of these communities are from remote First Nation communities, so they have to fly the food, the materials — pretty well everything — even the people have to fly into the communities.
However, I believe most important was the route that we took as an entity through partnerships with non-First Nation partners, learning management skills from our partners, as Aboriginal people. I am seeing today that there is still a lot of need for people to learn senior management skills, executive level type management skills. We need more of that within the First Nation community. I believe that strategy, partnerships with non-First Nation people, got us to where we are today, and training from those non-First Nation partners, training our people to start gradually running this multi-million dollar operation, I feel that partnership had a lot to do with it.
The other factor is that we had to surround ourselves with good resource people. We had to have a good aviation lawyer, a good HR lawyer, a good corporate lawyer. We also had to surround ourselves with good consultants that know financial management, about financial management systems. As well we had to surround ourselves with good technical people, in all areas. If at any time I need advice in anything, I have a good core of people around me. I had to have a good accounting firm to assist us as well. Good professional resource people and good management within the company are necessary. Proper direction and the support that come from the communities and the boards have to be there. We tried to keep the politics out. The chiefs, even though they are on the partnerships, their only role or entity is if we need to make serious decisions or make serious acquisitions.
We had to go to the chiefs and tell them that we were buying Bearskins Airlines' major routes north of Red Lake. They are only involved in major business decisions; we do not involve them in the day-to-day operations or the decisions pertaining to the management of the airline. Thus, much of that has to do with our success, and also involving our elders and having a good board. The board of directors of our airlines has to be trained as well; our group has to be trained in business, how a business operates, business management, financial management, et cetera. That is how we got to where we are today.
The Chairman: Thank you, Mr. Morris. You really are an inspiration to everyone who listens to you; we really are inspired by what you are doing.
Senator Peterson: Mr. Morris, you mention in your presentation that you face stereotyping on a continuous basis. Could you expand on this a little further, so we can better appreciate your challenges and how much of an impediment this is to doing business in the Aboriginal community?
Mr. Morris: You have heard of many failures in the past of Aboriginal business. There are a lot of stereotypical perceptions of Aboriginal peoples. In 1998, we bought our last non-First Nation partner out, and then we put senior First Nation people in to be the president, CEO and executive president, and executive vice president; people said that airline is going to be gone in a year. That perception is out there of First Nation businesses. When we are trying to deal with financial institutions such as banks, their attitude is: ``Well, it is run by Aboriginal First Nations senior management people, well, we better watch these, watch this company very closely with much scrutiny.'' That perception is out there, even from the financial institutions. At times, it is like that with the federal government departments as well, the people that deal with federal business and economic development programs.
Senator Peterson: You appear to have overcome that and proved them all wrong, so maybe we can use you as a model of future development and point that out.
Senator Dyck: Thank you, Mr. Morris, that was quite an inspiring story. Do the nine communities that have come together to form this corporation represent most of the market in terms of the airline industry, the flying in and out?
Mr. Morris: No, we fly to 21 remote First Nations communities in Northwestern Ontario. We have nine First Nations communities that are a part of this venture. We have another competitor, a First Nation owned airline, who have six First Nations communities there.
Senator Dyck: In terms of employment, presumably now many of your employees are Aboriginal and that has probably grown over the years. Do some of your Aboriginal workers have the opportunity to move to other employment, once they have been trained, as they obviously have skills that can be taken elsewhere?
Mr. Morris: We have seen that movement where other people that have worked with us have gone to other areas. We have a lady that works at the airport as our counter agent; she will be leaving our company and working with the Thunder Bay Regional Hospital. So they move that way as well. However, the problem I have is getting First Nations pilots; I have a problem getting First Nations people to become aircraft maintenance engineers. I have 72 pilots and only one is Aboriginal. I have 65 maintenance staff and only three are First Nations people. Thus we have been concentrating on getting First Nations people involved in professional fields such as aircraft maintenance engineers, AME, and to become pilots. We are trying to move into that direction, yes.
Senator Dyck: Since your company has been operating for about 17 years now, do you believe that it has had an impact on the communities, especially on the young people, in terms of giving them a sense of, here is a career opportunity, or here is something that we know that our people can do and be successful? Do you believe it has had a social impact on their sense of well-being?
Mr. Morris: When I first moved here 10 years ago, there were three First Nation employees in our company out of 165 employees. Today, we are at 30 per cent out of 270 employees, so we have made some movement that way. I believe that is a priority within our company: to try to get more First Nations people involved. Based on that, I would say that there is movement toward what you have talked about, yes.
Senator Hubley: Thank you very much for your presentation.
On working capital, that is pretty remarkable starting off with $49 — the amount in my back pocket. However, you were able to offer them exclusive air freighting rights to your community, so that obviously was the same as money in the bank. Having said that, what have been the challenges to securing working capital, grants and such?
Mr. Morris: We have not had many challenges over the years. I believe there has been two times within the tenure of the company that we have gotten federal money; initially, $500,000 in 1992, and $2.5 million in 2003. However, I feel that the problem is when a new government comes in; they have a new direction. There is no continuity in what the former government had done in terms of programs and business and economic development for First Nations people. When I initially got involved with economic development, there used to be a program called the National Native Economic Development Program of Canada; their direction has changed 100 per cent from the old program that had been in place. The direction of the federal economic development programs is now more on youth, technology and importing, whereas the old program used to be based on the community, regional and national levels, as First Nations people.
In addition, when there are cutbacks within programs — and cutbacks happened yesterday — usually the first programs to be affected are the Aboriginal federal government programs, such as Aboriginal Business Canada. I heard they got cutbacks yesterday. Therefore that is a challenge, yes.
The Chairman: Thank you very much, Mr. Morris. As I said, you are an inspiration. We have a group of students from the Confederation College who are studying law and advocacy. I am sure that they were inspired by your success story, and we wish you continued success in what you are doing. Remember, do not worry about the politics, just do the business and I am sure you will soar with the eagles. Thank you very much.
Mr. Morris: Meegwetch.
Deputy Grand Chief Terry Waboose, Nishnawbe Aski Nation: Meegwetch. As Deputy Grand Chief, I bring you greetings from the people of Nishnawbe Aski Nation. I would like to thank the Senate Standing Committee for allowing me to present the position of the First Nations of Nishnawbe Aski Nation.
The Nishnawbe Aski Nation, NAN, consists of 49 communities whose territory comprises almost two thirds of the province of Ontario. The NAN territory is larger than four of the provinces of Canada and is, in fact, larger than the four smallest provinces combined. We govern ourselves based on shared values and principles that have been handed down by our elders since time immemorial. In our dealings with outside governments, we speak through our chiefs and councils and through the Nishnawbe Aski Nation. Our purpose today is to give you insight into our struggle to survive and prosper in our own lands, utilizing our own resources, under our own government.
In 1972, when our elders and leaders began to organize the NAN First Nations who had signed Treaty No. 9 and Treaty No. 5, in Ontario — we have a number of communities in the West that signed Treaty No. 5 — our communities had very little by way of infrastructure and economic opportunity. Most had no air strips, no electricity and only trail radios for limited communications. We survived in the traditional way of hunting, trapping and fishing. Our southern communities were already experiencing the effects of development in their tradition territories. However, the wealth that came from harvesting resources in their territories did not seem to reach their communities and their lives. From the outside it appeared that Nishnawbe Aski Nation communities existed in extreme isolation.
Our nations have come a long way since those days. Most of our communities have all-weather air strips, winter roads, electricity, water and sewage treatment plants, schools, nursing stations and telephones. Many of our communities are now wired to the world through the internet. We are working hard, and with great success, to develop the power of the internet to bring our communities together and to bring them into contact with the world.
As great as the changes have been in the Nishnawbe Aski communities over the last 30 years, the challenges of the next three decades far exceed those of the past. Industry and resource development are quickly encroaching on our traditional lands north of the 50th parallel.
The wealth in our traditional lands is beyond dispute. According to industry and government reports, mining in Ontario generates some $5.5 billion; forestry generates $15 billion; and tourism in the area of $3 billion per year. Eighty-five per cent of these dollars are realized through the activity in Northern Ontario, in Nishnawbe Aski Nation territory. The value of fresh water, untapped hydroelectricity and wind generation resources are as yet unknown. These figures reflect values before the opening of the first diamond mine; the identification of wealth generated in our territory over the next 30 years will minimally be in the order of $600 billion.
Beyond the natural resources of our territory, we have two other major assets: a pool of people who want jobs and economic opportunities, and a great desire on the part of our political leaders to improve the quality of life of our people.
Perhaps our greatest asset is our knowledge of the land and its care and the appropriate use. This knowledge and our connection to the land are in our blood.
To survive and prosper, Nishnawbe Aski Nation must immediately begin to develop a real and vibrant economy that will provide self-sufficiency of our communities and jobs and economic opportunities for our people. We must create this engine of prosperity while ensuring that our culture and language are respected and remain intact, that our lands and waters are protected, and that our rights and presence in the lands are recognized, respected and protected. A basic tenet of our economic strategy is that development on our lands must be appropriate, sustainable and, above all, must benefit the people of Nishnawbe Aski Nation.
We realize that we can not achieve all of this alone. We recognize that we must work in partnership with governments, the private sector and the public at large. We intend, through development of strategic partnerships, to build relationships that will provide mutual benefit.
We have been, and we continue to be, actively engaged in a variety of negotiations to have our self-governance recognized, to increase our control of institutions that affect our lives and to effectively assert control over land resources in our traditional territories.
While some of these discussions have been bilateral, dealing with the federal government, we see an urgent need to also involve tripartite discussions to maximize the effectiveness of the negotiations. We have been working with the Province of Ontario to examine the creation of a northern table that would deal with NAN First Nations' needs and issues. If this process is successful, a NAN specific tripartite process could be created.
Nishnawbe Aski Nation and various member First Nations have already developed relationships with the regions cities and municipalities. These relationships involve areas such as health, transportation, education and social services. The regional chambers of commerce have worked with us, to our mutual benefit, for many years.
Our lands are rich in forests, minerals, water, wildlife and untouched and untapped beauty. Our approach to development will be based on our values of appropriate, respectful and sustainable use of the land and its resources.
With an appropriate share of the wealth in our territory, we can support the government structures that are necessary to maintain the services and supports required. Though each First Nation has its own clearly defined traditional territory, the traditional lands of the Nishnawbe Aski Nation are seamless and continuous.
Within this region, we have rights that have been recognized by the Government of Canada in its Constitution and by the courts of Canada in numerous decisions. It is time that our jurisdiction in our region be recognized and realized based on our values, our needs and our intentions. We have begun this process in some specific areas such as policing and child welfare. However, much more needs to be done and it must be done immediately if we are to protect the future of our coming generations.
Just as the members of Parliament of Canada seek to fairly represent their people, so the leaders of Nishnawbe Aski Nation seek to represent the citizens of their people, their communities and their interests of Nishnawbe Aski Nation as a whole. Though our cultural values may differ, the need to fairly represent our people and their interests are the same. The need to see that our people, their families and their communities survive and prosper is the same. We hope that we can share our concerns, our challenges and our successes to the benefit of all of our people.
Before contact with the European culture we were self-sufficient. The land provided all that we needed to survive. Involvement with the fur trade threw us into dependence on a single product industry that eventually disappeared. The effects of that industry on our people and the land are well known.
When Canada was expanding into the West, the governments of the day wished to ensure quiet and secure access to our territory and came to us to take treaty. Our view then, as now, was that we agreed to share the land and the resources for the benefit of all. The spirit and intent of our treaties have never been in question in our minds. However, the dealings between the governments leading up to our treaty and their application, or rather lack of application, of the treaty promises, have caused us grievous harm. Our culture, language, spiritual beliefs, family structure and community integrity have all been assaulted over the 100 years of our treaty relationship. That we have survived at all is a great monument to the spirit and determination of our people.
The treaty did not mention the Indian Act that was designed to control every aspect of our lives. It did not tell us that our access to our traditional territories and our resources would be so seriously reduced and limited that our benefits and survival would be threatened.
It would be good to think that this colonial attitude was a regrettable aspect of our distant history. However, this is not the case. Our access to and control over our own resources continues to be limited. Governments continue to ignore both the Constitutional recognition of our rights and the direction of the Supreme Court of Canada that those rights should be acknowledged and respected in all matters pertaining to our lands and our lives.
These issues are not political rhetoric. They are the stuff of our daily lives, they are in the forefront of our planning and thinking in developing a viable economy to support our people and our communities.
Modern treaties and land claims recognize the need for economic opportunity through access to lands and resources for Aboriginal peoples.
To overcome the challenges before us, we have recognized that the First Nations of Nishnawbe Aski Nation must work together in that we must capture the resourcing necessary to fund our development and growth. We have three main requirements to move forward. First, we need to have our jurisdiction recognized and ensured, preferably by having provincial- and territorial-like governance authority and responsibility for our region.
Second, we must have our constitutionally recognized and court-tested rights in the land expressed in a manner that will ensure our access to lands and resources in a way that will allow us to build an economy and create wealth and self- sufficiency. Governments must comply with the law and direction of the courts.
Third, we must be allowed to create our own form of self-government based on the authority and jurisdiction of our First Nations.
Each of these elements is now part of the agreements in process with the newly created territories in the north. They are also part of the modern treaties and agreements that have been created with Aboriginal groups from Labrador to British Columbia. We are not suggesting something that is unattainable. We are suggesting that our relationship with the rest of Canada should ensure our survival and well-being.
The most important need is for the Governments of Ontario and Canada to accept the spirit and the intent of our treaties, to share the land for the benefit of all. Modern treaties make this requirement clear by stating that the Aboriginal communities should prosper. If this were to become the underlying approach by Canada and Ontario with respect to the Nishnawbe Aski people, we could move forward.
It is unlikely that the government programs will meet our needs for a better quality life and development of a real economy. Governments may provide the seed monies needed, but the true engine of development will be driven by partnership created for and by our First Nations and their people with the private sector. These partnerships will be based on a clearly stated recognition of our rights and the political sustainability that will come from our own governance in our own territory.
The Auditor General has indicated that modern land claims are, and I quote as per page 7 of my brief:
...about clarifying the rights of Aboriginal groups to lands and resources in a way that contribute to their economic growth and self-sufficiency. One of the key issues that a land claim enables the beneficiaries and the government to resolve is land use plans. Without agreement on the use of land, uncertainty can develop, which makes development all the more uncertain.
We will continue to defend our rights in the land with all of our resources. However, fighting a never-ending series of stand-offs and court challenges is an expensive, exhausting and volatile method of developing a sustainable economy.
The Auditor General also points out that the barriers to development in the main were restricted access to natural resources, difficulty accessing capital and complex federal programming and resource management processes. These barriers increase the cost of doing business and impede economic development. We agree wholeheartedly with this assessment.
We have taken some of the paths suggested by the Auditor General in attempting to overcome these limitations. We have development corporations, joint ventures, an economic development department and economic and resource development policies.
We have completed a preliminary economic viability study of our territory and have found, not to our surprise, that our territory contains all of the resources necessary to support our development and the creation of jobs and wealth.
We wish to be very clear about the future and our intentions. We have survived 100 years of abuse and limitation. That period is at an end. We intend to go forward into the next 100 years as masters of our own territory and our own future.
We suggest that you recommend to the federal government that the generation of underfunded, short term, complex Aboriginal support programs be set aside and that real investment be made in the developments and institutions identified by our people for our people.
We suggest that Canada provide an appropriate share of resource revenue to support our governance going forward.
We suggest that the financial and human resource burden created by the overly complex reporting systems be recognized and that the reporting systems be secondary to the creation of successful development initiatives.
We suggest that the federal agencies coordinate all of their efforts in our territory through us in a joint planning implementation process.
We suggest that appropriate funding be provided to ensure long-term support of initiatives and undertakings.
We suggest that the federal government recognize the indebtedness created for First Nations and that a recovery process be implemented that does not send First Nations into greater difficulty by using housing and program monies to pay off debts incurred through underfunding.
A hundred years after the making of Treaty No. 9, we find ourselves living in poverty. We lack almost all of the necessities, including clean drinking water and sufficient housing. The infrastructure in our communities is crumbling.
The federal management of our affairs has been a disaster.
Where we have succeeded, it has been through strategic partnerships and the development of a capacity by our own people. If we are to survive and flourish, we need to reassert our jurisdiction, regain access to our resources and re- establish our self-sufficiency. The wheel must come full circle.
Meegwetch. Thank you very much for allowing me to present.
The Chairman: Thank you for that presentation.
I believe you put into question Indian and Northern Affairs Canada and the way it has served its constituency. Let us examine some areas. Education: if they were to institute a program, it is going to take 28 years for Aboriginal people to achieve the same level of education as non-Aboriginal people. Health care: we have tuberculosis outbreaks in Saskatchewan. Housing: Third World conditions, you described it at the very end of housing and clean drinking water; I believe that clean drinking water is being addressed at the moment. The resource revenue sharing, treaty recognition and self-government certainly have not taken place.
Would you, as deputy grand chief of this great area, recommend that a total re-evaluation and a possible termination of that department, as it operates now, should be done by the present or future governments? I am not trying to put you on the spot, but the fact is that it may be a recommendation that I would be prepared to put forward. I have sat on this committee listening to the plight of our Aboriginal peoples, and it is repetitive; the same problems continue to exist, the same department tries to be all things to all people and it is failing, as far as I am concerned. I would like your opinion, sir.
Mr. Waboose: My opinion on that, sir, is that to a certain extent I feel Indian and Northern Affairs Canada has not been to our benefit. I believe we need to develop a relationship that is no longer paternalistic, that is no longer controlling. We need to build a relationship with the federal government that is based on, as I have said, the recognition of our rights, based on a nation-to-nation relationship that we have had with the federal Crown. I believe the bureaucracy itself can be pared down. I feel that a lot of the resources that does go to the department do not come to the community level.
When we often hear the politicians and power men get up and they say that $9 billion is used to fund First Nations, we do not see the $9 billion in totality. Very little of that amount, I would say probably half, comes to our communities. Therefore, the general public sees and hears that First Nations get $9 billion, but much of that, I argue, is taken up by inefficient bureaucracy. If it is to be done away with, then we would have to make arrangements whereby we build that relationship.
One of the steps that we are undertaking in our area is to be engaged in self-government negotiations. One of the exercises is to do away with the Indian Act and to come to some arrangement whereby it is a governance structure that is designed by our own people for the benefit of our own people. Thus, I imagine, to a small extent that is doing away with Indian and Northern Affairs Canada. I hope that answers your question.
Senator Sibbeston: Mr. Waboose, you state in your presentation that you have three requirements that you need in order to move forward. The first is to have jurisdiction recognized and ensured; second, to have your constitutionality recognized, and court-tested rights in the land; and third, your own form of self-government. Are there processes in place for you to achieve these?
Mr. Waboose: In my previous answer, senator, I indicated that we are presently engaged with the federal government on self-government negotiations. We presently have two tables: a governance table that is limited to on reserve and an education table.
Also in my presentation, I indicated that we are in the process of beginning discussions with the province of Ontario on a northern table. One of the issues that could potentially be discussed at that table is jurisdictional issues with the province on access to lands and resources. Other than the approach through court, unfortunately, sometimes the only way our rights, and recognition with respect to the land, are recognized is through confrontation. However, those are the two processes in place in terms of the question that you asked.
Senator Peterson: Thank you, sir, for your presentation, it was very thorough and exhaustive, and you certainly outlined all of the issues and impediments to the First Nations people in trying to move forward.
You talked a lot about resource development in the traditional lands in your area. I would suggest that your connection to the land through environmental stewardship should give you a place at the planning table as a partner. We were in Manitoba yesterday, and the Nisichawayasihk Tribal Council have partnered with Manitoba Hydro on generation, especially because of the impact it would have on the environment in their territory. Would there be any such example in your territory and would you see that as a possible entry and ability to become involved?
Mr. Waboose: I feel partnerships, whether it is hydro, mining, forestry or tourism, are very vital in terms of the future success of the economic prosperity of our people. With respect to hydro, out of the 49 First Nations in the Nishnawbe Aski Nation, the vast majority of them are operated on diesel generated systems. Presently, unlike Manitoba, we do not have any large scale hydroelectric development. The only matter that is being discussed at the present time is the potential for a large transmission line to run through Nishnawbe Aski Nation territory from Northern Manitoba, which is the proposed Conawapa Project. Therefore, with respect to hydro, that is the only project we see in the future. However, it is only at a very preliminary stage.
In terms of potential partnerships, we see a lot more of that potential in the mining sector: We have vast resources of gold in our territory and there is also great interest in diamonds now. As a matter of fact, one of our communities, Attawapiskat First Nation on the James Bay coast is involved with the De Beers' Victor Project. They are in the construction phase of the mine and it will be open very soon.
Therefore, with respect to hydro, at this point in time there is very limited potential. However, the potential for partnership or future prosperity lies within the forestry sector. There are still large tracts of forest that have not been allocated to any major forestry company; so there is that potential for greater First Nations' involvement in the forestry industry sector as well.
At this point in time, we are looking at mining, forestry and tourism as our greatest potential for economic generation and prosperity.
The Chairman: Have the recent Supreme Court rulings in Haida and Taku helped at all in the resource revenue sharing, those rulings of the Supreme Court indicating that Aboriginal peoples must be consulted before any resource development would take place in their traditional lands? Are you in a position to comment on that? I am not trying to put you on the spot; I am trying to answer some of these questions in regards to resource revenue sharing.
Mr. Waboose: Thank you for your question. It is sad to say that that seems to be the only avenue that gets the provincial government — or even the federal government — to the table. That is the one court case that you mentioned, but also the Mikisew case. The Mikisew case relates more to us, as that is a treaty case, whereas Taku is more of an Aboriginal rights case. I believe those court decisions do assist us, unfortunately, to get government to the table. We wish that could be done by negotiations and a willingness politically to come and discuss opportunities with our people. However, yes, the short answer is yes. It is unfortunate, but the court cases do make the governments sit up and listen. In the case of Kivalliq Inuit Association, they are now in discussions to try and resolve that issue at hand, that issue in that particular case.
The Chairman: Senators, as we can see in the quality of the people who have appeared before this committee, such as the witness that is before us now, there is no reason why these people should not be governing themselves and controlling their own destiny. Hopefully, that can become a reality.
I can assure you, Deputy Grand Chief, that the recommendations in the report to the government and to those decision makers that can make a difference in your lives will be strong ones.
Thank you very much. We are honoured to have you here. If you have any other recommendations that you would like to put forward before the report is written, just forward them to the clerk of our Senate Committee and we would be glad to look at them seriously.
Mr. Waboose: I did indicate to the clerk earlier that we would be providing more detail in terms of the situations that I outlined in my brief presentation to you. We will be sending a written report as well.
The Chairman: Thank you.
The committee adjourned.