QUESTION PERIOD — Finance
Indigenous Businesses
November 8, 2023
Senator Gold, since August 2021, federal departments must ensure that a minimum of 5% of the total value of contracts are held by Indigenous businesses. I have explored this issue at the Standing Senate Committee on National Finance as part of our review of the government’s spending priorities. I have reviewed many departmental results reports, and the 5% minimum target is rarely met. For instance, Public Services and Procurement Canada, or PSPC, is struggling and hopes to increase these contracts from a projected 2.1% to 5% in just two years. That’s a big undertaking.
As our chair often reminds us, our committee shares a common denominator with the government, which is a desire for transparency, accountability, predictability and reliability for all Canadians, when we review federal spending. Two years into this directive, can you speak to us about the success of this measure?
Thank you for your question. This is an important issue and part of Canada’s commitment to advance economic reconciliation by supporting Indigenous businesses through a variety of means, including federal procurement policies.
It’s premature for me to be able to measure the success of this program, but I can say that as of March 24, 2022, PSPC has awarded 42 contracts worth over $197 million to self-identified Indigenous businesses in response to the pandemic and issues that flowed from that. I am also advised that the government does expect that all departments and agencies will meet or exceed the 5% target no later than the end of fiscal 2024-25.
Thank you for that, Senator Gold.
We clearly need to accelerate the pace to ensure we meet our targets. I know the Treasury Board has been mandated to develop policy guidance and ensure that departments have the tools they need to implement the directive. What are these tools that the government is using to encourage and connect with Indigenous businesses so they are aware of procurement opportunities? What criteria are used to determine what constitutes an Indigenous-led business?
Briefly, the central program is the Aboriginal Entrepreneurship Program, which provides access to capital and other support.
With regard to the criteria, I’m informed that for the purposes of the target, an “Indigenous business” is defined as “Elders, band and tribal councils; businesses registered in the Government of Canada’s Indigenous Business Directory . . .” and “. . . businesses on a beneficiary business list.”
