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Business and Economic Contributions Made by Indigenous Businesses to Canada's Economy

Inquiry--Debate Continued

February 13, 2024


Honourable senators, I rise today to participate in Senator Klyne’s very important inquiry about acknowledging the contribution that businesses owned and controlled by Indigenous people make to our economy. I feel that this is an extremely important inquiry, because we spend a lot of time talking about and debating reconciliation issues, but we often forget Indigenous Canadians’ significant economic contribution.

As they grow, these businesses help strengthen communities, create jobs and improve local economies, not only for First Nations, but also for the surrounding area and even beyond. In the course of this inquiry, I think it’s important to highlight the innovation that we’re seeing in First Nations’ approaches to developing and growing their businesses.

I want to thank Senator Klyne, who initiated this inquiry, and all senators who have spoken to it. All of that enriches our understanding. Over the past three decades, I’ve witnessed the rise of Indigenous entrepreneurs, but, if not for this inquiry, I wouldn’t have done the research necessary to understanding the economic impact these entrepreneurs have on their communities, the next generation and our region.

I will start with the Atlantic region and then move closer to my home turf, as they say.

The latest data for 2020 produced by the Atlantic Economic Council reports the following for the Atlantic Indigenous businesses and community contribution: $3.6 billion in direct GDP with a spinoff of $5.6 billion; over 3% of Atlantic GDP; $1.2 billion in direct tax — federal, provincial and municipal; 800 Indigenous-owned businesses that employ 56,000 Atlantic Canadians, which is 5% of all Atlantic jobs.

Honourable senators, as you can conclude from the above data, Indigenous entrepreneurs and communities in Atlantic Canada are making tremendous contributions to our economy. Removing shackles and stigma, recognizing and confronting past wrongs and providing them their own pathways provided these results. Give one their wings and they will fly.

Closer to home, New Brunswick Indigenous businesses and communities contribute $700 million in direct GDP, which is $1.2 billion in spinoffs; 2% of New Brunswick’s GDP; 300 Indigenous-owned businesses; 12,000 direct jobs; $200 million in direct tax — federal, provincial and municipal; and 1,300 Indigenous self-employed.

Now, I understand if you think that’s not a lot, but in the small province of New Brunswick, it is a lot.

There are 17,270 First Nations people in New Brunswick, including 10,014 on-reserve and 7,256 off-reserve. The First Nations of New Brunswick have been enormously successful in driving economic growth for their communities and those around them. I will not be able to list every Indigenous business in the province today, but there are a few that I believe highlight the innovation and drive that lead to economic success.

One successful Indigenous business is Red Island Contractors Inc. in Tobique First Nation. Tobique is one of the six Maliseet First Nations. Located on the north shore of the Tobique River and close to the border with Maine, it has a registered population of 2,640, with about 1,600 on-reserve. Red Island Contractors Inc. is run by Tobique First Nation members Dana Francis and Beaver Paul.

Red Island Contractors develops building projects on traditional First Nations territory. They provide management consultancy from concept to commissioning. They aim to drive projects to provide economic development, respect for communities and the environment, as well as to provide mentorship, apprenticeship and trades development in the communities.

Some projects they have worked on include the Tobique First Nation Health Centre, Tin’wis Resort Laundry and Workers Dormitory in Tofino, B.C.; Marina Resort in Sooke, B.C.; and the Turtle Dome project in Neqotkuk First Nation, among many others.

Red Island Contractors Inc. has been successful in bringing the insights of Indigenous Canadians into project development, in particular, the focus on community and environment.

The Joint Economic Development Initiative, or JEDI, is an Indigenous organization in New Brunswick that works with communities and the provincial and federal governments. They aim to support and grow Indigenous participation in the New Brunswick economy.

JEDI helps communities and businesses through capacity development, support for projects, as well as networking and learning opportunities. They offer entrepreneurs numerous programs to help them build and grow their businesses, including the Indigenous Business Incubator Program, which helps new businesses develop and learn about marketing, bookkeeping and e-commerce through a 10-week virtual training program. That’s quite progressive.

JEDI also provides funding and grants to several programs to invest in businesses. Workforce development is part of the JEDI mandate, which includes literacy, mentorship, internship, apprenticeship and employment coordination programs.

The Joint Economic Development Initiative has been a powerful tool for the growing Indigenous communities in New Brunswick.

Now, moving closer to home and to my heart, I want to talk about the Madawaska Maliseet First Nation. Located along the Saint John River in northern New Brunswick, the Madawaska Maliseet First Nation has a population of 378 people, with 155 on-reserve. You can imagine the size of it, but wait until you see what they’ve done.

When I was a young MLA in New Brunswick in the late 1980s, we were planning and followed up with the construction of a four-lane Trans-Canada Highway. Since the highway was dividing the north and the south of the Madawaska Maliseet First Nation land, they requested an overpass that would join the north and the south. The overpass was built; however, for many years, there were no roads and no ramps to and from the overpass.

Then in comes my friend Joanna Bernard, the first woman chief of the Madawaska Maliseet First Nation, in 2003. Her leadership was the ignition to a comprehensive economic development plan from the north side of their lands along the Trans-Canada Highway. If you pass by, it’s known as the Grey Rock Entertainment Centre.

Located on 36 hectares, the site includes a gas bar that serves more than 15,000 vehicles that pass by every day on the Trans‑Canada Highway. In addition, it has a retail complex with shops, a restaurant complex, a casino, a Ford dealership, a multi‑terrain dealership and, more recently, a hotel that connects to the casino. I’m so proud of this group.

The Grey Rock Entertainment Centre employs more than 300 people — remember, I told you there are 378 people on that reserve — from the area and has been a major boost to the local economy, both for the Madawaska Maliseet First Nation and for the Edmundston area. This relatively small Maliseet community of 378 has probably the greatest number of entrepreneurs per capita in all of Canada. Most businesses are owned and operated by family names like Bernard, Wallace and Simon.

Let me start with the Bernards. Yes, my friend Joanna was a stellar chief and was followed by her sister Patricia, who is the current chief. Patricia owns and operates Greco Pizza, while Joanna is currently Regional Chief of the Assembly of First Nations and was the interim national chief of the Assembly of First Nations until the recent election. Their big brother, John Bernard, owns and operates the casino and the all-terrain car dealership at Grey Rock. In addition, John Bernard is also the owner and operator of the IT firm here in Ottawa named Donna Cona, which employs over 2,000 people and provides IT services all over the country. John Bernard is the recipient of the Lifetime Achievement Award 2021 from the Canadian Council for Aboriginal Business.

Next, let’s move on to the Wallaces — more precisely, Vicki Wallace. Vicki has a law degree, which serves her in many business endeavours. Along with her husband, Marco Godbout, she owns and operates the Shell Grey Rock gas bar and convenience store and the Burger King. They also own the local radio station Frontière FM and other businesses outside our immediate area. Notwithstanding all that, Vicki and Marco are also volunteers in many community organizations.

Honourable senators, I hope I have been able to convey how much I appreciate and respect the leaders and entrepreneurs of the Madawaska Maliseet First Nation.

In conclusion, I want to speak more broadly to highlight some aspects of Indigenous businesses that are central to their success and critical for Canadians to learn from and apply in their own businesses.

One of the important aspects of a First Nations business strategy is the importance of the environment and the people’s relation to the land. First Nations are stewards of the land, and this translates into their businesses. These successes show that economic development and the environment don’t have to be at odds but can, in fact, be of mutual benefit. Sustainability, proper management of natural resources and the symbiotic integration of development and the environment are things that have always been important to Indigenous communities.

Colleagues, I have about a minute left. May I have an extra minute?

The Hon. the Speaker [ - ]

Is leave granted, honourable senators?

Thank you. As part of this inquiry, we should also take some time to mention the hurdles that Indigenous businesses can face and for us to consider and discuss how we can further boost opportunities. One issue we have heard is that while the federal government does a lot to assist First Nations governments, there is a lot less opportunity for assistance for privately owned Indigenous businesses. I believe there are some efforts that should be made there.

One specific issue we heard was getting bonds to bid on federal contracts and other private contracts, despite the ownership having considerable assets. Surety companies are not issuing bonds because owners’ property cannot be seized due to section 89 of the Indian Act. This limits access to programs and is a major impediment to growing these businesses.

As part of this inquiry and in our future endeavours, we should also look at these issues and ways to improve access to privately owned Indigenous business to capital, grants and bonds.

I also believe that major communication must occur throughout the country to inform all citizens about the tax issue for Indigenous individuals and businesses. Too often, I hear Canadians criticizing without knowing the facts about taxes. This must stop. I think the Senate can do its job and foster information on this issue.

I have only mentioned a small number of the many successful Indigenous businesses in New Brunswick — there are many more. Their success is shared by their communities and those in the region.

I want to again thank Senator Klyne for this inquiry and the opportunity to speak. Thank you.

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