First Nations Involvement in Resource Development Key
Prince George, B.C.- First Nations’ involvement in resource projects is a topic that is front and centre at the Natural Resource Forum in Prince George.
During the “Digging into the future” session, retired senator Gerry St. Germain said First Nations could and should participate in these projects, but that this participation must be predicated on a recognition that First Nations have rights and that they should have partner status. He pointed out that First Nations now have the tools to have equity ownership in resource projects, but that this requires deep levels of consultation and accommodation.
St. Germain argues that “one off” cash settlements are not good enough, and that these settlements only tend to favour consultants. He also said First Nations involvement in these resource projects is strictly a business deal, and not a time to reconcile longstanding issues of rights and title. In his opinion, First Nations should form a united front that will force governments to move forward, and that bold leadership was needed from all sides to achieve progress.
Harold Calla, of the First Nations Financial Management Board, gave the view that government should provide support through loan guarantees to First Nations so they can participate as equity partners in resource development. The economic benefits that proceed will allow First Nations to invest in their capacity development and become significant players in the Canadian economy. In this way, the burden will not fall on the private sector or the Canadian taxpayer.
An example of a viable investment mechanism was provided by Steve Berna, Chief Operating Officer of the First Nations Finance Authority. He noted that through the federal bank act and processes, the federal government backstops the big banks making it easy for them to participate in the capital markets. However, until recently, it has been very difficult for First Nations to gain access to the same capital markets so they can raise funds to participate in resource projects. Over the last five years, he explained how the First Nations Financial Authority has been building a road to a “magic door,” i.e. the capital markets, by creating a mechanism in which 34 First Nations across BC are now participating. Through the Financial Authority, participating First Nations can get loan rates below prime making it easier to become equity owners or partners in resource development. Berna says this idea was started by First Nations in Canada and it is the first in the world.
The Natural Resource Forum continues today at the Prince George Civic Centre.
Comments
First Nations are setting themselves up for a real scalping when they play in the “capital markets” as starry-eyed amateurs against the financial pros. Whether their efforts are ‘backstopped’ by the Bank of Canada or governments directly. Lets hope who really loses their hair is not the long suffering Canadian taxpayers when all the projected profits fail to materialise. They, and we, are operating in a system in which the ‘accounting’ at the macro-economic level remains highly flawed. So long as that’s so, a lot of developments with a promise of wealth will more than likely just leave a litany of waste.
“government should provide support through loan guarantees to First Nations” – “In this way, the burden will not fall on the private sector or the Canadian taxpayer.”
Don’t these two statements kind of contradict each other? Seems to me if thier loans are guaranteed then if they default, we the taxpayers, are held with the burden and
proverbial bag. I find it strange that there is always this talk of having the first nations as partners in these projects, but it seems to be more a partner in principal
and to be pc than an actual capital providing or risk taking partner, and at the same time saying giving the natives handouts don’t work. Seems to me this is just another form
of handout if they are not risking anything of thier own. If I want to invest in a business venture I doubt the gov’t will give me a guaranteed loan. Hell, you can’t even
get a guaranteed student loan anymore. Maybe I am mistaken one what the definition of a guaranteed loan means, but I am of the understanding it means the gov’t backs it
up if it goes into default. If they have a viable business plan and thier business venture looks sound, then by all means a loan should be available to them to get into
business, but I don’t think it should be guaranteed. They should have to risk something like we all would have to.
I also find it strange there is so much talk lately about consulting with the first nations, making them part of the resource extraction process, having them as partners,
blah blah blah as the enbridge pipeline issue gets closer and closer.
“He (St. Germain) also said First Nations involvement in these resource projects is strictly a business deal, and not a time to reconcile longstanding issues of rights and title.”
Yup… that’s the Oil Industry (Enbridge) talking. Sorry, most of BC has not been subject to Treaty agreements; this makes rights & title first and foremost the issue. Example: what percentage of the resource extraction royalties will First Nations be getting?
Answer: No one knows, because that takes the Federal and Provincial governments coming to an agreement with First Nations, industry has no say in such matters… nice try though ;-)
Never stop talking and never come to any agreements. Think of the poor lawyers if that happened.
Enbridge is not in the business of developing the tarsands and making oil out of tarsands.
Enbridge is just a pipeline company. they are just delivering oil from one end of the pipe to the other end, no different than a mail man carrying mail. Sometimes the oil leak, and some times the mail gets lost.
LOL
yeah if that pipe starts to leak I am not paying for it tired of looking after this goddam liberal govt make Enbridge put up collateral to the tune of 5 billion because if it starts leaking in the mountains its gonna cost a bundle to fix
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