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VOLUME 1 – ISSUE 5   September - October 2012

Big Oil vs Aboriginal Culture Battle of the Salish Sea


Paddling for a Sustainable Future New Source of Capital for First Nations Aboriginal Recruitment Fair – Vancouver 2013

EXCELLENCE Excellence is the only option. At Westkey we do not celebrate mediocrity. Instead we invest in the best and strive for perfection in quality of service and products. Setting the bar as high as we have assures that customer expectations are exceeded.

Westkey is a proud supporter of First Nations and First Nations business in Canada.


ONE S STOP, ST TOP, ONE 1SOURCE .800.663.9952



18 • Paddling for a Sustainable Future Canoe Gathering Marks Commitment to Protect the Salish Sea

ISSUE 5 VOLUME 1 – 2012 September - October


lture boriginal Cu Big Oil vs A lish Sea e Sa Battle of th



a Paddling for Future Sustainable of Capital New Source ions for First Nat Aboriginal

t Fair Recruitmen 2013 – Vancouver


2G Group of Companies Managing Editor

Marlon Louis

 4 • N  ABOC Osoyoos Bigger Than Ever NABOC conferences have become the most high profile Aboriginal/private sector networking events in western Canada

 6 • Pic River First Nation Energy Partnership The Ojibways of the Pic River First Nation flourishing as renewable energy developer

Design / Production

Corrina Deters Advertising Sales

Marlon Louis Contributors

Merle Alexander, Keith Henry, Joel Krupa, Matt Jamieson, Paul Clements-Hunt, Neil Philcox, Evan Stewart, Barb Bruyere, Randy Munro

12 • Six Nations Seizes 250 Megawatt Energy Opportunity Samsung partnership creates economic opportunity


March, May, June, August, October and November 2012 Distribution Aboriginal Marketplace is published by 2G Group of Companies ©2012 all rights reserved. The magazine is distributed online in Canada and the United States. The views expressed in the Aboriginal Marketplace are those of the respective contributors and not necessarily those

16 • Cando’s 19th Annual National Conference “Building Capacity – Building Communities”

of the publisher or staff.

FEATURES  8 • Recruitment Fair 10 • Featured Business 14 • Global Markets 15 • Quaaout Lodge 20 • Keeping it Riel

21 • MLIB Wins Award 23 • 2012 Stats Conference 24 • Legal Eagle 25 • Fantastic Employee 26 • Tax Facts Aboriginal Marketplace / September - October 2012 3

NABOC Osoyoos bigger than ever From September 11–13, 2012, over 300 delegates from across Canada, USA and Europe attended the Osoyoos stop on the National Aboriginal Business Opportunities Conference (NABOC) tour. Once again the NK’MIP Resort was the venue with Chief Clarence Louie of the Osoyoos Indian Band being the host. This was year 4 for NABOC at NK’MIP and the event has become so popular it sold out in just 6 weeks and generated a waiting list of over 100 people. NABOC conferences have become the most high profile Aboriginal/private sector business networking events in western Canada and the Osoyoos stop provided some great speakers, lavish hospitality events and a fabulous banquet dinner with entertainment from comedian Cliff Paul, music from the Squamish Nation’s very own Bitterly Devine and great dance music from DJ Backmix. Themes at this year’s NABOC Osoyoos included: ‘Structuring P3 agreements, how

Chief Clarence Louie giving his keynote address 4 Aboriginal Marketplace / September - October 2012

to successfully develop real estate on reserve’, ‘the new federal environmental impact assessment process’ and ‘how to access private and public capital to finance major projects.’ There were also six ‘business pitches’ with Domcor, Chase Office Interiors, Eagle West Cranes, Samara Networks, Spiritworks and Scuka Enterprises each offering up innovative partnership opportunities to the audience. Over 100 different First Nations from all across Canada were represented at the event along with an additional 110 private sector companies which created great networking opportunities for all involved. Canadian delegates came from every province and territory in addition to private sector groups from the USA, Europe and Asia. It seems that the word is definitely out that “NABOC is the place to get business done with Aboriginal people.”

Chief Clarence Louie gave his usual stirring speech encouraging all of the delegates in the room to “get to know each other, sit down and talk and get some business done.” We asked Rochelle Saddleman, 2G Group Client Relations Manager, how the NABOC tour keeps getting bigger and better in a time of recession? Rochelle told us “NABOC events provide a unique opportunity for business people to get together and talk seriously about joint ventures and partnerships. “We are living in a time of great change and despite the uncertainty around treaty and Aboriginal title and rights people still want to do profitable business together and create economic certainty. “Selling out all of our events in 2012 shows us that we are providing the right kind of meeting opportunities for our clients.”

Geoff Greenwell, CEO of 2G Group (middle), presents Chief Clarence (right) with a commemorative gift created by Coastal Salish artist Shain Jackson (left)

Aboriginal Marketplace / September - October 2012 5

Pic River First Nation Energy Partnership By Joel Krupa

Over the next 25 years, infusions of new renewable energy generating capacity and the implementation of a smart grid will reshape electricity markets across Canada. Aboriginal people, Canada’s fastest growing minority demographic, will need to play a central role in these developments as Canada transitions to a cleaner energy supply mix and more emphasis on conservation. The Ojibways of the Pic River First Nation, a small band on the northern shore of Ontario’s Lake Superior region, provide an excellent, replicable and grassroots example of what can be done to mitigate emerging difficulties with electricity generation in Canada.

6 Aboriginal Marketplace / September - October 2012

Over the course of the last 25 years, Pic River has successfully transitioned from an impoverished Northern Canadian community to a prolific renewable energy developer with diversified economic interests and low unemployment. By establishing a vision that they would, among other things, delineate a strict line between business affairs and political affairs, curb substance abuse, and nurture a cohesive, unified view that “there is a better way”, Pic River has been able to maintain high levels of transparency and accountability to their key stakeholders. In the process, they have gained the confidence of a mix of unlikely bedfellows - government officials, prominent investors,

non-governmental organizations and corporate partners within both the public and private spheres. Pic River’s pioneering mindset has led to a sizable investment base - $124 million in capital assets – with plans to build an additional $567 million in renewable energy assets while simultaneously pursuing capitalintensive joint equity partnerships with interested parties. It can justifiably be asked why the band has realized their success to date; indeed, Pic River’s collection of projects represents a stunning ascendency to business achievement for a relatively small and historically ostracized group comprised of less than 1000 members.

In this brief article, we outline Pic River’s history and present an outstanding model for other groups to emulate. The idea of, and momentum behind, renewable energy came about after a third-party renewable energy developer approached the community in a routine consultation process in the late 1980s. Recognizing the tremendous opportunity offered by this encounter, Pic River’s senior administration decided to pursue the project, called Wawatay, as a proponent rather than as a developer. Several years later (1991), Pic River owned a significant equity stake in this 13.5 MW hydroelectric operation. Seizing on this momentum, Pic River joined another joint partnership to develop a new run-of-river hydroelectric site called Twin Falls. Again, Pic River initially joined as minority equity partner. Eager to strengthen their economic position, the band sought to expand their role and, several years after the completion of this 5 megawatt facility, Pic River employed an innovative financing strategy to assume full ownership of the Twin Falls electricity generating station. This marked the first time in Ontario history that an operational plant was fully owned and operated by a First Nation. Finally, Pic River moved to a new stage

– full-fledged lead developer and initial project majority owner status. After assessing the potential of a 24 megawatt hydroelectric development on their traditional territory, the band elected to push forward (in joint partnership with the renewable energy company Innergex) on initiating environmental assessments, permitting/ regulatory appeals, and construction. Umbata Umbata Falls Generating Station Falls, as the project came to be known, began generating power in November of 2008, with Pic River as the majority owner. Steady progress of this sort required flexibility, innovation, and adaptability. To stay current, Pic River’s development strategy has evolved with the times and demonstrates a high degree of sophistication. For example, their corporate structure mirrors that of many corporations, including Twin Falls Generating Station limited liability partnerships, annual general meetings, and an appointment of river sites, are approaching the construction Aboriginal-led boards. But instead of being stages. accountable to largely faceless shareholders, Two wind sites are currently awaiting Pic River’s energy division must respond the Economic Connectivity Test for the with timely integrity to the concern of the Ontario feed-in tariff program, while Pic most important shareholders – the local River is initiating partnerships for a $650 community members. million biofuels facility and a stake in the To ensure that the local community is $600 million East-West Tie transmission adequately engaged, the Pic River Energy line. Furthermore, the band is developing staff regularly engages in community strategic frameworks for engineering, consultations, pass out gift certificates manufacturing, and consulting in an effort at important community celebrations, to make the renewable energy process more initiate elders visioning exercises that help holistically community-driven. to elucidate and clarify the framework Sharing and dissemination of “lessons within which the band will operate, and rely learned” (as one community member put it) extensively on integrated direction from key is also a major focus as the band works to political leaders like the Chief and Council. share knowledge and information with other This managerial structure has nurtured a Aboriginals. Pic River’s example shows that systemic ethos of duty, accountability, and sustainable prosperity for all is possible if the responsibility. correct elements are put into place. Future development plans are extensive *Excerpts of this article are taken from a and include solar, wind, and other longer, peer-reviewed article written by the hydroelectric sites. Manitou Falls and High same author and appearing in the academic Falls, two other multi-megawatt run-ofjournal Environmental Development.* Aboriginal Marketplace / September - October 2012 7

May 14-15, 2013 - Vancouver, BC

National Aboriginal Recruitment/Career Fair “Over the last ten years or so there have been numerous Aboriginal recruitment/ career fairs across Canada but almost all of them were quite small in scale and mostly targeted at specific communities, so they only had localized impact. “As partnerships, joint ventures and business developments involving Aboriginal groups are currently booming across Canada the timing is now right for a large scale National Aboriginal Recruitment Career Fair which will connect job seekers with employers”, explained 2G Group Client Relations Manager, Rochelle Saddleman when we interviewed her about this new initiative. “The 2G Group of Companies recognizes the need for a large scale Aboriginal Recruitment/Career Fair and has committed to hosting one in May of 2013 at the Vancouver Convention Centre. “This unique event is expected to attract over 200 national employers from a range of industry sectors and will be a fantastic opportunity for Aboriginal job seekers and employers. The intent of the event is to bring employers together with a large number of Aboriginal job seekers to facilitate employment and hiring opportunities,” added Rochelle. The 2G Group has partnered with the Pacific News Group (PNG) in the planning and execution of the event to ensure it will be a success for both Aboriginal job seekers and employers. The event will be run in parallel with the much larger 2013 BC Job Fair which will see job seekers attending from all over BC and employers participating from all across Canada. “We have already received lots of enquiries about exhibiting from organizations we work with on a regular basis from various industry sectors and we expect most of them to come onboard once we begin to market the event,” explained Rochelle. The 2G Group has pulled together a steering committee of high profile Aboriginal business leaders to provide advice to the event planning team. The committee members include Brenda Baptiste, SAO of the Tsleil-Waututh Nation, 8 Aboriginal Marketplace / September - October 2012

Chief Clarence Louie of the Osoyoos Indian Band, Keith Henry, CEO of Aboriginal Tourism BC, Tewanee Joseph, CEO of Tewanee Consulting Group, Shain Jackson, President of Spirit Works and Merle Alexander a partner with law firm Bull, Housser and Tupper.

We need this recruitment fair, we need on-site job interviews, and we need to get more of our people, especially our youth, working The event planning team will be sending invitations out to all Aboriginal communities across Canada offering their members the opportunity to attend the Recruitment/ Career Fair at no charge. Through their work hosting multiple annual Aboriginal business related conferences such as the National Aboriginal Business Opportunities Conference, and the National Aboriginal Tourism Conference, the 2G Group has established great business relationships with a wide variety of private sector, government and institutional employer groups who will all be invited to exhibit at the event. With their large client and community contact databases PNG also have great reach across Canada which will guarantee large scale participation in the event by both employers and Aboriginal job seekers. It is a well-publicized fact that over the next five to ten years Canada will experience a large skill gap in the workforce as the baby boomer generation heads into retirement. Many organizations are already actively planning for this gap in the labour market to

occur, and are developing new recruitment methods to compete for potential employees. The Canadian government has historically depended on immigration to fill labour shortages and largely ignored the potential of much larger Aboriginal participation in the workforce. There should be no need to import labour when Canada’s Aboriginal unemployment rates are so high. There is a need for better communication and connection between Aboriginal job seekers and employers. There is also an important role government can play by providing more training funds to Aboriginal people to help them break the unemployment cycle and transition into fulltime work. We are slowly seeing an increase in Aboriginal graduates entering professions and becoming doctors, lawyers, engineers, accountants etc. There is also an increase in Aboriginal people entering the trades in areas with booming resource sectors such as the Alberta oil sands. However there is still a massive impending labour shortage and both employers and Aboriginal job seekers will certainly benefit from attending the 2013 Aboriginal Recruitment/Career Fair. The design of the event will allow employers to offer on-site job interviews leading to immediate employment for job seekers. Having this option available for employers differentiates this event from most other recruitment fairs and enhances employment opportunities for job seekers. “We are working hard to make this event unique and successful for both Aboriginal job seekers and employers. We need this recruitment fair, we need on-site job interviews, and we need to get more of our people, especially our youth, working” said Rochelle as we ended our interview. For more information on the recruitment fair contact Rochelle on her Toll free line 855-307-5291 or at We commend the organizing partners for this initiative and look forward to reporting from the event in May of 2013. On opposite page - Vancouver Convention Centre, venue for the Aboriginal Recruitment Fair in May, 2013

Featured Business Ph: 778-340-0615

We began Spirit Works with the idea that business could act as a vehicle to bridge culture. Our concept was an Aboriginal owned, Aboriginal operated, and Aboriginal staffed company whose purpose was the creation of beautiful artwork and, incidentally, the conveyance of culture. If you want to understand Aboriginal people the art is where you begin. A very wise Elder from my home community of Sechelt once shed an abundance of light on this subject. He was a story teller. In First Nations’ communities who we are is passed down through our stories. Our history, culture and even our laws are transmitted this way. What I didn’t realize until I was sat next to this esteemed figure during a fateful night at Bingo was that artwork was, and is, our written language. He shared with me that this language of art codified the stories and therefore gave meaning to our societies. In this way they could be shared and passed down in the same manner as any text or novel. So the question became, how does this translate into business? The reality is we inadvertently stumbled on a niche market in the business of meaning. Everything we create at Spirit Works has 10 Aboriginal Marketplace / September - October 2012

meaning and throughout the five years since opening our doors we’ve been approached by numerous parties looking to create something remarkable, unique, and most of all, containing a message. Working with some of the most amazing Aboriginal artists in B.C., Spirit Works has catered to these parties with stunning results. Some of our most notable pieces and collaborations include: awards such as the World Cup Luge Trophies created in paddle form to symbolize working together; several of the 2012 Winter Olympic public artworks depicting stories of our homeland; and currently a large-scale pedestrian overpass on the way up to Whistler depicting a Thunderbird and the legendary story of that area. Although not everything coming out of Spirit Works Studio is so glamorous, we make sure to put our heart into all we do. As of recent we’ve developed corporate gifting lines, workshops, an in-house gallery, and much more. So whether it’s traditional pieces such as our paddles and bentwood boxes, or some of our Aboriginal themed functional items such as doors, board room tables, and so on, you can be sure you’re receiving not only top quality, but also the true essence of a people.

National Aboriginal Tourism Conference returns to NK’MIP Resort AtBC is preparing to host the second National Aboriginal Tourism Conference once again located in Osoyoos, B.C., in March of 2013, in partnership with host community the Osoyoos Indian Band and event managers the 2G Group. Participants will be attending from across the country to share details of their growing industry and consider ways to increase collaboration and develop new high-quality Aboriginal tourism destinations that will attract more visitors from around the world. The two-day conference will focus on providing updated industry information, inspiring speeches about successful worldclass Aboriginal tourism products across the country, and provide a great networking opportunity. The first conference in 2012 was a major success with over 200 Aboriginal delegates and corporate partners attending. The message during the inaugural groundbreaking conference was that the growth of Aboriginal cultural tourism will be driven by more partnerships, a more strategic approach, and the development of high-quality destinations that tell the story of Aboriginal people in an authentic way – providing rich, memorable experiences for Canadian and international visitors. “We expect this conference to exceed last year’s attendance,” Keith Henry, CEO of AtBC said. “In 2012 this conference hosted attendees from across the country including Ontario, Alberta, B.C., Nunavut and the Northwest Territories. This year we expect more individuals to attend from other provinces throughout Canada as the commitment to expanding the Aboriginal tourism sector continues to grow. “AtBC will showcase a number of key tools we have created that lead the world in many aspects as related to marketing and product development in Aboriginal cultural tourism.” He added, “People from around the world will want to come to Canada and see and experience Aboriginal culture and heritage, and we are gearing up to develop and market an increasing number of authentic experiences.” Henry expects this second conference

will spark more even more regional and provincial networking and strategies to help Aboriginal communities and entrepreneurs adopt best practices as they develop their cultural tourism businesses, attractions, events, and tourism packages. At the event AtBC will update the status of their new 5-Year Plan, entitled ‘The Next Phase 2012-2017’, which notes

that Aboriginal tourism revenue in B.C. more than doubled in five years – rising to $42 million in 2011, up from $20 million in 2006. The AtBC Plan calls for more investment, collaboration and quality assurance to continue to grow the sector, which is forecasted to be $68 million by 2017 and provide about 4,000 jobs to Aboriginal people.

Entertainment at the 2012 Conference Aboriginal Marketplace / September - October 2012 11

Six Nations Seizes 250 Megawatt Energy Opportunity By Matt Jamieson

On October 25, 1784, the Haldimand Proclamation was signed. Upon signing, 950,000 acres became the property of the Six Nations of the Grand River, which included six (6) miles on either side of the Grand River from its mouth to its source. Due to the proximity of the Haldimand Tract to major growth areas in Southern Ontario, this land has been slowly eroded by development over the past 228 years. Six Nations now occupies only 46,500 acres of land, though hundreds of thousands of acres remain the subject of questionable or non-existent land transactions. In an effort to develop opportunities for future generations, Six Nations Council’s Consultation Team, led by Lonny Bomberry, Director of Lands and Resources, has been examining opportunities created by the Crown’s duty to consult. In 2009, this approach triggered discussions between Six Nations and Samsung C&T Corporation involving a potential commercial transaction to develop the Grand Renewable Energy Park (GREP). The GREP is a $1 billion energy project with a 250 Megawatt (MW) nameplate capacity composed of 150 MW of wind (67 turbines) and 100 MW of solar. The energy produced will feed into the power grid and be sold by way of a 20 year power purchase agreement with the Ontario Power Authority. Due in part to the positive environmental impacts of the project, Six Nations Council entered into talks with Samsung, with Matt Jamieson, Director of Economic Development, as lead negotiator. Over the course of two (2) years, the talks were focused on providing Six Nations with options to participate in the project as either equity owners or royalty recipients, among other benefits. The project itself is located within the Haldimand tract and is in part located on lands leased from the Ontario Realty Corporation; this land had been the subject of Six Nations land rights for many 12 Aboriginal Marketplace / September - October 2012

years. Through parallel negotiations with the Province of Ontario, Six Nations was successful in securing 100% of the $9.5 million land lease revenue generated by these lands. It soon became clear that Six Nations community involvement would be a very important component in ratifying any agreement. A community decision making process was implemented so that interested Six Nations members could learn about the development and offer feedback before any agreement was finalized. This process was accomplished through the following stages: Stage 1:  Negotiations with Samsung result in creation of Term Sheet Stage 2:  Elected Council approve Term Sheet for presentation to community Stage 3:  Community Engagement occurs Stage 4:  Elected Council declare that community support exists Stage 5:  Definitive agreements are developed and signed The five (5) stage process involved third party legal and professional advice so that Six Nations at all material times protected its land rights while ensuring business terms were properly structured in the community’s best interest. Six Nations entered into a capacity funding agreement with Samsung so that third party costs would be fully covered by Samsung. The result of the negotiation is that Six Nations now has a choice between 10% equity ownership in the $1 billion

development, or the community can elect to become a royalty recipient. These options coupled with the land lease revenue agreement negotiated with the Province of Ontario yield the following financial impact of Six Nations participating in the Grand Renewable Energy Park: Net Revenue Option A: 10% Equity; Amount $46 million Option B: Royalty; Amount $24 Million Lease Revenue - $9.2 Million Financial Impact - $33.2 Million up to $55.2 Million In addition to the direct financial revenue associated with the project, Six Nations

also negotiated $400,000 in post secondary scholarships and access to over 300 construction jobs created by the project. The Grand Renewable Energy Park is viewed by Chief William K. Montour and the Six Nations Elected Council as a model for which future projects can be developed in partnership with Six Nations. Not only does the outcome have a net positive environmental impact but it is equally important to note that the approach demonstrates how a First Nations community can benefit from the surface use of land while the underlying land claim remains unresolved.

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Aboriginal Marketplace / September - October 2012 13

Global Capital Markets: What’s Next? By Paul Clements Hunt and Neil Philcox At the recent 2012 NABOC conference in Osoyoos, Aboriginal communities from across the country shone a spotlight on both the needs of a growing demographic currently underserved by traditional financial capital, and the unique potential many of these communities have to participate in a wide range of infrastructure, energy, industrial and other investment opportunities in Canada. While a number of communities do benefit from economic activity in their territories through impact benefit agreements and similar consultation related arrangements, the means to achieve meaningful participation as owners or equity partners in large scale projects is still limited. Access to patient capital, with investment values that go beyond traditional financial returns, is required to serve both the demographic needs and investment potential of Aboriginal communities. At first glance, global capital markets are in turmoil. However, that turmoil is defining a new set of investment values consistent with the social, economic and environmental needs of Aboriginal communities. Furthermore, the type of investment opportunities available to Aboriginal communities is also consistent with the long-term, stable returns sought out by large institutional investors. So what’s next? Capital is concentrated in vast pools of value with USD 80 trillion plus in global bond markets, USD 60 trillion held in worldwide bank deposits, upward of USD 50 trillion captured in equity markets and USD 47 trillion plus controlled by 10 million high net worth individuals. The geography of capital is also shifting and far more dramatically than many could have envisaged at the end of the 20th Century as the vibrant BRIC economies (Brazil, Russia, India, and China) build financial muscle and seek out offshore opportunities. China’s USD 3trillion of reserves is both prudent and hungry in its desire to secure productive investments worldwide. China uses both state and private sector 14 Aboriginal Marketplace / September - October 2012

entities to acquire strategic interests in the natural resources and industrial sectors. Evidence of this activity in Canada is clear, including the acquisition of energy assets in Alberta through the import of timber, seafood and other commodities from British Columbia. But post-crash capital is timid, scared to move, risk averse and fearful of the next market rupture. At the same time, those institutions controlling capital know that it needs to be put to work to serve the changing demographic needs of ageing populations

A common rule of thumb is that pension funds need a 4% return plus inflation just to tread water. in the most advanced economies where savings pools are still the most concentrated. Equally, those less developed economies are often starved of “sticky” capital to underpin their advancement. A common rule of thumb is that pension funds need a 4% return plus inflation just to tread water. Some in the markets believe that anything above an 8% return is, in the long run, unsustainable. That is why forward-looking capital is turning its attention to hard, tangible assets with lasting value whether those assets are the infrastructure projects underpinning socio-economic development or the natural wealth where real, long-term value accrues. And this is where Aboriginal communities in Canada possess a unique

advantage as restless long-term capital, captured in pools controlled by institutional investors, seeks out the hard, secure, tangible and collateralised investments for the coming decades. As these large capital controlling institutions twist and turn to identify safe or at least safer - assets they are asking new questions of a system, and its institutions, that failed them so badly just a few years ago. How are social risks managed and positive impact prioritised? Is climate change and resource depletion a real threat to our long-term assets? How does poor governance across specific sectors or within individual companies impact investment choices? Aboriginal communities and their economic development arms will need to develop sophisticated infrastructure to access global capital markets, including solid financial accountability, effective governance systems and transparent management capability. Many Aboriginal communities have these foundations in place, or are in the process of building them to serve the aspirations of their members. Leveraging this process to include a global capital strategy for projects approved or proposed in their traditional territories is a natural evolution of the process, and a timely one given the surge of large scale projects across the country. The Blended Capital Group, building on a global network of expertise in investment, finance, policy issues and international relations, is positioned to serve those institutions which supply capital and those entrepreneurs, companies, and communities that need it. Through a powerful mix of financial, legal and policy expertise TBCG believes that capital which seeks to support strong communities, clean industry and a rejuvenated environment is smart capital that is simply buying the best possible insurance against the violent short-termism of modern markets. For more information contact Paul at

Resort Jewel of the Shuswap – Quaaout Lodge Nestled in the woods beside beautiful Little Shuswap Lake, just off the Trans Canada Highway halfway between Vancouver and Calgary, Quaaout Lodge is the pride of the Secwepemc (Shuswap people) territory. The resort was originally constructed around 1992 and since then the world class Le7ke Spa, cozy Jack Sam’s restaurant, unique Little Bear gift store and championship ‘Talking Rock’ golf course have been added. Quaaout Lodge is conveniently located 1 hour from Kamloops airport and only 2 hours drive from Kelowna International airport. The resort has over 1,800 feet of pristine sandy beach on the lake and offers swimming, boating, fishing, hiking and of course sunbathing in the summer heat of the Shuswap. River rafting and seasonal cross country skiing are also available close by. The expert staff at Le7Ke Spa will welcome you for some serious pampering with a philosophy of holistic wellness using traditional healing techniques. The spa offers treatments for both men and women year-round. For those who like to exercise while on vacation there is an indoor swimming pool, whirlpool and exercise room. Quaaout Lodge was originally built as a conference centre and hotel with 70 wellappointed guest rooms and flexible meeting spaces that will accommodate group of up to 280. The local catering team provides authentic regional Native cuisine with gourmet dishes inspired by their own heritage and happily work with clients to create custom menus. A sweat lodge and Kekuli (pit house) also provide medicinal and cultural experiences for visitors and guided interpretive walks can be arranged. Talking Rock golf course is highly ranked by the PGA and the views from the upper holes are breathtaking. Golfers should bring a camera as the panoramic views and abundant local wildlife offer wonderful photo opportunities. Quaaout Lodge has hosted many high

people wanting to host high quality meetings or just take some time out to “relax and rejuvenate” which is the tag line for the Le7Ke Spa.

profile events over the last decade and has an extremely high return rate from past visitors. Our team has visited the resort many times and we highly recommend it to


1663 Little Shuswap Road West, Chase BC, 45 minutes east of Kamloops off Hwy 1.

1.877.663.4303 Aboriginal Marketplace / September - October 2012 15

Cando presents the

19th Annual National Conference “Building Capacity – Building Communities”

Aboriginal participation in economic development initiatives has catalyzed progressive and positive change in communities all across Canada. These remarkable successes have changed the future of communities and enhanced the economic well-being and opportunities for Aboriginal people. Each year Cando hosts a national conference that provides a platform for leaders in Aboriginal economic development to shine, be celebrated for their achievements and share the stories of their success to a national audience. The 19th Annual National Cando Conference “Building Capacity - Building Communities” will be hosted in Membertou, Nova Scotia from October 2225, 2012.

Conference Highlights •  One-day hands-on “Aboriginal Law & Policies” and “Financial Analysis” professional development workshops •  Community Tour of Membertou First Nation 16 Aboriginal Marketplace / September - October 2012

•  Eskasoni Cultural Journeys Showcase •  Conference Icebreaker Reception & Traditional Meal featuring local cultural entertainment •  National Youth Panel •  Trade Show & Aboriginal artisan show & sale •  Cando Competency Training Special Topics in Indigenous Studies: Perspectives in Aboriginal Tourism (Contemporary Aboriginal Economic Development Approaches & Issues) •  Economic Developer of the Year Award presentations & voting •  Interactive workshops & plenary sessions •  Keynote addresses from Honourable Darrell Dexter, Premier of Nova Scotia & Minister of Aboriginal Affairs; Honourable Percy Paris, Minister of Economic and Rural Development & Tourism, Government of Nova Scotia; and more •  Certification Graduate Ceremony •  President’s Reception, Dinner & Dance Don’t miss this excellent opportunity to

learn more about Aboriginal community economic development & speak with the people directly involved in improving the economic viability of Canada’s Aboriginal communities! To learn more about the upcoming conference or to register, please visit our web site at conference/2012, e-mail Svitlana Konoval or call our office at 1-800-463-9300 or (780) 990-0303. This conference promises to be an exceptional event that you won’t want to miss! Continue reading to learn more about a few of the conference highlights that are the fan favorites each and every year!

Economic Developer of the Year Awards There are many economic development success stories coming out of Aboriginal communities that are so remarkable and inspiring, Cando believes they should be heard by a national audience, and more importantly, honored for their achievements. For this reason, Cando organizes and

hosts the Economic Developer of the Year Awards, the most competitive and highly celebrated awards program of its kind. The awards recognize the outstanding achievements of nominees from across the country in three separate award categories which include: Community, Individual Economic Developer and Aboriginal Private Business Sector. Two finalists in each of the categories are selected to present to an audience during a special plenary at the Cando Annual National Conference. After all finalists are given an equal opportunity to present, the conference delegates vote via secret ballot for the finalist who they believe is most deserving of the top award in each category. Last year, Grant Taibossigai of the M’Chigeeng First Nation won the top award in the Individual EDO category for his pivotal role in building a sustainable economic base that provides opportunities and prosperity for the M’Chigeeng First Nation citizens through innovative projects such as the Mother Earth Renewable Energy wind farm project. Moricetown Band won the Economic Developer of the Year Award in the Community Category for Kyahwood Forest Products, a community owned business that creates jobs and wealth for the Band, reflects the traditional values of the community, and instills a great sense of pride and ownership

in the community’s members. Kendal Netmaker won the award in the Aboriginal Private Sector Business Category for Neechie Gear, an athletic clothing company that is dedicated to supporting youth in education and sports. “Winning the 2011 Economic Developer of the Year Award was instrumental for our overall growth this year…. [the award] boosted our credibility which converted to more sales across Canada” says Kendal Netmaker. The nominations for the 2012 Economic Developer of the Year Awards are now closed, and Cando will be selecting the finalists in the near future. Considering the caliber of the nominations that we have received, we are confident that this year’s awards will be a showcase of incredible success and will prove to be inspiring for all those who attend.

National Youth Panel The Cando Conference will also present the National Youth Panel, an inspiring showcase of the achievements of highly motivated youth who have been nominated by their peers and recognized as national role models. Six youth have been selected among numerous nominations to comprise this year’s panel of remarkable young people who will share their moving stories in a plenary session that is guaranteed to instill

a great sense of pride in their achievements and create a lasting impression of hope, determination and courage. Congratulations to the six finalists who have been selected for the National Youth Panel! •  T  ara Atleo - Ahousaht First Nation, BC •  J ordon George - Alkali Lake Indian Band, BC •  D  alyn Bear - Whitecap Dakota First Nation, SK •  D  evon Fiddler - Waterhen Lake First Nation, SK •  Z  ac McCue - Curve Lake First Nation, ON •  A  ndrew Chase - Metepenagiag Mi’kmaq Nation, NB

Community Tour – Membertou First Nation Cando is extremely honored to welcome the Membertou First Nation as our conference host, providing the essential community feeling that Cando’s highly respected conferences are known for. Delegates will have an opportunity to tour the Membertou First Nation and enjoy a wonderful traditional meal with local entertainment. To join us on the community tour, make sure that you indicate you would like to participate when you complete your registration form – and remember, space is limited so don’t delay!

National Youth Panel Aboriginal Marketplace / September - October 2012 17

Paddling for a Sustainable Future By Evan Stewart

Canoe Gathering Marks Commitment to Protect the Salish Sea

Chief Justin Qutsame George stands on the beach looking out towards the waters of the Burrard Inlet. There is a brisk breeze but the sun is hot, the kind of day where sea and sky appear to blend together into a single mass of blue. In the distance, an oil tanker seems to hover just on the horizon. Closer inland, nearly a dozen canoes paddle east, part of an historic canoe journey, hosted by the Tsleil-Waututh and Squamish Nations on September 1, 2012. The journey was held to celebrate the unity of all peoples, the two Nations’ connection and obligation to protect the

Salish Sea, off BC’s southwestern tip, and to call awareness to the inherent risks associated with Kinder Morgan’s proposed expansion of their Trans Mountain Pipeline. In attendance were First Nation leaders, elected officials, and members of the general public, and at the end of the canoe journey both Nations signed a declaration, upholding their commitment to work together to oppose the Trans Mountain Pipeline project. The pipeline, which runs nearly 1100km from Edmonton to end in the Westridge Terminal in the Burrard Inlet, sits in a core part of Tsleil-Waututh territory. The project would see the amount of oil travelling across

Chief Justin George of the Tsleil-Waututh Nation and Chief Gibby Jacob of the Squamish Nation sign an historic declaration 18 Aboriginal Marketplace / September - October 2012

BC for refinement overseas more than double from 300,000 to 750,000 barrels and a drastic increase in tanker traffic, from the 30 to 40 tankers that traverse Burrard Inlet each year currently to between 300 to nearly 400 supertankers annually. The bitumen extracted from the tar sands and transported by pipeline and tanker would not be refined to meet the energy needs of Canada or British Columbia, rather, its final destination is Asia. According to Kinder Morgan’s reports, the company has not gone more than 4 years without an incident. In 2007 over 230,000 litres of oil were

Paddlers from the Tsleil-Waututh Nation passing an oil tanker in Burrard Inlet

spilled in Burnaby and onto the shore of the Burrard Inlet when an excavator operator ruptured the pipeline because of an inaccurate map. “The risks associated with the pipelines are just too high,” says Chief Justin George. The canoe journey was organized in part by the Tsleil-Waututh Sacred Trust Initiative, a team put together by the Tsleil-Waututh whose full time focus is ensuring that the Trans Mountain Pipeline project does not go forward. The Sacred Trust team is currently focusing their work on raising public awareness about the Kinder Morgan proposal, particularly issues around increased tanker traffic and the potential environmental impacts. The concern is that it is not a matter of if but when a spill will happen. Chief George notes the pipeline project would turn the Burrard Inlet area into an oil port city, areas which are known to become waterway dead zones. Says George, “We are pro-sustainable development, which means using the

resources within our territories wisely and being mindful of the generations to come.” Carleen Thomas, Tsleil-Waututh elected councilor and member of the Sacred Trust Initiative agrees and says finding alternatives to the risks posed by oil pipelines is a necessity. “It’s time to get busy developing energy alternatives. We are developing businesses that will provide clean, renewable energy sources like wind power.” To that end, Tsleil-Waututh operates TWN Wind Power, a company which installs and maintains 5-and 50kW wind turbines. The Nation also runs several other businesses, including an eco-tourism company, Takaya Tours, an environmental resource company, Inlailawatash, and a collection of residential condominiums, Ravenwoods, all of which operate on or along the Burrard Inlet. Business development has long been a focus for the Tsleil-Waututh and the community is clearly doing something right: the employment rate is 99%. Success for the Nation can be attributed

to the time and resources put towards exploring opportunities on an on-going basis. In fact, the Nation is planning to host a conference in Vancouver from March 12 – 13, 2013 in partnership with the 2G Group, which will in part look at the impacts of the oil and gas industry on aboriginal rights and title from the economic, environmental, social, and cultural perspectives, and consider how aboriginal communities can position themselves in a leading role in finding energy alternatives to fossil fuel. The underlying message of events like the canoe journey and the upcoming conference is that leadership, cooperation and partnerships are critical to building a sustainable, healthy future. “We are calling on people from all cultures to stand with us to protect our environment for future generations,” said Chief Justin George. “When we paddle together, with one heart, one mind and one spirit, great things can happen.” Aboriginal Marketplace / September - October 2012 19

Keeping it Riel

by Keith Henry President, BC Métis Federation

The fact is today most urban Aboriginal populations do not have any true governance system in place and this is a major issue to address.

I ask each of you to consider where all the common sense has gone when it comes to good Aboriginal governance. It should come as no surprise that successful and proud Aboriginal communities seem to have one thing in common, that is strong leadership with a clear vision for the future. These Aboriginal communities and their leaders support their members and work for the greater good and I admire those communities more than they could ever know. Then I ask myself why things are so confusing and very little progress achieved in the vast majority of other Aboriginal communities throughout Canada. Governments provide some access to programs and services while industry is usually willing to support projects, even in cases of significant dysfunctional organizations year after year. Members of these communities are typically unaware of the big picture and how they are likely being taken advantage of. Worse yet when issues surface governments stand back and suggest they are not responsible and the community or organizational leadership is never really held accountable. 20 Aboriginal Marketplace / September - October 2012

This loss of personal responsibility to work for your people really frustrates me. The challenges as I see them affect many communities and especially the urban Aboriginal groups. The levels of socio-economic challenges in this growing population are massive yet who really provides true representation for these populations? There are strong Aboriginal service delivery organizations but they are not necessarily a political voice, or at least not supposed to be. Then add the confusing issues of identity and how this creates strong divisions within the urban context. Despite these issues the question becomes how do we as an Aboriginal community more forward despite the challenges? The fact is today most urban Aboriginal populations do not have any true governance system in place and this is a major issue to address. As a country we need to support responsible and transparent governance and this governance needs to be held accountable why they are not supporting the needs of their people. What I fear most is the growing apathy and a real sense that as Aboriginal people we seem to have been lulled into submission

with society. While I understand and fully support the need to work collaboratively, Aboriginal people have inherently expressed their self governance and we should not let this go. Our Métis people today are truly an example of these challenges I have outlined. We fight about identity, programs get spent year after year with little to no real community involvement, and governments stand back and force organizations they fund as representing our voices. It is nonsense, irresponsible, and will ultimately ensure our true Métis culture is reduced to a museum presentation about Louis Riel and nothing else. We are so much more and our culture lives and breathes in the families today. I know many of our people want better for their families. However, this cannot be achieved until we collectively stand up and make it happen. So sad that unsuccessful Aboriginal communities (Métis or not) are usually are own worst enemies to success! Just trying to keep it Riel. For more information about the BC Métis Federation please go to our website

McLeod Lake Indian Band logging company wins leadership award Duz Cho Logging, a company 100 per cent owned by the McLeod Lake Indian Band, recently received the Aboriginal Forest Products Business Leadership Award from the Forest Products Association of Canada (FPAC). The Assembly of First Nations and FPAC together created this annual award to recognize forest products companies that exemplify business leadership, exceptional environmental and safety performance and the delivery of high quality products and services. The award marks a dramatic turnaround for the 24-year old company. The band’s companies were facing bankruptcy in 2008 when British Columbia’s forest industry was hit hard by the mountain pine beetle devastation coupled with the world economic crisis. Chief Derek Orr of the McLeod Lake Indian Band said, “We are honoured to win this award. For a small First Nation in the middle of B.C., this recognition speaks to how First Nations can be a part of the economy by providing jobs and services like any other company.” That statement is echoed by Don Kayne, CEO for Canfor Products, who was supported by Conifex and Mackenzie Fibre in nominating Duz Cho Logging for the award. “Duz Cho is an outstanding business and pillar in the McLeod Lake community. We have worked with them for many years and

From L-R: Roger Augustine, AFN Regional Chief; Chief Derek Orr of the McLeod Lake Indian Band; Catherine Cobden, President and CEO of the Forest Product Association of Canada; Larry Clark of Canfor

they continue to deliver top quality product,” said Kayne. Duz Cho Logging is a major regional employer in central B.C., with 140 people on the payroll; 20 per cent of whom are Aboriginal. Profits from Duz Cho Logging and McLeod Lake Indian Band’s other companies, Duz Cho Construction and Summit Pipeline Services, helped fund a new child care centre that opened in 2011. These three companies combined are forecasting gross sales of approximately $140 million for 2012. Duz Cho Logging actively supports local community projects by donating to the graduating class of the local high school in nearby Mackenzie, B.C., and to a student

bursary at the College of New Caledonia. These community investments are helping to encourage active First Nations Duz Cho Logging was founded in 1988 by the McLeod Lake Indian Band and has grown to become one of B.C.’s largest logging contractors. In 2011, Duz Cho Logging had revenue of $28 million and in 2012 it is forecasting revenue of $38 million.  The McLeod Lake Indian Band’s traditional territory covers 108,000 square kilometers. The band has 500 members with 100 living on reserve in McLeod Lake, located 150 km north of Prince George. Another 150 band members make their homes in the communities of Mackenzie, Chetwynd, and Prince George and the remaining members live throughout North America. The band is primarily funded through its investments and businesses. For more information about Duz Cho Logging and the McLeod Lake Indian Band, please visit    Congratulations to the Band and Duz Cho from the Aboriginal Marketplace team. Aboriginal Marketplace / September - October 2012 21

Métis Voyageur Development Fund Opens Doors

New $30 Million Fund Finances Métis Entrepreneurs Métis entrepreneurs in Ontario have a new financier of choice with the Métis Voyageur Development Fund (MVDF) commencing operations August 14. The MVDF is an independent Métis owned and controlled agency that provides funding and support for resource or resource related sector Métis businesses. “Métis are one of the youngest and fastest growing demographic groups in Ontario,” explained the Honourable Paul DeVillers, PC, the Chair of the MVDF Board of Directors, “our fund is in a position to ensure that Métis people also play a growing role in the Ontario economy; something that will benefit all Ontario people.” The MVDF has a commitment of $30 million over 10 years from the Ontario government. “The Ontario government is proud to

support the Métis Voyageur Development Fund”, stated the Honourable Kathleen Wynne, Minister of Aboriginal Affairs for Ontario. “This fund will help Métis entrepreneurs and businesses in the resource sector start and expand their business. These investments will support economic growth for Métis families and communities, and Ontario’s economy.” The MVDF to extend financing options available to Métis for resource projects in Ontario, making secured and mezzanine debt available to fund projects that support sustainable growth. The financing will either supplement existing debt from the financial sector or sit alongside the entrepreneur’s equity with the aim of allowing the development of sustainable projects that the financial

markets might not finance at the required level. Investing through such a revolving fund instrument helps increase the impact and extend the availability of Ontario’s investment. “We can help Métis people propel their businesses forward,” stated DeVillers, “because we are in a position to offer customized financing and on-going support that is designed to significantly increase their businesses chances of success and opportunities to grow.” For more information on the MVDF contact: Steven Morse, CEO, MVDF 613-798-0133 ext. 303 We here at Aboriginal Marketplace wish the MVDF team good fortune.

From L-R: Chris Bentley, Ontario Minister of Energy; Gary Lipinski, President of the Métis Nation of Ontario; Steven Morse, CEO Métis Voyageur Development Fund; Kathleen Wynne, Ontario Minister of Aboriginal Affairs; Paul Devillers, Chair of Métis Voyageurs Development Fund 22 Aboriginal Marketplace / September - October 2012

2012 Indigenous Statistics Conference: Data as a Tool for Change Vancouver – November 21-22 “The availability of comprehensive, high quality and accessible information is crucial for First Nations to better measure and monitor well-being in our communities. This conference showcases how our people are using data and statistics to drive local decision-making in key areas such as education, health, economics, environment and housing” - National Chief Shawn A-in-chut Atleo, Assembly of First Nations

Clint Davis

Dr. Evan Adams

Shawn Atleo

Right now social, economic and cultural capacity-building are at the forefront of Indigenous consciousness, and the modern economy is increasingly being driven by empirical knowledge and analysis. It’s important that we are able to make sense of our complex environments and provide the right evidence-based solutions to effectively meet our organizational and community needs. Achieving success means remembering that knowledge is strength and reliable data empowers Indigenous communities to make well informed decisions that will shape the future. Building on the success of the past decade of three Aboriginal Data Conferences held in Edmonton and Victoria the upcoming 2012 Indigenous Statistics Conference: Data as a Tool for Change is sure to be an extraordinary event! The diversity of the conference themes and impressive line-up of speakers will tackle some of the most prominent topics within Indigenous communities such as individual and community well-being, economic

development, traditional ecological knowledge, socio-economic impact assessments, impact benefit agreements, performance measurement frameworks and program evaluation, homelessness, to land and resource management. Chiefs of various Indigenous communities across western and northern Canada will be in attendance and there is representation from various groups including the Assembly of First Nations, National Association of Friendship Centers, federal and provincial government departments, the First Nations University and leaders’ in private industry. Many media groups will be present to interview speakers and delegates to get their opinions and share their knowledge and we are delighted to have Dr. Evan Adams and Clint Davis as Keynote Luncheon Speakers. Dr. Evan Adams is a Coast Salish physician and has served as Aboriginal Health Physician Advisor to Government and the First Nations Health Council, contributing to positive developments in health for all citizens in B.C.

In April 2012, Dr. Adams was appointed Deputy Provincial Health Officer (DPHO) with responsibility for Aboriginal health where he supports the work of the Provincial Health Officer (PHO), reports on the health of Aboriginal people in BC, and supports the development and operations of the First Nations Health Authority. Clint Davis is the Vice President of Aboriginal Affairs for TD Canada Trust. Clint, an Inuk from Nunatsiavut, was the National Director of Aboriginal Banking at BMO Bank of Montreal before joining TD Canada Trust. Prior to the bank, he held senior positions with the Government of Canada. Clint holds a Bachelor of Business Administration from Acadia University, a Bachelor of Laws from Dalhousie University and a Masters of Public Administration from Harvard University. He is a Canada/US Fulbright scholar and a recipient of two scholarships from the National Aboriginal Achievement Foundation. Clint is a Trustee on the Inuit Capital Strategy Trust for the Nunatsiavut Government. Aboriginal Marketplace / September - October 2012 23

Legal Eagle

by Merle Alexander Partner, Bull, Housser & Tupper

Aboriginal Peoples United: Backlash Against Economic Accommodation in IBAs At the Prospectors & Developers Association Canada conference 2012, a group of junior exploration company CEOs held a not-so private meeting. The group called “Miners United” primary purpose is to reject “concessions and cash they say natives expect from companies looking for minerals on Crown lands that are considered traditional Aboriginal territory”. An industry lawyer justified their position by saying “what’s being asked of them [exploration and mining companies] has nothing to do with consultation and everything to do with compensation” (Globe & Mail, Junior miners revolt over native deals, March 27, 2012). Corporate actors are the primary financial beneficiaries of extracting natural resources from Aboriginal territories. Companies are legally delegated the procedural and operational obligations to consult. Of course, a fundamental aspect of consultation is economic accommodation. The legal distinction between consultation and compensation is false. The Courts have said Aboriginal rights have an inescapable economic component which suggests that compensation is relevant to the question of justification. Fair compensation will ordinarily be required when aboriginal rights are infringed. Economic accommodation can address tangible adverse impacts. Is it a conspiracy theory from the left side of my brain? No. Mining CEOs uniting to take a cross-sectoral approach to reject the negotiation of substantial economic accommodation in impact benefits agreements (“IBA”) is prolific problem. We 24 Aboriginal Marketplace / September - October 2012

need to unite collectively to counter balance this real trend. Some argue that this is an isolated event; it is not in our best interests to call for action based on some fringe junior explorers; these juniors are on the path of the dodo bird and do not represent any one industry. I respectfully disagree. I can tell you first hand, in my experience at IBA negotiation tables in various jurisdictions, the story is the same. There is a backlash against sharing the wealth of natural resource projects. The sweet corporate social responsibility language has turned to a sour business decision. It’s not personal, its business. To make their projects more economical in a stingy market, costs are being cut across the board, including the financial offerings to Aboriginal Peoples. And it is not just junior mining companies. Major multinational mining companies are making minimal financial offers and saying take it or leave it, the offer is non-negotiable and telling Aboriginal communities that we will proceed with or without an agreement. These companies highlight judicial statements that say that “Aboriginal groups do not have a veto” and “there is no legal requirement to agree”. Some companies are taking adversarial legal advice and creating their business plan around it. So, what can we do? Currently, most Aboriginal communities are going it alone trying to negotiate the best deal with their limited human and financial resources. We are divided and can be conquered if we fight these legal battles alone. There is

no option. We must look to our Aboriginal Nation’s history and see that we collectively worked together within our own Nations and by treaties with other Aboriginal Nations. We must unite. We must unite not simply to counter a wrong-minded corporate initiative, we must act collectively to ensure that our Peoples receive our equitable portion of the wealth extracted from our territories. A historical inequity has occurred and is repeating itself. Beyond mere rhetoric, I believe it is time for our regional and national Aboriginal organizations to make meaningful and substantive economic accommodation a priority. I suggest an Aboriginal Economic Accord. An Accord could be a document that Aboriginal Nations would sign in support as a political and legal commitment. The genesis of this Economic Accord could develop from a specific Aboriginal Nation and gain political support by corresponding resolutions at regional then national Aboriginal organizations like AFN, MNC and ITK. The Accord could state in clear terms that: Aboriginal Peoples require equitable profit-sharing from Corporate Canada and resource revenue-sharing from the Governments of Canada; Negotiating of IBAs will be a legal requirement under Aboriginal law in Canada; and, Free, Prior and Informed Consent is an Aboriginal legal requirement for all natural resource projects in Aboriginal territories. And those are my Aboriginal common cents for today. Right now, money doesn’t talk for Aboriginal Peoples, it swears.

Fantastic Employees

Eddie Debucy Tsimshian Nation Fab-All Growing up in Skidegate on Haida Gwaii, Eddie Debucy, a member of the Tsimshian Nation, always dreamed of moving to the city to get an education and escape unemployment so many faced at home. At age 19, he moved made the move to Vancouver, couldn’t find a decent job and quickly felt lost and alone. While he was working as a temporary labourer at a downtown warehouse, one of Eddie’s co-workers suggested he visit the Aboriginal Community Career Employment Services Society (ACCESS) (www. to see if they could help him. ACCESS offers employment and training services to members of the Lower Mainland urban Aboriginal community, including trades training and apprenticeship opportunities. Working with one of ACCESS’s apprenticeship counselors, Eddie explored his options and decided to enroll in the Welder C Apprentice program at British Columbia Institute of Technology. The program, which had funding support by Industry Training Authority (ITA) Aboriginal Initiatives (, is an eight-month program including one month of Essential Skills upgrading and seven months of welding training. “ACCESS really went out of their way to help me make a smooth

transition in the program,” says Eddie. “I was given a monthly income and tuition funding. We even had a coach to help when we needed it.” Eddie is now a Welder C apprentice and is working as a Precision TIG Welder at Fab-All Manufacturing. TIG welding is a special welding method requiring significant operator skill. Welders with this expertise are in high demand. Eddie didn’t have TIG experience when he started, but Fab-All was badly in need of someone with that skill set, so they provided him with the training. “He’s doing exceptionally well,” says Patrick Ferguson, a Production Manager at Fab-All. “His foundation as a Welder C apprentice is a big part of the reason he’s picked things up so quickly. He’s really become an essential member of our team.” When Eddie first visited ACCESS he was hoping for a little help getting a job to support himself. Instead, he received an education and a career with enough opportunity to support himself and a family. “We didn’t want to start a family until I got some training under my belt,” he says. The timing couldn’t have been better. In January, Eddie and his partner welcomed a new baby boy into their family. “We waited until I finished the program. Now, whatever job opportunity I get, we’ll all go.” Aboriginal Marketplace / September - October 2012 25

Tax Facts

by Randy Munro Associate Partner with Deloitte

Taxation of Employment Income for Status Indian Employees – Where Are We Now? Section 87 of the Indian Act exempts “personal property of an Indian or band situated on a reserve” from taxation. The courts have held that wages are personal property; therefore employment income of a Status Indian performed on Reserve should always be exempt from taxation.

But how do the rules work when the work is performed off reserve? To answer this we need to look at the history of how employment income earned by Status Indians has been taxed over the years. Prior to 1992 the Canada Revenue Agency (“CRA”) looked at where the employment duties were performed to determine if employment income was exempt. In the 1992 Nowegijick decision the courts introduced the “situs of the debtor test”. Mr. Nowegijick performed his employment duties off reserve but was paid at his employer’s head office situated on reserve. The court held that the location of the employment income was where the employer could enforce payment of the salary. Therefore the income was exempt solely on the basis of the location of the employer. This ruling could have resulted in the taxation of employment income performed on reserve where the employer was located off reserve. A remission order was passed to exempt Indians from tax on employment income performed on reserve.

Connecting factors under case law In the 1994 Williams decision the court looked to the purpose of Section 87 of the 26 Aboriginal Marketplace / September - October 2012

Indian Act in reaching its decision; they stated the purpose is to protect reserve property from erosion by taxation or seizure. The case dealt with the taxation of unemployment insurance benefits that arose from employment duties performed on reserve. Mr. Williams and his former employer were both located on reserve. The concept of connecting factors was applied to exempt the unemployment insurance benefits from tax.

Subsequent court decisions related to employment income have been decided on the connecting factors concept, and have considered the following factors: •  Where the work is performed •  Location of the employer •  Location where contracts are signed •  Location where payment is received and legal rights are enforceable (“situs of the debtor test”) •  Residence of employees, management and directors •  Location of assets, books and records •  Purpose of off reserve activities (purpose to benefit Indians on reserve) The decisions created uncertainty with respect to the taxation of employment income and in response to various court decisions the government introduced employment guidelines.

CRA Employment guidelines There is a filing position that employment income of a Status Indian is exempt if it can meet one of the following guidelines published by the CRA in 1994: •  100% of employment income performed on reserve is exempt from tax •  100% of employment income is exempt from tax where 90% or more of the employment duties are on reserve •  Income from off reserve employment duties is normally exempt from tax income where both the employer and employee are resident on a reserve •  All income is exempt from tax where 50% of duties are on reserve and either the employer or Indian is resident on the reserve •  Income of non-commercial off-reserve

income of Indian Band employees is exempt from tax where the purpose of employment is for the exclusive benefit of other Indians who for the most part live on the reserve •  A pro-rata exemption between on and off reserve employment duties applies in all other cases However, the CRA has stated in a recent interpretation that “an employer’s residence on a reserve is a connecting factor that will have minimal weight if the location of the employer has no tangible significance to the reserve.”

Connecting factors under recent case law Case law provides a more limited interpretation of the legislation, and has no obligation to consider the CRA’s guidelines. In a recent decision, Horn v. the Queen, the courts denied the exempt status of income where both the employer and employee were resident on a reserve, but where the work was off reserve and not related to the benefit of the reserve.  The court said the following: “This Guideline 2 may be saved by virtue of the word ‘usually’ but it would appear to ignore the critically important factors of the location of the work and its nature.”  And, “the benefits to the Reserve of her employment…is largely that of her spending income on living expenses. This is not a significant connecting factor.  …In the case of the Plaintiff Williams, her residency on the reserve is a significant factor…in her favour

but does not counter the weight to be given to the location and nature of her work.” It appears the exemption of employment income has been slowly eroded over time.

Recent Court Cases In two recent Supreme Court of Canada cases, Bastien and Dubé, the courts looked to both substance and form to conclude that investment income earned on term deposits with credit unions located on a reserve was sufficiently connected to a reserve to be considered exempt income. The court stated: “Both the substance and the form of the term deposits provided strong connecting factors between the interest income and the reserve. The interest income derived from a contractual obligation entered into on a reserve with the institution carrying on business on that reserve to pay fixed sums of money on that reserve. “Given the strength of connecting factors relating to the location where the contract of investment was entered into, where it was to be performed and the credit union’s place of business, the fact that the bulk of capital invested was not derived from tax-exempt activities on the reserve did not appreciably weaken the connection between the income and the reserve.” Prior to these decisions, the courts had held that similar investment income was “earned in the commercial mainstream” and did not qualify for the exemption as personal property situated on a reserve. Similarly, employment income was not usually exempt

from tax where the employer was located on a reserve if the employment duties were performed off reserve. The principals decided in the Bastien and Dubé cases have not yet been applied to employment income. Where the employer is located on reserve, i.e., the Band or a Company headquartered on reserve, the employment contract in entered into on reserve, and the employment payments are made on reserve, it may now be possible to argue that there are sufficient connecting factors, based on both substance and form, to conclude that the employment income is earned on reserve and therefore is exempt from taxation as personal property situated on a reserve, even if the employment duties are performed off reserve.

Conclusion Based on recent employment court decisions, employment income of Status Indians that is performed off reserve will usually be taxable. This is the usually the case even when the employer is located on reserve and the employee lives on reserve. Exceptions may apply where the employment benefits the broader group of reserve-resident Indians. However, given the recent decisions in Bastien and Dubé, there may be a filing position that off reserve employment income is exempt where the employer is located on reserve provided there are additional connecting factors (the employee resides on reserve and the signing of employment contracts and payments made on reserve).  Perhaps the pendulum is swinging back in favour of the taxpayer.

Aboriginal Marketplace / September - October 2012 27

World Indigenous Business Forum By Barb Bruyere The Indigenous Leadership Development Institute Inc. (ILDII), in partnership and at the request of First Nations leaders of Canada, initiated a Nation to Nation Forum with Canada’s Indigenous leaders and Native American Leaders of the United States of America in 2008. The forum’s purpose was to look at potential partnerships in economic development and capacity building for all People’s. One of the outcomes of the forum was to follow up with another opportunity to meet and continue discussions on economic development and international partnerships; specifically to lead and facilitate a greater capacity to build stronger economies for Indigenous Peoples and their communities. The follow up Forum was held in 2009 and branded “One Nation”, as viewed by leaders who attended the Forum in the previous years. Former National Chief, Phil Fontaine, was very instrumental in the visioning of these events; bringing them to fruition by inviting and involving leaders, to the table, for mutually beneficial outcomes.

importantly, where they

Mr. Fontaine is well known as a leader and role model in Canada. As a leader of Aboriginal Peoples of Canada, he negotiated the Residential School Settlement, acquiring the largest settlement of any kind, in the world; a financial settlement of $5 Billion dollars. He also negotiated the Federal Government of Canada’s Apology to Canada’s Aboriginal Peoples. Phil is the Chairperson of the World Indigenous Business Forum. In his role brings knowledge and advice second to no other. In 2009 the ILDII attended the World Business Forum in New York City, NY, USA. The event was attended in an effort to expand business opportunities on a global scale.

are respected”

“This is the time to begin

WIBF Keynote Speaker – James Cameron, Canadian Film Director and Producer

a new relationship, to

“We need to evolve into a world where Indigenous peoples’ rights are protected and more

share with our brothers and sisters not only our experiences, but also our hope. We need to build a new solidarity not only between Indigenous peoples, but between leaders”

Chief Robert Louie making a presentation to Val Kilmer 28 Aboriginal Marketplace / September - October 2012

WIBF Speaker – Dr. Rigoberta Menchu, Nobel Peace Prize Winner, Guatemala

The outcome of our participation was a clear vision of a need to facilitate a similar gathering for Indigenous Peoples of the world. In 2010, the ILDII launched the first ever World Indigenous Business Forum; in partnership with the World Business Forum in New York City, NY, USA. The event was well attended and featured Keynote, James Cameron, Canadian film producer and director. The event was well attended by leaders from across the globe; presenting an impressive lineup of speakers. The WIBF 2010 created enough interest to validate another gathering in 2011. The ILDII began work on the planning of the WIBF 2011; held in New York City, NY, USA. The event was well attended a second time, WIBF 2011 Keynote featured actor Val Kilmer. The interest in building capacity and expanding economic opportunities grew even more. A group of Indigenous Leaders and Youth were in attendance, envisioned the value of the event and initiated a partnership with the ILDII to co-host the WIBF 2012 in Sydney, Australia. Representatives who attended the WIBF 2011 also saw the value in partnering with the ILDII for an event in their native land

for 2013. We are currently in the planning stages for the WIBF 2013, scheduled to be held in Namibia, Africa, in October of the same year. The WIBF is now in its planning stages; with commitments from representative

partners in Guatemala for October 2014. The event has certainly gained momentum and value for the ongoing development of greater capacity and economic development with Indigenous leaders from around the world.

Learn a Career While Earning a Living become a tradesperson Studying for a trade means spending about 80% of your time working in the trade and 20% in class, letting you earn while you learn. After passing Red Seal certification, many trades let you work anywhere in Canada without further certification.

Learn more about ITA Aboriginal Initiatives and training at:

w w w. i t a b c . c a Aboriginal Marketplace / September - October 2012 29


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