THE ROYAL COMMISSION REPORT ON ABORIGINAL PEOPLES: CHALLENGES AND OPPORTUNITIES FOR CORPORATE CANADA

JurisdictionUnited States
International Resources Law and Projects
(Apr 1999)

CHAPTER 11B
THE ROYAL COMMISSION REPORT ON ABORIGINAL PEOPLES: CHALLENGES AND OPPORTUNITIES FOR CORPORATE CANADA

Robin A. Wortman
Aboriginal Forum
Edmonton, Alberta, Canada

TABLE OF CONTENTS

SYNOPSIS

1. INTRODUCTION
2. THE LOSS OF LAND AND RESOURCES
3. THE ABORIGINAL EMPLOYMENT OPPORTUNITIES: A Challenge for Corporate Canada
4. CHOOSING TO MAKE A DIFFERENCE
4.1 Research and Understanding
4.2 Consultation and Relationship Building
4.3 Setting Goals for Mutual Benefits
4.4 Constructive Partnerships
4.5 Capacity Building
4.6 Human Resources Development
4.7 Employing Aboriginal People
4.8 Aboriginal Economic Development
4.9 Access to Capital: Investing in the Future
5. CONCLUSION: A Commitment to Change NOTE: statistics relating to aspects of this paper are not re-stated as they are effectively covered in other papers in this series.

This paper was originally prepared in 1997 for the Conference on Aboriginal Economics, sponsored by Royal Bank and CANDO.

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1. INTRODUCTION

"Whatever the words of your final report and recommendations may be, they will mean little if they are not met with the political will, the knowledge and the ability to achieve their intent."

Chief Robert Pasco

Nlaka'pamux Tribal Council

Merritt, British Columbia

In the aftermath of the Oka crisis in 1990, the government of Canada established a Royal Commission on Aboriginal Peoples (RCAP) to address outstanding grievances and concerns facing Aboriginal people in Canada. The Commission was mandated to consult widely and to bring back recommendations that would provide solutions. After five years of consultations and research the report was released in November 1996. The report contains more than 400 specific recommendations in five volumes and over 3,500 pages of explanations and notes.

Expectations among Aboriginal people have been raised by the government of Canada through the Commission's work and recommendations. The report brings public attention to possible solutions proposed by Aboriginal people themselves. Aboriginal people have, once again, put their trust in the rest of Canada to listen, to understand and to respond. If practical recommendations are not implemented then the $58 million invested in the RCAP report will simply be added to the $7.5 billion annual cost of maintaining the status quo.

We must not let this happen. There is too much at stake. The cost associated with maintaining the status quo is too high. If the present trends continue, the demographic projections alone are cause for concern. We must seriously consider the sincere intent of the Commission's proposed recommendations for solutions. The RCAP report was a mammoth project and the Commission did excellent work in not only identifying ways to develop a new and meaningful relationship between Aboriginal and non-Aboriginal people in Canada but also the importance of the historical background of Aboriginal/non-Aboriginal relations as the stepping stone to a new relationship-building process.

The RCAP report presents a unique opportunity for corporate Canada. It not only provides a wealth of information about the history of the relationship between Aboriginal and non-Aboriginal peoples and their governments but also puts current issues into context. More importantly, the report recommends ways to take us into a more prosperous future, together. This is an opportunity to establish new relationships between Aboriginal people and corporations that are based on heightened awareness, deeper understanding, mutual respect and shared economic benefits.

The Right Honourable Joe Clark provided an eloquent summation at the final session of a conference on the RCAP report hosted by the McGill Institute for the Study of Canada. Mr. Clark, known for his carefully weighed words and diplomatic approach to sensitive issues, cautioned conference delegates that, should the report become "one more failure, the results could be incendiary for our country."

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"The soul of the Native Peoples of Canada is hungry for the Spirit of God, because it is hungry for justice, peace, love, goodness, fortitude and human dignity"

Pope John Paul II

September 20, 1987

Fort Simpson, NT

2. THE LOSS OF LAND AND RESOURCES

The loss of access to land and resources through government policy contributed significantly to the demise of the Aboriginal economy and the dependence of Aboriginal people on social assistance. It is generally recognized that settling specific and comprehensive land claims will benefit both Aboriginal and non-Aboriginal people. A recent cost-benefit study of treaty settlements in British Columbia1 , conducted by KPMG for the government of British Columbia, concluded that the net, long-term benefits of land claims settlements are favorable for both Aboriginal and non-Aboriginal people. Aboriginal people, particularly in remote areas of the country, want to have a say in the pace and manner of development, as well as a share in the benefits.

Recent settlements in other parts of Canada add credibility to the KPMG conclusions about British Columbia. For example, the Crees living east of James Bay in Quebec, the Inuvialuit in the Beaufort Sea region and the Metis Settlements in Alberta have demonstrated that the local economy is enhanced and investment is increased once the rules of development are clear and the uncertainty over land tenure is removed. It would be astute of Corporate Canada to communicate their strong support for the speedy completion of land claims negotiations and settlements in British Columbia and elsewhere in Canada to the appropriate levels of government.

In the interim, the Commission has recommended that corporations assume that the Aboriginal people, on whose traditional land the development is being considered, have a legitimate ownership interest in the resource and control access. In fact, it is a sound business strategy. Increasingly, First Nation governments are asserting their traditional rights and intervening in licensing approval processes in order to influence development decisions and access opportunities. There is no need to wait until matters are before a quasi-judicial administrative board or the courts before developing a relationship with a First Nation community that may be affected by a new development.

The courts are becoming much more inclined to respond favorably to requests for injunctions filed by First Nation groups with outstanding claims. The injunction to halt development at Voisey's Bay, which was granted to the Innu and Inuit in Labrador, is the most recent example. In contrast, the Red Dog mine in Alaska proceeded following sincere negotiations and consultations with the local indigenous population who controlled access to the resource. Once the company addressed the needs of the people, the people addressed the needs of the company. When the concerns of the people are alleviated, the people will accommodate the company and the benefits will flow both ways.

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Resource-based companies would be prudent to consider taking a new approach to building relationships with local Aboriginal groups, organizations and governments and treat them with the respect they deserve. Too often in the past, corporations relied on provincial governments and local authorities to handle matters related to resource access. This is becoming less and less practical or effective. Many of these companies realize the most effective and efficient path is to negotiate directly with the appropriate Aboriginal people when land is involved.

Industry is encouraged to communicate more openly and effectively and at the earliest opportunity with local Aboriginal communities that may be affected by development. The relationship is best if it is formalized through agreements that involve community support. The Canadian Aboriginal Minerals Association even suggests appointing "an Aboriginal representative from the Traditional Territory to the Board of Directors" of the resource company2 . It is crucial to involve local leaders (formal and informal) in discussions related to development plans. Aboriginal people will be able to help the corporation identify opportunities for mutual business benefit.

While the various levels of government continue to negotiate new roles and responsibilities for land use and resource access with First Nation governments, corporations can begin to establish relationships with Aboriginal people now. Aboriginal people, particularly in rural, remote and resource-rich areas, are becoming more assertive regarding their traditional use of the land and more demanding of governments and corporations to provide opportunities for economic benefit to the community's members.

To assert their legitimate economic interests, Aboriginal governments are increasingly filing land claims and intervening in licensing hearings for proposed developments on traditional lands and lands under claim. Over 150 claims have been settled. A number of comprehensive land claims, or modern-day treaties, have been completed. In these cases, Aboriginal communities have taken control of the management of their local economies and, with a sufficient land base, have improved their living conditions.

As this trend continues, it is estimated that over $25 billion will be transferred to Aboriginal government coffers in addition to significant land transfers. Sharing the benefits of resource extraction and wealth creation must happen. This applies equally to initiatives for economic development through business development and employment creation in the resource sectors. The settlement of Aboriginal land claims is a rising tide that will lift all boats. In other words, when Aboriginal peoples' economic circumstances improve so do the circumstances for all Canadians.

More and more, corporations are negotiating...

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