First Nations Role in Canada’s Economy:

Sustainable development and return on investment

Infrastructure and Capital Investments

First Nations across Canada require new infrastructure and investments. 

The health and safety of First Nations citizens on reserve is at serious risk. Every year since 1996, the federal government has failed to match federal program and service transfers to First Nations in keeping with population growth and inflation. Moreover, INAC unilaterally reallocated resources from planned capital investments to cover internal shortfalls in other areas.  As a result, First Nations schools and healthcare facilities are likely to be substandard, overcrowded, moldy and in disrepair. Insufficient infrastructure investment will thwart our efforts to develop our economies.

In 2006, a study prepared for INAC Community Development Branch estimated First Nations needs for major assets between $15.2 billion to $25.6 billion over the next 5 to 15 years.

It is estimated that 44% of the existing 100,000 units (44,000 units) of First Nations housing require repair.  Housing repair and retrofitting reduces risk to health and safety from mould and other hazards, stimulates regional economies, reduces greenhouse gas emissions, engenders major purchases of supplies and equipment and generates jobs in skilled trades and among general labourers.

First Nations currently estimate a need for 87,000 new housing units nationally.

Many First Nation water systems are at high risk.  They may have inadequate capacity or not comply with accepted standards.  In 2003, 85 high risk systems required immediate upgrades or new plants to protect community health and safety.   Many of these could be addressed quickly if the necessary resources were made available. 

Education, Training and Skills Development

The aging Canadian labour force creates challenges in the availability of skilled workers and in labour force replacement.  Conversely, the First Nations population is young (50% is under the age of 25) and growing.  Our current labour capacity is not being fully utilized because our youth tend to be under-employed and are too often experiencing difficulty completing their education.

Since 1996, the federal government has unilaterally capped education investments on-reserve at 2% per year.  This cap is a cut in funding per year once population and inflation are accounted for.  This means First Nations have to provide more education to more students each year with fewer resources than the year before.  The result has been crumbling infrastructure, chronically lower salaries for teachers and support staff, and the absence of integrated core and extracurricular supports such as libraries, physical education and computer facilities. 

As of 2007, INAC identified a need for 69 new schools and 95 more require “major repairs”.  Of the 69 communities requiring a new school, at least 40 communities do not use their existing school due to the state of disrepair and do not have permanent educational facilities.  INAC has no plans to address 13 of those 40 communities.  The funding for the remaining 27 is on hold. 

We estimate that more than 2,800 qualified students who are accepted into post-secondary institutions are being denied support every year due to the lack of resources in INAC’s post-secondary student support program.

Federal skills and training programs available to First Nations (Aboriginal Human Resources Development Strategy (AHRDS) and the Aboriginal Skills and Employment Program (ASEP) need to be renewed with changes that will ensure improved linkage with primary, secondary and post-secondary education systems. 

First Nations: equity, access and sustainability

Governments and the private sector should work with First Nations as partners in economic development.  New investments in resource development will generate increased productivity, and create new wealth. 

This collaborative approach can inspire greater investor confidence, reliability and certainty and decrease avoidable costs caused by delays, litigation and lost opportunities.  Many sectors, such as minerals, metals, energy, forestry, fisheries, manufacturing, labour and many others, have recognized this need and are working with the AFN on the urgency for action.

Access to capital is often a barrier to the creation of new partnerships and investments between First Nations and the public and private sector.  A new capital investment fund of fully repayable loans could be accessed by First Nations to guarantee equity investments in new projects.  Timely access to capital can reduce or eliminate costly delays and jurisdictional disagreements.  A loan fund can generate five times its amount in new investments.

It should be noted that the investment in health programs and services for First Nations across Canada that were addressed in the Kelowna Accord.  This remains a key part of the assistance needed by First Nations to participate fully in Canada’s economy.