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Canada’s Indigenous Model is Not Sustainable

Published

5 months ago

11 minute read

From the Frontier Centre for Public Policy

By Brian Giesbrecht

The stated purpose of the extra indigenous spending that has always been there, and the virtual explosion on indigenous spending since 2015 is meant to fix that problem. But these massive expenditures have now reached the point where they risk destabilizing the country.

Canada’s parliamentary budget officer, Yves Giroux has spoken out about the alarming rise in Canada’s contingent liabilities related to indigenous claims. Todays estimated 76 billion dollars is many times the 15 billion dollars it was when the Liberals took power in 2015.

This is one part only of the massive increase in spending on indigenous matters that has taken place since then.

Federal spending per indigenous person has always been much higher than spending per non-indigenous person. The higher level of spending has been justified because most indigenous people do much worse on virtually every health and social indicator than the mainstream population. Their health is poorer, and their lives are shorter.

This disparity was generally known as Canada’s “Indian problem”. That term is no longer fashionable, and the extra spending is now said to be necessary to achieve “reconciliation”. Regardless of the terms, what is clear is that since Confederation there has always existed a large rural and urban indigenous underclass that does poorly compared to the mainstream. The stated purpose of the extra indigenous spending that has always been there, and the virtual explosion on indigenous spending since 2015 is meant to fix that problem. But these massive expenditures have now reached the point where they risk destabilizing the country.

Perhaps it’s time for Canadians to ask if the “nation to nation” reconciliation plan that spending is based on is working. Is it fixing the problem?

A recent CBC report proves that it is not. Instead, the problems are getting worse.

The CBC investigated an indigenous community at St. Theresa Point where 24 people sometime share one house. Almost all of the houses in the community are crumbling and need to be replaced. Families struggle to achieve basic hygiene. Living conditions resemble what one would expect to find in a third world community, and not in wealthy, modern Canada.

St. Theresa Point is typical of hundreds of other Indian remote reserves. Most are almost totally dependent on the federal government for their survival. There is virtually no real employment. The poorest people in those communities are directly dependent on welfare checks, but even the chief, councillors and other employees receive their paycheques from the transfer payments sent by Ottawa. In reality almost everyone in the community is on welfare of some type.

Unlike in other rural communities, people on poor reserves tend not to move when economic opportunities decline. In small-town Canada, the rules are simple: If the towns or farms can’t supply enough jobs, one moves to the city where the jobs and careers are. But on remote reserves, most people stay put, even if there are no jobs or careers there for them. And most of those who do move to the city do not do well. A lack of education, poor job skills, and lack of motivation usually consign reserve residents who move to the mean parts of town where many end up in gangs, crime and prostitution. The result is that the people who stay in uneconomic remote reserves become more and more dependent. Low education levels sink even further. And succeeding generations become ever less likely to be able to provide for themselves and their families.

To make matters much worse, addiction problems are endemic. At one time, alcohol was the drug of choice. Now, amphetamines, fentanyl, and prescription drugs have been added to the list, with the family violence, sexual abuse, crime, teenage pregnancy and fetal alcohol births that inevitably follow from chronic drug use.

And reserve populations are growing. Although status Indians living on reserves currently comprise only about 1% of the total population, they are the country’s fastest growing demographic. The cost of operating these communities is crippling now, but in a few years, it will be completely unsustainable. Pretending that these desperately poor reserves are sovereign “nations” that will somehow magically become prosperous and self-supporting is a cruel joke on the young people hopelessly trapped on them. The prospect of hundreds of dependent reserves teeming with, unemployed, and largely unemployable young people, with massive social problems, is a frightening dystopia – hundreds of Gaza strips. But it is where we are headed. To make things even worse, the government-promoted false genocide and “missing children” narratives have made many of these people very angry.

Although there is no treaty right, or any other right to free housing on a reserve the reality is that if the government did not provide housing for the reserve residents, they would be unable to provide housing for themselves. The strange result is that Canadian taxpayers – many of whom will never be able to afford to buy a house themselves – pay through their tax dollars for houses for the rapidly growing reserve population. These houses deteriorate quickly, because they are considered “free” by the residents, and have to be fixed and replaced in a wasteful and expensive cycle.

And it is a national disgrace that most reserves are dead ends for most of the young people born into them.

The late Farley Mowat described northern indigenous settlements as “unguarded concentration camps”. That might be a somewhat harsh way to describe reserves, but at best most are human warehouses, plagued with social problems. The young people living there deserve some hope, and Canada’s current plan for them offers them none.

So, Canada’s current indigenous plan is clearly not working. Is there a better plan for success?

Maybe we should ask Wab Kinew, Manitoba’s new premier. He is indigenous and highly successful. How did he get there?

The formula is actually not complicated. It has nothing to do with massive welfare giveaways, “nation to nation” utopias, or incredibly expensive “reconciliation” projects. It definitely has nothing to do with staying in a community that lacks economic opportunities, and waiting for handouts. It involves education, hard work, and going where the jobs are. Kinew’s parents realized that a stable home and education were key. Wab did the rest. He worked his way up the ladder in the usual way, and went where the jobs were. He did that with his indigenous identity intact.

Not every young person has Kinew’s talent, but everyone can follow the formula that made Kinew, and many other indigenous achievers successful.

The alternative – spending ever increasing amounts on a steadily increasing list of demands from a growing dependent reserve population is not an option. We don’t need the parliamentary budget officer to tell us that it is not sustainable.

As for remote, uneconomic reserves, like St. Theresa Point, they should be gradually and humanely closed down. It has been recognized for many years that reserves long ago had served their purpose, and should be phased out. As far back as 1911, it was said:

“Department officials were increasingly coming to the view that reserves had outlived their usefulness. Frank Pedley suggested that they resulted in the isolation and segregation of Indians, and thereby hindered progress…and encouraged the tribal form of government.”

The reserve system was not ended in 1911 because the chiefs and ruling families refused to give up their privileged positions. It isn’t happening today for the same reasons. We still have the same Indian Act and reserve system that has held indigenous people back for almost 150 years. (Senior Ontario lawyer, Peter Best, describes the toxicity of the reserve system in his important book, There Is No Difference)

So, the long-term plan should be to find a way to overcome that resistance, and find a fair way to phase out reserves, and the antiquated Indian Act. The reserves that are economically viable can merge into existing rural municipalities, or become stand-alone municipalities. Opportunities should be made available for young people from uneconomic communities to move to job centres, and receive help to succeed there.

In the meantime, the example of Wab Kinew is proof that there has never been a better time or place than today’s Canada to be an educated and ambitious young indigenous person who is willing to study, work hard, and go where the jobs are.

Brian Giesbrecht is a retired judge and senior fellow at Frontier Centre for Public Policy

Watch Brian on Return to Reason here.

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LNG leader: Haisla Nation Chief Councillor Crystal Smith on the world’s first Indigenous project

Published on May 17, 2024

By

Haisla Nation Chief Councillor Crystal Smith during a press conference announcing that the Cedar LNG project has been given environmental approval in Vancouver, Tuesday March 14, 2023. CP Images photo

From the Canadian Energy Centre

By Will Gibson

‘Now we are working together to make our own opportunities as owners and developers of the resource’

Growing up in the 1980s, Crystal Smith felt supported and nourished by her community, the Haisla Nation along the shores of Kitimat, British Columbia. But at the same time, she also sensed the outside world had placed some limitations on her future. 

“I enjoyed a wonderful childhood with a solid foundation and lots of love, especially from my grandma Cecilia Smith. She raised me because I lost my mother and stepdad at a young age. But it wasn’t popular to be Indigenous when I grew up,” says Smith.  

“A lot of people would talk about how Indigenous people were not expected to be successful. That kind of talk really affected my confidence about what I could be.” 

Smith, now the Haisla Nation’s elected chief councillor, never wants children in her community to feel those constraints.  

Her community has seized on a major opportunity to build prosperity and resiliency for future generations. The Haisla Nation is a partner in the proposed $3.4 billion Cedar LNG project, the world’s first to have Indigenous ownership. A final go-ahead decision for the project to proceed is expected by the middle of this year.  

Smith, who has served as board chair of the First Nations LNG Alliance since 2019, has already seen tangible changes in her community since the project was announced. 

“It’s hard to put into words about the impact on the ground in terms of how this opportunity has affected our members in their lives,” she says.  

“We were just interviewing candidates to serve as board directors on our economic development corporation and one candidate, who is from our community, just amazed me with how far he has come in terms of pursuing his education and how much his career has progressed.” 

The town of Kitimat on British Columbia’s west coast. LNG Canada site in background. Photo courtesy District of Kitimat

Of her own career, Smith says she knew since college that her future was in serving the community. She started working in the Haisla band administration in 2009 and was first elected chief councillor in 2017.  

“I was lucky because my family really pushed me to seek an education after high school, so I took the business program at Coast Mountain College. I also helped that I had mentors in my community, including my father Albert Robinson, who served as an elected Haisla councillor, and Ellis Ross (now an elected MLA in B.C), who was very inspiring in terms of his vision as chief councillor and encouraged me to take the step into elected office,” Smith says.  

“When I came back to the community from school, I knew I would end up working in our band office. I wanted to see more opportunities for people in my community and LNG provides that.” 

She already sees the benefits of the development, as well as the Haisla Nation’s participation in the LNG Canada project, within her own family including for her grandsons.  

“Xavier is six and he goes to the same school I attended as a child. He gets to learn parts of our culture, our teachings, as well as the value and importance of family and community. There’s more of an emphasis on our language and culture in the curriculum, which really makes me happy. Luka, who just turned two, will also attend that school when he’s old enough,” Smith says.  

“I want programs and services to meet our needs, not the level of government’s needs. And we need to make sure that it is sustainable not just for my grandsons or their peers but for seven generations beyond this one.” 

Cedar LNG is coming closer and closer to fruition, with all permits in place and early construction underway.  

An eight-kilometre pipeline will be built connecting the recently completed Coastal GasLink pipeline to deliver natural gas to the floating Cedar LNG terminal located along the Douglas Channel near Kitimat.  

The facility will be capable of producing up to three million tonnes of liquefied natural gas every year, which will be transported by carriers through the Douglas Channel to Hecate Straight, using the existing deepwater shipping lane, to reach customers in the Asia-Pacific region.  

Powered entirely by renewable energy from BC Hydro, Cedar LNG will be one of the lowest carbon intensity LNG facilities in the world. Its so-called emissions intensity will be 0.08 per cent CO2 per tonne, compared to the global average of 0.35 per cent per tonne. 

Rendering courtesy Cedar LNG

 Up to 500 people will work on the project during the peak of construction. Approximately 100 people will be working at the facility full-time during operation, which is expected to start in the second half of 2028.  

Smith says the benefits of the project will extend beyond the 2,000 members of the Haisla Nation. 

“This work has really helped us reconnect with other Indigenous communities along pipelines and shipping routes,” she says.  

“When I was growing up, our communities never had the opportunity to come together because we were separated by the territorial boundaries imposed by the Indian Act. And we were fighting each other for financial scraps from Indian Affairs.  

“Now we are working together to make our own opportunities as owners and developers of the resource. That’s very empowering and the most important part. Participating in developing these resources provides independence. It’s the only solution for my nation and other Indigenous communities.” 

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Canadian Energy Centre

Trans Mountain completion shows victory of good faith Indigenous consultation

Published on May 15, 2024

By

Photo courtesy Trans Mountain Corporation

From the Canadian Energy Centre

By Joseph Quesnel

‘Now that the Trans Mountain expansion is finally completed, it will provide trans-generational benefits to First Nations involved’

While many are celebrating the completion of the Trans Mountain pipeline expansion project for its benefit of delivering better prices for Canadian energy to international markets, it’s important to reflect on how the project demonstrates successful economic reconciliation with Indigenous communities.

It’s easy to forget how we got here.

The history of Trans Mountain has been fraught with obstacles and delays that could have killed the project, but it survived. This stands in contrast to other pipelines such as Energy East and Keystone XL.

Starting in 2012, proponent Kinder Morgan Canada engaged in consultation with multiple parties – including many First Nation and Métis communities – on potential project impacts.

According to Trans Mountain, there have been 73,000 points of contact with Indigenous communities throughout Alberta and British Columbia as the expansion was developed and constructed. The new federal government owners of the pipeline committed to ongoing consultation during early construction and operations phase.

Beyond formal Indigenous engagement, the project proponent conducted numerous environmental and engineering field studies. These included studies drawing on deep Indigenous input, such as traditional ecological knowledge studies, traditional land use studies, and traditional marine land use studies.

At each stage of consultation, the proponent had to take into consideration this input, and if necessary – which occurred regularly – adjust the pipeline route or change an approach.

With such a large undertaking, Kinder Morgan and later Trans Mountain Corporation as a government entity had to maintain relationships with many Indigenous parties and make sure they got it right.

Trans Mountain participates in a cultural ceremony with the Shxw’ōwhámél First Nation near Hope, B.C. Photograph courtesy Trans Mountain

It was the opposite of the superficial “checklist” form of consultation that companies had long been criticized for.

While most of the First Nation and Métis communities engaged in good faith with Kinder Morgan, and later the federal government, and wanted to maximize environmental protections and ensure they got the best deal for their communities, environmentalist opponents wanted to kill the project outright from the start.

After the government took over the incomplete expansion in 2018, green activists were transparent about using cost overruns as a tactic to scuttle and defeat the project. They tried to make Trans Mountain ground zero for their anti-energy divestment crusade, targeting investors.

It is an amazing testament to importance of Trans Mountain that it survived this bad faith onslaught.

In true eco-colonialist fashion, the non-Indigenous activist community did not care that the consultation process for Trans Mountain project was achieving economic reconciliation in front of their eyes. They were “fair weather friends” who supported Indigenous communities only when they opposed energy projects.

They missed the broad support for the Trans Mountain expansion. As of March 2023, the project had signed agreements with 81 Indigenous communities along the proposed route worth $657 million, and the project has created over $4.8 billion in contracts with Indigenous businesses.

Most importantly, Trans Mountain saw the maturing of Indigenous capital as Indigenous coalitions came together to seek equity stakes in the pipeline. Project Reconciliation, the Alberta-based Iron Coalition and B.C.’s Western Indigenous Pipeline Group all presented detailed proposals to assume ownership.

Although these equity proposals have not yet resulted in a sale agreement, they involved taking that important first step. Trans Mountain showed what was possible for Indigenous ownership, and now with more growth and perhaps legislative help from provincial and federal governments, an Indigenous consortium will be eventually successful when the government looks to sell the project.

If an Indigenous partner ultimately acquires an equity stake in Trans Mountain, observers close to the negotiations are convinced it will be a sizeable stake, well beyond 10 per cent. It will be a transformative venture for many First Nations involved.

Now that the Trans Mountain expansion is finally completed, it will provide trans-generational benefits to First Nations involved, including lasting work for Indigenous companies. It will also demonstrate the victory of good faith Indigenous consultation over bad faith opposition.

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