(Toronto) First Nations are called upon to become more and more partners in financing major projects, a change that could lead them towards financial independence, according to the president of the First Nations Major Projects Coalition
Speaking at the coalition’s annual conference Monday, President Sharleen Gale, Chief of the Fort Nelson First Nation, said it’s all part of a move to place community consent and participation in the forefront of project development.
“There is a new way of doing business on our traditional territories,” said Mr.me Scabies. We know our value and we know how important it is for us to participate meaningfully in our economies. »
Industries need to understand that consent and benefit agreements are no longer enough, she said.
“This is a new standard that the industry really needs to understand: Fairness matters. »
To take the step to become equity holders, it will take money, and with high interest rates, Mme Gale argued that competitively priced capital is crucial.
The coalition formed almost a decade ago in part because First Nations were being offered credit card-equivalent interest rates for project financing, making it difficult to get anything started. so be it, said Mme Scabies.
She said the $5 billion Indigenous Loan Guarantee announced last week in the federal budget is an exciting step in reducing the cost of capital, and the benefits from this measure could be used to finance even more projects.
As the Indigenous Loan Guarantee Program rolls out, “you’ll see that eventually we might not even need it because we’ll create our own revenue stream,” says Ms.me Scabies.
A “ripple effect”
During a conversation with M.me Gale speaking at the conference, Dave McKay, president and CEO of RBC, said that the country is in the early days of building this autonomous cycle.
“Starting is difficult. […] That’s the hardest part, but then you’re going to get a ripple effect where you’re going to reinvest from one project to the next,” he said.
Mr. McKay judges that the federal commitment of 5 billion is a good start, but that it is far from sufficient. There are so many projects underway, particularly linked to the energy transition, that this will create as many opportunities as financing needs, he argued.
Funding assistance will also be important in obtaining adequate Indigenous consent, McKay said.
“It is very important that we do things the right way from the start, and that we do not fall into the traps of the past. »
Obtaining appropriate consent is not easy.
RBC has been criticized for its funding of the Trans Mountain and Coastal GasLink pipelines, projects that have attracted both support and strong opposition among First Nations.
Construction on both projects is now complete and therefore significantly less risky, helping to reduce the cost of capital for First Nations participation.
According to Mr. McKay, it is only a matter of time before pipeline participation agreements are announced, as well as future success stories through better cooperation.
“We have limited ourselves as a country because we have not worked together, and now that we are working together, we should embrace bigger and bolder ideas.” »
The shift in relations is occurring in part because of Canada’s acceptance of the United Nations Declaration on the Rights of Indigenous Peoples, noted Perry Bellegarde, former national chief of the Assembly of First Nations.
“We use this clause of free, prior and informed consent as a means and as a tool to bring governments and industry to our tables,” he said at the conference.
In addition to codifying the high standard of consent into law, Bellegarde said it was also important that Canada rejected the doctrine of discovery, under which any land not already occupied by Christians was considered vacant and could therefore be claimed by the colonizers.
Recognition of the right to self-determination, the right to their own lands and their own laws, is crucial to navigating growth and sustainability, he argued.
“This right is very important when it comes to looking at the balance between the environment and the economy, always seeking to find the balance, to find the happy medium. »
He said it was a good message on Earth Day to remember that in securing their rights, indigenous peoples also seek to fulfill their responsibilities to future generations and to the natural world. .
“As bipeds, we have a great responsibility to integrate ourselves into this global family, if you will, so that we can have hope for the future, so that our children and grandchildren can have hope for the future . »