Summary Of Discussions - Inuit Breakout Session

Improved Access to Capital and Investment

Launch Question

What specific actions are needed to overcome barriers to access to capital and investment?

The five groups identified existing issues and potential solutions which include:

Access to capital

The size and remoteness of communities often means that there are limited or no financial institutions in communities. Also, there is a need for financial and lending policies that can address the specific needs of the Arctic. A range of solutions were offered including:

• change Aboriginal Capital Corporation program criteria to fit projects in the Arctic;
• assess and manage risk differently so that risk is shared among partners that can be governments, companies, Aboriginal businesses and other economic partners (e.g. teachers’ pension fund). Use first customer’s support for financing purposes. Develop a community equity pool, community partners with individual micropools of capital;
• establish community-based banking. One option is to have a national financial institution properly connected to Inuit regions;
• establish financial institutions in more communities, financial lending policies and programs should be developed and implemented locally (e.g. Co-op);
• change loan criteria, such as more sectors and less requirement for personal collateral, and provide inventory lending (patient capital);
• address the specific needs of women through microlending and with a percentage of all funding allocated to women;
• give an investment mandate to existing development corporations;
• create new, well-backed venture capital sources; and
• provide government assistance for start-up.

Infrastructure investment

The geographic risk and northern infrastructure (limited, small population) mean that there must be a way to establish economies of scale that make business viable. Communications are critical, including broadband.

Government processes to facilitate access and investment

Ideas included:

• one Inuit Economic Development Secretariat
• consistency in applications
• inventory of community development programs
• information available in Inuktitut and electronically
• timelines must be respected (for payments, licenses, proposals, etc.)
• establish a local office in communities and rotate a team of expert representatives from all relevant departments
• need better understanding and coordination between departments involved in international agreements and departments concerned with domestic issues

Capacity investment

The capacity of the members of the community needs to be invested in including:

• Internet training and equipment in communities;
• training, mentoring for microbusiness, especially for women;
• specific services to develop business skills using a community economic development (CED) approach, including more and better trained community economic development officers, multiyear CED funding, more networking and ongoing mentoring and education for entrepreneurs;
• encouragement and support for people to be trained in the trades that are needed in the community; and
• •specific training to develop management skills that is hands-on and long term.

International and national legal framework

• finalize the legislative framework for Nunavut
• address the violation of Intellectual Property Rights (educate citizens and proactively protect traditional knowledge and items through legislating, regulating and enforcing access and benefit sharing)

Improving Economic Opportunities from Lands and Resource Development

The discussion was broken into three distinct questions covering economic opportunities related to land and resource development, Inuit entrepreneurship and community economic development as economic development cannot be limited to resource development in the North.

Launch Question

How do we improve economic development from land and resource development?

Jurisdiction

Decision making is to be led by Inuit, in consultation with industry. The Government of Canada (GOC) has a responsibility to support that leadership, Inuit would set guidelines (adhered to by everyone), develop laws based on customary law and hold local and regional control over licenses and permits.

Role of Government of Canada

There should be a new role for the GOC to support and develop Inuit leadership, honour current land claims agreements, and establish a new federal government department (implement the Inuit Secretariat with a new minister and new portfolio). The government would provide resources to promote understanding of opportunities and land and resource development, funding, incentives to industry (e.g. meet health, safety and environmental standards and provide market exclusivity in regions) and specific accountability that is monitored and evaluated from both sides.

Environment

The sustainability of and impact on the environment are concerns in all economic decisions. A suggestion was to establish a joint board with full Inuit participation that will protect the environment (i.e. Arctic Ocean).

Management of natural resources

Suggestions included:

• quotas to be determined, taking into consideration available stocks and conservation;
• lack of soapstone for arts and crafts industry needs to be addressed;
• streamline regulatory process; and
• develop a “Made in the Arctic” management and promotion strategy for National Parks in the Arctic.

Research

As knowledge of the commercial applications of products is weak, research development is needed (e.g musk ox meat needs to be thawed at a specific temperature for a certain amount of time).

Capacity

Develop an apprenticeship program where the apprentice travels to where work is to get full on-the-job training in seasonal positions.

Infrastructure

The infrastructure needs to be built while building local capacity (e.g. training in trades, equipment, etc.).

Launch Question

How do we improve economic development opportunities for individual Inuit entrepreneurs?

Establish infrastructure to support business. Suggestions included:

• buy in bulk and defer payment
• establish a hub and spoke model
• establish facility/warehouse to support women entrepreneurship, especially in arts and crafts and making clothing
• develop women-specific infrastructure (e.g. daycare, early childhood development)
• establish financial institutions in communities

Government policy and services

• change certain provisions in procurement policy to be Inuit-specific and tangibly benefit Inuit businesses
• implement land claims provisions (i.e. Article 24, Nunavut)
• build Inuit content into scope of contracts (require Inuit performance plan and tie execution to contract retention)
• more targeted and better criteria for wage subsidies
• ensure language is appropriate to the region

Education, training and ongoing support

Build human capacity in the community to ensure continuity in employment and services. Services need to include basic training in all areas of business, incubator support to allow a business to grow slowly and an “after care” program once a business is established.

Launch Question

How do we improve economic development through community economic development?

Community needs and development plans

Plans need to be done in the community based on community needs and direction. Some questions that can be asked include:

• Are there pure economic opportunities around the community that can be sustained?
• What is coming into the community?
• Can some be done in the community?
• What are the unique aspects of the community?

This can be facilitated by:

• having ways for communities to do a CED plan with partners (e.g. universities, students and federal government) and involve community business people;
• making commitment to hiring local businesses, employees;
• developing an economic development agreement in the regions;
• looking at how communities can support one another;
• establishing less hoops to jump through to create businesses; and
• ensuring a sustainable development policy to balance business and community needs.

Government role

The GOC needs to have a northern sensitivity to work effectively with the Inuit. Some suggestions to achieve this cultural shift included:

• educate people in the government;
• transfer responsibility for resources, programs and land to Inuit people;
• bring government employees to the community; and
• hold meetings in communities with all the stakeholders when developing businesses.

Education

The goal is to set education standards in the region that are comparable to the rest of Canada. Current monitoring in schools has shown a decline in attendance at a certain age. There is a need to:

• create programs to address the causes of lack of attendance;
• create environment for learning in work places;
• create programs that allow people to keep working;
• have community partnerships with educational institutions, industry, community;
• have traveling courses to communities; and
• change social assistance system to support people to participate in education /CED/individual community/approach.

Improved Governance and Capacity

Launch Question

What specific elements (institutional, skills development, infrastructure) related to governance and capacity are necessary to best support economic opportunities?

Under this subject, 13 critical issues were identified by the group and discussed. The participants’ suggestions are grouped under three categories found in the launch question.

1. Skills Development

Skills development and education are required for professional skills, development of self-government institutions and for boards as they increase their capacity and governance responsibilities. Inuit organizations also need training in lobbying and negotiating in order to affect negotiations of agreements between governments and in international forums.

Communities also need training when developing community economic development plans on the opportunities related to the different industries in the Arctic and how to support a diverse economy.

Incentives, training and resources need to be invested in communities to build individual and community capacity to run their own businesses and participate in all aspects of the economy. Specific mention was made of the need for women to be adequately supported to develop skills and fully participate in the economy.

2. Infrastructure

There is a need to be creative around the solutions to infrastructure needs, and an ongoing dialogue between Inuit organizations, industry and governments must be established to find innovative and practical solutions.

3. Institutional

There is a continued role for the GOC to support the development of Inuit communities through the implementation of the land claims agreements. That support includes:

• new accountability relationships that are transparent;
• investment in strengthening Inuit organizations; and
• supporting Inuit leadership and dialogue to clarify the changing roles of Inuit institutions, governments and industry.

There is a need for realistic expectations from all parties as shared goals are identified and institutional structures are established to support those goals. As such, there is a need for flexibility, timeliness and monitoring in the existing programs delivered by the GOC.

Improving Regulatory/Legislative Frameworks to Facilitate Economic Opportunities

Launch Question

What adjustments are needed to improve or streamline the regulatory or legislative environment to support timely investments/business decisions and improve the investment climate?

The legislative and regulatory framework was divided into four discussion areas.

1. Procurement policy

The policies are currently not aligned or implemented. They must meet a number of specific purposes, including supporting Inuit development and capacity and economic growth and competition. The policy needs to ensure that value-added is a part of the process (e.g. locally produced materials, local overhead, labour). The GOC has a specific obligation under the land claims agreements (LCAs) to support the policy’s full implementation.

2. Representative public service workforce

The current situation is that Inuit are not sufficiently represented and lack skills for some positions. Also, positions are not located in the communities. Creative solutions for education, training, mentoring and job delivery need to be addressed. One suggestion is to have a multi-federal office in the community that is connected to departmental experts in the south (e.g. passports, economic development, fisheries, etc.).

3. Land claims agreements

The LCAs clearly lay out rights related to renewable and non-renewable resources, in addition to other economic activity. Regulatory processes and procedures need to facilitate the implementation of the LCAs and not nullify their intention. Specifically, licensing legislation and quotas need to be addressed. Minimally, the GOC should follow the consultation and accommodation process as per the Haida Supreme Court decision.

4. International regulatory and legislative framework

There are a number of key international agreements and domestic legislation (e.g. the Marine Mammal Protection Act) that need to be aligned to support the implementation of the land claims agreements. There are some clear Inuit objectives that need to be integrated into agreements (e.g. Inuit sustainable use, protection of Inuit intellectual property rights), and that support Inuit to accrue economic benefit and increase access to markets.

The final question asked of the group was “how will we know progress is being made in the area of economic opportunities?”

Progress measurements include:

• changes in the GOC’s relationship with the Inuit through a signed partnership accord, economic development agreements, government decisions being made based on northern realities and that recognize the complexity of the issues, and an Inuit-specific focus;
• federal policy to implement Article 24 of the Nunavut Land Claim Agreement;
• changes to legislation, policy and regulations that will support economic development for Inuit and promote a sustainable environment (e.g. Marine Mammal Protection Act, fishing policies and environmental assessment legislation, Department of Fisheries and Oceans policy changes to allow access to unused licenses for Inuit fishers);
• socio-economic agreements with industry that achieve procurement, capacity building outcomes;
• Inuit have the same opportunities as other Canadians (education, housing and jobs);
• comprehensive and easy ways to access government funding, programs and services when developing businesses, CED plans and initiating economic plans that are not form driven (e.g. one window business support);
• financial institutions in Inuit communities that provide loans and services to Inuit businesses;
• Inuit Secretariat that is not part of INAC and has Inuit participation; and
• ways to continue an ongoing dialogue between governments, Aboriginal organizations and industry.

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