Thank you to the standing committee for the opportunity to present today.
I'd like to acknowledge that I'm speaking from the traditional territories of treaty 7 and the Métis Nation of Alberta, region 3. My colleague, Ms. Shannon Joseph, is speaking from the traditional Algonquin territory.
My name is Brian Schmidt, Aakaikkitstaki. I am the CEO of Tamarack Valley Energy, and I am here today on behalf of the Canadian Association of Petroleum Producers in my capacity as chair of our indigenous affairs policy group.
I have also been in business with the Kainai people for decades as an operator of oil and gas drilling rigs on the reserve land of the Blood Tribe. I was proud to be honoured a few years ago with the title of honorary chief of the Kainai.
CAPP first publicly voiced its support for UNDRIP back in 2016 at the same time the federal government did. We continue to support UNDRIP implementation in a manner consistent with the Canadian Constitution and law. For the people of our association, creating mutually beneficial partnerships with indigenous people, communities, businesses and employees is central to how we operate and to our role in reconciliation.
Today the oil and gas industry procures more from indigenous businesses, than any other industry in Canada and—if I may say so—far more than the federal government as a whole. In 2017-19, an aggregate spend with indigenous communities was $5.9 billion. In 2019, indigenous procurement was 11% of our procurement. We are also one of the largest employers of indigenous people, indigenous men and women. They earn, in our industry, the highest wages compared to any other sector in the country.
These relationships and opportunities have been one of the strongest paths for building indigenous prosperity in Canada. There are indigenous groups that are looking to purchase the Trans Mountain expansion pipeline, and there are pretty much new equity deals being announced every month with indigenous ownership in oil and gas projects.
Finally, indigenous communities across Canada earn hundreds of millions of dollars each year from royalties and other benefits through the development of resources on reserve lands. What this means concretely for my indigenous colleagues is that resource development provides important opportunities to address poverty and advance economic self-determination, and I've seen that first-hand.
We aren't here to ask you to choose between our industry's interests and indigenous people's interests. I'm here to say firmly that I believe that we have the same interests in this matter. We want indigenous rights to be protected, and we also want to have a healthy and prosperous oil and gas resource sector so that we can all benefit from a strong, Canadian economy.
Bill C-15 as written will create more uncertainty for our industry and resource development as a whole in Canada. This will mean that we cannot attract investment from capital markets and that good projects, including one supported by the majority of indigenous communities, will not proceed. This will harm the oil and gas sector, and we want to avoid that. More importantly, it will also harm the indigenous communities who value resource development as an important means of creating jobs and revenues. Human rights equals human economic development.
The Financial Post calculated that in the last five years we've lost 150 billion dollars' worth of energy projects in Canada, abandoned or suspended because investors would not take the risk of financing them. Just last week, we heard about Chevron pulling out of Kitimat LNG, which had tremendous indigenous involvement. If you do the math, 11% of indigenous procurement on $150 billion on projects means $16.5 billion of lost income to indigenous people. The lack of clarity and uncertainty has real consequences in terms of people's livelihoods and opportunities for prosperity and self-determination.
What industry is asking is to not leave things undefined. Make it easier for us to do business with indigenous communities, not harder. CAPP has some specific amendments that would help alleviate the major concerns to our industry and investors on Bill C-15. These include, first, clarifying that Bill C-15 does not have an immediate application as domestic federal law but, rather, establishes a process for the review of existing Canadian laws; and second, defining free, prior and informed consent for the Canadian context.
In our understanding, FPIC is a process, not an outcome, and as many—including Minister Lametti—have said, it is not a veto. We have a suggested definition that reflects this and that is consistent with principle six of the federal government's 10 principles for the implementation of UNDRIP. It is also consistent with the federal and provincial governments' retaining their authority to make final decisions.
The final one is ensuring that the action plan is the main vehicle by which to make UNDRIP practicable in Canada, co-developed with indigenous people and with the intention that stakeholders, such as ourselves, would be able to engage in dialogue where appropriate to our industry. The action plan process should be adequately resourced and create clear accountabilities.
Thank you.