Thank you. Good morning.
As mentioned, my name is Philip Ducharme, and I'm a member of the Manitoba Métis Federation. I am thankful to be here on the unceded, unsurrendered territory of the Anishinabe Algonquin nation.
As vice-president of entrepreneurship and procurement at the Canadian Council for Indigenous Business, or CCIB, I want to thank you, Mr. Chair, and all distinguished members of the committee for the opportunity to provide comment on indigenous procurement.
Earlier this year, CCIB celebrated our 40th anniversary of building bridges between indigenous and non-indigenous businesses and the rest of Canada in support of mutual growth, opportunity and economic reconciliation. We do this through a number of programs and initiatives, including the research that we conduct, which was recently cited by the OECD to our president and CEO Tabatha Bull as some of the best on the indigenous economy.
One of our key priorities over the last eight years has been on indigenous procurement. In January 2018, CCIB officially launched Supply Change, our trademarked indigenous procurement program, made up of key pillars including certified indigenous businesses, the indigenous procurement marketplace and indigenous procurement champions.
The indigenous procurement marketplace is an online platform that allows our certified indigenous businesses and corporate buyers the opportunity to engage and develop relationships while sharing relevant opportunities. There are currently over 1,300 certified indigenous businesses and 155 indigenous procurement champions and advocates within the indigenous procurement marketplace.
CCIB-certified indigenous businesses are members of CCIB that we certify through an internal audit process to confirm at least 51% indigenous ownership and control. We require proof of indigeneity. Self-identification is not accepted. In addition to the proof of indigeneity, we require business documents proving that the share ownership and controls meet the threshold of 51% indigenous ownership and control.
Upon yearly renewal, all certified indigenous businesses are required to attest that that ownership and control has not changed. However, if the validity of one of our certified indigenous businesses is questioned at any time, we confirm the data we have on record to the extent of confirming membership within the community. If we find that a business no longer meets the definition, their certification is revoked.
CCIB has long advocated targets and reporting on indigenous procurement, and we were pleased to join former procurement minister Anand on August 6, 2021, when she reaffirmed a mandate of 5% of indigenous procurement and required reporting on a set timeline. Additionally, other levels of government and numerous corporations have publicly disclosed indigenous procurement targets, including the Yukon Territory, with a 15% target, and the City of Regina, with a 20% target. These indigenous procurement policies are instrumental and necessary to rectify historical injustices and empower communities that have long been marginalized and intentionally excluded from the economy to the benefit of corporations and every individual in Canada. The policies are not merely about meeting quotas but are required to foster economic opportunities for indigenous people and communities.
In any policy, there is a potential for individuals to take advantage. Recently, attention has focused too much on those individuals and the negative outcomes they have created. By consistently portraying indigenous procurement in a negative light or by disproportionately highlighting instances of alleged misuse or failure, a narrative is being created that questions the competence and legitimacy of indigenous businesses. This narrative is affecting public perception and, I fear, influencing policy decisions. We cannot allow a few bad actors to cause us to move backwards on crucial support mechanisms designed to uplift indigenous communities.
For clarity, indigenous business success through procurement and that supports indigenous prosperity and self-determination largely outweighs the negative reports. Indigenous procurement in line with the 5% target would inject $1.2 billion directly into the indigenous economy. We can take Pro Metal, a steel manufacturer owned by Pasqua First Nation Group of Companies, as an example. Pro Metal works to supply components for armoured vehicles, including LAVs, to the Canadian Army. PFN Group's procurement success is enabling the construction of 46 new homes, expansion of the high school and the opening of a 12-suite long-term care facility. This is just one example of the impact successful indigenous procurement can lead to.
In closing, we are not blind to instances of identity fraud, and we acknowledge that there are businesses that have taken advantage of policies and that this has resulted in benefits not reaching those for whom they were intended. However, as in any policy, there will be people who will manipulate the system to make it work to their advantage. The wrongdoings of a few should not call into question the need or value of indigenous procurement. The solution is not to punish those for whom the policy is built, but to strengthen the policy.
I would like to thank the committee for the opportunity to contribute to this important topic and I look forward to answering any questions you may have.
Thank you.