I appreciate the invitation to come to OGGO. I think this is an important conversation about how we can focus our energies as a government and as a country on growing indigenous economy opportunities. Of course, today we're here to talk about the procurement strategy for indigenous business.
Investing in indigenous communities and building up indigenous businesses and entrepreneurs benefit all Canadians. According to the 2022 “National Indigenous Economic Strategy for Canada”, the continued exclusion of indigenous peoples costs the Canadian economy about $27.7 billion every year. The National Indigenous Economic Development Board found that closing the existing employment gap could help lift over 150,000 indigenous people out of poverty.
Since 2015, we've been focused on strengthening self-determination and building capacity so that indigenous people and businesses have the tools and resources to fully participate in the economy on their own terms. For example, the government increased education funding by 80%, helping more kids access high-quality education right at home. Over the last decade, BDC found that expanded access to education has led to a 49% increase in the number of indigenous people aged 25 to 64 in full-time employment. That's right; there was a full 49% increase.
The indigenous economy has the potential to grow from $32 billion to $100 billion in the next five years, and leaders like Tabatha Bull from the CCIB have been clear that procurement is a key part of hitting that target. Since the 5% minimum target was implemented, the value of contracts going to indigenous businesses increased by $1.5 billion.
Now, while I've only been the minister responsible for this file since 2021, our government has been engaging with indigenous partners from across the country for years. In particular, I'd like to highlight the ways that the department has engaged with indigenous partners to improve procurement procedures.
We are transforming the procurement strategy with indigenous partners. We are all focused on improving policies, safeguards and processes. They have told us what will work and what does not, and we are listening. We're also actively working with partners on how best to transfer the role of defining and verifying indigenous businesses to indigenous peoples. Transferring the definition and the registration of indigenous businesses from the government to indigenous peoples will help us reach the ultimate goal of increased indigenous economic activity.
Parliamentarians need to work together, including through studies just like this one, to identify the existing barriers to economic reconciliation and to identify new ways to break them down. Programs like the PSIB are getting us closer to a Canada that maximizes its true economic potential. The PSIB is opening doors for indigenous participation, and historically, those doors have been intentionally closed. Laws like the Indian Act systemically excluded indigenous peoples to the point of being “legislated out of the economy”, as described by many indigenous leaders.
Members of the committee, I thank you for the opportunity to reinforce the federal government's commitment to building Canada's economy in partnership with indigenous peoples, and I look forward to our conversation today.
