Evidence of meeting #156 for Government Operations and Estimates in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was businesses.
A video is available from Parliament.
Conservative
The Chair Conservative Kelly McCauley
I call this meeting to order.
Welcome to meeting number 156 of the House of Commons Standing Committee on Government Operations and Estimates.
Keep your headphones away from the microphones at all times to protect the hearing of our valued interpreters, and do not touch the mic.
We have two opening statements. We'll go to you virtually, Mr. Beaton, first.
Go ahead for five minutes, please.
Jacob Beaton As an Individual
Thank you, Mr. Chair.
Everybody, it's wonderful to be here. My name is Jacob Beaton. My travel name is Dzapl Gyiyaawn Sgyiik.
I am Eagle Clan, of Tsimshian, Haida and Heiltsuk descent, from the northwest coast.
Thank you very much for inviting me and for having me here.
I've worked for first nations for my whole career, for dozens of different nations over a couple decades. I'm a first nations business owner and entrepreneur and have been my whole career. I currently own and operate an award-winning business that's indigenous-led. I'll be talking a bit more about that standard—“indigenous-led”.
I've been awarded as Young Entrepreneur of the Year, recipient of the BC Land Award, Canada's Food Hero to the United Nations, and, most recently, recipient of the King Charles III Coronation Medal. I'm currently a thought leader to the B.C. Auditor General.
I'm very happy that I've been invited and get to answer some of your questions. I've been successful in business because I don't just identify problems; I come up with solutions. I understand that we're talking about problems and solutions here today. The essence of what business is to me is the identifications of problems and then delivering consistently effective solutions.
I first want to start with the problems that we're trying to solve here.
First of all, I'm sure everyone's aware of the history of systemic economic oppression of first nations and indigenous peoples in Canada. As an example, here in B.C., there's a wonderful old book I picked up for free called Indians at Work—
Conservative
The Chair Conservative Kelly McCauley
I'm sorry, Mr. Beaton. I have to interrupt you for a couple of seconds because we have our vote bells. We have a little procedural thing. Bear with me for two seconds.
Colleagues, we have bells. Can we have UC that we'll continue and perhaps vote virtually in the room so that we can get as much time as possible?
Conservative
The Chair Conservative Kelly McCauley
That's wonderful. A couple of minutes before the actual vote, we'll just suspend, and then, once everyone has successfully voted, we'll gavel back in.
Conservative
The Chair Conservative Kelly McCauley
Perfect, thanks very much, everyone.
Mr. Beaton, go ahead, sir.
As an Individual
No problem. I was warned, so I'm not surprised. Thank you.
Yes, there are some challenges. Here on the west coast, for example, first nations were very active in parts of the economy and then were systemically removed. That's not just due to the Indian Act but also collusion on the part of churches, for example, provincial governments, corporations and individuals.
One example of it in my sector is the pass and permit policy under the Indian Act, which wasn't repealed until 2014. It forbid indigenous first nations people specifically from purchasing anything to do with food production, or selling, trading or giving away food. The ghosts of the Indian Act and Indian Act policies currently reverberate throughout institutions and manifest many times as institutionalized racism.
I have a quote here from my friend George, who's first nations from here, this territory, and he says, “Indigenous procurement is economic reconciliation, an opportunity to heal wounds created by racist patriarchal legislation gone unchanged for too long.”
There's lots of work that has been done. No more studies are needed. I just wanted to say that. The Royal Commission on Aboriginal Peoples, starting in 1991, was very exhaustive, as was the Truth and Reconciliation Commission. They have excellent recommendations to do with this. We don't need to rehash those.
How are we doing? Not well. Socio-economic indicators have been flatlined and, in some cases, are worse. If we look at the Corporations Canada report, we see that less than 1% of corporations in Canada that are publicly traded generally have indigenous people on their boards of directors—0.07%. Less than 1% of senior staff—half a per cent, actually—at publicly traded companies in Canada are Métis, first nations or Inuit.
The average life expectancy among first nations people in B.C. has plummeted, and has dropped by more than six years between 2017 and 2021. First nations unemployment generally has hovered between 10% to 15%, unchanged over the last couple of decades, and it's been double that on reserves.
We just need to look at data. How are we doing? Not very well. The procurement strategy is not working, and I want to give you a few reasons why.
First of all—and I've heard this as I watched some other recordings—it's easy to fake it, and it's easy to say “Hey, it's pretendians,” and kind of focus on that, but that's really not the main problem. It's not a whole system of pretendians that's causing problems. Current systems and policies encourage corruption and fraud, and of course I have examples of this.
One example is procurement based on indigenous ownership. It is common practice for existing non-indigenous businesses to look for and grab an indigenous equity partner just for the purpose of landing a bid. Another example is the GP/LP structure, which is used, for example, to make ventures 99% indigenous owned but give 99% of operating powers to non-indigenous general partners. The standard profit share offered to nations or indigenous partners is 5%, and that's an open secret. This often results in higher job costs, as that 5% then acts as a tariff or additional tax on contracts and jobs.
Critically, there's no active auditing, oversight or enforcement, so it is common practice for promises to be made in a bid and then not delivered, and there are no consequences for that. An example is the minimum indigenous participation within job opportunities. The enforcement falls on already stretched nations, in what I've seen throughout my career. In my whole career, my indigenous heritage and that of my initiative have only ever been audited once, and that was by another first nations organization.
Procurement currently favours legal first nations governments as well, and excludes grassroots entrepreneurs like me, so many first nations struggling with capacity issues lean heavily on non-indigenous professionals and suppliers. Conflict of interest is the norm, with non-indigenous controlling partners putting their interests above that of indigenous partners' values and priorities.
Those are the problems. Now let's talk solutions.
Conservative
As an Individual
Yes. I'm at the end here. Thank you for listening.
We indigenous people should be the only arbiters of who is indigenous and who is not. Indigenous-led is a spectrum. It's easy to define, easy to audit and easy to score. Indigenous-led initiatives are proven to create real results and real change on the ground. There are tons of data behind that, and there are precedents, where we have standards, such as the First Nations Management Act. First nations meet them and then have access to preferred rates and opportunities.
We have already developed—
Conservative
The Chair Conservative Kelly McCauley
I have to cut you off there, Mr. Beaton, because we need to allow time to get to our meeting.
Thanks, Mr. Beaton. I'm sure you will get an opportunity—
Conservative
The Chair Conservative Kelly McCauley
We'll have you for a full hour, so there will be lots of opportunity to continue.
Conservative
Lorne Pelletier Senior Economic Advisor to the President, Manitoba Métis Federation
Good morning, everyone.
Thank you, Mr. Chair and committee, for the invitation.
My name is Lorne Pelletier. I'm a senior economic adviser to President David Chartrand of the Manitoba Métis Federation. I join you from Winnipeg, the heart of our homeland.
I'm joined in the room by my colleague Marc LeClair, who is the chief executive officer of our affiliate, Métis N4 Construction.
As the committee knows, the Red River Métis are a recognized aboriginal group under section 35 of the Canadian Constitution. Our people were and continue to be Canada's partner in Confederation.
Our people have always been known for our strong work ethic and entrepreneurship, going back to the days of our buffalo hunts. The Manitoba Métis Federation is the national government of our people, as outlined in our constitution, reflected in our democratic processes and acknowledged through the Manitoba Métis Self-Government Recognition and Implementation Agreement signed with Canada in July 2021.
I'd like to begin my opening remarks by commending the Government of Canada for introducing the 5% indigenous procurement mandate in 2021. The policy reflects true and tangible indigenous reconciliation and has the potential to advance the economic participation of Red River Métis in meaningful ways.
While the policy is a good one, the committee is aware of the issues and barriers in its administration and delivery, as mentioned by others. Our Red River Métis businesses continue to face some of those barriers to participation in Canada's indigenous procurement. I would suggest to the committee that the Manitoba Métis Federation is prepared and ready to be part of the solution. The committee may not be aware, but the Manitoba Métis Federation has its own established Red River Métis business registry and an online Red River Métis business directory administered by our affiliate, the Louis Riel Capital Corporation.
Our Red River Métis business directory currently has 770 registered businesses in it. To register, businesses go through a verification of majority ownership process administered by our Louis Riel Capital Corporation, the Manitoba Métis Federation's indigenous financial institution. For the committee's awareness, the Louis Riel Capital Corporation just celebrated its 32nd anniversary of serving Red River Métis businesses. Through our process, a Red River Métis business owner or owners are equally validated for their citizenship with the Manitoba Métis Federation's citizenship registry, which is administered by our central registry office. All businesses on our Red River Métis business directory are verified for majority ownership and validated for citizenship with our government.
The issue is that our directory is not currently recognized as a valid source for confirming an indigenous business by the Government of Canada. As a result, any contracts established between Canada or one of its prime contractors looking to subcontract with a Red River Métis business do not count against the federal department's 5% requirement. The effect is that our Red River Métis businesses are disregarded and not given an opportunity or encouraged to register on the federal indigenous business directory.
As the committee is aware, the indigenous business directory registration process can be onerous. Moreover, these businesses are already registered on our government directory, so, in essence, it becomes a matter of principle pertaining to self-government, self-determination and ensuring that we're positioned to identify, recognize and promote Red River Métis businesses.
I would ask that the committee give strong consideration to recognizing our Red River Métis business directory as a legitimate source for indigenous procurement.
Thank you again for the invitation.
Conservative
The Chair Conservative Kelly McCauley
Thank you, gentlemen.
We'll start the six-minute rounds with Mr. Genuis.
Go ahead, please, sir.
Conservative
Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB
Thank you, Chair.
Thank you to our witnesses for very interesting and insightful testimony.
I want to start with the Manitoba Métis Federation.
We are seeing, I think, a lot of false claims made about indigenous identity and about Métis identity in particular. Of course, there's the recent case of former minister Boissonnault, but I think there are many other cases. It seems that when false claims of indigenous identity are made, very often they're claims of Métis identity in particular.
This might seem obvious, but I think it's important. If you could, tell the committee directly what it means to be Métis. That is, how is Métis identity properly defined? How can a claim of Métis identity by an individual be verified? Why do you think we're seeing a proliferation of these false claims around Métis identity?
Marc LeClair Senior Advisor, Manitoba Métis Federation
Lorne, do you want me to answer that one?
Senior Economic Advisor to the President, Manitoba Métis Federation
Yes, thank you.
Senior Advisor, Manitoba Métis Federation
Thank you for the question.
In 1870, 10,000 of the 12,000 people in Red River were Métis. There would have been another 2,500 Métis up towards the Qu'Appelle Valley up into Edmonton. Canada was supposed to settle with us for that 1.4 million acres of land that we negotiated, and there were scrip certificates there.
In addition, outside of the postage stamp of Manitoba, there was the Dominion Lands Act, which provided scrip to the Métis and the half-breeds. It was delivered around the same time as those numbered treaties were done, so if you want to be on our registry, you have to show either those scrip records or parish records. It's very clear who the Red River Métis are, and it's very clear who they're not. We've seen all of that in Ontario, Quebec and eastern Canada; those people aren't Red River Métis.
We have our own registries with verification systems that are in place, and that's what Lorne was talking about. It's not only for our people but for our businesses as well. It's very clear who we are and also who's not Métis. That's an important question.
Conservative
Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB
Anyone claiming to be Métis who is actually Métis should have a fairly easy time in providing the evidence through the process that you've just described. Is that correct?
Senior Advisor, Manitoba Métis Federation
Yes. We use the Société historique de Saint-Boniface—
Senior Advisor, Manitoba Métis Federation
—and all of the families are connected.
We know who our families are and we know who is not.