Human Resources Committee on Dec. 5th, 2013

[The Vice-Chair (Ms. Jinny Jogindera Sims (Newton—North Delta, NDP)), NDP, Jinny Sims]

I would like to call the meeting to order.

I am just filling in for the chair today.

As you know, today we start our study of opportunities for aboriginal persons in the workforce.

I want to thank departmental staff for being here. It's my understand that two of you will be speaking. First will be James Sutherland, followed by Sheilagh Murphy. You have 10 minutes each.

[Sheilagh Murphy, Director General, Social Policy and Programs Branch, Department of Indian Affairs and Northern Development]

I'm going to share with Allan. He's going to do a portion of the AANDC presentation.

[The Vice-Chair (Ms. Jinny Jogindera Sims), NDP, Jinny Sims]

Thank you.

[James Sutherland, Director General, Aboriginal Affairs Directorate, Department of Human Resources and Skills Development]

Good afternoon, everyone.

On behalf of Employment and Social Development Canada (ESDC), I would like to thank the committee for the invitation and the opportunity to speak with you today on the government's commitment to increasing skills and employment opportunities for Aboriginal people through its Aboriginal labour market programs.

ESDC maintains positive relationships with many aboriginal organizations and views them all as important partners in economic and social development.

I know there are specific questions and information sought by the committee with respect to ESDC's aboriginal labour market programming and how programming has impacted aboriginal people. I will do my best to answer those questions to the extent that I can. In order to answer these questions, I would like to start by providing an overview of the aboriginal labour market context in Canada. Following my presentation, I will be happy to answer any other questions you may have.

The aboriginal population continues to face complex and persistent challenges that impact their participation in Canada's economic and social development.

A case in point is the unemployment rate of the aboriginal population in Canada. In 2011 the unemployment rate for aboriginal people was 15%. In comparison, the unemployment rate among the non-aboriginal population was 7.5%. If you break the three aboriginal groups into their individual numbers, the unemployment rates in 2011 are as follows: Métis at 10.4%; first nations at 18.3%; and Inuit, the highest, at 19.6%.

These statistics tell us that from a labour market efficiency perspective, the aboriginal population is a source of labour that is underutilized.

Added to this situation is the fact that the Aboriginal population is the youngest and fastest growing segment of the Canadian population, with a median age that is 13 years younger than the Canadian population at large.

Growth is four times the rate of the non-Aboriginal population. Between 2006 and 2011, the Aboriginal population grew by 20.1%, compared to a 5.2% increase for the non-Aboriginal population.

Comparatively, the Canadian population continues to age, with many leaving the labour force for retirement.

In addition, the demand for Canada's natural resources has driven a growth in expected job opportunities that will increase the need for skilled labour. Given the proximity of many First Nations communities to large economic projects, there is a tremendous opportunity to address some of Canada's skills shortages, while improving economic opportunities for Aboriginal people.

This underutilized and untapped source of labour underscores the reason ESDC's investments in aboriginal skills development and training are vitally important at this juncture in time.

ESDC has a long history of supporting skills development and training of Aboriginal Canadians by working with Aboriginal organizations to design and deliver tailored labour market programming to meet the unique needs of people in their communities.

There are three aboriginal-specific programs that I would like to mention today that help aboriginal people to acquire the skills they need to participate in the Canadian economy. It is important to note that two of these programs are accessible to all aboriginal people, regardless of their affiliation, first nations, Inuit, or Métis, or their residency, on reserve or off reserve, while the third is targeted to first nations on reserve only.

The aboriginal skills and employment training strategy, or ASETS as we call it, is ESDC's flagship program that helps all aboriginal people, first nations, Inuit and Métis, prepare for, find, and keep high-demand jobs.

Launched in April 2010, ASETS will invest $1.68 billion over five years, 2010 to 2015, in aboriginal service delivery organizations to deliver skills development and training to aboriginal people throughout Canada. There are 85 aboriginal service delivery organizations providing employment services through more than 600 points of service across the country in urban, rural, and remote areas.

ASETS is founded on three strategic pillars: one, providing demand-driven skills development; two, fostering partnerships with the private sector and other levels of government; and three, ensuring accountability for improved results.

ASETS is demonstrating increased employment and return-to-school outcomes. Since 2010, ASETS has seen approximately 48,000 clients become employed, 22,000 clients return to school, 128,000 clients complete one or more interventions, and over 50% of clients either employed or returned to school.

I would also like to mention an important component of ASETS programming that helps facilitate an individual's participation in education and training, and that is child care. Under ASETS, $55 million per year under the first nations and Inuit child care initiative supports a network of 8,500 child care spaces in over 450 sites in first nations and Inuit communities across Canada.

Child care is an eligible expense under ASETS programming. Any ASETS service delivery organization can choose to use a portion of what they receive through their ASETS agreement funding to fund child care for parents who are in training. This includes Métis, non-status Indians, and off-reserve first nations.

Given the focus of this HUMA study, I would like to share with you an example of how the program has provided the necessary skills and training leading to employment for one of its participants.

Lucien Ledoux, is an aboriginal welder employed with Running Deer Resources located in Manitoba. He was selected as a role model to speak on behalf of aboriginal youth at an aboriginal mining conference. He said, “Being certified”—as a welder—“has allowed me to get opportunities I would not have had otherwise. My life has become structured and I find things more valuable to me now because I earned them.” In addition, he stated, '“There is a sense of accomplishment when you know something you built will be standing long after you are gone.” He noted that his family is very proud of his accomplishments, which he said have made them strive for more in their own lives. His success was made possible through ASETS, which provides funding support to a local ASETS service delivery organization in Winnipeg, Manitoba.

Through ASETS, First Nations, Inuit, and Métis organizations are fostering a stronger, more vibrant workforce through partnerships with employers across Canada. Whether Aboriginal organizations are encouraging small businesses to hire Aboriginal people through wage subsidies or negotiating complex multi-stakeholder partnerships with major corporations, the result is training that is aligned to concrete employment opportunities.

The second aboriginal labour market program administered by ESDC is the skills and partnership fund, or SPF. SPF was launched in July 2010 and is funded at $210 million over five years.

SPF is a flexible project-based program that leverages partnerships and responds to government priorities and emerging untapped labour market needs to get aboriginal people into jobs. SPF targets aboriginal people for skills development and training, including for high-skilled in-demand jobs.

SPF also targets major economic training-to-employment projects in high-demand sectors. To date, SPF has had three calls for proposals. The first and second calls for proposal were open and more general in nature and resulted in numerous small to medium-sized projects up to about $3 million that were shorter term, focusing on skills training for short-term small to mid-sized skills development initiatives and innovation in service delivery.

Under the first two calls for proposals, SPF leveraged varied partnership contributions from employers. In 2012 the third call for proposals incorporated a targeted approach to support projects in the natural resource sector, in particular, the mining and energy sectors.

This approach built on the successes and best practices from the aboriginal skills and employment partnership program, ASEP. The approach focused on areas where there is known demand for long-term jobs and required a mandatory minimum contribution of 50% from partners, for example, the private sector, provinces and territories, and educational institutions.

SPF provides support for aboriginal communities and organizations to create partnerships with industry on major economic development projects to generate employment and economic benefits for communities located in the catchment area of these projects.

For example, there are projects operating in high-demand areas such as the Ring of Fire in northern Ontario, shipbuilding in the Atlantic and on the west coast, and pipeline projects in British Columbia.

There are currently 80 approved SPF projects, the majority of which are training-to-employment. This means there are employers who have identified available jobs, and partner with organizations to train Aboriginal people for these jobs. SPF is expected to assist more than 8,000 individuals gain employment over the life of the program. All SPF funding is allocated until 2015.

Finally, you will also hear about the on-reserve income assistance reform initiative from my colleagues from Aboriginal Affairs and Northern Development Canada. Recently, the government announced in budget 2013 the initiative to improve the on-reserve income assistance program, which is jointly managed by AANDC and ESDC. Income assistance reform is a four-year initiative funded at $241 million to help reduce income assistance dependency rates on reserves.

ESDC's portion of this, the first nations job fund, FNJF, is funded at $109 million. The program will provide job training to 18- to 24-year-olds who were referred from participating first nations communities. The FNJF will be delivered through the ASETS delivery network and will support the same job-training activities that are provided under ASETS.

ASETS and SPF both expire on March 31, 2015. As a result, ESDC is exploring seeking a renewed mandate for aboriginal labour market programming. ESDC has been holding discussions with ASETS and SPF service delivery organizations, national aboriginal organizations, provinces and territories, major employers, and other stakeholders, on the future of ESDC's aboriginal labour market programming beyond 2015.

ESDC held 15 regional engagement sessions across the country between September and November. In addition to the regional sessions, ESDC also met with provinces and territories, employers and some SPF projects. The issues raised in these discussions are a valuable and important component to inform the development of our policy work going forward.

ESDC also formally partners with national aboriginal organizations to collaborate on joint policy priorities and seek feedback on how to improve aboriginal labour market programming, among other things. This work will help inform the future direction of aboriginal labour market programming. These partnership agreements are with the Assembly of First Nations, the Inuit Tapiriit Kanatami, the Métis National Council, the Congress of Aboriginal Peoples, Native Women's Association of Canada, and the National Association of Friendship Centres, the last three of which represent off-reserve first nations as part of their membership base.

Over the coming months we will be analyzing what we have heard from stakeholders during our engagement activities. Analysis of data and outcomes from the programs is being undertaken, but it is premature at this point in time to make any conclusions about the future of this programming beyond 2015.

In conclusion, let me say that ESDC is committed to continue working closely with aboriginal organizations, on and off reserve, urban, rural, and remote, to ensure that aboriginal people can play an active role in Canada's economic and social development.

Thank you for the opportunity to address you today. I would be happy to answer any questions you may have.

[The Vice-Chair (Ms. Jinny Jogindera Sims), NDP, Jinny Sims]

Thank you very much.

Sheilagh, you're going to be sharing your time with Allan, but I'll just remind you that together you have 10 minutes.

[Sheilagh Murphy]

Thank you.

Madam Chair and honourable members, we are pleased that your committee is studying the opportunities for aboriginal persons in the workforce and specifically the supports available to them through the Government of Canada. We're glad to have the opportunity to contribute to your study by describing some of the initiatives that Aboriginal Affairs and Northern Development Canada has been undertaking in this regard.

I will focus my remarks on the programming changes that we're making to social and education programming. Allan Clarke will be talking about the lands and economic development sector of our department.

In the labour market context, equipping first nations people with the skills and opportunities they need to fully participate in the economy is a priority for the Government of Canada, as it is for first nations. In his presentation, James, from Employment and Social Development Canada, has outlined for you some of the key labour market drivers and barriers that exist for aboriginal persons. It is fair to say that the statistics and demographics are well known: persistent high unemployment rates, coupled with the youngest and fastest growing population. More than 600,000 aboriginal youth could enter the labour market by 2026.

We would only add a couple of other comparative statistics. The graduation rate for first nations students is 38%, compared to 87% for the non-aboriginal population. Moreover, the rate of dependency on income assistance is 35% for first nations living on reserve, compared to a 5% average nationally for the country as a whole. This dynamic underlines some of the programming reforms that we are pursuing which have the objective of aligning on-reserve social and education programming to the kinds of systems and supports that have been developed by provincial governments.

Our collective efforts in income assistance reform were mentioned earlier by James. Since the mid-1990s, provincial and territorial governments have been evolving their social assistance regimes away from what is called a passive approach of simply providing benefits to those who qualify, toward a more active approach of working with individuals toward long-term labour market attachment.

In recent years Aboriginal Affairs and Northern Development has been facilitating similar approaches among first nations who were interested in experimenting with such active measures, as we call them. This was pursued largely through pilot projects or partnerships with industry and provinces, but not on any comprehensive or sustained basis.

The investments in economic action plan 2013, the $241 million over four years, launch a significant improvement to the on-reserve income assistance program toward an active case-managed approach that aligns better with provincial practices. This funding is in addition to the $861 million in expenditures in 2012-13 for current programming. This includes basic income assistance, which has been growing at a rate of approximately 4% annually.

Here's what we mean by a change in approach. Currently, the majority of first nations delivering the income assistance program do not provide people with the support necessary to help them enter the workforce. Instead, the focus is solely on an assessment of a person's eligibility, and if that person qualifies, payments of benefits. This arrangement does not help young first nation men and women access training programs, improve their skills, and find, keep, and reap the benefits of good jobs.

The government intends to support first nations youth to get training and jobs before they come to rely on income assistance over the long term. Under enhanced service delivery, the $132 million portion of the fund that is to be administered by my department, first nations, or in most cases aggregated first nations organizations, will establish a case management system whereby case workers will work with individuals to help identify barriers to employment and to develop a personalized case plan to address those barriers. This case management will involve several steps, including intake, employability assessment, development of a mandatory action plan, and in many cases referral to a training opportunity.

The referral step is where our partnership with Employment and Social Development Canada comes into play. Case-managed income assistance clients who are recommended for training will be referred to a first nations job fund-supported organization. As Mr. Sutherland's presentation described, the first nations job fund is to be administered by Employment and Social Development Canada, primarily through the existing ASETS delivery network. This will help ensure that existing resources, connections, and networks are leveraged to the extent possible and that first nations organizations themselves are not put in a position of having to reinvent the wheel of established links with local training facilities and employers.

Enhanced service delivery and the new first nations job fund were designed to complement each other to improve the on-reserve income assistance program. The improved program will help ensure that young clients, age 18 to 24 years, who can work, have the incentives to participate in the training necessary for them to gain employment. The income assistance benefits of young clients will depend on participation in the necessary training as per current practices in most provinces.

The government expects that implementation of these improvements to the delivery of the on-reserve income assistance program will be incremental, initially focusing on willing and ready first nation service providers. We have been getting a good response from first nations wishing to participate in this new approach. Some 26 of 36 first nation organizations solicited to submit proposals for the first intake round met the deadline. Those organizations represent more than 70 first nation communities.

I will now talk about the education reform. While the income assistance reform focuses on youth aged 18-24, the link between educational attainment and labour market attachment is strong and therefore suggests a focus on primary and secondary education.

Here too the Government of Canada has been implementing a comprehensive reform effort to ensure that First Nations students have access to the same opportunities as all Canadians in terms of the education they receive. First Nations students on reserve are the only students in North America with no legal framework underpinning their education, and no formal system in place to ensure a quality education.

That is why, in Economic Action Plan 2012 and 2013, the government committed to develop new legislation for First Nations elementary and secondary education that would establish the structures and standards to support strong and accountable education systems on reserve.

The proposed legislation would provide First Nations control over First Nations education, allowing them or their education authorities to develop and deliver curricula that reflect their unique linguistic and cultural needs and interests, while ensuring education standards are equivalent in quality to school systems off reserve.

The draft legislative proposal is intended to improve First Nations student outcomes, to ensure they are able to graduate with a high school diploma and are equipped with the skills and tools they need to go on to post-secondary education or to enter the labour market. Greater education attainment will inevitably lead to greater participation in the workforce.

I will now turn the floor over to Mr. Allan Clarke, director general, lands and economic development, to continue the discussion on the department's role in ensuring aboriginal people are training and employed through the skills and partnership fund and other economic development programming.

[The Vice-Chair (Ms. Jinny Jogindera Sims), NDP, Jinny Sims]

Thank you so much.

We'll go over to you, sir.

[Allan Clarke, Director General, Policy and Coordination Branch, Lands and Economic Development Sector, Department of Indian Affairs and Northern Development]

I'll try to move through this rather quickly, given the time we have. Thank you very much for the opportunity.

Jobs and economic growth are very important and fundamental to improving the lives of aboriginal people in Canada. Opportunities for first nations, Inuit, and Métis people have never been greater.

In 2009 the Government of Canada launched the federal framework for aboriginal economic development, which is a modern and comprehensive policy approach to aboriginal economic development. It is opportunity driven and puts emphasis on building partnerships with aboriginal groups, the private sector, and the provinces and territories.

There are more than 20 different departments and agencies that have some measure of responsibility for aboriginal people in the economy, and the framework is a whole-of-government approach that brings some of these collective actions together. It is focused on five priorities: to focus the role of government around being an enabler to help eliminate and reduce some of the barriers to economic development, particularly on reserve; to leverage partnerships and resources to seize new opportunities and capitalize on increased private sector interest; to enhance the value of aboriginal assets through a modern lands and resource management regime and legislative and regulatory initiatives that leverage a growing land and resource base; to foster a business friendly climate on reserve land and strengthen aboriginal entrepreneurship through improved access to capital, procurement opportunities, and enhanced local service delivery; and to support demand-driven labour market needs with strategic investments in human capital, which you've already heard a little bit about.

With the framework guiding our efforts, we are achieving some very positive and promising results. We have a number of examples around procurement, including the $1.17 billion Canadian air force 5 Wing Goose Bay project in Labrador, and the $33 billion national shipbuilding procurement strategy. Through projects like these, with 20- to 30-year life spans, aboriginal businesses and individuals will now have access to millions of dollars' worth of procurement opportunities and employment opportunities.

Last year, through our department's community economic opportunity program, $16 million was invested, and there were 200 on-reserve projects to create jobs, generate revenues, activate lands and resources, and enhance infrastructure, which resulted in more contracts and sales for community businesses.

Significant efforts are also under way to remove barriers to economic development on reserve lands caused by the Indian Act. These efforts are helping to create the conditions necessary for economic success. The first nations land management regime, for example, allows first nations to opt out of the 34 land-related sections of the Indian Act and assume control for their reserve land and resources so they can operate at the speed of business. Between January and September of this year, 36 more first nations joined this regime.

Also, since its launch in 2010, the strategic partnerships initiative, or SPI, has supported capacity development in over 300 aboriginal communities and organizations, developed over 80 new partnerships, and leveraged close to $43 million in additional funding from non-federal and private sources.

A flagship program of the framework, SPI has had important success in a short period of time, and has been a catalyst for preparing aboriginal people and communities for participation in many significant economic opportunities.

Emerging economic opportunities are increasingly large scale and complex. You may already know that more than 600 resource development projects worth over $650 billion are anticipated in Canada over the next decade, and these hold enormous potential for aboriginal people.

This is heightening the need for federal coordination, early engagement, and more targeted support for aboriginal communities. This is where the strategic partnerships initiative has been playing an important role.

On west coast energy, over the next 20 years global demand for natural gas is expected to rise dramatically, primarily fuelled by rapid economic growth in Asia. There are currently six liquefied natural gas projects being proposed for development on the west coast.

In October, SPI funded two forums for aboriginal groups to improve knowledge about the energy sector in B.C. These events brought together first nations leadership, government, and industry partners to improve understanding and knowledge about the complexities, risks, and opportunities of major resource projects.

[The Vice-Chair (Ms. Jinny Jogindera Sims), NDP, Jinny Sims]

We're going to give you another minute just to finish off.

[Allan Clarke]

All right.

There are a couple of other examples I can refer you to in the speaking points around opportunities in resource development in the Labrador Trough and the First Nations Power Authority of Saskatchewan, which are two signature projects that are showing how we can support economic development.

I will end it there and take some questions.

[The Vice-Chair (Ms. Jinny Jogindera Sims), NDP, Jinny Sims]

Thank you very much.

We are very lucky today. We have with us Jean Crowder, the critic for aboriginal affairs, so I'm going to turn it over to her.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Thank you, Madam Chair.

I want to thank both departments for coming. Of course I have far more questions than I have time to ask, so I will start with a couple of points.

First of all, it's timely, Mr. Clarke, that you were talking about some of the energy development. We have this new report, “Forging Partnerships Building Relationships” by Mr. Eyford. It reaffirms the need for training, including resources for aboriginal leaders to engage in community-based strategic planning, targeted funding for education and pre-employment skills, sponsoring of coordinated regional strategic plans with aboriginal groups and industry, and so on. This is only one of many reports that reaffirm the need for investment in training and education for first nations, Métis, and Inuit.

I also want to comment on Ms. Murphy's comment with regard to K-to-12 education. Of course programs for adults rely heavily on the fact that you have a successful K-to-12 system.

You referenced, Ms. Murphy, the new first nations education act that's been proposed. I'm sure you're well aware of the fact that first nations from coast to coast to coast have some very serious problems with the development of this act and the proposals, including the fact that the act will look at funding in the regulations, but at this point in time, many first nations receive 30% to 40% less funding than comparable schools off reserve.

In your presentation, you indicated, “Here too the Government of Canada has been implementing a comprehensive reform effort to ensure that first nations students have access to the same opportunities as all Canadians in terms of the education they receive.”

Can I take that as a commitment that funding will be comparable to off-reserve schools?

[Chris Rainer, Director, Strategic Policy and Planning Directorate, Department of Indian Affairs and Northern Development]

Thank you for the question.

In budget 2012, the government committed to working with willing partners to introduce a first nations education act that would explore mechanisms to ensure stable—

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Sorry, I have limited time. Could you just deal with the question with regard to funding?

[Chris Rainer]

Absolutely. We continue to consult on the first nations education draft legislative proposal. We have heard consistently that funding is one of the key issues for first nations. It comes in two forms: the quantum of funding, but also the question of the structure of funding.

The Government of Canada has committed to developing a new approach to funding first nations education that would be based on three principles. When we talk about stable and predictable funding, what we're talking about here is that the legislative proposal would include language that describes the federal government's responsibility for funding first nations education on a statutory basis.

The second principle is that of sustainable funding. What that means is the legislative proposal would ensure a level of funding that would support the provisions of the legislation and promote transparency by determining funding through a formula, such as the provinces do.

The third basis is encouraging the development of education systems, and funding to allow that to occur as well.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

The bottom-line question is this: will first nations on reserve receive comparable funding to communities off reserve, yes or no?

[The Vice-Chair (Ms. Jinny Jogindera Sims), NDP, Jinny Sims]

Mrs. McLeod.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

On a quick point of order, Chair, I know that Ms. Crowder is not normally on this committee, and she has a huge passion, but we only have so much time with the officials.

You know, the purpose of the study and the mandate of the study were really focused on the programs and the employment opportunities. I know that education is valuable, but I just guess that—

[The Vice-Chair (Ms. Jinny Jogindera Sims), NDP, Jinny Sims]

I can see a connection between the two, actually. There's a very close link between education and ASETS, so I will allow the question to be asked.

To all of our guests, I'm going to urge you to keep your answers brief. If members want an expansion on the answers, they can ask you to expand on them. We do have very limited time.

Thank you very much.

Jean.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

It was in the presenter's notes. I'm only referencing what was presented.

Could I have a yes or no answer on comparable funding?

[Chris Rainer]

Funding is essential, but it's not the only condition necessary for success. The minister's been very clear that once we can establish what the proper structures and systems for a sound education system are, that money will then follow through the legislative initiatives to ensure that—

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Thank you.

I'd like to touch on the first nations jobs fund. Were first nations involved in the development of that fund?

[Sheilagh Murphy]

We've been working with first nations over the last number of years to get to active measures, and we've been building on successes they've used. In terms of the first nations job fund, what we identified through our work with first nations is a lack of access to skills training and development.

What the first nations job fund does, similar to what is already available through the ASETS network, is reserve funding for individuals who will be identified for training. The job fund is basically the same programming that's already available through ASETS, but it makes sure that income assistance recipients have access to that on reserve.

That fund is not a different type of programming. It mimics the programming already available through the ASETS network. It also—

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Were they specifically consulted?

[Sheilagh Murphy]

We worked with them to identify their needs. Their needs were skills training and development. The ASETS program works well, so we're using the ASETS network to do that training with them.