Merci, Mr. Chair, and welcome, committee, to our north. Drin qweenzee.
I quess I can say I'm a true northerner from the Gwich'in Nation in the western Arctic, and I represent the Métis-Dene Development Fund, of which I am a director. We've submitted a brief to your clerk, and they will get them interpreted and passed around.
I just want to highlight some of the main points in the brief and focus on what we consider to be some of the barriers and some of the solutions, which I believe is your focus.
The Métis-Dene Development Fund, and I'll just use the acronym MDDF, was formed in 1991 under the Canada Business Corporations Act. We have two shareholders, the Denendeh Development Corporation and the NWT Métis Development Corporation. Over the years, we have lent out in excess of over $12 million to more than 200 Métis and first nations businesses in the north. Currently we have about 60 active clients, and we cover just about all sectors of the economy.
In the last year we've signed a new agreement with the Department of Indian and Northern Affairs called SINED, and that's a new one where we're now expanding our lending to non-aboriginal businesses in the Northwest Territories. The total loan capital for our corporation is now about $6.5 million. That's quite a leap from when we started, with just over $2 million.
Again, I'm just very quickly going through some of the highlights. I'd like to focus on some of the barriers to economic development, and I'm sure you've heard these. I've seen some of the briefs that were presented, so I'm sure there will be some repetition.
Underfunding, the ability to get equity to start up businesses, is one of the issues for organizations such as ours and others that are in the business, and it affects their ability to service and be in the smaller communities where people can access the services. After care is a huge issue because of the limitation of trained and expert people in smaller communities.
Another area is mentoring and job shadowing.
Bookkeeping is one of them as well. Again, businesses tend to centre in the larger communities and they try to service everywhere from places like Yellowknife, Inuvik, and Fort Smith, and of course they don't get into the communities where we want to keep our business people.
Technology again is an issue, such as high-speed Internet, e-mail, cell service. All that is a boon to having good business, the access to information and access to banking services that we in bigger communities get very used to. It's very difficult.
Procurement is another area where we feel there's a bit of a barrier because in the north we usually go south to get cheaper goods and services, which doesn't really develop the manufacturing or supply end of things in the Northwest Territories. And there are your freight costs. You guys have been travelling, and you're going to go to Iqaluit. You know the distances you have to travel; we do that as a matter of course.
Seasonality, with our short construction season, is another issue for many businesses that are in construction, and especially for ones that rely on government contracts and have to do their work in two to three months. Again, the profitability of trying to do that or do rush jobs is very difficult.
Banking is another one, getting access to capital or even payroll services. You need cash to do some of your business. Most places have a northern store or a Co-op store, and it's very difficult to access cash. So banks or other types of services that provide cash are a necessity. We talked about human resources a bit, the need for trained people and skilled people. You heard from the mining industry about the lack of skilled people and the need to train people to do work for them.
Government is an area where...there are a lot of agencies involved in economic development, both federal and territorial. Again, they do a lot of good work, put out a lot of good brochures, but really, at the end of the day, it's what gets down to the business level, and we find that a bit lacking. We need governments to not only talk the talk, but also walk the walk.
I'll talk bit on some of the solutions that we feel could help. One is funding for start-ups, equity funding or loan guarantees to assist businesses getting started. It's always an issue. You have lots of good people who want to start a business, good tradesmen especially. It's very hard to get funding to start up. Our aboriginal finance institutions and our Community Futures in the north have very limited funding. We're trying to service a large area--a small population but a large area--and we're always stretched thin. A lot of our money seems to go towards administration, which means less money for the actual customers.