[Witness spoke in Ojibwa as follows:]
Aanii Tabatha n’dizhnikaaz. Nipising ndo njibaa. Migizi ndodem.
[Ojibwa text translated as follows:]
Hello, my name is Tabatha. I am from Nipissing. I am of the Eagle clan.
[English]
As president and CEO of the Canadian Council for Aboriginal Business, I want to thank you, Mr. Chair and all distinguished members of the committee, for the opportunity to provide you with my statement and to answer any of your questions.
Speaking to you from my home office, I acknowledge the land as the traditional territory of many nations, including the Mississaugas of the Credit, the Anishinabe, the Chippewa, the Haudenosaunee and the Wendat peoples.
As Chief Poitras shared with this committee on November 3, 2020, “This pandemic has highlighted the inequities in this country and exacerbated existing challenges.” This statement underlines how, more than any other time in history, indigenous issues need to be top of mind for the Government of Canada and the Canadian public.
Since 1982, CCAB has been committed to the full participation of indigenous peoples in the Canadian economy. Our work is backed by data-driven research, recognized by the Organisation for Economic Co-operation and Development as the gold standard for indigenous business data in Canada.
From the beginning of the pandemic, the Government of Canada introduced efforts to build supports for businesses. A number of those supports were required to be remedied to include indigenous businesses, and while access is now available, CCAB has repeatedly highlighted the need for a navigator function specific to indigenous business to assist with the understanding and uptake of the various programs. Indigenous businesses have found navigating the bureaucracy, which often does not consider their unique legal and place-based circumstances, a significant barrier to accessing the supports necessary to keep their businesses alive and maintain the well-being of their communities.
The lack of targeted assistance for indigenous businesses to utilize these government supports further adds to the frustration and distrust that is the result of our history. This underlines the need for an indigenous economic recovery strategy that is indigenous-led, builds indigenous capacity and is well resourced to support indigenous prosperity and well-being. Access to external markets would be an important part of this work, including the need to back indigenous exporters as part of the recovery.
Such a strategy was not mentioned in the recent Speech from the Throne. Although we acknowledge the number of important renewed commitments made in the Speech from the Throne, I would be remiss if I did not express my disappointment that there was no mention of efforts to support the economic empowerment of indigenous peoples, businesses or communities. This was a missed opportunity for the government to signal to Canadians that indigenous prosperity and economic reconciliation matters.
As this committee is aware, in order to support sound federal policy development and effective interventions during the pandemic and in collaboration with leading national indigenous organizations, including my colleagues here today, CCAB undertook a COVID-19 indigenous business survey, as was discussed in the last session, as part of a COVID-19 indigenous response task force. The goal of the survey was to understand the unique impacts of the COVID-19 pandemic on indigenous-owned businesses in Canada, and to encourage the Government of Canada to support indigenous businesses through purchasing PPE from them.
As we dug deeper into our research, we found that indigenous women disproportionally bore the brunt of the negative affects of COVID-19. More indigenous women-owned businesses reported very negative outcomes to their business—61% of women-owned, compared to 53% of men-owned. Women-owned businesses experienced higher revenue drops as a whole—50% or more—compared to 36% of men-owned. In addition, Inuit businesses are most likely to have experienced a revenue drop of 50% or more, compared with Metis-owned and first nation-owned businesses.
The CCAB appreciates the indication provided to us by Indigenous Services Canada that they will fund a second COVID-19 indigenous business survey this fall, and a further survey in the spring of 2021, to assess the impacts that the first and second waves of COVID-19 have had and are having on indigenous businesses.
It is our hope that the results of both surveys will inform effective policy and programmatic interventions to support indigenous business recovery and, in turn, support indigenous prosperity and well-being. We welcome an opportunity to provide that data to you in the future.
During my last appearance before this committee on May 29, I pointed out that the unique circumstances facing indigenous businesses were not initially taken into account when forming the eligibility of CEBA or Bill C-14. That initially left many large indigenous-owned businesses ineligible for the wage subsidy. We appreciate that these gaps were remedied. However, we must not forget the additional burden the close to a month-long gap had on many indigenous businesses.
Furthermore, with an understanding that there were on-reserve businesses that could not access the programs available due to unique taxation and ownership structures, the government announced the distribution of $133 million to support those indigenous business. Analogous to the work currently being done to extend CEWS and CEBA and the remediation of the rent assistance program, investigation and consideration must be given to the extended needs of the same businesses that were not eligible for that funding.
I would like to underline that indigenous businesses have repeatedly told us that they are not in a position to take on any more debt.
I also mentioned in my last appearance that numerous indigenous businesses were prepared to readily provide supplies or equipment to meet Canada's medical needs and the capability to rapidly scale up or pivot production to PPE. CCAB and other organizations, as discussed earlier, have provided lists of such indigenous businesses to numerous federal departments and through the task force database, but only a small fraction of the over $6 billion of federal procurement contracts for PPE have been awarded to indigenous businesses.
An announcement on September 21 noted a total contract of $2.5 million to seven indigenous businesses. This represents only 0.04% of the federal spend on PPE, nowhere near the 5% commitment made last year in Minister Anand’s mandate letter and the Speech from the Throne. The commitment is a target of at least 5% of federal contracts to be awarded to indigenous businesses, and in the throne speech, a support of supplier diversity. The frustration on the lack of progress on this 5% target has been evident in our discussions with our members and at our public Business Recovery Forum on September 16.
I would like to leave you with this point for consideration.
Too often, indigenous business concerns are an afterthought, resulting in indigenous organizations such as CCAB, NACCA and Cando working to prove to government that their responses have not met the needs of indigenous people. There is no better example of that than PPE, as 0.04% of federal spend on PPE is not a genuine effort to achieve economic reconciliation. A reasonable starting point to support indigenous economic recovery would include procurement and infrastructure set-asides for indigenous businesses and communities.