Mr. Speaker, I stand today in support of Bill C-23, a bill that I believe is good for all first nations and also for Canada.
I particularly wanted to mention Chief Tom Bressette who is in southwestern Ontario, the area of the country in which I live. I know he has worked very hard, as have other distinguished people working on this bill. I think the bill is a tribute to the hard work of these individuals who gave their input so that we could be in this chamber today discussing the bill.
The four institutions that are central to the legislation will provide a means for aboriginal peoples to participate more actively in the Canadian economy and foster business friendly environments while meeting the specific needs of their communities.
Just a few short decades ago the economic prospects for first nations and Inuit communities were extremely limited. Government policies restricted the ability of these communities to exploit natural resources on their ancestral lands. Many communities, already geographically remote, were further isolated by undeveloped communications and transportation links.
Today it is different. Aboriginal businesses operate in every sector of the economy: in primary industries, such as mining; in secondary industries, such as manufacturing; and in tertiary industries, such as telecommunications. More and more aboriginal businesses export their goods and services abroad and aboriginal trade associations help fledgling entrepreneurs grow their businesses.
Despite these improvements, first nations still face many barriers to sustainable growth and economic development. These obstacles include the challenge faced by aboriginal entrepreneurs and communities in acquiring sufficient equity and debt capital to undertake development initiatives.
Many first nations have already demonstrated that once they gain access to capital they can invest wisely. In the western oil patch, for example, the Dene Tha' and the Saddle Lake First Nations have acquired stakes in a total of five oil rigs that operate under contract to petrochemical companies. Squamish First Nation, as another example, is participating in a $17 million hydro-generation project on Furry Creek.
These investments create employment and training opportunities for band members. The projects also generate profits that can be reinvested in the local community: in social services, in health care and in education.
I believe the first nations fiscal and statistical management act, a first nations-led initiative, would offer first nation communities access to tools that will enable greater economic development and growth and improve the quality of life in the communities.
While the benefits of the act would be many, I believe its potential to unlock economic development opportunities for first nations deserves some very special attention.
The legislation, the result of more than a decade of work by first nation leaders and other partners, would establish four institutions that will be operated by and for first nations. These institutions would improve the ability of first nation governments to provide services, build infrastructure and, most important, create employment.
For example, one of the institutions, the first nations finance authority, would enable a band council, just like any other local government, to raise long term private capital at preferred rates. Currently, first nations seeking to borrow funds for community infrastructure face prohibitive transaction costs, processing times and interest rates. Due to the lack of an appropriate legislative and institutional framework, $1 of first nations' tax revenue buys 30% to 50% less in capital works than the revenue of other governments. I think this has to be changed.
Improving first nation access to affordable capital would help pay for much needed economic infrastructure, infrastructure that would not only make a difference to the lives of the people in first nation communities but would also increase first nation participation in the economy, make first nation communities better able to draw investors and enable first nation entrepreneurs to launch successful businesses and attract partners.
Aboriginal entrepreneurship represents a tremendous opportunity for all Canadians. Indeed, I am convinced that fostering aboriginal entrepreneurship is vital to Canada's long term prosperity.
Let us consider for a moment Canada's changing population. We are currently experiencing an aboriginal baby boom, particularly in the western provinces and in the northern territories. The aboriginal population, already significantly younger than the rest of the Canadian population, is also growing much more quickly.
Furthermore, aboriginal young people are twice as likely as other Canadian youth to start businesses. I think that is an important statistic. I believe these trends represent significant opportunities for economic growth.
To make the most of these opportunities though, aboriginal communities must be able to participate more readily in the economy. To do this they must have clear access to their resources and to affordable capital for economic development. Entrepreneurs require business partners.
With the practical fiscal management tools that are at the heart of the legislation, first nations would be able to better manage their land and could more easily acquire the funds that they need to engage in community building projects.
Bill C-23 would also lead to greater and more immediate decision making powers, enabling the first nations themselves to capitalize on existing business relationships and build new ones.
As first nation economic development expands, the range of work experience available to first nation peoples will continue to broaden. It is precisely that breadth of experience that will foster ongoing innovations and stimulate Canada's economy.
A new generation of aboriginal entrepreneurs, bursting with ideas, energy and confidence, is keen to make a mark on the business world. Canada, the major exporter in an increasingly competitive business world, cannot afford to waste any of that talent nor that energy.
A second of the four institutions that would be created by the act is the first nations management board. The board would certify financial management systems, practices and standards of first nations that choose to participate and would also ensure financial performance remains constant. Certifying the credit worthiness of first nation communities will strengthen their ability to gain access to low cost capital.
As well, the institution would promote financial management capacity development and encourage adherence to sound financial management practices. This is being done already in a lot of the communities and I encourage this practice.
I believe the first nation communities and businesses that are built on solid financial management foundations will attract more investors and a greater number of business partners from private sector and public sector alike.
As the House will recall, the government made a pledge in the Speech from the Throne to see real economic opportunities for aboriginal individuals and communities.
Over the last 10 or 11 years I have had the pleasure of chairing the aboriginal committee and the finance committee. In my capacity as Parliamentary Secretary to the Minister of Justice, I now get to travel the width and the breadth of this nation. I have met with many of the aboriginal people and leadership across the country and I see that we can be moving forward. Sometimes it will be in partnership and sometimes it will be the entrepreneurs but the talent and the expertise is there.
We are getting the education in place for the younger people. I think we have to be facilitative, encouraging and be champions for the things that can better the lives of our aboriginal Canadians. The bill goes in that direction.