Economic reconciliation with Canada’s First Nations goes hand-in-hand with natural resource development, but such development is too often blocked by the federal government, according to a study published by the Montreal Economic Institute (MEI)..“For many First Nations, economic reconciliation means reaffirming their autonomy and self-reliance,” says Krystle Wittevrongel, senior policy analyst at the MEI and author of the publication. .“When Ottawa stands in the way of resource development projects with First Nations partners, it effectively stands in the way of First Nations prosperity.”.Dale Swampy of the National Coalition of Chiefs defines economic reconciliation as a proper strategy for solving on-reserve poverty, the MEI reports..The median annual income of indigenous Canadians working in oil and gas was $144,000, according to the latest census. This compares with an all-sector median of $46,800..Nearly two-thirds (65%) of self-identified indigenous people living in rural areas or on reserves support natural resource development, according to a 2021 Environics Research poll..“Critics of natural resource development projects often assert that indigenous peoples are mostly opposed to them. But what they are against are projects in which they are not included or for which they bear the risk without the reward, not the principle of resource development itself,” the study states..The study says the Northern Gateway pipeline would have increased Canada’s GDP by $312 billion and provided 907,000 person-years of employment and $98-billion in government revenue. Per year, this translates to $9.8 billion of GDP and $2.9-billion of government revenues..The Frontier Oil Sands Project was to include the construction, operation, and reclamation of an oil sands surface mine in northeast Alberta. At full capacity it would have produced 260,000 barrels of bitumen daily for 41 years, starting in 2026. Its construction alone would have generated $19.1 billion in GDP and $2.2 billion annually while in operation..“The project would have employed significant numbers of Canadians, notably local Indigenous labour that may not have alternative employment in the absence of the mine,” the MEI paper explained..“While the federal government technically didn’t cancel this project, its ambiguous policies were a formidable hurdle to development and played a lead role in making the project unprofitable.”.The Energy East Project would have transported 1.1 million barrels of crude oil per day by pipeline from Alberta and Saskatchewan to refineries and marine terminals in Eastern Canada. Energy East would have displaced foreign oil and facilitated exports for 40 years. .“The project proponent, TransCanada, had consulted with 166 First Nations and Métis communities along the pipeline and had developed a number of economic, educational and training, and partnership opportunities linked to the project, as well as ample community investment initiatives,” the paper explained..“Cost-benefit analysis modelling showed significant economic benefits, as well as the addition of 321,000 one-year, full-time equivalent jobs in the construction and operation phases of the project. However, in 2017, the company cancelled the project after new emission criteria were put in place by the National Energy Board, on top of already costly regulatory delays.”.The MEI study explains that Ottawa’s obstruction of large oil and gas and pipeline development hurts all Canadians, including the indigenous..“When Ottawa blocks multi-billion-dollar projects with First Nations partners, such as Northern Gateway or Frontier, it stands in the way of their prosperity and self-reliance,” explains Wittevrongel. .“Talk of economic reconciliation is cheap, and Ottawa’s repeated decisions to stand in the way of such projects shows a clear lack of commitment to the concept.”.The MEI is an independent public policy think tank with offices in Montreal and Calgary. Through its publications, media appearances, and advisory services to policy-makers, the MEI seeks to advance debate and reforms based on sound economics and entrepreneurship.
