Financial expertise key to make ‘potential’ into reality

 Gail Murray runs Vero Management Ltd., a 100 percent Aboriginal-owned company that balances many years of corporate banking and financial expertise with First Nations communities and economic development.

Murray is the General Manager of Vero Management Ltd.. When we met a couple years ago, it was while the world of business started to open up to First Nations. I was reading about things happening in First Nation economic development. Little did I know Murray played an instrumental role in developing incredible stories , literally breakthroughs in capacity building on many fronts.

More recently Murray saw a need, took the risk, and now it’s paying off. “The best part of it all is we are making a difference to First Nation communities we work with.” Just one year ago, Murray decided to form a management consulting practice. In her career, most recently the last decade, she was Regional Manager, Aboriginal Banking, RBC, B.C. District, and became intricately aware of First Nations community and economic development. She mastered a few financial turns in making success out of the unique challenges faced by First Nations. 

“Businesses and corporations alike were attempting to balance economic development with sustainable and healthier intentions.” 

Murray says, “Strong financial fundamentals are a critical component of any business or community development scenario." Murray believes the people she works with have professional backgrounds that fit an emerging business model, one that works within the environment to create wealth while sustaining the environment, “The business models developed in Canada with First Nations and Aboriginal groups could have a much broader application throughout the world of Indigenous People developing their economies. There is a global shift towards more socially and environmentally responsible development and support.”

There is a number of framework organizations monitoring this emerging economy, and Murray rapidly cites several, including Dow Jones Sustainability Index, Janzi Funds, and, “the Ecuador Principles, and other globally recognized benchmarks have been established to ensure socially and environmentally responsible development.” Whether it is First Nations or corporate clients  the objective is the same for Vero, “bringing a team of experts who are committed to making the outcome a success.” 

Business stories about First Nations used to be hard to find in the 1990s when I started looking and writing them up in all kinds of news outlets. Today we are beginning to see Aboriginal business reaching to new highs in the Canadian and world economy. The economy of the country is changing, Murray says, “We need to change and adapt to meet changing needs. Often this is through transitioning workers from one sector to another. ” She adds, “Developments of massive proportions are becoming increasingly common,” and all partners have critical financial decisions to make. “That’s where Vero will play a critical role.”

She adds, “It’s our goal to ensure First Nations are fully in front of the changes that take place in their territories.” Her company adheres to a philosophical statement: Vero Management Ltd. is Where Business and Social Responsibility Meet. By the way, Vero means ‘Truth’ in Latin.

Housing a not-forgotten issue in Manitoba

Darcy Wood is engaged in policy-making of housing at Assembly of Manitoba Chiefs, “We develop housing and infrastructure policies related to First Nation housing and infrastructure. Our programs and policies relate to the ability to meet the needs in communities, and policies arise from the demographics. Our strategy is based on scenarios that include 18 people to a house in communities like Pukatawagon, where people take shifts sleeping.”

Urgency is an understatement with population growing at 2.5 percent per month. “We identified the number of houses on reserve as of May 2011. We found Manitoba has average housing density at 2.5 per household, whereas First Nations averaged 5.7 per household, almost triple the density.” Wood says, “We need 30,000 houses. We also identified the number of adequate houses, and the number of houses with repairs required.”

Wood said, “Major renovations are required and we identified a cost of about $40,000 per unit in repairs, in addition to minor repairs. We have 1,300 condemned units still occupied. The housing backlog has been identified.” Housing costs present AMC with daunting figures, “It costs $150,000 per house to build, and there will be additional costs of $25,000, depending on location,” says Wood. 

“We identified $2.7 billion required for First Nation housing in Manitoba alone.” Wood says, “No government’s gonna do that,” candidly. Indeed, says Wood, “We receive an average of about $22 million per year for housing (or $30 million in a good year), and 80 percent goes to building supplies.”

In a bid to maximize the impact of the money, Nelson House Cree Nation formed Meetah Building Supplies about ten years ago within Nelson House Development Corporation, David Kobliski, general manager. “We are very humble operation, Kobliski says. “Gert Wilzer runs a bulk building purchase program for supplies, and Bands can save 30 percent in the purchase price of building materials and supplies. We opened a Meetah franchise in Onion Lake, Saskatchewan, two years ago.”

Kobliski says, “We structured ourselves to purchase directly though a buying group. Bands buy at reduced cost and Meetah supplies training to on-reserve labour, building the social capital of the First Nations by creating skilled labour. Previous suppliers would come in, drop off materials, and leave, so this is an improved use of the funding .”

Thus, “We purchase direct and pay less and have money to operate the lumber yard, employ community members. We have big populations to serve, and we manufacture doors and cabinets in Nelson House,” more employed skill labour, creating social capital that is needed in capacity building.

Twelve people are employed in manufacturing at Meetah. “We are currently discussion with other First Nations to offer the same opportunities as we have, and the primary benefit is the transfer of knowledge and creation of skills, making employment opportunities in building houses. We have Red Seal apprenticeship carpenter training at the Nelson House facility graduating a few apprentices every year.

“NCN Builders at Nelson House is a Band-owned company that constructs houses. We offer two packages, one is a house with materials , the other is a supplied and constructed house, so one package is supplying the building materials and one is supplying labour with the materials.” They build on reserve housing, an average of 15 units per year. 

“Project development is portable and the other thing we do is build houses for the real estate market in Thompson, Manitoba, design, build, and sell them. The company is doing commercial building, as examples, a restaurant and personal care home in Nelson House.”

The Nelson House company employs 15 full time employees. Onion Lake’s Meetah Building Supplies run their own operations ranging all over Saskatchewan from Onion Lake. “We have non-competition agreements,” said Kobliski, “and strategies in the sales are based on that arrangement.”

Opposition to Compliance’s Raven project appears universal

Lands and waters of the Inside Passage on the west coast had two national entities. The Coast Salish from mid-Vancouver Island to the Malahat on the south who would face Kwak Kwak A’wak tribes directly to the north. The Salish Sea of the Inside Passage was their seafood banquet from time immemorial. At the north end of the Salish Sea the Pentlatch people were of the Coast Salish Nation.

Coast Salish did vigorous trade in the Pacific Coast economy. They were large and self-sufficient as a nation with wealth unsurpassed from Fraser sockeye salmon runs. They traded competitively with Potlatch nations like Makah (or other Nuu Chah Nulth), Kwak Kwak Awak, Haida, Tsimshian, and Gitxsan.

Potlatch contained a system of ownership protocols, identifications of wealth garnered from trade. Everything was recorded in elaborate ‘art’ that was actually advanced hieroglyphics. The only misfortune of the Pentlatch was to occupy a territory holding fossil fuel for it made them a target on their own property of millennial concern. Coal was ‘discovered’ and a coal rush began.

The Pentlatch collective might have been extinguished except blood lines escaped the onslaught of disease and rampant dislocation to live with K’Moks people a short distance to the north of traditional Pentlatch homes in Union Bay and Fanny Bay and lands that climb away to the west on Vancouver Island.

The nightmare for Pentlatch occurred when coal was king. As time passed so did the coal industry from the Cumberland area, and new industries long since emerged, including a flourishing shellfish industry involving K’Moks and Pentlatch families in their traditional waters of Bayne Sound.

Therefore the provincial government is hearing a well-spring of concerns about such matters as traditional rights and title and imminent concerns over settling the First Nation land claims around proposed coal properties, concerns that have to be addressed before king coal returns to wreak havoc again with Pentlatch and K’Moks people. 

On June 28, 2011, K’Moks First Nation declared opposition to Compliance Energy Raven Project, as reported in Comox Valley Echo, a regional newspaper. “K'ómoks First Nation has come out in opposition to the proposed Raven Coal Mine near Fanny Bay,” says the report. “It not only has serious concerns over the environmental impact a mine could have, but also believes the project will be harmful to ongoing K'ómoks treaty negotiations and aboriginal rights.”

The Band's chief negotiator, Mark Stevenson, noted in the press release that the K’Moks intends to become owner of 90 hectares (220 acres) of Crown land between the proposed mine site and Fanny Bay as part of an eventual treaty settlement, and that any mine would, "severely restrict the use of any land added to the K'ómoks land deal in treaty talks.”

 Indeed, K’Moks expresses concerns whether land acquired will be environmentally compromised and untenable for any useful purpose. Issues like quality of the local aquifers and creeks in the immediate area are crucial to K'ómoks people as well as many others, said Stevenson. The K’Moks earmarked Tsable River and Cowie Creek drainage systems, in particular, “Water rights on those two watercourses are part of ongoing negotiations.”

The negotiator said that regard should be paid to waters (including Tsable and Cowie Creek) that empty into Baynes Sound, furthermore, where K’Moks and many growers operate significant shellfish aquaculture interests. K’Moks expects to add more shellfish operations when a treaty is signed. Stevenon stated that promoters of the mine had, “shown no interest in aboriginal and treaty rights. We want to set the record straight. We cannot support any project that hurts K'ómoks' long-term interests."

The K’Moks people are not alone in opposition. Baynes Sound coal mine opposition has been called 'unprecedented, in headlines carried in the Comox Valley Record, June 30, 2011. Reports said over 2500  people submitted comments about the proposed Raven underground coal mine near Baynes Sound during a 40-day public comment period. Overall public meetings about the mine drew a combined total of about 1,500 people in Courtenay, Port Alberni and Union Bay.

Organizations from the B.C. Shellfish Growers Association to the Port Alberni and District Labour Council to the K’ómoks First Nation — a diverse group of organizations and people are standing against this project,” the report said, and, ”of the over 2500 submitted comments, over 95 percent were voicing serious concerns about environment or opposed the project.”

John Tapics, President and CEO of Compliance Energy, recently stated that an independent feasibility study was a significant step forward. He said the study confirms the long term financial viability of the Raven project which is achievable with responsible environmental and social considerations. “We are pleased with the plan developed in the Feasibility Study . . .  and look forward to our next phase of progressing forward through the coordinated Provincial-Federal environmental approval processes."

The Feasibility Study concludes that the Project (100% basis) is financially attractive with an estimated pre-tax NPV (8% discount rate) of CDN$378 million at an average realized coal price of CDN$174 per tonne (prices are FOB Port Alberni). The Project returns a non-levered, pre-tax discounted cash flow-internal rate of return of 28.7%.

Opposition mounts even if the numbers look good. John Snyder of CoalWatch Comox Valley said public and email submissions are showing an amazing amount of opposition. “I was at all three public meetings, where 1,500 went to public meetings and 200 signed on to make their statements public. Of all 200 only one spoke in favour. We are being spun as a vocal minority but that is totally false.”

The common thread is, “We don’t see the proposed project as a future vision for our communities,” said Snyder, “The coal mine is on the east side of Vancouver Island, and they plan to transport the coal 80 km to Port Alberni. Both Fanny Bay and Port Alberni citizens have been joined by Island-wide opposition.”

There is the green factor to consider, says Snyder, that B.C. is willing to export a huge amount of coal, most to Pacific Rim countries, whereas it is illegal to burn coal for energy in B.C.. “The government wants to paint themselves green when they export the problems contributing to greenhouse gas emissions.”

Snyder notes that Port Alberni has fallen on hard times with the downturn in forestry so the city is trying to reinvent itself. “It’s boom and bust in Port Alberni, however, the District Labour Council has passed unanimous motion to oppose the project. They say a handful of jobs at port facility doesn’t outweigh the negatives.”

The negatives they say are 3 trucks per hour, 24/7, 365 days a year, trucking in a circuitous route, going in loaded, coming out empty on the transportation corridor, “which is looking at 150 trucks per day going past your front door.” Snyder adds, “People in favour say, well, in the old logging days we had a lot of trucks. Don’t forget normal traffic and a lot of tourists also have to use the corridor.”

Snyder’s group says, “Port Alberni has air quality issues, winter temperature inversions, trapping pollutants. The project adds up to a couple hundred jobs at the mine site, trucking jobs, and the shipping terminus for the metallurgical bituminous coal product in Port Alberni. Complaince obtained a property in which coal is owned outright, so no royalties accrue to the province. The property is part of the old Dunsmuir deal,” dating back to the end of Pentlatch communities. “All the underground rights went into the building of the railroad to ship the coal.”

Raven Mine will have a 3100 hectare underground footprint, said Snyder," and a 200 hectare above ground footprint. Fifty-six percent of the raw coal mined will be left on the surface as waste rock, and the remaining forty-four percent will be shipped for export. Other deposits are in sight so this is a foot in the door.” He suggests part of the environmental assessment should be inclusive of other deposits within  Compliance Energy's 29,000 hectare coal tenure in the Comox Valley.

“We sent a request for an Independent Review Panel to then-federal Minister of the Environment Jim Prentice last August, explaining why we thought it is necessary for Independent Review Panel. The time line for the 16 year mine would begin in 2013,” although that may be less than completely feasible.

Hopetown, B.C., revitalization by Gwawaenuk

Chief Charlie Williams and the Gwawaenuk community are is working on an extensive program of revitalization and has the village site of Hopetown, B.C., on Watson Island, coming back to life, “We began August 20, 2010, with a team of archaeologists and experienced assistance, with the main purpose of starting to dig in sensitive areas containing human remains, then remediation of sites containing fuel tanks,” says Chief Williams.

The project purpose is to remediate or clean over 3,000 m3 of diesel contaminated soil from Heg’ums the Gwawaenuk traditional and current main village site. Being the main village it is also a 4000 year old archaeology site. It’s a large team of archaeologists and labourers working under Gwawaenuk, Hartley Odwak’s Sources Archaeological, Heritage Consultants, Hazco contamination Services, SLR Environmental Services and KWL Engineering. 

The project got legs once the remediation of defunct fuel storage facilities was approved and funded by INAC’s Contamination Site Management Program administered by Brad Reshetylo. The ultimate purpose is to revitalize the a community and begin the process of eventually re-building so people can return home year-round that was in a relatively moribund state of existence. The Hopetown project has hired Senior Sustainable Community Planner, a planner in Cari St. Pierre who has a close association with the Gwawaenuk of Hopetown since 2004.

The chief says, “The project came about after two years of community meetings long before the men and equipment began to assemble, and we had the usual minor glitches to deal with. There was a muddle of things including a decrepit electrical generation system, a lot of 45 gallon fuel drums, and a major clean-up of the village site.” Essentially the Gwawaenuk people of Hopetown are dealing with a six-acre village site on Indian Reserve property that was their home due east of Port Hardy since time immemorial.

The project is  assisted on the environmental responsibilities by HAZCO Environmental and that company hired nine has hired 13 of the approximate 32 workers directly from the Gwawaenuk Tribe and neighbouring Tribes of Guildford, Alert Bay and Kingcome to complete the project. Many of these people are working for Sources and have previous local archaeology experience so they can people from the First Nations to assist in the remediation of a 4,000 year old site of human habitation. , and First Nations are also on hand to supply first aid personnel. The process is geared toward completion by October 31, 2010.

As part of the community 10 year comprehensive and strategic plan “Then we move to the community, infrastructure, housing and economic development planning phase, and that will take the next four to seven years to complete,” , says Chief Williams. The chief notes, “Hopetown was kept alive by Henry and Julia Speck, an elder of Gwawaenuk elders who never gave up the site. Because of Henry and Julia we are able to be in Hopetown doing the right thing by our nation.”

Part of the community revitalization is a move towards 24hour power and eventually green renewable The community will be revitalized by new technology in green energy to supply cleaner energy to for new housing and community facilities. Project Manager and Senior Planner St. Pierre says, “This energy system is will be a hybrid green energy system suitable to applicable to remote areas, supplied by Energy Alternatives.”

Cari notes that the project includes remediation of the village an important creek in Heg’ums on Watson Island, “bringing the creek back to Salmon-bearing standards is another . That is an exciting outcome of the remediation project for the community.” prospect in its own right.”

Fort Nelson First Nations work hard to stay engaged in a huge oil and gas play

Harvey Behn is the General Manager of Eh-Cho Dene Enterprises in Fort Nelson, B.C., a company and a community at the centre of a huge oil and gas region in full industrial bloom. It doesn’t get any more industrially active in oil and gas than it is right now in the surroundings of Fort Nelson, says Harvey.

It is his ancestral home as much as his current home, whereas Harvey is educated in oil and gas development with a Petroleum Engineering degree from University of Wyoming. “We are riding a tsunami of new development in the oil and gas industry around us, and we are surrounded by industry, government, and then there’s us, little Indians on the bottom trying to get up on the wave and ride it to survive.”

He stares at the spending program underway by oil and gas exploration companies (the number of which are too many to count, much less name) and he reflects upon the impact to the environment, the lifestyle of people in the area, and the ways to make opportunities a reality for his community.

As general manager of Eh-Cho Dene Enterprises construction company he employs up to 120 people during major construction projects. The company history dates back to the early 1980s, and in the past 20 years the Fort Nelson Dene people have established a lot of thriving businesses that operate in the town and region; many residents of the 500-person reserve either work for Dene-owned businesses or own one themselves. (Another 300 members buy or rent homes in Fort Nelson or area.)

The current pace of business activity is a little daunting even to a professional oil man with a long career like Harvey. “Just one oil company, for example, has a $1.2 billion exploration budget to outlay in drilling and all the obligations.” Harvey’s goal is to put Eh-Cho Dene trucks and equipment into a few of these expansive operations. Fort Nelson is their epicentre of activity, a place where Harvey was born and raised. He also sits on a six-member council, while the Eh-Cho Dene company is a limited owned by the Band, and run by a six-member board of directors.

Illustrative of how busy the activity is in Fort Nelson, says Harvey, “This year there was no spring break or slow-down in exploration activity. It was non-stop this year and we expect it to be running flat-out again this coming 2011.” This is good news for the 85 percent First Nation employees under his management. It makes for a thriving reserve adjacent Fort Nelson.

Lateral Violence in Indigenous Life in Canada

 

David Segerts is a man who lives for positive change in Canadian society. Sitting one day with Segerts in his tastefully decorated apartment I felt surrounded by an orderly nature given to his lifestyle and was treated to his impeccable manners. I was also given a taste of his lifetime of memories before he talked about the really important issues he works on.

Segerts was born in 1960,  at the time Uranium City, Saskatchewan, was a city of 5,000 souls, and he grew up to see the mining property turn into a ghost town. Uranium City was shutdown in 1982 but by that time he was ready to move on.

"I am a Dene/Cree but I generally say I am Dene because I look almost exactly like my Dene father." He shows a photograph that proves he is the spitting image of his dad. "I dropped out of school when I was in grade 8 and went back for adult upgrading by the age of 25 at Alberta Vocational Centre in Calgary. AVC was a good learning experience although the facility lacked a First Nation student organization so I helped put one together. We held dances, fundraisers, and hosted a room that the school donated, which became a gathering place for all nations and a useful foot in the door for First Nation students."

A short time later Segerts began to study something very important in First Nation life in Canada, the tactics of oppression known as lateral violence that are especially prevalent in systemic racism. It is this lateral violence that explains the extraordinary incarceration rates and recidivism in crime for the First Nation people of Canada. As high as 50 percent of the prisoners in Canada either male or female are First Nation or Aboriginal people. For these kinds of disparities to exist in a segment of society that is less than 5 percent of the total population, the problems have to run very deep indeed.

"Lateral violence goes on in every First Nation organization and starts with arguments like, 'My family is better than theirs,'" he says. "It is important within the system of racism to get us fighting amongst each other. We are actually born into it, however, because the system is designed that way. Public awareness is the only way to address it," says Segerts.

"The methods of lateral violence include, backstabbing, gossip, infighting, shaming, humiliating, damaging comments, belittling, and sometimes violent behaviour." Other terms for what is happening to First Nations in Canada include auto-genocide and horizontal violence, he said. These terms are applied mostly to the members of oppressed groups in society, and he explained, "I didn't really understand lateral violence until I was about 30 years of age. I rarely discussed it until I did the research first. Lateral violence is designed to prevent efforts to heal the effects of oppression."

Lateral violence teaches people to disrespect and deny the rights of an oppressed group, to destroy values and beliefs. Practitioners will engage in infighting, faulting finding, and scapegoating, raising the stakes of competition via jealousy and envy. The attacks are made upon those who already possess low self esteem and further attacks lower a person's self worth.

Ultimately the goal is to make the victim take blame for the continuous putdowns, "This is the nature of oppression," says Segerts. "It is a denial of their self and humanity. They think they have become objects unworthy of respect. They fail from the inability to recognize themselves as human beings. They become convinced that the oppressor owns them, and often the oppressor does own them through financial dependencies upon welfare and personal dependencies upon drugs or alcohol."

He says, “When my son was 11 years old I brought him to Calgary to live with me, and after a few short weeks he told me, ‘Dad, I didn’t realize that Indians didn’t drink. I didn’t realize the Indian men work.’” It was another stunning learning experience about lateral violence for Segerts the father who has never spent time stuck in welfare programs but knows on reserves and in some urban communities it can become a long-running generational trap.

“People who feel dependent suffer a lack of personal power. When they lose power they will see their cultural identity eliminated and be unable to stop it,” he says. Many times the First Nations in Canada have been known to hide their own beliefs or adopt the beliefs of an oppressing society. “They were dislocated from the land and suffered breakdown of family structure during the Residential School years. Indigenous people were removed from families at age four in some cases, only to be afflicted with physical, mental, sexual, and social abuses.”

His own mother had a safety pin jammed through her tongue by nuns at one such school, then was made to sit facing a corner in a classroom for speaking her Cree language. “There were many children killed by torture,” he asserts, “and other families were disrupted by one child being raised in a Catholic school and another being raised in a United Church run school. In fact the Residential School system was a highly specialized form of lateral violence.”

The lateral violence design for First Nations people results in a distrust of First Nation leaders by their own people. “It results in a distrust of those who might emerge to help," he says. "Rising stars are severely restricted or punished. Leaders who make any difference are fired and persecuted. Incompetent leaders are recruited and promoted by the oppressors. Dividing and conquering is the main process used by the oppressors.”

Segerts needs to write a book with a biographical story line if he hasn't already. He was trained as a technical engineer at BCIT and NAIT, then, while living in Vancouver, he entered the film industry, first as an actor, then as a producer and director. When we last spoke he was running a youth-at-risk employment initiative that operates across Canada for First Nations. Remember the name David Segerts because the book would be an important read. If you know David Segerts personally, put the suggestion to him again.