Pacific Northwest economy developing many new directions

The Pacific Northwest of Canada is an area with a stake in the economy held by First Nations, so it’s a far cry from the economic marginalization of communities in northern Ontario and northern Manitoba. It may closer resemble developments ascribed to James Bay on the Quebec side. Business development in the Northwest Pacific runs the gamut from coastal marine-oriented enterprise in emerging industrial and infrastructure operations, to small businesses creating dozens of forestry jobs, to long-standing companies hiring out of local indigenous populations that have recovered a lot of rights and titles in the territory.

Port services are expanding in the Port of Prince Rupert, B.C., by a tripartite business venture with Island Tug and Barge, Metlakatla, and Lax Kw’alaams First Nations. Ryan Leighton, Director of Operations for the Metlakatla Development Corporation (MDC) stated, “There is a multitude of different opportunities we are looking at a variety of commercial activities.” John Lindsay,  ITB vice president and general manager, recently confirms the company is proceeding to establish infrastructure and move equipment to Prince Rupert.

Leighton says, “We are involved regionally and going to grow. Barge services up here provide essential fuel, materials, supplies, everything right down to garbage remediation, and our services will extend as far North as Alaska.” Lindsay says, “It is a fully equipped marine services company in a hot area of economic development.” He noted last year that the Port of Prince Rupert is undergoing all kinds of expansion to meet the shipping demands of commodity sectors like coal, potash, and other export minerals. 

Clayton Burger is a Northwest Pacific businessman and highly experienced tree faller from Iskut, B.C., who took skills with a chain saw around the province. After 20 years as a faller, “I worked for a short time as a foreman for logging outfit, which proved to be excellent preparation to start my own business.” His company, Edziza Contracting is entering the third year operating out of Terrace, B.C..

Edziza teams of fallers work as far as Columbia Valley on a transmission line job. They work falling contracts in Alberta, and Dawson Creek, B.C., and currently, “Right where we are on the Northern Transmission Line project north of Terrace.” For his crews, falling and slashing is the game, “Line cutting, right-of-way, seismic,  oilfield line, pipeline, routes cut to make trails for industry, or government contracts.” 

On the NTL side, “We started the project last fall with All-North Consulting, and we’ve been working with McElhanney ever since on the survey job at NTL.” He worked in Nisga’a Nation to run a training course on chain-saw experienced people with no tickets. “We get them out and prepare them, then they can pass the tests to be certified fallers in the region.”

Bear Creek Contracting works in the Pacific Northwest, with a head office in Terrace, B.C.. Mike Edwards, Health and Safety Manager, has a host of responsibilities in human resources, and says, “Bear Creek Contracting is a family-run business, originally in logging and now engaged in all kinds of construction. “We specialize in ‘early works’ and ground works on utility projects, road construction, and other infrastructure. We have 150 on the payroll right now.” Furthermore, “We are operating a limited partnership with Haisla First Nation where we hire lots of people and do training and certification for a lot of new personnel being recruited in Kitimat area.”

HBO/Bear Creek Contracting limited partnership is run by Clarence Nice in Kitimaat Village. Edwards says, “This partnership opened a lot of doors for us, and we found great workers and great people by establishing the partnership. We had important conversations about building our workforce.  We now have a new pool of people trained and employed as excavator and machine operators, truck drivers, labourers, and other jobs in road construction on projects like Kitimat LNG,” the infrastructure project to ship natural gas from Canada.

The largest forestry tender holder in Haida Gwaii is looking to sell a particular form of log suitable for the B.C. power transmission system. The Skidegate Band Council of the Haida Nation (Queen Charlotte Islands) has put together an proposal to develop forestry resources under their aegis in the Haida Gwaii.  Chief Bob Mills, head of the Skidegate Band Council, explains, "We're working on leading projects based in ownership of the largest forestry tenure on Haida Gwaii. They are Skidegate Band initiatives to put some of our people in skilled positions at work that comes out of our forests, and for the Band to make some money."

The priority is training crews to work at log prepping sites using newly acquired  equipment to strip poles and prepare logs for the power pole market in B.C.. It involves the preparation of cedar poles by machine peeling the bark and putting the logs to market to corporations like BC Hydro and Fortis. “We understand there is a big demand for this and we can make money. We believe the Haida brand should be appealing." The poles will be shipped by barge to Vancouver.

The chief says, "De-barking occurs using expensive machinery that we are buying in the USA. Council member Billy Obonovich is spearheading the project. He obtained the debarking machine from a company in the USA. Training from NWCC comes with classroom and hands-on learning, time indoors followed by outdoor training toward certification in chain saw safety and machine operations. Timing of the training is arranged to precede the machine setup. There is a representative from the machine company to do operational training of the crew."

Delorme building on a legacy of economic development

James Delorme was elected chief this summer 2011 in a by-election at Klahoose First Nation, "I grew up on the west coast. I was an army brat and my dad was stationed in the Comox Valley." Delorme is in truth all-Canadian, "I was born in Nova Scotia where my dad was stationed, and we came west when I was age two." He schooled in Comox and made a career of working up and down the coast in logging and construction. "I went into shake block cutting and a friend of mine from Klahoose, the late Dave Noble, went to Surrey to work in a mill. I followed him and put my first aid ticket to work as an afternoon shift supervisor. Noble was on a housing list to return to his home village, at Squirrel Cove, Klahoose, four years waiting before he got there."

Delorme worked at the wood processing facility in the Lower Mainland and when Noble returned to Squirrel Cove, He was invited to the Klahoose reserve where he entered employment with Klahoose administration. "It seemed like a great place to live where I could be close to my roots in the Comox Valley." Eventually, "I transferred my Status from the Saskatchewan-situated Cowesses Band. My dad is a Cowesses member. We are Cree people." Delorme says, with a laugh, "That makes me the first Cree chief in Klahoose." (Klahoose is related to the K'Moks people of the Coast Salish Nation.)

Delorme says, "I transferred my Indian Status to the Klahoose Band about a year ago. I love it around Klahoose. Over the years I picked up some language, worked in administration, learned much about the culture, and my three kids are Band members. I made the decision to transfer and the Band accepted me."

Today he serves with three council members  Jessie Louie, Mavis Kok, and Cathy Francis, who were elected last year with former Chief Ken Brown. "I spend about four days a week in Squirrel Cove, and I rent on Cortes Island because housing on the reserve is at a standstill, so I rent a property off-reserve. This encourages me to get housing issues up to snuff."

The problem for Klahoose housing centres on an aging sewer system. "The feds are talking about upgrading the system so we can expand housing, and that is a primary goal for the community. We have a decent amount of reserve property but we need better infrastructure. "We aren't interested in re-inventing the wheel. We will learn from some of our neighbours," like Homalco First Nation. "This will open up improvements in our relations with our neighbours."

 When Chief Brown resigned this year, "I contemplated running for chief. I respected Ken's achievements. He was a good delegater and visionary in the direction the Band should take. No chief made such dramatic changes to our financial standing, and much of the success came from establishing Qathen Xwegus Managment Corporation. It's been in place about three years and was one of Ken's labours. Without his effort we may still be in a place without direction  and missing the ability to make firm economic decisions. This climate of economic development was opened to us."

Now Chief James Delorme has the opportunity to build for the future. "Ken had the ability to build his vision by delegating. But people sometimes forget that he was a big helper of the members. His ability to establish relations with government and industry weren't his only strengths. He was a generous man to the people and they remember that."

Delorme, who turned 40 in October, was elected into an organization that contains inherent strengths built by the previous leader, "Most of the team stayed intact. The economic development corporation was set up with a board of directors, and a logging program was established for Tree Farm License 10, and government relations were arranged. What has happened is the formula is intact and there's no point in reinventing the wheel. We were doing positive development under Ken and we have no reason to upset the apple cart."

There are changes, however, to band administration and tightening some gaps. "We are looking for positive ways to help the community, including expansion of health and education, employment. Huge gaps appeared when the economy dropped but we still have a strong economic base and forestry opportunities. We are recovering, and realize that we need to be taking care of each other, building social programs that government at both levels, federal and provincial, may be reducing over time."

The Band has work to do in treaty. "We believe in the treaty process and continue to work on it, but we require social support for members and this is the key element to my goals. We need to build longevity into social programs for Band members." Klahoose is not a large Band, "We total 317 members," he explains , "We have eleven reserves, two of which are inhabited. Squirrel Cove on Cortes Island is the traditional winter grounds. Toba Inlet, less inhabited, has been occupied related to forestry work iand run of river projects. We run Qathen Xwegus Managment Corporation and social programs from offices in Powell River. We have a majority of our membership spread around in B.C. and the USA."

He says, "Basically we have health, education, and other services targeted by the federal government for members on-reserve, yet the majority live off reserve, and we have concerns about how they get help with training, employment, health services, and social programs. Much of our membership has to go to the provincial government for extended health benefits and services. We have relations in USA with no extended health benefits," especially in Washington State."

Delorme says, "We need to create our own extended health benefits. It's going to take work, time, and energy. It's a big undertaking working with government and agencies to achieve these goals. Klahoose has a great relationship with School District 47 in Powell River, using various means of providing training and obtaining federal dollars to do this. Benefits come to the Band from this relationship with the school district, and some of these benefits spill over to our neighbours in Sliammmon and Homalco. We are working on a plan for post secondary education and small trades training in welding, core construction, and culinary arts."

Other news is the possible second phase of Run of River projects in Toba Inlet with Altira Power, who bought Plutonic Power, proposing a second phase of Toba Inlet run of river to proceed. “We are working on that now. We are hoping to have things firmed up in the new year. It was on the table prior to my being chief and a negotiation team is being assembled for talks in the coming year involving another Impact Benefit Agreement like the last one with Plutonic,” including royalties plus infrastructure, jobs and roads and services in these projects, which opens up Toba Inlet to more opportunities.

Another highlight in the community is the sawmill program started last year. "We had a sawmill operator come in and mill wood for smaller projects as well as the new administration building. We intend to buy our own sawmill and get School District 47 to train people to mill lumber. We will receive the timber from Toba Inlet forestry. We will train members, and market lumber with quality wood from the Community Forest in our IR NUMBER 1 property."

He says, "There are many things started by Ken and today we are stronger and more educated, but we need outside people who will fight on our behalf. My election is part of the change that is underway. I was elected by a younger crowd and had a lot of input, and I won by a significant margin in that by-election. I have 1.5 years left to go and I will do the best I can to continue Ken's legacy." jamesdelorme@klahoose.org  Administration office   250 935 6536  Ex 236

Sustainable forestry departments in Fraser Valley First Nations

Photo credit: Jason Kemmler

Chief Clem Seymour’s Band, the Seabird Island First Nation in the Sto:lo Nation, has established a sustainable forestry department, “We have long term goals and forestry operations are making the Band money, and providing valuable jobs with long-term careers.” Tamihi Logging Ltd. has become a significant business operation that works in the Chilliwack-area forests on behalf of Seabird Island First Nation.

“It’s forestry operations in some deep valleys,” says Chief Seymour, “and we work wherever we have to in harvesting fir and cedar from second and third growth forests.” Fifteen to twenty employees are working in crews under Tamihi’s Gary Peters, falling trees and loading timber at the dump-sites. “We are managing these tenures in our fourth year, working in a partnership through Tamihi Logging and Dorman Lumber on the specialized form of logging that we do.”

The employment is going to Seabird Island members and other First Nation forestry personnel from around the Lower Mainland. Head office for Tamihi Logging Ltd. is about 20 kilometres outside Chilliwack, at Agassiz, B.C..

This arrangement is another example of First Nations finding innovative ways to work in the forests of traditional territories. Dorman Timber Limited and their subsidiaries, Tamahi Logging, and Fred Morris and Son Selective Logging are specialized in coastal forestry operations. "We have been working in the Fraser Valley with Seabird Island First Nation on their Forest Range Agreement," Brian Dorman explained last year, “including a 100,000 Cubic Metre (CM) annual allowable cut.”

Dorman also works with Scowlitz First Nation on a FRA of 32,000 CM per year. They work on Vancouver Island where they own and operate a couple of area-based timber licenses adding up to 400,000 CM. They cut contract logs for a couple of different forestry outfits including Timberwest, Island Timberlands, Western Forest Products, and First Nations in Sooke, Port McNeill, and elsewhere.

Dorman Timber has obviously established strong working relationships with First Nation foresters in the Fraser Valley and in coastal, island, and archipelago forests, and the company continues to build relationships that will see the forestry industry of B.C. evolve with a new set of important players.

Matt Wealick, RPF, of Ch-ihl-kway-uhk Forestry, says, “A lot of preliminary work went into the recent logging with Alternative Forest Operations to make sure the value of the end product was going to make the bottom-line work . We paid for the more expensive single-stem logging operation.” The cedar was picked up by Helifor and delivered to the buyer, Gorman Brothers, “They bought  and marked poles on site,” said  Wealick.

“This was our first attempt at logging for a particular market in telephone poles. The market happened to allow for this type of operation   Poles were worth quite a bit more money. We plan cutblocks with all the options on the table and we go with best option. We own and manage the Tree Farm License and actively coordinate projects for the logging contractors, engineers, buyers, and operations conducted by AFO and Helifor.”

Ch-ihl-kway-uhk Forestry operates from Chilliwack, B.C., and hired Alternative Forest Operations for a project that took two months to harvest  timber this summer, and a month prior to set up the job. The contract with Ch-ihl-kway-uhk Forestry ensued from AFO’s commitment to alternative harvesting and  forestry practices, as Jason Kemmler explains, “The thing is, we have no real piece of technology that sets us apart.  It’s men, the training and care we put into work. It’s thinking outside the box.”
 

The job in the Lower Mainland involved up to 10 men, “The job was specifically designed to harvest cedar poles. Engineers go in and individually pick the trees that have the characteristics to make  telephone poles. These are straight, and uniform in length and size. We limb, top and jig the tree so there is no damage. The tree gets delivered to the drop pocket without touching the ground.”

This type of harvesting leaves no room for damage. “There’s a great market for these trees, a strong market for a limited resource. The biggest difference is we don’t fall the pole so there’s no potential for hidden breakage. It’s more time-consuming and costly. Single-stem harvesting makes the opportunity of harvesting cedar poles or other niche markets one tree at a time.”

Personnel are trained in identifying poles. Engineers mark the pole, the climber climbs.  The jigger jigs the tree, once the helicopter logs the stem a ground crew walks to the stump to confirm the single stem has been removed. The size of job that warrants something like this usually ranges from  300 to 3,000 trees.

“We create projects with our client,” says  Kemmler. “Our methods are more expensive and intense, involving a high level of professionalism/organization/ and communication. We are working with clients looking to maximize value and keep a sustainable forest. We do a few clear-cuts, where there is no retention, and steep drainage. Often we harvest without clear cuts, using no roads."
 

It’s investing, planning, communication and Integrity plus time taken to make a greater return for the clients. “Our operations require someone in the Timber-holder position to consider this. It's value-added forestry to sell logs into niche markets mixed with some conventional logging.”  Kemmler says, “We have few competitors. Our goal is to maximum value through recovery methods if the expense of additional harvesting methods warrant it.”

A timber sales company goes to log brokers to sell into the commodity market. “We are of the mind-frame that the commodity log market is part of it, but where there is the one red cedar that could be made into a totem pole, we want to find the niche markets to buy the log, to tap into the value-added side of forestry. Some trees double in value when the market is for transmission cedar poles.” It all depends on what the client has for trees to cut.

Kemmler says, "First Nations have a new resource in wood fibre baskets, but they may be missing important knowledge about how to manage it. It’s a matter of building trust. Without integrity nothing works. Being a part of the operation at Ch-ihl-kway-uhk Forestry involved Matt Wealick, RPF. He’s a young RPF who has other First Nations calling him for advice. We work along side him to manage a timber harvest that incorporates alternative methods."
 

AFO has a staff complement of 30 to  40 full time personnel, working 10-12 months of the year. “Mostly our operations are on the coast of BC, harvesting fir and cedar. In Bamfield AFO is working with the Huu-ay-aht first nations, we are harvesting Highly valued red cedar logs and cedar trees picked for telephone poles the value or price of lumber that these species produce help the client harvest less valuable species such as Hemlock or Balsam with the helicopter which would normally be felled and left on the hill. “Huu ay aht is harvesting a community forest.”
 

They are taking a percentage of all species on the hill, sustainably logging the profile. There’s big wood and steep ground. We’ve been in there for a couple weeks. We’ll be in there another few weeks. The work is the same situation where we had a client who wanted to harvest in their community forest,  the sales value of the wood had the profitability of the project to small to warrant the risk. After re looking at the job we were able to apply the Single Stem method and create a win for all parties.  Kemmler has been impressed the Huu ay aht operations, “They have a well-rounded organization with lots of Band members working in their operations. 

The making of a company to do broad-based marine services

Port services are expanding at the Port of Prince Rupert, B.C., in a huge growth area joined now by a tripartite business venture with Island Tug and Barge, Metlakatla, and Lax Kw’alaams First Nations.

Ryan Leighton, Director of Operations for Metlakatla Development Corporation (MDC),  is discussing the new marine services company forming on the north west coast. “It`s very early stages,” says  Leighton, “and it is difficult to foresee what opportunities we have for generating employment. It`s a matter of moving assets to Prince Rupert and going from there.”

Leighton says, “There is a multitude of different businesses we are looking at but everything is preliminary and nothing is set in stone.” The tripartite business group is building the business portfolio in partnership with the Coast Tsimshian`s two main communities, Metlakatla and Kw’alaams, and Island Tug and Barge. “I am not sure of how many and different the opportunities are, or which ones we are going to take.”

Leighton notes the north has multitude of opportunities. MDC has a number of companies presently engaged in everything from forestry to gas stations to tour companies to ferry services, including a new  education centre for skills development at a Prince Rupert facility. MDC is committed to making opportunity extend into the two primary CT communities of Metlakatla and Kw’alaams .

The new marine services ventures will operate across the north west coast region, “We are involved regionally. We are going to grow. Barge services up here provide essential fuel, materials, supplies, everything right down to garbage remediation, and our services will extend as far north as Alaska.”

Leighton says, “We are faced with labour difficulties and strong demand for capacity building in our communities. The problem of skill development is widespread and we must spend a lot of time and money on capacity-building.  We have the opportunities, and now we are matching them up with communities.”

Chief Harold Leighton and the Metlakatla Band Council decided MDC would take on responsibility and foot the bill for a ramp-up of labour skills. A new MDC facility is in action in Prince Rupert while the Port of Prince Rupert is finishing signing agreement with Coast Tsimshian. “The signing is coming imminently,” said  Leighton. “The federal government  did make their announcement a few weeks ago. It`s a matter of a short time and the signing does many thing, including provisions for a lot of contracting training.”

Metlakatla has membership over 800, and Lax Kw'alaams is over 1600 members. “With all the port development coming on, the Coast Tsimshian signing with the port authority is for jobs, sole source contracting, and participation in all public information programs surrounding the port.  Leighton says, “The port deal is a long time coming, a number of years and the signing is a recognition that it`s our land.  It`s certain to have a positive influence on our future plans to have Impact Benefit Agreements that that recognize the territory as belonging to Coast Tsimshian.

The Coast Tsimshian community leadership made the business proposal when they approached ITB about forming a broad-based marine services company, “Lax Kw’alaams, Metlakatla (First Nations),  and Island Tug and Barge Ltd. signed a joint venture partnership agreement on April 12, at the 2011 National Aboriginal Business Opportunities Conference, held in Prince Rupert.” 

The press release says Lax Kw’alaams and Metlakatla First Nations make up the Coast Tsimshian Nation, with the core of their exclusive traditional territory being the Prince Rupert Harbour. 

“This is not a tugboat company,” says John Lindsay, ITB vice president and general manager, “It is a fully equipped marine services company in a hot area of economic development.” Lindsay says the Port of Prince Rupert is undergoing all kinds of expansion to meet the shipping demands of commodity sectors like coal, potash, and other export minerals. “Lax Kw’alaams and Metlakatla leaders came to us and proposed the making of a company to do broad-based marine services, and we were happy to be asked.”

The new company will emerge over the coming weeks with port services in all areas of support for vessels, including construction of facilities, and environmental protection and remediation operations that will range along the entire coast. Island Tug and Barge itself is engaged in chartered and scheduled barging and towing services in Canada and abroad. This new tripartite company for BC Coastal communities has a solid foundation. The new company will be providing tug and barge, fuel supply, short sea shipping, marine construction, and other marine services to a range of customers on the north coast. 

“We worked in collaboration with our two partners to plan the company launch. Our goals include recruiting and preparing employees with training and development. Employment skills are required with the labour force that we intend to employ,” therefore recruitment includes a strong push into both communities. “We are very pleased to be part of these communities and hire the people who are available,” for the wide range of job opportunities created.

 Aboriginal business planners mapped the new employment prospects coming to communities in a situation of business ownership by two respective Band entities. ”The labour base is ready to be trained,” said Lindsay. “Marine operations at port facilities are regulated by Transport Canada, and all kinds of certification is required for our employees. It takes time and we are starting with the basics.”

ITB is working with First Nations that have marine facilities, and some personnel, already at work for ITB, though the company has never analyzed the workforce for the racial make-up of the employees, and always respects the territorial integrity and inherent rights of the communities they have long-served. The new company opens opportunity to expand infrastructure on Watson Island and Metlakatla with port and marine service facilities that could adjunct to Port of Prince Rupert in the future. The commencement of operations for the new company will occur by the end of summer 2011, while naming of this venture will occur during the summer once Elders of both nations are consulted. The new company will be imprinting national imagery in branding and marketing of the entity. 

When signing the agreement and making the announcement in late April 2011, Chief Councilor Garry Reece said, “We are extremely pleased to be joining with Island Tug, which will allow us to continue to bring skills and employment opportunities to my People.” Chief Councilor Harold Leighton of Lax Kw’alaams followed by stating, “Our communities have large traditional  territories that encompass Prince Rupert and the North Coast. The marine economic development opportunities for us are significant, and partnering with Island Tug will enable us to tap into those opportunities.” 

Recently, the Coast Tsimshian agreed to a business and employment package with the Port of Prince Rupert, and Chief Reece stated, “This is just a first of many steps we are taking to build opportunity in the Prince Rupert area, which will be good for everyone.” Lindsay concluded, “Island Tug has a long history of serving First Nations and other communities on the B.C. coast. We’re very pleased to work with Lax Kw’alaams and Metlakatla  to develop a range of marine opportunities in their traditional territories on the north coast.”

Northern Division led by First Nation housing specialists

Olympic Building Supplies has been engaged in the serious problem of First Nations housing since 1991 when they opened a division led by Bob Topp. The company has been putting housing into remote northern communities ever since, often using innovative designs and materials, moving housing by whatever method it takes to get there.

These are ready to move stick-built houses, and they moved housing units to Fort Severn, Ontario, the northern-most community in the province, these containing SIP (structurally insulated panels) built by a manufacturer in Calgary, “The community is using oil heat above the tree line and the federal government pays for the shipping of this at great expense. The EMER CORE building envelope works to upgrade insulation R-values to an R-44, a true value that is three times the norm, and the federal government is willing to pay for using this in the north.

“We have been in building supply doing everything up to post and frame since I joined in 1991 to created and open up the First Nation division. I have been doing First Nation housing projects myself since 1982,” says Topp. “We are two guys running the division both working directly with First Nation communities. The division is now called northern sales, or Wakeegan, and I’ve been doing it long enough for some of the chiefs to remember me from their youth.” 

He says Olympic is always ready to improve design and quality to fit limited budgets or build for extreme weather condition, “SIP Panel engineered systems were delivered to Fort Severn because the  feds pay for heating oil, and we justified the expense by factoring in the amount allowed by CMHC per house. A typical house in that region costs $7000 a year to heat.” 

Over the years Olympic has been engaged with numerous communities, considering Olympic Supply Northern Division contains decades of management experience working with First Nation on various building projects. “We work with design and quality of products and we’ve looked at many new ways and changed a lot of things within our department. We are enthusiastic about new products."

The material-delivered house is built with Olympic designs and plans, and post and frame buildings, or SIP panel building, “Whatever they are calling for we pull it together.  The northern market is a natural play for our company and, in 1991. we concentrated more business development  in northwest Ontario and northern Manitoba."

The company is careful to build financial relationships, "selective in making sure we get paid and jobs are getting done, everything is arranged to move onto site. The division employs five or six guys. Trying to fill a market with good business relationships  and that at the end of the day with projects that stand up to the test of time.”

Relationships and buildings are both long-standing, says Topp, “Jim Moyr and myself have 60 plus years combined, and I will eventually  be replaced by the likes of Andre Bayrack who is here now. He needs four or five years under his belt.”

Topp adds, “We’ve been involved in all types of building. We do multi-housing, band offices, crisis centres, police centres, stores, arenas, and various other buildings. One of the advantages we have our own design departments, taking design to a certain level, short of architecture, functional buildings like funeral homes, gas stations (one of these recently finished at Broken head First Nation).”

He says the commercial and residential and northern market focus will continue, “Another thing we do for First Nation communities is expedite product. We can move equipment and expedite movement of tools, parts, and equipment into communities. Transportation is our real niche. We can FOB to any community so they have a cost based on delivery by either road, winter road, aircraft, barge, rail,  even helicopter," (but that’s not a first choice).

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.

Chief Ralph Dick leading We Wai Kai into a bright economic future

We Wai Kai First Nation has a growing portfolio of enterprises and economic development initiatives in the lands and waters of their traditional territories, and a good example of their success has occurred on May 18, 2010, when We Wai Kai officials held a Grand Opening of the Quinsam Crossing. Maurice Magowan, Comptroller for We Wai Kai, says, "We held the opening to thank the contributors on the Quinsam Crossing project for slogging through the mud all winter on building on the site."

The We Wai Kai Nation held the Quinsam Crossing Grand Opening to showcase the development strategy for its 60-acre Quinsam Crossing commercial site on Willis Road, Campbell River, B.C..  Magowan said, "Quinsam Crossing is a traditional crossroads for travelers on the North Island for several centuries. It is being developed as a destination retail and recreation gateway to Campbell River for the North Island."

The Quinsam lands are southwest of downtown Campbell River and are, "well situated to receive the heavy flow of tourist traffic along the Inland Island Highway. Once developed to completion this service centre will be the nearest to the Campbell River and District Regional Airport."
 

Magowan notes that the first business founded on these lands is a We Wai Kai-owned auto service centre that includes a convenience store and propane filling centre. Future development plans include a broad mix of retail, commercial and recreational uses.

 

"The We Wai Kai business plans involved initial studies that suggested Quinsam Crossing could generate full and part-time employment for 580 people during construction and 650 to 800 operational jobs once it is up and running."

In addition, up to 1,500 indirect jobs could be created from this development. Magowan adds that, "Chief Ralph Dick's vision for this property has been clear, consistent and tireless. He has worked for many years to articulate and carry out the strategy developed throughout the decades by elders of the We Wai Kai Nation to bring greater equality, prosperity and employment to its people."

Another We Wai Kai economic initiative is found in the We Wai Kai Seafood Corporation. Shawn O'Connor operates the corporation, "We did this pilot project with Island Scallops to replace the disappearing salmon and herring fishery with submerged-line technology to grow scallops," says Shawn, "and we are growing them in the Suttle Channel of Johnstone Strait," beside Quadra Island and We Wai Kai's Indian Reserve No. 9.

O'Connor says We Wai Kai has members with sets of skills that mesh with the scallop growing industry's technology, "Piloting seign boats and running hydraulics technology and other skills taper nicely into the development." The corporation awaits assignment of tenure to their two year development, which is, "operating under a temporary industrial use permit to be converted tenure."

The scallop development in Johnstone Strait is essentially invisible to Quadra Island residents because growing the scallops is done by submerged line and the only signs of development are navigation buoys that mark the site.  O'Connor says, "Right now we have 500,000 scallops growing in the pilot-phase of the project. Two and half to four million scallops would be a commercially viable operation."

We Wai Kai was assiduous in selection of the site, "We wanted an even tide and nutrient rich waters with good anchorage. It turns out we found an excellent site because the scallops are just about ready to harvest in their 2nd year," a growth rate that is exceedingly fast comparatively speaking, as many scallop developments work on four-year cycles.

We Wai Kai has created six jobs currently and  O'Connor says the employees are keenly motivated to work in a sustainable industry that operates on the 'green' side of the fishery. "No feed or supplements are put in the water. It's lines and cages and monitoring, plus the site creates habitat for small finfish feeding off the ecology of scallops." Due to this ecological input, sports fishers are catching cod near the site for the first time in many years, says Shawn.

The initiative was inspired by Chief Ralph Dick about six years ago and commenced two years ago. Island Scallops' Les Rombough says, "They want to do this on their own and they have the skills to do it. We supplied scallop seed, equipment, and expertise to get it started. We could take this to any First Nation that is interested. It has been absolutely phenomenal to see the project develop with the fishing expertise of the people on the site."

He notes there are significant start-up costs to deal with "boats, plus the expense of our equipment, including long-lines, rope, anchors, pearl nets and lantern nets. There is no positive cash flow until two years in, and no profit for at least four years. Wages and tenures and other expenses are all paid up front."

Looking for the way forward in a Mountain Pine Beetle devastated forestry industry

First Nations Forestry Council is an organization formed from a specific mandate, says Keith Atkinson, Chief Executive Officer, "The Mountain Pine Beetle (MPB) is the main reason why the FNFC was formed in the early 2000s." With $300 million flowing to bio-energy development out of the forestry disaster in Canada the FNFC is actively promoting bio-energy development, "First Nations need to be involved."

Atkinson believes First Nation communities are fighting for their lives in the face of the MPB, "We cannot abandon our communities." Foremost, the MPB creates huge potential for biomass development, "The beetle may have peaked in its destructive force in B.C.," says Atkinson, "but enormous killing of trees continues."

Atkinson explains, "The FNFC began out of the MPB crisis. Millions of dollars were initially committed and the First Nations were included in the $100 million a year funding scheme, with $20 million a year earmarked for First Nations." Twenty percent of the federal commitment was designated to First Nation communities.

When the federal government first transferred $100 million to the province, "First Nations saw $8.4 million." Forestry is a multi-billion dollar industry in Canada. Rather than meeting the commitment, "In four years we saw $20 million for First Nations to do assessments and identify the impact of the MPB, and list the First Nation priorities to deal with it."

Atkinson notes that 50 percent of the 200 First Nation communities in B.C. are directly affected by the MPB blight, yet the federal government changed course in the middle of the funding program. From then on the federal government began diverting funding to national organizations for distribution through Natural Resources Canada and Western Diversification.

"Our agreement with the province of B.C. broke down. We continued to try and monitor the funding situation through working groups, to share and coordinate what money we received. The dollars started to flow and then it changed."

It's about the money because, "The number one issue is forest fuel management," which, Atkinson notes, "is fuel created by the MPB. Then comes the risk of forest fires. We have to make an urgent effort to mitigate against the forest fire hazard. These fires are increasing in severity and so is the incidence of interface fires," where cities like Kelowna and towns like Lillooet face  devastating infernos.

Indian Reserve communities are always in peril in spring, summer and fall today. "We have a lot of work to do on reserves because the biomass fuel is constantly interfacing with these communities. The cost of treatment to reduce fire risk increases every year," and Atkinson estimates it is currently $135 million a year. "We've submitted funding proposals over and over and they always get culled down."

He says the First Nations require $20 million a year in B.C. over the next three years, $60 million, to reduce the threat to communities. Instead of funding, FNFC continues a four year battle to find a place in funding schemes that would reduce the threat to communities. "We are down to $2 million a year and we have the local rural First Nations willing to do the work but the money isn't there."

It's a difficult situation for an organization that was established for the purpose of fighting a pestilence that threatens the safety and existence of Canada's first people. "Our industry is facing a new kind of forestry. Restoration is the goal and we want communities to be running their own programs. It includes cultural and social sustainability of these communities. We also need to participate in the research of climate change."

Atkinson says the communities are structured for biomass fuel management and proper funding would enable economic development. The FNFC worked diligently from the outset to design a strategy based on $20 million a year for ten years. "The present Prime Minister says he will supply $1 billion to fix the problem, but he fails to recognize the 20 percent agreed for First Nations."

The federal government put the money into existing federal departments effectively bypassing First Nations. Furthermore the money available causes competition between First Nations for available funds. This unexpected diversion has shattered the organization of support. "Most people recognize First Nation issues today," says Atkinson, "and they know a few things about our plight."

It's a fact, "When you give money to First Nation communities it ends up in the hands of non-Natives, but when you give it to non-Native communities it never ends up in First Nation hands. And we're not trying to do this alone. We have a protocol agreement with the BC Bioenrgy Network to showcase 'best practices' and show the way to replicate success."

In short, the FNFC is working toward a governance model that works with industry and business and which could ultimately lead to solid government-to-government relations and increased certainty for economic progress. "Everybody needs First Nations full participation to support the forestry strategy.

Tla-o-qui-aht’s Canoe Creek Hydro a work of reclamation and restoration

Sayo Masso is liaison officer for the Tla-o-qui-aht First Nation in one of their major initiatives, the Ha'uukmin Tribal Park, including the Upper Kennedy watershed, as a place of cultural and economic importance, "We conducted ceremonial gatherings and visited sacred sites," said  Masso.  "Pools in the river provided an abundant fishery to families and there was a village at the mouth of the Kennedy River."

The tribal park contains (in part) the Upper Kennedy River, "Our people moved through lakes in the winter and returned to the ocean in season," said  Masso. "We lived on the coast during summer and as a whaling people we observed the migration patterns of gray whales." Potlatch culture is hereditary and Nuu-Chah-Nulth communities like Tla-o-qui-aht are linked by close families, common meetings at winter feasts, and a lot of kinship with other coastal communities; interestingly, said  Masso, "Some of our closest ties are with the Makah Nation in Washington State."

Bringing the Ha'uukmin Tribal Park to life on behalf of Tla-o-qui-aht First Nation "seemed to take forever," said  Masso, "and years of research was followed by years of implementation including the last couple of years of serious dialogue. We had to study the area closely in terms of hydrology and fish habitat, institute a stream keeper’s course, and begin teaching members to be park guardians and stream keepers. We're really happy this is happening as we speak."

The Tla-o-qui-aht desire to share the magnificent lands and waters of their heritage is not carte blanche; visitors will be made aware of Tla-o-qui-aht stewardship, said  Masso, "Self-determination is on the horizon. We have focussed the initial effort on the Upper Kennedy before we construct new hatcheries," Chinook salmon and sockeye to be reared in separate hatcheries, Chinook hatchery to be built first.

The Tla-o-qui-aht place name for Kennedy River Basin, Haa'uukmin, is "roughly translated as Feast Bowl." The Kennedy Basin is about 60 km from Tofino and the Canoe Creek Hydro project presents the administration with an infrastructure opportunity to create wider visitations to their tribal park. "We are planning to establish a family-oriented picnic area by the Canoe Creek Run-of-River hydro generating station and we have envisioned our land use plan for long-term development in outlying forestry, gravel pits, and out-posts for adventure tours. Guardian and stream keeper courses are giving the administration a professional presence in our tribal park 

He added, "In upcoming phases of the Tribal Park, we will be providingrangering services and safe transit through a network of trails, and access fees will contribute to building and implementing tribal park objectives. We are examining carbon credits to value our trees while they're standing. Tla-o-qui-aht faces systemic issues in Canadian forestry," and will use every means to circumvent the slaughter of forests, "Carbon Credits help us assert a role in using and managing the watershed in a manner that reflects Tla-o-qui-aht Laws of Iisaak, (~Respect), and Hishukish Tsawaak, (Everything is one ~interconnectedness of Life)."

Tla-o-qui-aht implemented two land use zones in their traditional territory; one is entitled Uuyaathluknish Management Zone, which means 'We take care,' and  Masso said, "This is a management area that needs gentle impacts and restoration plans. Use and access must be sustainable and not negatively impacting water quality objectives and fish stock objectives." Qyaasinhap, the second management zone - Leave as you've found it, is generally allocated to the Old Growth Forest corridors in Clayoquot River Valley and Clayoqout plateau.

Uuyaathluknish is already impacted and needs rehabilitation, which is being done in part through the Canoe Creek Hydro project, "We promoted the hydro development in the rehabilitation area, an area already impacted by the highway and logging," an area that requires careful management for the multiple uses that are visioned. "On this side is the low-impact sustainable use area our plans says, Let's deliver fish out of this watershed."

Qyaasinhap is putting wider stewardship back in the local area of the central westcoast and Tofino, said  Masso. 'Leave it as you found it' means the Clayoquot Arm and Plateau Preserve will continue to serve as ground zero for research in climate change and education-oriented relations with colleges and universities. There is a research Centre up Clayoquot Arm and we working with the University of Victoria and with other education institutions to college-certify training in stewardship, and other research partnerships.

"Meanwhile we have two forest licenses in our territory," said  Masso, "and the thinking is that we have to do whatever is needed to move forestry to be more sustainable for our grandchildren and to create a 150-year rotation on harvesting rather than the present 80 rotation. We will examine timber uses and plan the harvest ourselves. We will evaluate the forest companies by how many jobs they create for how many trees they take, not by how many millions it makes."

History contains a couple of important drivers for the established tribal park. "Families quarantined themselves back in the Kennedy watershed during the introduction of plagues," and later, "The Meares Island court case acknowledged the Island in Clayoquot Sound as Tla-oqui-aht TitleLand in 1984, which laid the groundwork for the Hawiih (hereditary chiefs) to work on establishment of the Meares Island Tribal Park declaration.  This declaration formed the framework for the Tribal Park at Kennedy Lake."

As a matter of purely cultural concern the nation requires a quantity of old growth fir and cedar to carry on traditional practices of the potlatch, "We have canoe carvers and totem poles and Long Houses to build."

Mining is an optimist’s game

It was fundamentally important for the Terrane Metals Mt. Milligan Mine project to hold its own. “We are at the federal permitting and environmental assessment phase,” said Ryan King, Terrane Metals Investor Relations, in 2009, “We’re probably one year away from construction,” he said , “It will be 2012 before production starts on copper concentrate to be smelted in Asia.”

The company placed orders for industrial machinery and equipment to be installed at the mine site. Glen Wonders is Vice President of Corporate Affairs and Sustainability for Terrane Metals at Mt. Milligan Mine, and works with local parties affected by the mining operations scheduled to ensue 155 km northwest of Prince George, B.C..

“It is very hard to access debt capital at the moment, lending institutions are very cautious,” said Wonders. He was, like everyone, “waiting for investor confidence to return. It’s not about our mine. You have to keep the problems in perspective. It remains a favourable mine,” he said.

“You have to be an optimist to be in mining. Miners as a group are always optimistic.” He said the Mt. Milligan Mine is in the midst of federal and provincial permitting processes while the Environmental Assessment has been done on the provincial side and a technical review is underway on the federal side.

One of the most important functions for Wonders is liaison with First Nations. “Our engagement with First Nations is detailed in the discussions about employment. The mine means potential jobs for First Nations people if the mine receives all needed approvals and financing,” said Wonders. Those he has been involved with are from Ft. St James, McLeod Lake, West Moberly, and Halfway First Nations. “The mine is on the treaty land of McLeod Lake First Nation,” said Wonders.

The Nak’azdli First Nation took umbrage with the claim that the project is backed by the First Nation on whose lands it is located. They recently disputed the McLeod Lake claim to the territory. Wonders lived in Prince George for many years and is aware of the crisis in forestry jobs that surrounds the region, reducing employment in towns like Mackenzie and Ft St James north of Prince George. “The mine is a beacon of light for a lot of people.”