The Hon. the Speaker: Will you take a question, Senator Gold?

The Hon. the Speaker: Senator Batters, do you have a question?

Hon. Denise Batters: Yes, I do.

The Hon. the Speaker: Will you take a question, Senator Gold?

The Hon. the Speaker: Senator Batters, do you have a question?

Hon. Fabian Manning moved the adoption of the report.

Hon. Scott Tannas: I rise today to speak on my colleague Senator Klyne’s inquiry that deals with the economic contributions of Indigenous businesses in Canada. I want to thank him for bringing this important inquiry forward.

As mentioned in his speech, there are more than 50,000 Indigenous-owned businesses in our country, annually contributing a total of $31 billion into Canada’s GDP. Senator Klyne very graciously spoke about the success of the Whitecap Dakota First Nation in Saskatchewan. Senator Busson equally spoke enthusiastically about many Indigenous success stories in her home province of British Columbia, including the Nisga’a and the Osoyoos Indian Band, to name a couple.

Today, I will speak about two of the many success stories in my home province of Alberta. I will not only speak to their successes, but also to the barriers they continue to face despite their monumental achievements. I think as representatives of our provinces, it is not only important to celebrate the achievements in our regions, but also to acknowledge and try to remedy the hurdles that are still in place.

Let me start with the first success story, the Fort McKay story. Fort McKay is located on the banks of the Athabasca River just north of Fort McMurray. In the community, there live about 800 people, members of Dene, Cree and Métis descent. It’s a signatory to Treaty 8 and boasts a long-standing history dating back to 1820, when the Hudson’s Bay Company first built a trading post near the current site of the village.

Fast forward to 1986. The Fort McKay Group of Companies, or FMGOC, is established. In fact, it should be mentioned that the first female chief in Alberta, Chief Dorothy McDonald-Hyde, was instrumental in establishing the Fort McKay Group of Companies.

It began modestly with two employees and a single janitorial contract. Today, the Fort McKay Group of Companies has over 1,000 employees from over 75 First Nations across Canada and 5 subsidiaries. In addition to that, Fort McKay has a holding company called Fort McKay Landing Limited Partnership, and its investment portfolio includes 13 private companies that have been built using the nation’s generated business income. That income is then reinvested into current subsidiaries and into new ventures as part of the nation’s private equity fund.

Simply, the goal for Fort McKay is to become fully self-sustaining such that the revenue generated from their growing investment portfolio of companies is used to pay for community infrastructure, services and programs. We have heard that their portfolio of companies operating over four provinces generates approximately $500 million in revenue. Fort McKay First Nation has, in fact, contributed over $1 billion in accumulated business activity to the Alberta economy, and now employs over 1,500 Albertans, contributing to the Canada Pension Plan and Employment Insurance base.

All of Fort McKay’s businesses embrace specific core values. First, they are all either majority or minority Indigenous owned or operated businesses. Second, each company tries to maintain a minimum of 10% Indigenous employment in their organization. This is a commendable goal and not an easy feat. While some of their portfolio companies have achieved this goal, Fort McKay supports others in their recruitment of Indigenous talent. It is the nation’s goal to be the largest Indigenous employer — a workforce they believe is severely underutilized.

Further, many community leaders have been working hard to learn and implement the Truth and Reconciliation Commission’s Calls to Action. Every year they have seen more and more of their portfolio companies participate in the National Day of Awareness for Missing and Murdered Indigenous Women and Girls on May 5; May 11, Moose Hide Campaign Day; June 21, National Indigenous Peoples Day; and September 30, Orange Shirt Day.

Third is a core value set. In our conversations with Fort McKay, we were notified of an acronym: PACE — People, Accountability, Culture and Equity. Monika Wilson, Vice President of Fort McKay Landing LP, summed it up beautifully:

It’s how we value people, value accountability, value culture, and value equity. Seeing and celebrating the achievements of our members and employees, being transparent in our governance and business activities, having culturally relevant policies, programs, and services, and engaging elders as cultural advisors, and ensuring that our policies and procedures are fair and without bias is how we strive to do our jobs.

Before moving on to the barriers still faced by Fort McKay, let me briefly introduce the second success story, which is Tsuut’ina First Nation, signatory to Treaty 7, bordering the city of Calgary. Tsuut’ina’s history dates back to the early 1700s.

In 2007, Tsuut’ina opened Grey Eagle Resort & Casino just outside Calgary. The resort includes a casino with over 84,000 square feet of gaming action, over 1,000 slot machines, 40 gaming tables, six poker tables, a bingo hall, a four-star hotel and conference centre and a 2,500-seat event centre. It is widely regarded as the number one casino in Calgary and the number two casino in Alberta, just behind the River Cree Resort and Casino in Enoch.

Today, the casino employs roughly 450 employees, while the hotel and event centre employ an additional 250 employees. Of the employees at the casino, there are 39 Tsuut’ina employees and 82 First Nations employees. Of the employees at the hotel and event centre, there are 16 Tsuut’ina employees and 52 Indigenous employees.

All revenue the casino makes, Tsuut’ina puts back into the community. This is a pattern I am sure you have noticed, colleagues. Every penny made through Indigenous establishments exists for the betterment of the community. The money Tsuut’ina makes is used to support health care, emergency services and housing on-reserve. In fact, over the years Tsuut’ina has spent approximately $30 million on policing services on their reserve. Furthermore, there are currently plans for the construction of 60 houses in the community, and that is not including the 185 houses already built in the community using casino revenue.

I should also mention that, pursuant to the First Nations Development Fund Grant Program that has been entered into between Alberta and all First Nations, revenue generated from the Grey Eagle Casino is shared. Of slot revenue, 10% goes to non-Host First Nations which is then used by those First Nations to support their own economic, social and community development. Of slot revenue, 30% goes to the Province of Alberta. This is Tsuut’ina’s way of giving back and sharing the success. It should also be mentioned that since the casino’s opening, Tsuut’ina Nation has given Alberta $442 million.

Now that I have spoken on both success stories, let me relay some of Fort McKay and Tsuut’ina’s concerns. Both nations believe that the Government of Canada does not do enough. Both have either faced barriers in acquiring funding or in licensing projects. Both feel there are a lack of resources for Indigenous business owners.

For Fort McKay, an issue they have noticed that is unique to First Nations businesses is that they do not have access to capital for on-reserve assets to be financed. Banks and lenders cannot seize assets on-reserve, so it makes getting loans against assets on-reserve difficult if not impossible.

Another avenue of disadvantage is in the lack of mentorship programs that give interested persons the ability to acquire skills relevant to running a business, especially where it comes to understanding the complex legal framework surrounding business management on and off reserves, bookkeeping, accounting and general financial management. These skills are crucial in cultivating future talent in Indigenous communities. This is a shared responsibility — it does not just fall on Fort McKay or Tsuut’ina or any Indigenous community. Everyone benefits from talent in this country. It’s a part of economic reconciliation, which is part of larger reconciliation.

For Tsuut’ina, many of the challenges existed prior to Grey Eagle Casino being operational. For Grey Eagle Casino to be built, Tsuut’ina first had to enter into negotiations with the federal government to lease their own lands for development. The establishment then had to be licensed by the Alberta Gaming, Liquor and Cannabis Commission. All this can be a lengthy process, and, because Tsuut’ina cannot license their own gaming establishments, they only keep a portion of the revenue the establishment generates. The rest goes to the province — and while a portion of it is used for noble pursuits, such as the First Nations Development Fund Grant Agreement, the vast majority is simply pocketed into general revenues by the province. It is an unfair bargain, to say the least. What would make it a lot easier is if First Nations were not restrained by licensing rules outlined in the Criminal Code and, instead, could exercise their sovereignty on these matters where their own land was concerned. I will not delve into this topic deeper than this, but, colleagues, stay tuned. In the coming weeks, I will be speaking on this matter in greater detail.

To conclude, colleagues, I hope I have left you with some food for thought — and for my fellow Alberta senators, pride in these incredible Indigenous entrepreneurs. I am not sure if we will hear about all 50,000 Indigenous-owned businesses across this country, but we will hear about many, and I look forward to those stories that my colleagues will present on this inquiry. Thank you again, Senator Klyne.

Hon. Senators: Agreed.

(Motion agreed to and report adopted.)

On the Order:

Resuming debate on the inquiry of the Honourable Senator Klyne, calling the attention of the Senate to the ongoing business and economic contributions made by Indigenous businesses to Canada’s economy.

Hon. Peter Harder: Thank you, Your Honour, and let me add my congratulations to you on your post. You mentioned earlier that you had big shoes to fill, but your predecessor never wore high heels.

Before I begin, I’d like to acknowledge that we are holding our deliberations on the unceded territory of the Anishinaabeg Algonquin First Nation. This acknowledgement is particularly appropriate, as I rise today to speak on the inquiry recently launched by our colleague the honourable Senator Klyne from Saskatchewan, or, as he’s known by his Twitter handle, @Mister_Regina.

The objective of this inquiry is to provide a focus on the great success stories being experienced but not adequately spoken of regarding Indigenous-led businesses across Canada. I am delighted to have so many colleagues, including Senator Tannas who just finished, speak on this issue from the perspective of your region.

As senators who occupy what I believe to be the most privileged think tank in the country, we can do a lot to inspire Indigenous Canadians looking to start their own business or wanting to take part as employees, researchers, staffers or in other roles. In my home province of Ontario alone, the Indigenous Business Directory of Canada counts 526 businesses of all shapes and sizes.

As many of us know, entrepreneurs operating an Indigenous-led business often come up against challenges that businesses led by others don’t encounter. Given that reality, one can be sure that a large number of those 526 businesses have overcome long odds to get to where they are. It would be easy to cherry-pick one or two upon which to shine a bit of light. But, rather than simply convey examples of such successes to you, I thought I would spend a bit of time discussing the challenges Indigenous-led companies face in ensuring that the number of 526 continues to grow here in this province.

By the way, overall there are, as Senator Tannas already referenced, about 50,000 Indigenous businesses in Canada.

I’d like to talk a bit about the potential Indigenous labour pool in this country which, as we all know, too often goes untapped and underutilized. Much of Indigenous Canada is young, vibrant and creative, and we’re not making the most of it. Success in much of the business world, of course, starts with education. Let me hasten to add that a good education is not by any means a prerequisite for running a successful business. Indeed, my own view is that we should be esteeming the trades more than we do in this country. But that’s for another day.

The fact of the matter is that the number of Indigenous post‑secondary degrees continues to significantly lag behind those attained by non-Indigenous Canadians. For example, in 2016, 52% of Indigenous women had a post-secondary qualification, including the 14% of Indigenous women with a bachelor’s degree or higher. By contrast, 46% of Indigenous men obtained post‑secondary qualifications, including 8% who graduated with a bachelor’s degree or higher.

Compare this to the rest of Canada, where 67% of women earn a post-secondary qualification, and 32% graduate with a bachelor’s degree or higher. Non-Indigenous men are only slightly behind, at 64% and 27%, respectively. These are huge gaps, and, as a country, we are missing out.

While the unemployment rate for Indigenous Canadians in 2022 was lower than the year before, the gap between Indigenous Canada and the rest of the country is still too wide. In 2022, for example, 8% of Indigenous Canadians were unemployed, compared to 5.2% of non-Indigenous Canadians. That’s a gap of almost three points.

Finally, I’d like to address the issue of Indigenous Canadians in the tech and STEM fields, where much of the job growth in our country continues to take place.

First, with respect to STEM, about 4% of Canadian adults are Indigenous, but Indigenous Canadian adults make up less than 2% of people working in science, technology, engineering and math.

In tech, the gap is similar. Among enumerated Indigenous peoples in Canada, participation in tech occupations in 2016 was measured at 2.2%, or about 13,000 people in total, well below Indigenous Canada’s proportional share of the Canadian population.

These low numbers make life difficult for Indigenous companies, even those with the best of intentions to hire Indigenous workers. Take, for example, the experience of David Yeo, president and founder of Dalian Enterprises Inc., an Indigenous-owned cybersecurity firm based here in Ottawa. The firm is constantly on the lookout for Indigenous tech grads and has a strong relationship with schools like Algonquin College in Ottawa’s West End. But hiring from these pools is not an easy task.

Too often, David will have an eye on an Indigenous grad, only to watch that individual get snapped up by a larger firm. In other cases, potential Indigenous hires head back to their home reserve after graduation. This stumbling block has become a little easier to overcome recently given the new emphasis on working from home. Mr. Yeo also suggests that Indigenous kids wanting to get hired self-identify. That is an issue that we find in the workforce as well.

Mr. Yeo, a descendant of Chief Robert Franklin of the Alderville First Nation, who was an original signatory to the Ontario Williams Treaty of 1923, started Dalian in 2001. As a veteran of Afghanistan and other conflicts, Mr. Yeo now specializes in cybersecurity infrastructure and data centre projects within the federal government. Twenty-two years after the start-up, Dalian has over 200 subject-matter experts embedded in various government departments. The firm has been operating as a trusted government partner over that same period of time and holds a top secret facility security clearance, with most of the staff being cleared “secret” or above.

Mr. Yeo’s own interest in tech stems from the fact that his high school in Port Hope, Ontario, was one of the first to receive computers and large mainframes for inclusion in the school curriculum. This forged his love for the sector, triggering his decision to go to college for computer science. Again, there’s the importance of education.

Before summing up, I’d like to take a moment to also mention the importance of various on-reserve development agencies whose role in fostering business development cannot be underestimated or underappreciated. These include vibrant and progressive organizations like Whitecap Development Corporation located south of Saskatoon; the Osoyoos Indian Band of Osoyoos, B.C.; and Membertou Development Corporation of Nova Scotia. The latter has helped to create one of the most prosperous First Nations in the country, boasting several divisions which range from social services and housing to educational programs, including studies in entrepreneurship. Once again, there’s the focus on education.

Membertou also numbers as one of its advisers our recently retired colleague senator Dan Christmas, whose wise counsel on Indigenous business issues can only strengthen Membertou’s ongoing contribution in this area. We need more like him so we can encourage Indigenous Canadians to enter business.

To sum up, the priorities and objectives of Indigenous Canada change with the era. For a time, the agenda promoting rights held sway. At other times, treaty negotiations and self-government appeared to be at the top of the agenda. Today, it seems to me, a focus on business development and entrepreneurship is higher on the list, and that is a good thing. As senators, we should do all we can to foster that spirit.

In that spirit, I would thank Senator Klyne for this inquiry and invite others to participate in this important debate.

(On motion of Senator Downe, for Senator Patterson (Nunavut), debate adjourned.)

Hon. Jane Cordy rose pursuant to notice of May 10, 2023:

That she will call the attention of the Senate to the career of the Honourable Patricia Bovey.

She said: Honourable senators, I rise today to initiate debate on this inquiry to allow for those senators who, due to time constraints, were unable to pay tribute to our former colleague Senator Bovey during the time allocated for tributes.

(On motion of Senator Bernard, debate adjourned.)

(At 5:19 p.m., the Senate was continued until tomorrow at 2 p.m.)