Partnering with private and public sectors to develop First Nation owned energy resources gains support
Ontario native groups pursue renewable energy business: AFN
January 24, 2008
Ontario Premier Dalton McGuinty says he "likes the sound" of giving the province's native communities financial help so they can get into the electricity business.
The idea of developing renewable energy projects on First Nations' lands has been floated before, but on Thursday, Assembly of First Nations Grand Chief Phil Fontaine pitched the idea to industry executives with the Ontario Energy Association in Toronto.
"In addition to seeking a reserved allocation of energy contracts, we are seeking a venture capital fund for First Nations energy projects, or alternative loan guarantees from Ontario, to enable us to own a majority of the equity in each contract awarded," he said.
Fontaine's comments echo calls from other Ontario native leaders for the province to develop new sources of electricity over the next 20 years. They say a lot of the new wind and hydro generation projects could be built on First Nations land with the profits flowing back to the communities.
John Kim Bell, an adviser to the AFN, wants native corporations to control the development of new electricity supplies on their land, instead of the usual 25 per cent equity they're usually offered.
The AFN says ownership of hydro dams, wind farms and transmission lines offers the best chance the province's native people have ever had to escape poverty.
Just a few hours after Fontaine made his speech, McGuinty appeared to be open to the idea.
"We're looking for new opportunities to strengthen our First Nations so they can enjoy greater economic prospects," the premier told reporters in Toronto. "So I like the sound of that."
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McGuinty likes AFN‘s call for gov‘t loan guarantees for aboriginal businesses
TORONTO - Jan 24, 2008 - An appeal by the Assembly of First Nations for government support to help aboriginal-owned businesses secure lucrative contracts to build new energy projects got a surprisingly swift and positive response Thursday from Premier Dalton McGuinty.
AFN National Chief Phil Fontaine made his emotional plea to the Ontario Energy Association, asking for more opportunities for poverty-plagued aboriginal communities as the province moves to implement a 20-year, $60-to-$80 billion plan to new energy sources.
He called for government loan guarantees to help First Nations businesses bid on new energy projects, an idea that got a lukewarm response from Aboriginal Affairs Minister Michael Bryant, but a much more enthusiastic reception from McGuinty.
“I like the sound of that,‘‘ McGuinty said later.
“We‘re looking for new opportunities to strengthen our First Nations so that they can enjoy greater economic prospects, so I like the sound of that. Sounds to me like it‘s a bit of a win-win. We‘re talking about creating energy from renewables and enhancing economic prospects for First Nations.‘‘
Ontario already has special multi-million dollar funds to help manufacturers, forestry and other sectors.
Opposition critics agreed there needs to be some “extra help‘‘ for aboriginal communities to improve their economic conditions, but were cool to the idea of government loan guarantees.
“I wouldn‘t rule it out,‘‘ said Conservative Leader John Tory.
“But I think we‘re getting carried away with an almost unending number of special funds and special programs to lend and give people money rather than focusing on . . . getting an attractive business environment so people of all kinds, including First Nations, will choose to invest in Ontario.‘‘
The New Democrats called loan guarantees “a half-step‘‘ and said Ontario should guarantee First Nations a share of the revenue from new energy projects on their lands, and give aboriginals the same guaranteed rights of participation that they enjoy in neighbouring provinces.
“If you look at Quebec and Manitoba, First Nations in those provinces have the right to participate _ not a right to bid in _ but a right to have ownership and a right to have a veto over projects,‘‘ said NDP Leader Howard Hampton.
“The third thing they have is revenue sharing. If a hydro dam that is built makes a certain amount of revenue, the First Nation gets a percentage of that revenue.‘‘
Fontaine said the lucrative energy sector should also be prepared to help educate and train aboriginal workers, especially for projects that will be built on or near First Nations lands in remote, northern communities.
“It‘s clear that from a labour pool perspective, First Nations and industry must examine new ways to work together to keep your industry strong,‘‘ he said.
“There‘s too much at stake socially and economically, for all of us.‘‘
The Ontario Energy Association said it appreciated Fontaine‘s call for “new ways of thinking‘‘ about partnerships between First Nations and energy companies, and was pleased to hear him talk about working together.
“It‘s important for us to realize that there‘s a large, untapped workforce up there that we really need to engage and work with,‘‘ said CEO Shane Pospisil.
“Many of our members, whether it‘s Ontario Power Generation, Bruce Power or Hydro One, are already working with First Nations communities to pull a lot of these aboriginal youth into the workforce.‘‘
Fontaine said helping First Nations to become partners or even initiators of energy projects could improve living conditions for aboriginal children, one in four of whom are living in poverty _ a situation he called “a crisis of epidemic proportions.‘‘
He said Ontario‘s Integrated Power System Plan presents a unique opportunity for aboriginal participation in the energy sector that may not come again for decades, an opportunity for First Nations people to raise the standard of living for their children..
“If the (power plan) cannot address our issues now, then when?‘‘ he asked.
“There may not be another similar process for twenty years or more. The time for fundamental change is now.‘‘