PROPOSAL FOR A PROCESS TO ELABORATE A STRATEGY FOR DEVELOPING QUEBEC FIRST NATIONS FORESTRY INDUSTRY
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1 PROPOSAL FOR A PROCESS TO ELABORATE A STRATEGY FOR DEVELOPING QUEBEC FIRST NATIONS FORESTRY INDUSTRY FORMULATED BY : WORKING TABLE ON ABORIGINAL FORESTRY NOVEMBER 2013
2 Preamble Under the leadership of the First Nations of Quebec and Labrador Economic Development Commission (FNQLEDC) and the First Nations of Quebec Forestry Network (FNQFN), and with the participation of the First Nations of Quebec and Labrador Sustainable Development Institute (FNQLSDI) and the Secretariat General of the Assembly of First Nations of Quebec and Labrador (SGAFNQL), a working table on aboriginal forestry, was established. This table brought together economic development officers, representatives of forestry services from various communities, private entrepreneurs, management of community-based enterprises, heads of forestry services from various First Nations. Two (2) meetings were held, on October 16 and , in Quebec City. This initiative constituted a preparatory exercise for the holding of «Rendez-vous de la forêt québécoise». At the conclusion of these meetings, the participants agreed on the following : The findings of these meetings should be shared with the senior officials of the Ministry of Natural Resources prior to the holding of «Rendez vous de la forêt québécoise». The First Nations of Quebec constitute an indispensable partner in the elaboration and adoption of a sustainable forest management strategy. Therefore, the dialogue between the Government of Quebec and the First Nations in regards to the economic development generated by the activities at every stage of the value-chain of the forestry industry cluster, needs to be carried out through a specific mechanism. In order to enable the aboriginal communities and enterprises to play an active role in the forestry economy, and more particularly in the forestry industry cluster, it is important to undertake a joint process with a view to elaborating a strategy capable of supporting the development of the First Nations forestry industry. The implementation of the said strategy must give priority to establishing a co-management model. v f Page 2
3 1. Vision of Quebec First Nations Forestry First Nations Forestry Is comprehensive; Is integrated to the values and traditions of the communities; Implies stewardship and sustainability; Focuses on the access to resources and aims for economic self-sufficiency; Values partnerships and mutual respect; Creates economic opportunities in terms of job creation, skill acquisition, and business development abilities and aptitudes to compete in the normal course of business. 2 Outline of First Nations Activities in Forestry 2.1 A study done in conjunction with the FNQLEDC, the FNQLSDI and the Quebec Federation of Forestry Cooperatives (QFFC) in 2009 enabled us to identify the activities of the First Nations that relate to forestry. Therefore, out of the thirty-four (34) communities in Quebec that were consulted, 26 reported activities of forestry exploitation; 10 held a Forest Management Agreement (FMA); 3 held a Timber Supply and Forest Management Agreement (TSFMA); 16 had members holding a job as silvicultural worker; 16 had forestry companies. v f Page 3
4 Identified Activities Plantes médicinales Exploitation forestière Pêche Chasse Trappe Fruits sauvages Aménagement forestier 88,2% 82,4% 82,4% 82,4% 79,4% 76,5% 67,6% Écorce de bouleau Fabrication d'objets utilitaires 38,2% 47,1% Tourisme Pourvoirie Cérémonies spirituelles Formation en foresterie 23,5% 20,6% 20,6% 11,8% 2.2 Background Information on the First Nations Forestry Industry Cluster In reviewing the preparatory document for the «Rendez-vous de la forêt québécoise», it appears that very little data was collected to establish a profile of the First Nations forestry industry. It is possible however in light of the data collected from various government documents or provided by representatives of the Ministry of Natural Resources (MNR) and the First Nations of Quebec Forestry Network, to establish a summary profile of the potential economic activity or generated by aboriginal enterprises or communities. At the level of harvesting or primary processing activities, the collected data indicate that : m 3 are allocated in GA or acquired by auctions by the four (4) factories of aboriginal ownership or co-ownership; m 3 are allocated to the communities under PRAU; the total allocation to the First Nations represents 6,1 % of the GA and PRAU granted by the MMR; v f Page 4
5 The total allocation to the First Nations represents 3,5 % of the allowable cut in Quebec; 45 % of the capacity to produce wood pellets in Quebec is in the hands of aboriginal enterprises or of co-ownership. The indicators of potential economic spin-offs generally used, indicate that each m 3 of supply harvested and transformed, generate : 325 direct, indirect and spinoff jobs; 10,5 M$ in salaries and wages before tax. On the basis of the abovementioned indicators, the economic potential of the allocated GA and PRAU can be assessed as follows at every stage of the forestry industry cluster value-chain: Total Volume: m 3 Operations and Development : Reforestation: plants Manpower, operation : 22 Manpower, supervision : 52 Sawmill Operations Sawing volume: 200 M mpmp Sawmill and planer volumes : 48 M tma Total manpower (sawing, seasoning or drying, planing) : 250 Overall impacts Total of safeguarded jobs : 3037 Salaries and wages before tax : 96,3 M$ Added value : 400,8 M$ One question remains : what portion of potential benefits contribute to the economic self-sufficiency of aboriginal communities? v f Page 5
6 2.3 Factors for development of First Nations presence in the First Nations forestry industry cluster Demography and proximity In terms of demographics, the aboriginal population is younger than the Quebec population, and the birth rate is higher. On the other hand, most aboriginal communities are established close to the commercially-exploited forests. The Forest Products Sector Council, in its study released in 2011, «Bâtir l avenir du secteur canadien des produits forestiers en utilisant le talent des Autochtones», (Building the future of Canada s Forest Products Sector with the skills of Aboriginal Peoples) considers this situation as part of the solution to address the challenge related to the massive replacement of the manpower in the forestry sector over the next few years. Entrepreneurship In addition to representing an expanded pool of skilled labour, it is the capacity of developing a network of Aboriginal job-creating enterprises that constitutes a factor of primary importance for development. To this end, it is interesting to review some data established by the Business Intelligence and Research Centre applied to the entrepreneurial culture of the Fondation de l Entrepreneurship (2011). Quebec Entrepreneurial Index: comparisons between the aboriginal setting, Quebec and the rest of Canada Intention 7,0 % 11,1 % 14,3 % Autochtones Démarche Propriétaire Fermeture 9,9 % 5,5 % 8,4 % 11,7 % 9,5 % 8,6 % 7,2 % 7,6 % 16,3 % Ensemble du Québec Reste du Canada v f Page 6
7 Percentage of the population desiring to create a new business or take over an existing company Autochtones du Québec Ensemble du Québec 7,0 % 14,3 % Aboriginal Peoples are twice as likely to contemplate an entrepreneurial career, as Quebecers; The business intentions of Aboriginal Peoples are 1,3 times higher than those of the popultation in the rest of Canada; 33 % of the Cree Nation members show business intentions, in contrast to the members of the Huron-Wendat Nation (2,2 %), Mohawk Nation (2,3 %) and Innu Nation (5,6 %). Initiative to create a new business or take over an existing one Autochtones du Québec Ensemble du Québec 5,5 % 9,9 % 9,9 % of the adult population of aboriginal communities was active in making representations during the past year, against 5,5 % for the rest of Quebec; This percentage stands at 8,4 % in the rest of Canada. Business Owners Autochtones du Québec 11,7 % Ensemble du Québec 9,5 % 11,7 % of Aboriginal Peoples currently own a business; this rate stands at 9,5 % for the rest of Quebec; v f Page 7
8 Aboriginal communities are lower in proportion as entrepreneurs compared to the rest of Canada (16,3 %); Quebec has seen the number of Aboriginal enterprises increase by 38 %, in comparison to 7 % for the rest of Canada Aboriginal or Metis enterprises Aboriginal or Metis enterprises Business Closures Autochtones du Québec 8,6 % Ensemble du Québec 7,2 % 8,6 % of Aboriginals have already closed a business in comparison to 7,2 % for the rest of the population in Quebec ; There are more business closures among Aboriginals than in the rest of Canada ; In 2010, the rate of business closures in Quebec stood at 5,9 %. The higher rate of aboriginal business closures is explained by the lack of access to assistance agencies, (such as the CLDs), in comparison to Quebec s businesses. 2.4 Constraints to the development of the First Nations forestry industry cluster Absence of government strategy versus First Nations forestry; Approach to elaboration and allocation of silvicultural and harvesting work to aboriginal communities; Absence of tools to assess the economic value of harvesting allocations; Access to capital; Access to financing. v f Page 8
9 Proposals That a joint approach be initiated with a view to establishing a strategy to support the development of the First Nations of Quebec forestry industry, including programs and measures dedicated to the communities and aboriginal-owned businesses. That the implementation of the strategy be done in co-management mode. That the funding dedicated to the implementation of the strategy be distinctively identified in the allocation of the Quebec Government budget appropriations. That the access to the resource be the foundation of the strategy, and that on a short term, the policy of «allocation of silvicultural and harvesting work to Aboriginals» be revised jointly. 3. Scope of the Strategy Establishes a general framework which takes the aboriginal reality into account. Fosters the formulation of specific strategies per community, in line with their vision of the development of economy, and provides support for its implementation. Fosters the development of a network of aboriginal enterprises that are competitive at every stage of the forestry industry cluster value-chain. v f Page 9
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