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Opinion: We need a grand bargain to unlock Canadian prosperity

A new era of resource development must start with full Indigenous engagement and a bold federal commitment to shared prosperity
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To unlock Canada’s resource wealth, First Nations must be full partners in development, decision-making and revenue sharing, writes Ken Coates.

There aren’t many absolute truths in Canadian public life, but there are some.

Here’s a few on that short list: First Nations people require — and deserve — far greater economic opportunities, Canada’s economic prosperity rests on the cautious but timely development of natural resources, and the current rate of government spending cannot be maintained.

As Prime Minister Mark Carney’s new government engages provincial and territorial counterparts seeking to fast-track major development projects, First Nations, Métis and Inuit warn that unchecked development, undertaken without Indigenous involvement and approval, must be stopped in its tracks.

These are no idle threats. In response to Ontario’s proposed legislation to expedite Ring of Fire development, First Nations have declared they will use large-scale protests to resist any attempts at moving forward without full engagement. British Columbia’s fast-track legislation has likewise been greeted with Indigenous opposition. First Nations, Métis and Inuit are not uniformly opposed to rapid development. But many are strongly against poorly planned initiatives, and insist on being fully consulted on project design and oversight.

There is a path forward — one that finally embraces Indigenous Canadians as full partners in prosperity building. A “grand bargain” — between First Nations, the federal government, provinces and territories, and resource companies — could quickly transform Canada’s economic foundations. It could do so to the benefit of Indigenous peoples and the country as a whole, while protecting the environment. It would require a fundamental rethink of several foundational relationships in the Canadian economy. But it is achievable in short order. Here’s how.

First Nations, Métis and Inuit governments could commit to adopting a more proactive and supportive approach to resource development. They would agree to articulate, at the front end, any areas where development is not acceptable. In return, Indigenous peoples would be assured of a solid return (such as equity, invest opportunities, business contracts and employment), and have key roles in project approval and environmental oversight.

Building national prosperity would have, as central goals, improving infrastructure on First Nations reserves and producing sustainable economic growth. Indigenous rights holders would retain their decision-making authority and partners in development would recognize Indigenous and treaty rights.

Some First Nations are blazing a trail. The Tk̓emlúps te Secwépemc Land Code being developed in B.C.’s interior is designed to create “general rules and procedures for the use and occupation of these lands by members and others.”

Companies and governments welcome such codes, which lay out the ground rules for development and, in some instances, make it clear why some projects will not gain First Nations support. Clarity on the Indigenous front must be matched by comparable levels of certainty from Ottawa, the provinces and territories, and corporations.

Federal, provincial and territorial governments should commit that Indigenous funding will be protected from cutbacks in the coming years of likely federal austerity. First Nations, Métis and Inuit are at crucial stages of the improvement of vital infrastructure, government systems, social services, educational redevelopment, and cultural revitalization. This is not a time to stop fundamental developments. 

In addition, the Canadian government must modify the more intrusive elements of Bill C-69, and change the unpredictable and ideological approach the federal cabinet takes to natural resource development. By making carefully-done, Indigenous-supported resource projects the hallmark, governments can usher in a new era of prosperity and shared opportunity. Governments could incentivize this by sharing a portion of resource revenues with First Nations.

Substantial engagement by resource companies is essential, and should not be overly difficult. The Mining Association of Canada has long understood the importance of the United Nations Declarations on the Rights of Indigenous Peoples. Companies in the oil sands, uranium and hydro transmission industries have world-leading relationships with First Nations governments, businesses, and employees. Companies across the country understand that forewarning by Indigenous communities about their priorities and concerns makes for improved collaboration, shared objectives and better commercial relationships. 

The new arrangement would require real bite: It cannot be a superficial promise-to-make-promises approach. It must be backed with substantial authority, including a mutually agreed process of third-party validation, and financial and other penalties for corporations, governments and Indigenous communities that fail to abide by agreements. 

Canada needs bold and creative approaches to natural resource development. Fulfilling current unmet global demand for critical minerals, as well as oil and natural gas, forest products, fish, and hydroelectric power, holds the key to Canadian prosperity in the era of Trump-inspired economic chaos.

Canada has some of the highest environmental standards and labour laws in the world, and has steadily improved relationships with Indigenous peoples. The resource companies working in Canada have earned their reputations for reliability and corporate citizenship. 

But Canada can do it better—for the benefit of all. A grand bargain, built around a firm commitment to Indigenous engagement, must be the starting point.

Ken Coates is a distinguished fellow at the Macdonald-Laurier Institute.

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