FORT FRANCES—A economic impact study commissioned last year shows that spending by the seven area First Nations is a major economic driver in Rainy River District, and what’s good for the First Nations is good for everyone else.
In an interview Friday, Tony Marinaro, economic development advisor for Pwi-Di-Goo-Zing Ne-Yaa-Zhing Advisory Services, said the study notes the area’s First Nation communities make up about 10 percent of the total population, yet band members and businesses contributed almost $62 million to the $530 million local economy in 2006.
“If the First Nations’ economy were considered a separate sector in the Rainy River District census area, it would rank just below the forest sector,” said Marinaro.
“In fact, the seven First Nations, in terms of population, employment, and economic impact, is in all probability, the second-most important sector in the Rainy River District census area,” he stressed, citing the impact study which was conducted by Jack Carr, a professor of economics at the University of Toronto.
“Carr also noted that increased spending as a result of land claim settlements, for example, could almost triple that amount in the future,” Marinaro added.
“However, that was not calculated in this study.”
The study indicated a total of 75 percent of First Nations’ spending stays within the local economy. It also noted First Nations’ residents spend about 60-70 percent of their income on consumption goods.
Aboriginal workers represent about eight percent of the total workforce in the district, and the study found a disparity between native and non-native income levels.
The average non-native household income in the Rainy River District census area was $61,000 a year—compared to less than $32,000 for the average native household.
“Any policies or efforts which lead to an improvement in the average income in the seven First Nations would, in the first instance, improve the lives of the members in the First Nations,” the study concluded.
“However, because the First Nations represent such a significant share of the local economy, any increase in the standard of living would be a spillover effect and improve the standard of living in the entire district,” it added.
“When you’re spending 75 percent of your income in the area, it’s in everyone’s interest to have a growing and prosperous First Nations’ community,” Marinaro remarked.
Naicatchewenin chief Wayne Smith, who also holds the portfolio for economic development for area First Nations, said aboriginal leaders have been looking to commission an economic impact study for years, yet this is the first of its kind.
“I think we always had a rough idea of the amount of money spent within the economy, but we never really knew how much. We knew it was quite a bit,” said Chief Smith.
“It wasn’t a surprise, but at the same time it was, once you see it on paper,” he added.
“It was staggering even to us,” echoed Marinaro. “We had a good idea there was a fair amount of money we put into the economy, but when you actually get the figures. . . .”
Marinaro noted the study was first presented to area First Nations’ leaders at an economic development strategic planning session last year.
Following that, they met with Robert Campbell, vice-president of the Tribal Councils Investment Group (TCIG) of Manitoba, and were inspired by the tremendous success of that corporation to find a means to recover the money area First Nations have been spending.
“Basically, the leadership created an investment group. It’s called the Rainy Lake Tribal Development Corp.,” explained Marinaro. “The majority of the communities invested seed capital to build sustainable and profitable businesses.
“So, we’re going out and seeking and finding existing businesses to invest into, to form partnerships with,” he added. “We’re researching and developing those partnerships as we speak.
“We’ve been working on it for a number of months now, and in the next few months we should be prepared to start announcing some of the partnerships we’ve developed,” Marinaro noted.
“They’re quite interesting.”
These existing businesses could be located within the district, region, or even further afield, and need not be First Nations-based.
“We’re looking at investing outside our First Nation communities,” Marinaro said. “It’s an attempt to create wealth and employment through securing long-term strategic partnerships and investments.”
“Based on the study, as a collective, the First Nations’ communities have a lot of buying power and we are going to try and maximize that,” Chief Smith pledged.
“Right now, we spend that kind of money, but we’re not recouping much of those funds,” added Marinaro. “We’re a consumer nation, it seems, and we’re going to have to change that.
“So, we’re analyzing the areas in which we spend these funds, and by partnering with some of these businesses, there’s an opportunity to recoup some of them, to recapture some of them.
“And any employment that comes out of that is kind of a bonus because the intent is strictly to generate wealth.”
Marinaro said local First Nations are trying to keep in mind a long-term economic view.
“It would be very sad to see our major employers leave the area, God forbid that ever happen,” he remarked. “But if it does, who’s going to be left? The First Nations people will be here.
“We were here before, we were here during, we’ll be here after,” he stressed. “It’s only in our best interests to prepare ourselves for the future. And as it says in the study, it’s in everybody’s best interest if the First Nations do well.
“The more prosperous the First Nations are, the more spillover for the district,” added Marinaro.
The Rainy Lake Tribal Development Corp. has a board of directors consisting of representatives from the partner First Nations. The executive includes Couchiching Chief Chuck McPherson as president, Smith as vice-president, and Marcel Horton as secretary-treasurer.
Going by TCIG’s very successful example, Rainy Lake Tribal Development Corp.’s potential could be great.
In 1990, for instance, TCIG, representing 55 First Nations’ communities and more than 100,000 people, combined resources to establish themselves in the corporate business community, explained Marinaro.
Each tribal council made an initial investment of $25,000 to form TCIG and invest in opportunities that were beyond the financial capacity of the individual tribal councils or First Nations.
The combination of their resources resulted in a far greater impact within the corporate community, noted Marinaro, resulting in TCIG currently owning a group of 13 businesses ranging from the Radisson Hotel Winnipeg, Arctic Beverages Ltd. (Pepsi), and Paragon Pharmacies to Artis Real Estate Investment Trust, First Canadian Fuels Ltd., and First Canadian Water and Infrastructure Inc.
“It’s the kind of thing that shows it is possible to succeed,” said Marinaro. “It just takes the will—and the will is definitely there from the area.”
The Rainy Lake Tribal Development Corp. is a joint venture, clarified Marinaro, but partner communities will continue to act independently and pursue their own economic development opportunities.
(Fort Frances Times)
Fort Frances Times
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