3 Okanagan Indian bands ‘doing well’ generating income, says Fraser Institute
Study shows Osoyoos band brings in more money than it receives from government
Three Okanagan First Nations generated almost as much income on their own last year as they received in government transfers, a new study has found.
Collectively, the Penticton Indian Band, the Vernon-based Okanagan Indian Band and the Osoyoos Indian Band reported own-source revenue of $19.8 million in the past fiscal year.
That compares to the $23 million the three bands received through transfers from Ottawa.
“The three bands there are doing well in generating their own income compared to other First Nations,” Tom Flanagan, a University of Calgary professor and senior fellow of the Fraser Institute, said Tuesday.
“There are some First Nations where own-source revenue is less than a million dollars,” Flanagan said.
Flanagan looked at revenue reported to Ottawa by 516 First Nations across Canada. In total, the First Nations had more than $3 billion in own-source revenue and $5.5 billion in government transfers.
Own-source revenue typically comes from activities such as development of land for residential and commercial purposes, resort and hospitality ventures and industrial parks.
Some bands — elsewhere, but not in the Okanagan — also derive substantial income from natural resource operations, such as forestry, oil and natural gas, and fisheries.
In the Okanagan, the 1,069-member Penticton Indian Band reported the highest income — $17.6 million, of which $9.2 million came from government transfers and $8.4 million came from the band’s own revenue sources.
The Okanagan Indian Band, with 2,010 members, had revenues of $13.4 million. Of that, $9.3 million came from government transfers and $4.2 million was own-source revenue.
The 541-member Osoyoos Indian Band had total revenues of $11.7 million. Unlike the other two bands, the greatest percentage of that revenue came from the band’s own sources, amounting to $7.2 million. Government transfers were $4.5 million.
“The Osoyoos band is sort of legendary for its entrepreneurialism,” Flanagan said, referring to band ventures such as a winery, golf course, high-end resort and industrial businesses. It also profits from having a provincial jail on its lands.
The Westbank First Nation, which has a self-government agreement with Ottawa, does not report its revenue to the Department of Indian and Northern Affairs.
Of all First Nations in B.C., Squamish generates the most own-source revenue, at $61 million, compared to $17 million in government grants.
“First Nations across Canada have found multiple paths to financial success,” Flanagan says. “When Indigenous communities are successful economically, their members can prosper and see their living standards improve.”