National Post (National Edition)
Aboriginal prosperity gap widens: report
The federal government touted a number of initiatives Wednesday for improving First Nations’ well-being but could not explain why a new report showed the prosperity gap between aboriginal and non-aboriginal people was widening in some cases.
The report, released by the federally appointed National Aboriginal Economic Development Board, found that First Nations living on reserves had shown the least improvement.
Relying on 2006 and 2011 census data, the report found the non-aboriginal employment rate went from 62.7 per cent to 61.2 per cent. For First Nations living on reserves, it dropped from 39 per cent to 35.4 per cent.
Large disparities in income levels remained. In 2010, average income was $18,586 among aboriginals on reserves and $30,266 off reserves. For non-aboriginals, the average was $41,052.
Some progress was seen in the Inuit and Metis populations. Inuit unemployment declined slightly. The average income gap between Metis and non-aboriginals also shrank.
Still, the goal set by the board three years ago to close the gap in economic outcomes by 2022 is far from being realized, the report found.
“It is clear that there is still much work to be done before aboriginal people are in the same position as other Canadians to contribute to and benefit from one of the world’s wealthiest economies,” said Clarence Louie, chair of B.C.’s Osoyoos Indian Band and the board’s chair.
The report called on the federal government to come up with specific strategies for closing the prosperity gap for First Nations on reserves, make sure aboriginal people have access to high-quality education and tailor skills development and training to the unique needs of aboriginals.
“Our government agrees that economic development is key to improving living conditions of aboriginal peoples,” read a statement by the office of Aboriginal Affairs Minister Bernard Valcourt.
It said the government had enhanced income assistance through the First Nations Job Fund and expanded opportunities for First Nations to manage reserve land and resources, but did not specifically address the findings of the report.
Bob Nault, a former Liberal Minister of Indian Affairs, said many reserves still lack basic infrastructure, which is hindering economic development.
“If you don’t have basic infrastructure, sewer, water, roads, grids, the expectation of being able to create an economy are very slim to none,” he said.
Besides helping to improve infrastructure, the government needs to make more “discretionary funding” available for small business loans and capital improvements.
“If we want First Nations to be partners, whether it’s in mining, forestry or pipelines, some of these First Nations are not capable of putting all the money on the table. They need some help from government,” Nault said.
J.P. Gladu, president of the Canadian Council for Aboriginal Business, said he is encouraged by growing partnerships on resource projects — the report said over $675 billion worth of natural resource opportunities are expected across Canada over the next 10 years, most of which will be located on or near traditional lands — but said more needs to be done to convince young, educated aboriginal people to return to their communities.
“I’m an example. We go out as people and get educated. We get our skills and training, our advanced degree, but there’s nothing to draw us back to the community. There’s no economic base so we continue to drain our communities of our best and brightest,” he said.
“If there’s no job, why would I go back to my community? That’s the case for many First Nations in the country.”