- Employing the lessons from international jurisdictions
- Many Indigenous peoples around the world, like First Nations Australians, face challenges in relation to their economic participation and self-determination. Throughout the inquiry, the Committee heard about the different approaches taken in other countries to support the economic self-determination of First Nations peoples. Learning from international experiences offers important insights into how economic challenges and opportunities experienced by First Nations peoples in Australia could be addressed.
- This chapter considers the international experiences of fostering economic independence for First Nations communities in:
- Canada
- Finland, Sweden, Norway
- Aotearoa-New Zealand (Aotearoa-NZ), and the
- United States (US).
- These countries were regularly suggested by submitters as offering relevant insights because they share similar histories to Australia of ‘colonisation, dispossession, and discrimination against First Nations peoples…’ and ‘highlight the importance of access to money (capital, financial knowledge and networks to fostering First Nations economic independence’.
Learning from international experiences
7.4Australia’s experience of fostering economic independence for First Nations communities has also offered important lessons for other countries. Screen Australia, a Commonwealth agency supporting Australia’s screen content sector, demonstrated the importance of international collaboration and noted that its own First Nations Department recently served as a model for the development of Canada’s Indigenous Screen Office.[3]
7.5The Australian Sustainable Finance Institute discussed another positive example of international collaboration in the First Nations economic sphere—the Indigenous Peoples Economic and Trade Cooperation Arrangement (IPETCA).[4] The IPETCA was formed in early 2023 and comprises Aotearoa-NZ, Canada, Chinese Taipei and Australia and seeks to build knowledge-sharing pathways amongst participating First Nations economies.[5]
7.6Some submitters observed differences between Australia’s approach to fostering economic self-determination for First Nations peoples, and international experiences. The Jumbunna Institute for Indigenous Education and Research (Jumbunna) suggested that Australia was 40years behind the US, Canada and Aotearoa-NZ in terms of FirstNations economic development.[6] Moreover, the Northern Territory Government suggested that free trade agreements represent a ‘significant opportunity to work with Aboriginal industries to progress national interests and Aboriginal economic development and cultural preservation’ and noted that Canada, Aotearoa-New Zealand and the US have adopted this approach with their agreements.[7]
7.7Notwithstanding the vast historical and cultural contexts of each country seeking to foster economic independence for its First Nations communities, Charles Darwin University recommended that the ‘Australian Government fund research into successful international models of fostering economic independence, and analyse, adapt, and trial application of identified successful international and intergenerational initiatives’.[8] Business Council for Sustainable Development (BCSD) Australia made a similar recommendation and called for comparative studies with successful Indigenous economic development programs in Canada, Aotearoa-New Zealand and the US to be conducted in Australia, with the aim to use findings to inform policy and practice.[9]
7.8First Nations submitters welcomed the opportunity to participate in knowledge exchanges with international First Nations communities and the significant and meaningful mutual benefits these opportunities could deliver for their economic empowerment.
Canada
7.9Many submitters drew the Committee’s attention to Canada’s experience of fostering economic empowerment and reconciliation for its Indigenous communities. This section considers evidence received regarding the Department of Indigenous Services Canada (ISC), Canada’s First Nations Fiscal Management Act 2005 (FMA), renewable energy opportunities, and other programs and initiatives to improve economic self-determination and opportunities for Canada’s First Nations peoples.
7.10Her Excellency Dr Julie Sunday, High Commissioner for Canada in Australia, noted the many similarities between two Commonwealth countries as large as Canada and Australia, with their geographically dispersed and diverse populations and comparable economies and systems of government. Her Excellency also noted that both countries need to find innovative ways to collaborate on improving the economic self-determination outcomes for their First Nations peoples:
I recognise that Canada and Australia also have a similar dark colonial history with Indigenous peoples, marked by dispossession of lands, denial of rights, forced assimilation and systemic racism. Canada and Australia share, however, a commitment to advance reconciliation and build a renewed relationship with indigenous peoples. Importantly, this includes overcoming barriers to economic development that will help achieve economic reconciliation and better socioeconomic outcomes for indigenous peoples and their communities.
7.11Mr Keith Conn, Assistant Deputy Minister, Lands and Economic Development Sector, ISC, and a member of the Moose Cree First Nation from James Bay in northern Ontario, explained the change to the Canadian Government’s approach to its First Nations peoples was driven by it accepting its own responsibility for playing a ‘critical role in creating the conditions of the socioeconomic disparities that exist today by undermining Indigenous economies, constraining economic activity and asserting control’:
First Nations continue to face barriers that obstruct Indigenous peoples from pursuing their visions for their economic futures. Economic reconciliation, as I see it, demands change, specifically a change in who sets and drives the economic agenda.
7.12Mr Harold Calla, Executive Chair of the First Nations Financial Management Board and a member of the Squamish Nation in North Vancouver, British Columbia, emphasised why it was important for any country dealing with issues of economic self-determination for its Indigenous peoples to admit the impact of its colonial history. ‘If you're not prepared to do that,’ according to Mr Calla, ‘then the public is unaware of the challenges of poverty that need to be overcome and the realities of the past’.
7.13When asked what do his First Nations people ‘want now’, Mr Calla explained why he wants the legislative framework that took his people ‘out of the mainstream economy repealed’:
We want to have access to the ability to participate in the mainstream economy. We want our jurisdictions recognised. We want to be self-governing and we want to use those tools to promote economic development.
In Canada, as in your community, the Indigenous population is very fast growing. At the moment, the cost of the poverty that both of our countries bear is only going to grow with it. If we don’t foster the concept of re-engaging in economic development, re-creating our entrepreneurial class and getting access to the tools that others have to be able to participate in the economy, it’s only going to exacerbate the differences of opinion between our populations.
7.14While Mr Calla noted the common colonial history of Australia and Canada, he also observed there were some differences:
…both countries have a choice. Do you want to continue to bear in your gross domestic expenditures the cost of the poverty in Indigenous communities or do you want to enable Indigenous communities to participate in the growth of your GDP? That’s really the question you have to ask yourself. You have to start looking at these programs not as providing services but as investments. You need to develop key performance indicators that measure the success of these initiatives in a way that can demonstrate improved wellbeing within the Indigenous community, and improved contributions to the gross domestic product…Our non-Indigenous populations need to really understand our history and they need to understand how they are going to benefit from Indigenous economic participation and growth.
7.15Mr Calla cautioned parliamentarians and government about setting realistic expectations of First Nations people overcoming these economic challenges:
…don’t expect us to do what you yourselves can’t do. The rest of the country doesn’t move in lockstep, so we can’t either. Like it or not, you have to find what we refer to as a ‘coalition of the willing’ who are prepared to move beyond the status quo, not abandon any of their aboriginal title rights but to advance those things that improve the lives in their communities…
The suicide rates, the abuse rates, the drugs and alcohol are very challenging in our Indigenous communities. I’m hearing this morning from Chief Commissioner Manny Jules that now organised crime is moving into some of the northern communities. If they don’t have a hope, if they can't feed their families, if they’re living in abject poverty, they’re going to reach out for anything that will help improve their lives. Our challenge today is that we have to respond to that, but we have to do so in an accelerated way. Not everything we do is going to be successful. There’s something that I learned a long time ago that was described to me as a noble failure. You can learn from it when it’s not catastrophic; if we wait for perfection, we’ll wait a long time.
The role of Indigenous Services Canada
7.16The ISC is the primary federal government agency responsible for Indigenous economic development in Canada. The ISC ‘supports and empowers Indigenous peoples to deliver services and address socio-economic conditions in their communities’.[22] In doing so, the ISC works collaboratively with a range of partners such as communities, Indigenous organisations and environmental organisations.[23]
7.17A submission from the ISC’s Lands and Economic Development Sector explained that it ‘supports the economic participation of Indigenous communities and entrepreneurs in the Canadian economy according to community vision and needs, while supporting the sustainable management of land, environment and natural resources’. Its work aims to support ‘Indigenous Peoples to pursue opportunities for employment, income generation, and wealth creation’.[25] The sector achieves this through a broad range of programs and initiatives. A selection of these programs is summarised in Table 7.1.
Table 7.1Programs administered by the Indigenous Services Canada, Lands and Economic Development Sector
Program
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Summary
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Strategic Partnerships Initiative
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The Strategic Partnerships Initiative is a program works with 22 federal departments and partners to identify complex Indigenous economic development opportunities across a range of sectors.[26] The program receives approximately CAD$14.45 million in funding from the Canadian Government each year.
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Transformative Indigenous Strategy
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The Transformative Indigenous Strategy aims to award at least five per cent of the value of federal procurement contracts to Indigenous-owned and led businesses. This is a mandatory minimum target and is being implemented over three financial years from 2021. The Government of Canada is continuing to co-develop a longer-term Indigenous procurement strategy.
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Procurement Strategy for Indigenous Business
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The Procurement Strategy for Indigenous Business aims to increase federal contracting opportunities and improve access to the federal procurement process for Indigenous businesses, including through enrolment in the Indigenous Business Directory.
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Indigenous Women Entrepreneurship Initiative
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The Indigenous Women Entrepreneurship Initiative provides support to Indigenous women entrepreneurs to address a range of barriers, such as through financial literacy/capability workshops, training materials, resources and mentorship programs.
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Indigenous Growth Fund
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The Indigenous Growth fund, Canada’s largest Indigenous social impact fund, provides lending capital for Indigenous Financial Institutions (IFIs) across Canada to improve access to capital for Indigenous small and medium-sized businesses. The Fund seeks to support these businesses to overcome barriers and provide a sustainable, Indigenous-led source of capital for IFIs.
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Source: Indigenous Services Canada, Lands and Economic Development Sector, Submission 27, pages 2–6.
7.18The ISC’s Lands and Economic Development Sector also discussed Canada’s Economic Reconciliation Framework, which was announced in 2023 in response to Indigenous peoples’ calls to advance economic reconciliation. Economic reconciliation refers to a return to Indigenous prosperity through ‘renewed, nation-to-nation, government-to-government, and Inuit-Crown relationships based on the recognition of rights, respect, cooperation and partnership’.
7.19MrConn shared his Department of Indigenous Services’ vision to ‘support and empower Indigenous peoples to independently deliver services and address the socioeconomic conditions in their communities’.
7.20The Lands and Economic Development Sector, Mr Conn oversees, provide ‘direct and indirect services to First Nations, Inuit and Metis communities, partnerships and entrepreneurs through core and targeted funding partnerships’:
The goal of these programs and services is to support First Nations as they develop capacity and reclaim jurisdiction in the management of reserve lands, resources and the environment and, if they choose to do so, pursue sectoral self-governance, laying the foundation for sustainable economic development and to support the full economic participation of Indigenous communities and entrepreneurs to close the socioeconomic gaps between Indigenous and non-Indigenous Canadians.
7.21Mr Conn believed all governments wanting to lift up Indigenous peoples should pay attention to some key economic priorities:
These include ensuring First Nations are adequately resourced with capacity at both the community and institutional levels to make strategic economic decisions and pursue their economic priorities; secondly, increasing access to financial services and affordable capital, which are critical to unlocking economic potential; thirdly, supporting Indigenous businesses as they grow and scale, creating opportunities for Indigenous entrepreneurs to thrive in both domestic and international markets and addressing barriers for economic self-determination that limit governments from being able to generate revenue or make decisions at the pace of business; and, lastly, increasing Indigenous control and jurisdiction over lands and resources ensuring that Indigenous peoples can steward their lands and assets in a way that reflects their values and aspirations.
7.22It requires taking bold actions, according to Mr Conn, including removing the longstanding structural and systemic barriers.
7.23As part of its work on the Economic Reconciliation Framework, the ISC explained it is working with Indigenous Policy Leads to create a co-development process that is inclusive of First Nations, Inuit and Metis peoples. The ISC is also coordinating with other government departments and agencies ‘to ensure alignment across federal initiatives that advance economic reconciliation’. The framework was expected to be completed by 2025:
Access to capital, business supports for communities, capacity building—those are a couple of examples [of the 26 proposals for inclusion in the framework]. There’s work from the Inuit from the north looking at economic opportunities to support traditional country food gathering exercises to support communities for food security.
First Nations Fiscal Management Act
7.24Mr Harold Calla, Executive Chair of the First Nations Financial Management Board, described the FMA as being the ‘most successful piece of Indian legislation in the history of Canada’:
To be blunt, we’ve had a great partnership with the government of Canada around it. Indigenous Services Canada and Crown-Indigenous Relations have really supported the development of the institutions and expanded our mandate to support their interests in working cooperatively with First Nations to move towards a fiscal financing relationship that's more representative of a self-governing First Nation and use the tools of the FMA, Fiscal Management Act, and the Tax Commission to support the sharing of fiscal powers around property transfer taxes…In the absence of these institutions, that wouldn't have happened.
Our data that we collect has shown clearly the wellbeing indexes of First Nations that become more accountable and transparent and engage in economic development improve significantly and their own sources of revenue and employment increase significantly… We developed some international standards on accountability and transparency…
7.25Canada’s First Nations Tax Commission, First Nations Financial Management Board, First Nations Infrastructure Institute and the First Nations Finance work together under a framework established by Canada’s FMA ‘to improve First Nations' access to lower-cost capital market finance and create a favourable investment environment for community-driven projects’. A submission from Canada’s First Nations Financial Management Board explained that with the support of these institutions:
Indigenous communities in Canada are increasing their own-source revenue, building badly needed infrastructure, reducing the costs of poverty, and creating wealth for future generations that is spilling over into the Canadian economy as a whole.
7.26Mr Calla described FMA institutions such as the Tax Commission and the Financial Management Board, as shared governance model institutions funded by the Canadian Government.
7.27The FMA commenced in 2006 as ‘optional legislation’ that is intended to support First Nations to strengthen their communities and build their economies. A submission from the ASFI explained that the FMA framework was ‘designed to boost the revenue-generating abilities of [First Nations] communities, and facilitate access to capital markets for long-term financing of essential infrastructure and other community projects.’
7.28Canada’s First Nations Financial Management Board told the Committee that more than 60 per cent of First Nations in Canda have opted in to the FMA. Moreover, through the FMA, First Nations peoples and businesses have borrowed CAD$2billion from the First Nations Finance Authority with no defaults. The FMA has also created more than 18 000 jobs and collected CAD$100 million each year in property taxes through the First Nations Tax Commission to pay for community services. Many businesses have increased their revenues and become less reliant on federal transfers, and now practise strong financial management.
Box 7.1Mi'kmaq Coalition's acquisition of Clearwater
Clearwater is one of the largest vertically-integrated seafood companies in North America. In 2021, Clearwater announced that that it had been 50 per cent acquired by the Mi’kmaq Coalition, a coalition of Membertou, Miawpukek, Paqtnkek, Pictou Landing, Potlotek, Sipekne’katik, and We’koqma’q—seven Mi’kmaq communities in Nova Scotia and Newfoundland and Labrador. This acquisition was the largest investment in by an Indigenous group in Canada.
A submission from the ASFI described Mi'kmaq Coalition's acquisition of Clearwater as a ‘prime example’ of the success of Canada’s FMA, with the acquisition being partially financed by a CAD$250 million debenture from Canada’s First Nations Finance Authority.
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7.29With these achievements considered, the ASFI suggested that Australia should implement legislation similar to Canada’s FMA.
7.30Australia is already engaging with aspects of Canada’s FMA. Canada’s First Nations Financial Management Board submitted that the FMA institutions signed a memorandum of understanding with the National Native Title Council, First Australians Capital, the Indigenous Land and Sea Corporation, and the ANU’s First Nations Portfolio.
7.31Mr Calla explained how Canada has in many cases led the way, with the recognition of a need to develop tools to be able to support the economies of First Nations communities.
This is now no longer just an issue of providing economic development opportunities to Indigenous people within Canada. The Canadian economy needs Indigenous people to participate in the decisions that Canada is about to make around its natural resources and other activities that it’s pursuing right now. So there’s an imperative now. It’s not seen as a special consideration being given to a group of people, although we think we have them.
7.32In Canada the First Nations Tax Commission is now supporting First Nations in the administration of fiscal powers. According to Mr Calla, every First Nations government needs a similar ability to raise its revenue within their geographic boundary.
Canada is recognising the need to share some of that authority and revenue strength with First Nations to be able to support self-government. But I think, more importantly, what’s happening in Canada is that the non-Indigenous communities are seeing the benefits arise from our participation in the mainstream economy, by seeing resource developments occur, by seeing, in the case of my own community in downtown Vancouver, a [CAD]$4 billion housing project that’s going to provide rental housing into the Vancouver market. There is no limitation to the type of activity that First Nations are capable of engaging in.
7.33Mr Conn from the ISC believed the economic success for First Nations peoples in Canada can also be place-based with location a driver of opportunities and economic success available:
Squamish is one classic example of location. West Bank is another neighbouring community with economic opportunities, a beautiful backdrop of mountains, and a beautiful place to retire—a great place to set up a Home Depot, and all this stuff. Down east, it’s access to transportation corridors, bringing great economic success in some of the Atlantic provinces. So it’s dispersed. But yet we do have successes. We do have what I call pockets of heaven in remote fly-in communities where companies have actively and respectfully pursued strong partnership agreements with the Indigenous communities and having the FirstNations being equity partners.
7.34Mr Conn saw the looming opportunity for critical minerals belonging to the federal and provincial governments but located on Indigenous lands.
Now we’ve got another opportunity on our doorstep on critical minerals across this country. Where are the critical minerals? All on traditional territories. So it will be imperative to develop those meaningful partnership arrangements, equity agreements that could really bring a lot of benefits to the community, but also the regional economy, the non-Indigenous neighbours, depending on where that is.
Box 7.2Trans Mountain pipeline expansion
Highlighted during discussions with Canadian representatives at the Committee’s public hearing on 4 October 2024, was the Trans Mountain pipeline expansion project.
Federal Crown corporation Trans Mountain operates Canada’s only pipeline system transporting oil products to the West Coast of Canada—running from Edmonton, Alberta to Burnaby, British Columbia and to Washington state in the US. It currently delivers approximately 300,000 barrels of crude oil and refined products every day, and its assets include four terminals and a marine terminal.[64]
The project required shared decision-making with First Nations communities over environmental decisions and permitting. Mutual Benefit Agreements (MBAs) were made to develop long-term relationships built on shared interests and a commitment to shared prosperity; as well as to build capacity and opportunities with Indigenous communities.
The benefit from the [CAD]$30billion project was approximately [CAD]$6billion in Indigenous procurement; benefit agreements worth approximately [CAD]$1,800 million; up to a 20 per cent equity participation in the ownership of the pipeline; and 11 per cent of the workforce was Indigenous personnel.
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Education and business skills development
7.35Mr Calla described how First Nations in Canada are being able to generate exponential growth in their wealth by reinvesting it, and Canada’s regional economies are also receiving a significant benefit from this investment.
This is being developed by people who are Indigenous, who have had the opportunity to work in both worlds and are coming home and providing support into their communities to be able to begin to engage with the private sector in a way that we couldn’t before. But we’re doing so in ways in which there’s a cultural fit, where we are mindful of mother earth and the things we have to do to protect it. But we have a saying ‘nothing about us without us’. I think that applies to a lot of the economic activity that occurs in this country.
7.36According to Mr Calla, to gain parity with non-Indigenous communities, First Nations communities also need to invest in education of their youth:
The fastest way for the Indigenous community to gain momentum and to approach being comparable to the non-Indigenous community is through inclusion, in particular the private sector including us in their work, in their boards, in their senior management teams, providing initiatives that allow First Nations not to lose their culture and identity, but to participate.
7.37Mr Conn, ISC, noted that these projects include requirements to have some funds set aside for Indigenous employment and training:
That’s a negotiation between the nation and the project proponent. We see many examples of that in mining and renewable energy. There are also impact benefit agreements which secure some capacity dollars in some instances for training and capacity development in trades, for example, or middle management. It varies from project to project. There are some really promising practices out there.
7.38Mr Calla also highlighted the importance of supporting the culturally appropriate development of all levels of business skills for First Nations peoples across Canada wherever they may seek employment or business opportunities:
…it starts with some of our universities. Simon Fraser University in British Columbia and the University of British Columbia offer Indigenous MBA programs, as an example; they give support and preference to those kinds of individuals.
7.39Additionally, Canada has had to support the reality of the migration of its Indigenous population to urban centres where there were more opportunities than in the remote regions:
I think that's a reality we all have to face. This notion that our rights and title are centred in a geographic location within a federation in Canada is just not valid any longer. The reality is we need portability of rights. We need to be in a position where we are supported to move to where the opportunities exist initially, and perhaps go back [to our nations], as I did, in 1987.
Renewable energy opportunities
7.40Substantial evidence to the inquiry discussed how Canada is improving First Nations economic participation in the renewable energy sector and the lessons for Australia. The First Nations Clean Energy Network, which works to ensure that Australia’s First Nations communities share in the benefits of the transition to clean energy, submitted that lessons from Canada in this sphere ‘highlight some of the wins from an approach based on principles of inclusion and partnership.’ Its submission elaborated:
In the last decade alone, First Nations-led initiatives have fostered 200 medium to large renewable energy projects, which have helped to generate [CAD]$1.5billion in Indigenous and employment contracts. These outcomes were achieved through actions by Governments acting with foresight, including mandating project ownership targets for the First Nations on whose lands the projects were proposed.
7.41A submission from the Indigenous Studies Unit and Melbourne Climate Futures at the University of Melbourne suggested that, in Canada, ‘renewable energy is viewed as a potential way to achieve the goals of reconciliation’. In this context, Canada offers various sources of low interest finance and government loan guarantees and capability support to improve First Nations participation in the renewable energy sector, while improving protections against financial risk.
7.42Dr Kathryn Thorburn, Senior Research Fellow at the Indigenous Studies Unit further highlighted the role of Indigenous communities in Canada’s energy economy at a public hearing, and stated:
I think we firstly need to acknowledge that Canada is about 20 years ahead of Australia in terms of building First Nations benefit into the clean energy transition. There are a lot of lessons to learn from how the Canadian government…has gone about it. There’s a lot of variability across Canada but…a number of provinces now have loan guarantee programs so that First Nation groups are able to access finance to gain an equity stake in large-scale renewable energy developments. And because some of these are already 15 years down the track, we can see what the benefits are from those kinds of investments. We can see First Nations groups building significant capital investment funds, with which they’re then able to go on and make further investments in other industries. [Approximately] one in four large-scale renewable energy projects in Canada have a degree of First Nations equity.[80]
7.43Mr Keith Conn, ISC, explained how Canada’s Department of Indigenous Services was broadly supportive of First Nations involvement with renewable energy projects:
…in terms of economic participation through our strategic partners initiative, which provides capacity dollars, planning dollars and project dollars for Indigenous communities who partner with private sector, and including provincial governments at times on, for example, clean energy projects. We have clean energy projects across the nation, which has been well received, contributing to our net zero targets.
7.44The Department is also working indirectly with the First Nations Major Projects Coalition of about 130 members:
They’re self-sustaining, but we often look at their tools and toolbox to support communities in terms of planning, organising, executing some major projects in the country that are complicated, complex negotiations. But it’s been well received as an organisation.
Representation on financial institutions
7.45Ms Jocelyn King, Executive Director at First Australians Capital, discussed the value of having First Nations peoples on established financial institutions boards in Canada. Ms King stated:
Having a seat at the board table helps those boards make good strategy and risk discussions based on reality. You’re speaking to people with that lived experience and connection to that community…It’s the dialogue [and] the relationship building that occurs.
7.46Ms King noted that today ‘First Nations people [are] on the boards of Canada’s major banks, and First Nations communities are equity holders in projects on their own land’.[85] She explained that improving First Nations representation on boards has been supported by a range of government initiatives in Canada, such as legislating the United Nations Declaration on the Rights of Indigenous Peoples and the FMA.[86]
7.47ASFI noted another success in Canada involving IFIs. IFIs have ‘used blended finance to support First Nations small-to-medium enterprises’ and helped to build business capability while maintaining cultural coherence.[87] IFIs offer various financial products and services, such as developmental lending, which are tailored to the needs of First Nations businesses.[88]
7.48BCSD Australia highlighted Canada’s Indigenous Skills and Employment Training Program, which aims to improve employment outcomes for First Nations Canadians through funding to Indigenous service delivery organisations. BCSD Australia submitted:
This program highlights the importance of tailored, community-driven training and employment services.
Aotearoa-New Zealand
7.49Aotearoa-New Zealand experiences a range of ongoing challenges affecting the economic independence of Māori communities. The Aotearoa-NZ Government is working to address these challenges through various government policies, programs, bilateral agreements, and private sector partnerships that foster economic independence through targeted support of Māori training and education, businesses, entrepreneurs and partnerships.
7.50The 1840 Treaty of Waitangi-Te Titiri o Waitangi is Aotearoa-NZ’s founding document. This agreement, signed by Māori and the British, guaranteed Māori land rights and control over their taonga (everything valuable to them) under British governance. Since the signing of the Treaty, Māori have challenged whether its terms have been honoured by the Crown.
7.51Māori people can, individually or as a group, make a claim to the Waitangi Tribunal that the Crown has breached the Treaty ‘by particular actions, inactions, laws or policies’, and that Māori have suffered harm as a result.
7.52The Aotearoa-NZ Government has also undertaken to protect Māori IP and cultural knowledge through legislation and has developed an overarching strategy to coordinate related policies.
7.53The Ministry of Māori Development–Te Puni Kōkiri, is Aotearoa-NZ’s primary government agency responsible for Māori cultural, social and economic development.[96] Te Puni Kōkiri, established in 1992, aims to support the Aotearoa-NZ Government to meet its Treaty obligations.[97] The agency funds various programs to improve economic self-sufficiency, business skills development, and capacity building.[98]
7.54Te Puni Kōkiri’s work focuses on three main areas—policy and partnerships, regional partnerships, and service delivery.[99] In doing so, Te Puni Kōkiri monitors the progress of Māori development to assess the effectiveness of government policies in addressing community needs.[100] It also works with Māori communities and local groups to identify and address specific development needs, and offers grants and assistance to Māori individuals and organisations that support their economic development and wellbeing.[101]
7.55Some submitters drew the Committee’s attention to other aspects of Aotearoa-NZ’s approach to fostering economic independence. BCSD Australia discussed Aotearoa-NZ’s Māori Economic Development Plan, which aims to improve the economic performance of Māori businesses and individuals through education, employment, and business support.[102] BCSD Australia said that the Plan ‘showcases the potential of leveraging indigenous knowledge and resources for economic development’.[103]
7.56Additionally, the Australian College of Midwives noted the Aotearoa-NZ Government’s te ara o Hine program, which supports Indigenous midwifery students at all universities offering a midwifery degree.[104]
Ngāi Tahu’s economic success
7.57Te Rūnanga o Ngāi Tahu, the governing body overseeing one of the largest iwi, or Māori tribes on the South Island of Aotearoa New Zealand with more than 84,000 members, was established by the Te Rūnanga o Ngāi Tahu Act 1996 and to ensure the benefits of Crown Settlement in 1998 were ‘enjoyed by Ngāi Tahu Whānui (tribal members) now and in the future’.
7.58Mr Ben Bateman, Chief Executive Officer of the Te Rūnanga o Ngāi Tahu, outlined the history of how his people the Ngāi Tahu began gaining their economic self-determination in 1998 through a [NZD]$170 million settlement and reconciliation process with the Government of New Zealand.
We have a long history, obviously, of relationships with the Crown, the government of New Zealand, stretching back to seven generations before we settled with the government in 1998.
It’s been a real journey. We’re 25 years post our settlement with the Crown, but seven generations before that, immediately after the Crown signed the Treaty of Waitangi, breaches were starting to occur and we started to record our dissatisfaction with that. So there have always been these stereotypes. Where we are today as a collective of iwi or Māori in New Zealand—the Māori economy is widely talked about as being worth about $70 billion to the New Zealand economy every year. Where we are economically, we manage an asset base of around $2 billion but also have a significant diversified economic portfolio that we built up over an extended period of time. Having a degree of economic independence has been very important for Ngāi Tahu. We obviously went through a treaty settlement process—we settled with the Crown for a figure of $170 million back in 1998. We have then just worked on developing our economic independence in a range of different industries over the last 25years.
7.59Mr Bateman highlighted how important it was for the Ngāi Tahu to gain recognition as the South Island’s First Nations people and also the efforts of many earlier generations of Ngāi Tahu to keep negotiating with the government:
But the generations that fought the claim before us got us to this position that we are in now. The challenge is, with different shifts in different government policies, maintaining a degree of understanding that we're all in this together. Our interests are obviously looking after our whānui, our iwi. We're 84,000 members in our tribe. That’s our main obligation. But also we’re part of that broader New Zealand community discourse and we're actually as invested in seeing solutions and seeing good outcomes for the country as anyone else…When you get to the stage that we are, we’re a critical part of the future economics of the South Island. And so it's in the Crown’s interest to work closely with us to achieve mutually beneficial outcomes around taking the country forward.
7.60The past Ngāi Tahu leaders were always very clear on the ‘breaches and on the wrongs that needed to be righted from a very early stage’, according to MrBateman.
…really strong leaders within our tribe who were able to bring people with them on that settlement journey. But then also we have to acknowledge the efforts that the Crown went to at that time to acknowledge the wrongs and make apologies for those wrongs and undertake a settlement. We took a settlement at that time that was worth approximately one per cent of the value of the losses that we had suffered. But we obviously had to get that.
But there was a degree of not pragmatism but realism about ‘Let’s just get on and start setting our own economic agenda, and it’s better to take this now and then be able to make some decisions of your own’. I think that’s been the critical thing. We're able to act independently. We’ve got a degree of control over our own destiny.
Box 7.3Ngāi Tahu Holdings as the commercial engine for the NgāiTahu people
Ngāi Tahu Seafood is a key profitable wholly owned subsidiary of Ngāi Tahu Holdings Corporation, the commercial arm of Te Rūnanga o Ngāi Tahu, charged with overseeing and financially supporting the activities of Ngāi Tahu. It forms one of the ‘three pillars’ of Ngāi Tahu commercial development, with sister companies Ngāi Tahu Property and Ngāi Tahu Tourism also contributors to tribal finances. Ngāi Tahu Holdings has its own independent board with the right commercial expertise, along with executives and leaders who have the capability and skill sets to keep the business profitable. Capability and management skills development programs, and a cadets program, are also run to ensure future business continuity.
Since the 1998 settlement Ngāi Tahu Group asset base has significantly grown. Net assets are currently at [NZD]$1.79billion, and the Group has made distributions and investments of more than [NZD]$254million in iwi developments.
Ngāi Tahu business is focused on intergenerational investment to support iwi focused goals, including social and cultural programs, and economic empowerment. Ngāi Tahu offers wide range of opportunities and programs for the economic benefit of Ngāi Tahu, including grants, scholarships, internships, baby support, entry level careers. There is also a strong focus on supporting its younger members, particularly by establishing a Whai Rawa, a world leading savings scheme to make higher levels of contributions in terms of matching the savings of its under 18s to support the cost of tertiary education or buying a first home.
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The Sámi in Finland, Sweden and Norway
7.61The Indigenous people of Finland, Sweden, Norway and the Russian Kola Peninsula are the Sámi. Although divided by the four countries’ boundaries, the Sámi are one people united by a common identity, and cultural and language bonds.[116] Sámi Parliaments, known as a Sámediggi or Sämitigge, were established in Finland in 1973, in Norway in 1989, and in Sweden in 1993.[117] Sámi Parliaments are democratically elected by the Sámi and deal with all matters concerning the Sámi people.[118]
7.62A submission to the inquiry from the Sámi Parliament of Finland (Sámediggi) highlighted the advantages of supporting Sámi business opportunities to foster ‘the development of the entire Sámi homeland area, and fostering regional economic growth and sustainability’.[119] It advised that leveraging the Sámi people’s traditional knowledge creates ‘unique business opportunities and niche markets’.[120] However, many barriers to business development persist, such as climate change, poor understanding of Sámi culture, and poor knowledge within ‘mainstream society regarding the importance and relevance of Sámi traditional practices and knowledge in modern economic contexts’.[121]
7.63The Sámi Parliament of Finland suggested ways to unlock capital and leverage intellectual property (IP) to elevate the Sámi as economic partners, including:
- Recognizing and protecting Sámi cultural expressions, traditional knowledge, and art as intellectual property, which can be leveraged for economic gain.
- Developing partnerships with industries that can benefit from the unique cultural insights and practices of the Sámi, ensuring that the Sámi are treated as equal economic partners.
- Encouraging investment in sustainable practices that align with Sámi traditional livelihoods, thereby unlocking capital that supports both economic development and cultural preservation.
- Supporting Sámi entrepreneurship can help unlock capital and foster economic development in the Sámi homeland, benefiting the entire region.[122]
- The Sámi Parliament of Finland said that the Sámi can serve as a model for other First Nations communities who are ‘seeking similar protections and opportunities for intergenerational economic sustainability’.[123] Its submission also emphasised the need to address the challenges posed by climate change through international cooperation to improve the resilience and independence of First Nations communities around the world.[124]
- Evidence from BCSD Australia discussed the Sámi Parliament in Norway, which advocates for the rights and economic interests of the Sámi people.[125] BCSD Australia’s submission highlighted that ‘Norway’s approach emphasises political representation and the importance of Indigenous governance structures in supporting economic self-determination’.[126] Additionally, in response to a question from the Committee regarding the concept of Indigenous sovereign wealth funds, Mr Andrew Peterson, BCSD Australia’s Chief Executive Officer and Board Director explained:
We have looked at…those [Indigenous sovereign wealth funds] in Finland, Norway and Sweden in particular, who are looking for a very similar model. Norway’s own sovereign wealth fund is an exemplar of that, which is an interesting way to go—not necessarily the right way to go but certainly a framework to look at.[127]
United States
7.66The US Federal Government provides funding and support for Indigenous economic development through a various programs and services administered by agencies such as the Department of the Interior’s Office of Indian Energy and Economic Development, the Small Business Administration’s Office of Native American Affairs, and the Department of Agriculture’s Office of Tribal Relations.[128] The Office of Native American Affairs offers free technical assistance to help Indigenous businesses with ‘marketing, strategic and operational planning, financial analysis, opportunity development and capture, contract management, and compliance’.[129]
7.67Evidence to the inquiry from BCSD Australia and First Australians Capital highlighted the US’ Native Community Development Financial Institution (CDFI) Network, which supports economic growth and opportunities within Indigenous communities by providing access to capital for business development.[130] Ms King, First Australians Capital, told the Committee that the CDFI program recognises:
…that mainstream banks don’t and [are] not expected…to have the expertise to lend in this way. Instead, those community-led initiatives are supported to provide this finance and facilitate it through a network of CDFIs, who bank minority and other local community bank initiatives across the US. It includes women’s, Hispanic and First Nations businesses, and they specialise in working with that local community.[131]
7.68A submission from Mr Eric Henson of the Harvard’s John F. Kennedy School Project on Indigenous Governance and Development (Harvard Project) drew the Committee’s attention to the project.[132] The Harvard Project commenced in 1987 working with First Nations ‘to understand how and why Indigenous economies, social institutions, and political systems either succeed or fail’.[133] The Harvard Project identified four critical preconditions to effective Indigenous governance:
1power—‘de facto sovereignty’
2ownership and access to resources
3effective government institutions
4legitimacy and ‘cultural match’.[134]
7.69Other submissions to the inquiry also highlighted the lessons learned from the Harvard Project for Australia. Jumbunna explained that the research undertaken by the Harvard Project demonstrated the linkages ‘between effective and culturally legitimate self-governance and communities’ ability to achieve their goals’.[135]
7.70The ANU’s Indigenous Community Governance Project (ICGP) was ‘greatly influenced’ by the Havard Project and endeavoured to explore its findings in the Australian context.[136] Over five years, the ICGP considered what makes for effective and legitimate Australian Indigenous community governance arrangements, and how policy makers could learn from those governance experiences.[137] The ICGP, which completed its research in 2008,[138] put forward a number of policy considerations:
- community service delivery needs to be fully costed in order to highlight where the gaps are that are causing the strain on community organisations
- Indigenous governing members and other leaders in organisations require ongoing development in order to better understand their different roles and responsibilities in relation to management and governance
- governments urgently need to provide more enabling policy frameworks and program guidelines that actively promote Indigenous capacity and authority
- government policy frameworks will better support the growth of ‘two-way’ effectiveness and accountability in Indigenous organisations by adopting a community development approach to governance, which strengthens legitimacy through capacity and institution building rather than focusing primarily on financial and technical compliance
- the adoption and funding of a more sustained community-development approach to building governance capacity should be regarded as a priority by governments and their departments at all levels
- reform of financial arrangements in Indigenous affairs is required to ease the administrative burden on organisations dealing with multiple funding streams.
United Nations Declaration on the Rights of Indigenous Peoples
7.71As noted in Chapter 2, several submitters highlighted the importance of Australia implementing United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).
7.72Australians for Native Title and Reconciliation (ANTAR) were supportive of the Murru waaruu outcomes report which recommended legislative endorsement of UNDRIP:
…that UNDRIP should guide policy development and be strategically implemented into Australian law. The report highlights that legislative endorsement of UNDRIP could provide a statutory environment more conducive to promoting First Nations economic self-determination. It further argues that ensuring key Australian legislation is aligned with the principles and articles of UNDRIP, in collaboration with First Nations Peoples and in accordance with the principle of FPIC, is an important step toward supporting economic self-determination for First Nations Peoples.
7.73The Kimberley Land Council (KLC) agreed that UNDRIP should be ratified as it would ‘provide a statutory environment that better supports Aboriginal economic (and overall) self-determination’ and that it should ‘guide the design of policies affecting Aboriginal rights and interests’.
7.74Jumbunna believed that the UNDRIP articles ‘provide a sound basis for consideration of legislative and regulatory protections for cultural rights, knowledges and ICIP’.
7.75The National Health Leadership Forum put forward the view that there was ‘clear lack of alignment to the articles of UNDRIP within Australia’s economic structures including policy making’.
7.76Charles Darwin University were also of the view that there was a gap which inhibits ‘translation of the UNDRIP definition into Australian policy and legislation’. They added:
Feeding this is the fact that there are no formal structures, treaties, agreements, or instruments by which First Nations Australians negotiate with Australian governments. This is critical to our submission, because the lack of reciprocal recognition of each other as ‘nation states’ has the potential to, and in many cases already does, undermine any attempt to genuinely recognise Indigenous self-determination.
7.77First Australians Capital and Indigenous Business Australia noted that they were aligned with the global principles and rights under UNDRIP to ‘guide its own policies and programs to support Aboriginal and Torres Strait Islander people to establish their own economic and financial security by providing access to capital, networks and skills that may not otherwise be available’. The Australian Sustainable Finance Institute also advocated for embedding the principles on UNDRIP to ensure ‘that First Nations people have a decisive voice in actions affecting their lands and lives, strengthening the commitment to recognising and protecting their autonomy, culture, and traditions’.
7.78Furthermore, the Indigenous Land and Sea Corporation called for a ‘coordinated and collaborative national response for First Nations Australians to achieve economic self-determination’.
7.79In 2023, this Committee’s Inquiry into the application of the United Nations Declaration on the Rights of Indigenous Peoples in Australia made several recommendations to guide the Australian Governments implementation of UNDRIP into Australian law, including by
- ensuring its approach to developing legislation and policy on matters relating to Aboriginal and Torres Strait Islander people is consistent with UNDRIP
- developing a National Action Plan, in consultation with Aboriginal and Torres Strait Islander peoples, that outlines its approach to implementing UNDRIP in Australia
- establishing an independent process of truth-telling and agreement making as a mechanism to support healing and assist implementation of UNDRIP
- amending the Human Rights (Parliamentary Scrutiny) Act 2011 to include UNDRIP in the definition of ‘human rights’, so that it be formally considered by the Parliamentary Joint Committee on Human Rights when scrutinising legislation.
- The Law Council of Australia recommended that the Australian Government implement the recommendations made by JSCATSIA in its inquiry into the application of UNDRIP in Australia, and take action on recommendations 1, 2 and 4 as a matter of priority. They added that UNDRIP provided an opportunity for the government to do more:
The United Nations Declaration provides a comprehensive and principled framework for respecting, protecting and fulfilling the individual and collective rights of Aboriginal and Torres Strait Islander peoples. It’s an instrument that this parliamentary committee has endorsed and made recommendations on for implementation in Australia. We have yet to see the government act on these recommendations and strongly encourage the government to seize this opportunity.
Committee comment
7.81The Committee greatly appreciates the work already underway across Australia to identify and apply the lessons learned from international experiences of improving the economic participation and self-determination of First Nations peoples around the world to the Australian context.
7.82The Committee acknowledges the importance of fiscal management powers and innovative financial instruments in fostering economic empowerment in international First Nations communities.
7.83The Committee acknowledges the important work of First Nations Economic Partnerships and strongly recommends it consider the experiences and fiscal management powers of international jurisdictions.
7.84Canada’s experience in improving First Nations economic participation in the renewable energy sector provides important lessons for Australia. Several Canadian provinces provide loan-guarantee programs to First Nations groups to gain equity stakes in large-scale projects. These policies have been successful in generating [CAD] $1.5 billion in Indigenous and employment contracts and could be drawn upon to explore capability and capacity support and investment opportunities for Traditional Owner groups and First Nations businesses as Australia transitions to renewable energy.
7.85The Committee recommends that the Australian Government facilitate knowledge exchanges between First Nations Australians and international First Nations communities to share experiences and lessons on economic empowerment and trade.
7.86The Committee recommends that the Australian Government accelerate its work with the First Nations Economic Partnership and consider the experiences of international jurisdictions and their fiscal management powers and frameworks (for example, Canada).
7.87The Committee recommends that the Australian Government ratify the United Nations Declaration on Rights of Indigenous Peoples (UNDRIP), and explore opportunities for UNDRIP to guide commonwealth, state, and territory policy development and its relevance to good government in Australia.
7.88The Committee recommends that the Australian Government consider capacity and capability support for First Nations and Traditional Owner groups to strengthen their engagement in the energy transition and other Australian Government initiatives.
Senator Jana Stewart
Mutthi Mutthi and Wamba Wamba
Chair