the art of negotiating impact and benefit agreements - cdepnql

FIRST NATIONS OF QUEBEC AND LABRADOR ECONOMIC DEVELOPMENT COMMISSION (FNQLEDC)

THE ART OF NEGOTIATING IMPACT AND BENEFIT AGREEMENTS

CEDO’S PATH JAN. 2018 | VOL. 17 | N° 1 CDEPNQL.ORG

BUSINESS PARTNERSHIPS THAT ARE PROFITABLE FOR FIRST NATIONS

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FNQLEDC ANNUAL GENERAL ASSEMBLY 6 NOTICE OF APPOINTMENT

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Whenever a company (or promoter) anticipates launching a project to exploit the resources on the territory of a First Nation community, it is strongly recommended negotiating an Impact and Benefit Agreement (IBA), under which the promoter will agree to take into account the rights and interests of the First Nations concerned and to provide in exchange compensation and benefits for the approval of the project. This article is not designed to describe the stages of negotiation leading up to the implementation of an IBA. The purpose of the article is to help communities maximize the benefits of an IBA before, after and during negotiations. First of all, it is important to remember that IBAs are trade agreements negotiated between First Nations and promoters with no interference from governments or existing legislation. This does not dispense promoters from the obligation to consult and accommodate governments. IBAs cover all sectors involving the exploitation of natural resources and more generally any infrastructure project which has potentially negative repercussions within traditional territories. These are private agreements and mostly are confidential. They include provisions on the development of manpower, business

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development, environmental follow-up and management and respect for the culture, heritage and social measures of a community.

BEFORE NEGOTIATIONS Every Aboriginal community knows its own environment and the links between the environment and the members of the community. This is why before any negotiations, communities should identify the type of projects that they are ready to approve as well as their potential for development. Several criteria should be taken into consideration: • Social acceptability of a project. For example, some communities have internal consultation protocols setting out the kinds of projects which will automatically be excluded. Many of these protocols are based on past public consultations, during which members expressed what they believe to be acceptable or not acceptable. Other communities opted for the use of social and commercial studies to determine the values of resources available in the territory, particularly in terms of qualified manpower. • Obtain prior information about the promoter before any solicitation. This helps gain prior knowledge about the project and the possibility of forecasting the impact on the territory as well as the benefits for the community, such as the type of jobs available for the members, as well as business opportunities for both existing and future on-reserve companies. • Establish a memorandum of understanding between the First Nation and the promoter as the first stage for all future communications. The goal is to negotiate a memorandum as quickly as possible in order to take full benefit of stages leading up to project construction and execution. The priorities of the protocol should be employment and the inclusion of Aboriginal businesses in order to ensure that they are able to take part in the bidding process.

Before negotiations, the promoter may be subject to the obligation to consult and accommodate First Nations or at least to establish a key actor in the consultation process. Ideally it is the promoter who is at the best place to answer questions about the project. In the mining sector in Québec, for example, consultations are conducted by the ministère de l’Énergie et des Ressources naturelles (MERN), who then delegates a part of its obligations to the Bureau d’audiences publiques sur l’environnement (BAPE) and to the promoter. The purpose of the consultation is to reinforce the social acceptability of the project. This process allows First Nations to establish both their interests and their rights over the territory. The process allows the promoter to reduce the potential legal and financial risks of the project. In Quebec, the consultation process is becoming more complicated under environmental legislation. However, such obligations are only enforced in the regions based on a certain threshold. For example, the applications for licences and permits (clearing forests, road constructions, etc.) during the exploration phase of some mining projects may trigger such a threshold. It should also be pointed out that the negotiation of an IBA is not obligatory in Quebec. However, the government does encourage such a practice. In theory, no project should be authorized without the prior consent of the First Nations or in the absence of a signed IBA. In practice, some promoters fully respect the wishes of the community, while others will move forward with projects, even there has been a refusal from the First Nations. This can be very risky for the promoter, because if the community considers that it has not been properly consulted or accommodated, the community can pursue other remedies (injunctions, project blockages, protests, law suits).

More specifically in the mining sector in Quebec, the negotiation of an IBA facilitates risk management by ensuring co-operation with the First Nations. The First Nations can then take part in project development and share in the benefits. IBAs have developed in the mining sector as the result of the obligation to consult and accommodate. Furthermore, the more constraints are placed on promoters under the mining regime, greater will be the bargaining power of the First Nations. As opposed to Ontario, the Quebec mining regime leaves a wide margin of maneuver for mining promoters. On some reserves, mining companies do not have to announce their claims1 or consult during specific exploratory work. In fact, permits for exploration are issued by the ministère du Développement durable, de l’Environnement et de la Lutte contre les changements climatiques (MDDELCC) and by the ministère des Forêts, de la Faune et des Parcs (MFFP), and not by the ministère de l’Énergie et des Ressources naturelles (MERN). This is one of the reasons why First Nations are not usually informed in advance of future projects on their territory.

DURING NEGOTIATIONS Some First Nations have gained experience in bargaining. It is always the First Nations who are most familiar with their territory and potential impacts on their rights. However, communities should never neglect the opportunity to use experts to make sure that negotiations run smoothly, which are often conducted chapter by chapter. In the end, they should be able to negotiate an agreement that is beneficial for all parties. The consultation process as well as the application for environmental authorizations (federal or provincial depending on the types of resources involved) are often conducted simultaneously during the negotiations. The length of negotiations as well as the end of the agreement is 1 The right to explore all mineral substances in the public domain.

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variable and usually unique for each project. Generally speaking, an IBA will cover the entire operations of a project, project closure and site restoration. In the mining sector, an IBA that has been negotiated early on in the process may cover the full life cycle of a mine. It is also possible to negotiate preliminary agreements that will cover the stages prior to project implementation (environmental studies, development and construction). Such agreements should come into force beginning at the exploration stages. Such agreements are essential because they will provide First Nations with increased bargaining power from the very beginning of the process. It is important to specify that legal and management costs will be paid for by the promoter. For this reason, it is recommended diversifying the source of financial benefits arising from an IBA: compensation, income sharing, etc. It is up to the First Nations to maximize the benefits of an IBA, but the main obstacles during bargaining can vary: • IBAs are not mandatory under law; • Financial compensation alone does not necessarily give full satisfaction to the community; • The promoter has no intention of complying with the environmental standards set out by the experts; • The project involves ceremonial sites; • Public opinion in the communities does not support the project.

AFTER NEGOTIATIONS AND SIGNING Remember that an IBA is a contract between two parties that is usually negotiated for several years. The agreement should therefore include clauses to amend or abrogate the agreement. The agreement can contain specific clauses on the terms and conditions in case of project expansion, natural catastrophes, bad faith on the part of the promoter, as well as any changes to the degree of financial compensation or revenue sharing. Abrogation may be included as the

result of any major natural catastrophe beyond the control of the parties. An IBA may also contain a chapter on conflict resolution through mediation and arbitration in order to provide a suitable settlement if the promoter does not respect his undertakings. Without such an arrangement, the courts will be the final remedy for such disputes. In terms of managing project revenues, the practice, which is becoming more and more popular, is to create a trust for the Aboriginal community. The trust may receive all or part of the funds and redistribute such funds in accordance with the terms established for the trust: investment, contributions to on-reserve business, investment in educational programs, etc. The trustees, chosen from the community, will have complete autonomy to manage the trust, subject to specific terms and conditions. This type of structure is designed to separate politics from direct management of the trust by the Band Council, which shall have no direct control over the funds. Many communities consider that the trust structure renders financial management more burdensome or they do not like to “lose” control of the funds, which they prefer to manage directly. In such a case, there are other mechanisms available to the community: • Create a financial management consultation committee which will determine the needs for community infrastructure; • Create a non-profit organization which will distribute the funds on a project basis;

• Invest part of the funds in economic development corporations.

A FEW EXAMPLES OF IBAs SIGNED IN QUEBEC The best-known are the following: • The Bloom Lake Mine: an agreement signed between the Cliffs Natural Resources Corporation and the Innu Band Council Takuaikan Uashat mak Mani-utenam (ITUM). • The Raglan Mine: an agreement signed between two companies, Falconbridge and Xstrata, and the Makivik Inuit Organization. • The Dumont Deposit: an agreement recently signed between the Royal Nickel Corporation and the Aitibiwinni (Pikogan) First Nation Council. This article was prepared with the help of Me Julie-Anne Pariseau (jpariseau@ oktlaw.com), a Lawyer practising within the Olthuis Kleer Townshend LLP Law office, and of Me Olivier Courtemanche ([email protected]), a Lawyer from the IBA Expertise Centre within the First Nations of Quebec and Labrador Sustainable Development Institute (FNQLSDI). Please feel free to contact either of them for more information.

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BUSINESS PARTNERSHIPS THAT ARE PROFITABLE FOR FIRST NATIONS Often, when businesses or communities are trying to develop a project and maximize the potential economic benefits, they do not always have the required resources (human resources, technological resources, etc.). To meet these needs, many of them will try to enter into business partnerships.

A business partnership is a good way to help Aboriginal and non-Aboriginal organizations to successfully execute projects by pooling their resources and expertise, while minimizing the investments required as well as potential risks. The goal of a partnership is to create synergy and to provide mutual benefits (expertise, available manpower, markets), as well as to share resources and deal with common issues. Partnerships may be created for specific projects or to establish long-term mutual benefits. First Nations can benefit in many ways from partnerships in order to ensure community socio-economic development. To proceed with a partnership, communities prefer to enter partnerships that provide a win-win situation while respecting their values, culture and territory. For non-Aboriginal organizations, one of the principal motivations to enter into a partnership is to obtain a competitive advantage. Like Impact and Benefit Agreements (IBAs), partnerships can be developed in any sector involving natural resources or infrastructure development. Furthermore, creating a partnership with an IBA promoter will maximize the economic benefits for the host community. Before entering a partnership, each partner must do a full inventory of its needs, resources and capacities. Each partner must also be fully familiar with the differences between business environments whether in an Aboriginal or a non-Aboriginal context (taxation, ability to contract loans, social context, etc.).


They must also be familiar with First Nations rights and titles, as well as the culture of the respective partner. Each partner will then determine the partnership model which is most appropriate to its situation. There are four basic models on which a partnership may be based, in accordance with the degree of co-operation, the complexity and the scope of issues to be dealt with: • Reactive Partnership: These partnerships are generally created to deal with a threat or a short-term problem and co-operation between the partners is limited. • Transactional Partnership: This model is more complex than the preceding and requires greater strategic planning due to the level of co-operation required. The goal is to improve benefits or market share for each partner. • Integrating Partnership: This involves increased co-operation and scope and involves a sustainable development dimension to ensure the economic, social and environmental integration of various issues.

CEDO’S PATH

• Transformative Partnership: This model is the most complex model of all. In addition to the aspects which have just been discussed, this type of partnership seeks to maximize social and economic benefits for the members of a community. After developing the partnership profile and model, the next step is to identify and select the appropriate partner. This process will be based on the specific objectives, expectations and skills of each organization. After this step, and depending on the project, the parties will come to an agreement on objectives, timelines, the management process, the assessment, communications, as well as any elements to be shared. From a legal point of view, the relationship between the partners will be set out in a joint-venture or joint-co-operation contract, outlining the responsibilities, roles and financial contributions of each partner. The goals of these final formalities may vary, which is why it is very important to obtain appropriate legal and financial advice. A joint-venture contract is used to create a true business. The new business will be described as an Aboriginal business if 51% of management and/or employees are Aboriginal. This provides an advantage through access to special funding and preferential treatment which are available under government contracts. A co-operation agreement may be signed when the parties agree to work together in a very limited and specific manner, without the creation of a new business entity. This agreement is used to formalize the commitments made by both parties. This provides an advantage for non-Aboriginal businesses tendering for contracts in the private sector, in which there are obligations of social responsibilities. This may involve the hiring of a certain number of Aboriginals. Any approach which does not rest on a solid foundation or respect the legal, political, cultural, and social values of Aboriginal communities will hinder the development of longterm productive partnerships.

A FEW EXAMPLES OF BUSINESS PARTNERSHIPS NEGOTIATED WITH THE FIRST NATIONS The following are a few successful examples: • Inukshuk Synergie: This partnership was created in 2016 as a joint-venture between two Aboriginal businesses, Granules LG and Alco-TMI Mashteuiatsh (a related company in the Alco-TMI Group). The joint-venture is located in

Mashteuiatsh and its goal is to promote the turnkey and innovative renewable energy solutions based on forest biomass (tree bark, sawdust, wood chips, wood pellets). These solutions are designed for remote businesses and communities which are not connected to the standard electricity grid. • Mesgi’g Ugju’s’n Wind Farm: This project was created by the three Mi’gmaq communities of Québec (Gesgapegiag, Gespeg and Listuguj) at the beginning of 2009 and was commissioned at the end of 2016. The project is the result of a partnership between the three Mi’gmaq communities and the Québec company Innergex. It is a limited partnership (LP) company owned in equal part by the partners. The partnership was created for the development of this project which consists of 47 wind turbines with an installed capacity of close to 150 megawatts, which will provide energy to approximately 30,000 homes in Quebec. Furthermore, 113 Mi’gmaq members were hired as construction workers on this project. • Société de l’énergie communautaire du Lac-Saint-Jean: This partnership was created in 2007 as a non-profit (NP) business by three community partners, Pekuakamiulnuatsh Takuhikan, and the two MRCs, Domaine-du-Roy and Maria-Chapdelaine. This non-profit company, located in Mashteuiatsh, is a renewable energy development cooperation located in the region of Lac-Saint-Jean. Since the creation of the partnership, two mini power plant projects have been developed, one on the Ouiatchouan River in the Val-Jalbert Regional Park (Énergie Hydroélectrique Ouiatchouan LP), and the other in the sector surrounding the 11th waterfalls of the Mistassini River (Énergie Hydroélectrique Mistassini LP). • Tourism Kipawa: Since 2013, the Aboriginal community of Kebaowek (Eagle Village), the Municipality of Kipawa and the City of Temiscaming have been working together to ensure the development of a viable tourism industry in Southern Temiscaming. Sponsored by the Canadian Federation of Municipalities (CFM) and the Council for the Advancement of Native Development Officers (CANDO), the project was developed under a partnership framework agreement developed by the Community Economic Diversification Initiative (CEDI). The FNQLEDC would like to thank the community economic development officers (CEDOs) and the business entrepreneurs who helped prepare this article. For more information on the subject and/or for mentorship services to help you with the development of a partnership, please contact the FNQLEDC.


CEDO’S PATH

FNQLEDC ANNUAL GENERAL ASSEMBLY The Annual General Assembly of the FNQLEDC was held on November 22nd at Palace Royal Hotel in Québec. In total, 14 CEDOs and 7 observers participated in the meeting, during which a follow-up on the strategic planning for 2016-2021 was made. Here is a brief recap of the highlights of that day. The day began with the presentation and approval of the FNQLEDC 2016-2017 financial statements. The Director General, Mickel Robertson, continued with the presentation of the activity report and the general orientations of the organization for the year 2017-2018, which include the development of a strategy of integration for the FNQLEDC regarding the process for analysing applications for financial assistance being filed with the SAA. It is important to note that since last year, the FNQLEDC has developed new services and welcomed four new employees in its team.

ELECTIONS As is the case every year, several seats on the board of directors had to be filled. The assembly also proceeded to the election of the Executive Committee, more specifically, a president, a vice-president and a secretary-treasurer. Following, is a chart representing the FNQLEDC Board of Directors for 2017-2018: Name

Title

Nation

François Rompré

President

Innu

Delphine Metallic

Vice-President

Mi’gmaq

Pierre Jenniss

Secretary-Treasurer

Maliseet

Theresa Chemaganish

Director

Naskapi

Denys Bernard

Director

Abenaki

Larry Whiteduck

Director

Algonquin

Vacant

Director

Atikamekw

Vacant

Director

Cree

Vacant

Director

Huronne-wendat

Vacant

Director

Mohawk

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CEDO’S PATH

NOTICE OF APPOINTMENT YOUTH ENTREPRENEURSHIP ADVISOR

ENTREPRENEURSHIP TECHNICAL ADVISOR

The First Nations of Quebec and Labrador Economic Development Commission (FNQLEDC) is pleased to inform you of the appointment of Ms. Myriam Vallières, who will hold the position of Youth Entrepreneurship Advisor.

The First Nations of Quebec and Labrador Economic Development Commission (FNQLEDC) is pleased to inform you of the appointment of Mr. Frédérick Martel, who will hold the position of Entrepreneurship Technical Advisor.

Myriam holds a Bachelor’s degree in History from the Université de Sherbrooke. Energetic and versatile, she has a diversified career path which has led her to work with teenagers; creating relationships and supporting them in their projects. Her involvement with a SME, in addition to her experience working with youth from all around the country, will certainly enable her to offer expert advice adapted to the contemporary cultural realities of the First Nations, as Youth Entrepreneurship Advisor.

Thanks to a varied professional background and a Bachelor of Business Administration degree from Université Laval, Frédérick has developed skills on several issues facing First Nations entrepreneurs. Holder of the title of chartered professional accountant, it is with enthusiasm that he joins the FNQLEDC to offer his expertise to our clientele.

Please do not hesitate to get in touch with her if you have any questions or to introduce yourself! Myriam Vallières Youth Entrepreneurship Advisor Tel. : 418-843-1488 ext. 1226 [email protected]

Please do not hesitate to get in touch with him if you have any questions or to introduce yourself! Frédérick Martel Entrepreneurship Technical Advisor Tel. : 418-843-1488, poste 1223 [email protected]

SOCIAL ECONOMY ADVISOR

The First Nations of Quebec and Labrador Economic Development Commission (FNQLEDC) is pleased to inform you of the appointment of Ms. Karine Awashish, who will hold the position of Social Economy Advisor, position she previously held at the First Nations of Quebec and Labrador Health and Social Services Commission (FNQLHSSC) since 2013. Karine, Atikamekw from the Opitciwan community, has been working in the Aboriginal social economy for almost 10 years now. Being a social and collective entrepreneur, she studied at the master’s level in this field. She has acquired experience in several social economy enterprises, including the Inter-Nations Cooperative (2010-2012), the Nehirowisiw Arts Co-operative (2009-2013) and the organization Terres en vues (2011-2015). Her mandate within the FNQLEDC will be to promote, support, stimulate and consolidate the emergence of this model of social and economic development among First Nations. Please do not hesitate to get in touch with her if you have any questions or to introduce yourself! Karine Awashish Social Economy Advisor Tel.: 418-843-1488 ext. 1230 [email protected]


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NATURAL RESOURCES AND ABORIGINAL TITLE BY ME BENOÎT CHAMPOUX, NEASHISH & CHAMPOUX S.E.N.C.

Needless to say, that natural resources use and development have been an ongoing source of friction between First Nations and the other levels of government and enterprises. This friction resulted mainly from the understanding that interested parties have of natural resources. For First Nations, territory and natural resources are intrinsic parts of their everyday life and their various traditional activities. But, for enterprises and governments natural resources are regarded primarily as an economic generator. However, there are two substantial limitations to these rights: • An aboriginal title is a communal right; • An aboriginal title is held, not only for the present generation, but for all generations to come.

Although the authority to legislate in the field of natural resources falls under the jurisdiction of provinces, pursuant to article 92, paragraph 5, of the Constitution Act (1867), the notion of aboriginal rights must still be taken into consideration when a decision may have implications on the territory and the title of a First Nation. Besides, the rulings of the Supreme Court of Canada over the past years, shed pertinent light on this subject, particularly with regard to the aboriginal right.

RIGHTS PROVIDED BY THE ABORIGINAL RIGHT An important aspect of the aboriginal right, as established by the Supreme Court in the Delgamuukw1 ruling and reaffirmed in the Tsilhqot’in2 ruling, is that aboriginal right includes, without being limited to, the right to exclusive occupation and use of the lands held pursuant to this title for a variety of reasons, including those for non-traditional use. The Crown does not, therefore, retain a beneficial interest on titled lands. According to the Supreme Court, the rights accorded by an aboriginal right include amongst others: • The right to own lands; • The right to determine the use of the lands; • The right to occupation and use of the lands; • The right to enjoy the lands; • The right to economic benefits derived from lands; • The right to use and manage lands proactively. 1 Delgamuukw vs. British Columbia, [1997] 3 R.C.S. 1010 2 Nation Tsilhqot’in vs. British Columbia, 2014 CSC 44


The right to control land granted by aboriginal right also means that governments and other persons, including enterprises who seek to use and develop lands and its resources must obtain the consent of the holders of the aboriginal title. Without the consent of the aboriginal group, the government or the person who might wish to proceed with the use of the land in question will be required to establish that this use is justified under section 35 of Constitution Act, 1982. The role of the First Nations in the context of exploitation and management of natural resources and the territory is therefore becoming more important. In fact, several requests and grievances of the First Nations in this sense are increasingly being considered by governments and even promotors, to secure their support for the project of exploitation of natural resources. This due consideration creates opportunities for the First Nations both from the point of view of economic development and assertion and respect for their rights. First Nations are, in our opinion, a critical component of any economic development projects on aboriginal territories.

Neashish & Champoux s.e.n.c. 50, boul. Maurice-Bastien, bureau 400 Wendake (Québec) G0A 4V0 T : 418 845-8317

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THE IMPORTANCE OF HOSPITALITY AND TOURISM: MEASURES TO BETTER CATER TO OUR VISITORS BY PATRICIA AUCLAIR, OPERATION MANAGER, QUEBEC ABORIGINAL TOURISM

In Quebec, Canada and elsewhere around the globe, Aboriginal tourism is growing exponentially. This ever-growing interest rests on the principles of authenticity, solidarity and cooperation. Acting as a socioeconomic development and identity instrument, Aboriginal tourism is clearly a tool that fosters human contact, cultural openness and intercultural understanding. Moreover, what characterizes our tourism before anything else is the evident hospitality that is designed, developed and managed by People that are proud to master that development and benefit from its economic, social and cultural revenues. Here at home, initial contact allows for openness in sharing experiences, practices, know-how and interpersonal skills pertaining to the 11 Nations of Quebec. Just as for Aboriginal tourism, the same goes for tourism in Quebec, which relies on an established network of tourism visitor information centers that are very active in terms of hospitality. These local and regional facilities are innovative and, offer hospitality initiatives for travellers that go beyond their walls, with mobile teams, or the inclusion of the population and local actors. Warmth and authenticity resonating from the population of Quebec is the image brand of the province and the same certainly goes for our Aboriginal market. Consequently, “Tourisme Québec” recently unveiled its 20172020 commitments with respect to hospitality. Stemming from the tourism industry’s 2012-2020 Development Plan: a path towards growth and totalling over 9 million dollars of investment over three years, these commitments are the result of a vast undertaking involving several industry actors and partners from all regions of Quebec including Quebec Aboriginal Tourism. Included are 20 measures aimed at making Quebec a world-class welcoming destination by placing the visitor at the center of interventions.

our communities, operators and workers will all be impacted by the benefits of an experience encompassed with enriched hospitality earmarked by the many cultural and historical treasures of our Aboriginal Peoples.

MEASURE 15: REINFORCING THE HOSPITALITY EXPERIENCE OFFERED BY ABORIGINAL NATIONS

QUEBEC, A RICH TRADITION IN HOSPITALITY

This measure is a direct result of dialogue between governmental actors and our association. Its primary goal is supporting Aboriginal promoters and communities in terms of hospitality, so they can offer unlimited valuable experiences and information to travellers.

For Aboriginals in Quebec, the values of being welcoming and sharing are an integral part of our way of life since time immemorial. Our peoples are warm, authentic and open to sharing by way of tourism, but it remains that our industry must combine with issues of promotion, marketing and structured and adequate hospitality. To evolve continuously and support companies in this upturn, Quebec Aboriginal Tourism has had the honour of working with the Quebec tourism ministry in proposing a culturally adapted and pertinent measure for our industry to reinforce the collective rallying, sharing and understanding of our cultures through hospitality. Just like visitors,

Mainly responsible for this measure, Quebec Aboriginal Tourism will be called upon to establish the required partners towards designing support tools for the promoters and communities including their work force in order to achieve the following results: • Suitable tools enabling local tourist centers and Aboriginal promoters to gain better knowledge of their visitors; • Highlighting and increasing the value of the tourism industry specifically in terms of hospitality with Aboriginal community workforces and members;



• Improved tourism signage in communities; • Enriched authentic hospitality experience. The new measures proposed by “Tourisme Québec” will be at the forefront in the process before, during and after the visitor’s stay in order to make Quebec a world-class destination. This allows us to believe that together, we can build our visitors’ level of satisfaction and bring their experiences to new heights. Thus, visitor spending will increase, stays will be extended and, the intent to return and destination recommendations will also rise. Quebec Aboriginal Tourism is proud to be part of the actors impacted by these measures and, be able to participate in the synergy of our industry bearing satisfaction for our customers both from here and elsewhere.

GET TO KNOW QUEBEC ABORIGINAL TOURISM For 26 years now, Quebec Aboriginal Tourism provides guidance and support to entrepreneurs and Band Councils with structuring and developing their Aboriginal tourism offering, funding research and sharing best business practices thanks to its development department. Marketing and communications

COMPLICE DE VOS RÊVES...

are also essential components with regards to commercialization and the positioning of member companies on international tourism markets. For this reason, our association is ever present at key tourism fairs, predominantly in Francophone Europe, and through “Origin(e)”, our magazine that incidentally produced 45 000 copies this past year. Furthermore, a great number of press and awareness tours are organized each year with journalists and specialized tour operators. For further information on our association, the oldest provincial Aboriginal tourism association in the country, please visit our website at http://www.quebecaboriginal.com.

RELATED LINK To find out more on the 2017-2020 undertakings in terms of hospitality and tourism as well as the measures, please visit: www.tourisme.gouv.qc.ca/organisation/strategies/ engagements-accueil/index.html.

Contact information: Quebec Aboriginal Tourism 50, boul. Maurice-Bastien, Room 510, 3rd floor Wendake (Quebec) G0A 4V0 Phone: (418) 843-5030 Toll Free: 1 877-698-7827 Email: [email protected]

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STARTUP NATIONS, A COLLECTIVE ENTREPRENEURIAL EVENT

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Youth in each Aboriginal community want their nation to thrive. Those who participate in the StartUp Nations event are fully aware that they are the main driver for change in order to make this dream come true. Collective entrepreneurship is one of the roots of First Nations social development. Dream big, Aim higher, Go further; StartUp Nations aims to help young Aboriginal people soar in the area of collective enterprise. Before arriving, the participants identified needs that are specific to their community. Supported by local coaches, they reflected on avenues that are easily implementable to meet those needs. “We are seeking ways to provide the needs, and food forms part of it”, stated Yoan Jérôme, an Innu entrepreneur from Mani-uteman. There were many needs identified by the participants. In total, seven teams were formed and each one of them proposed a project specific to their community. Catering services, housing cooperative, community grocery, distribution center for artisans; the projects are very wideranging and propose a unique impact in each community.

INSPIRING ROLE MODELS From November 17th to the 19th 2017, the participants had the opportunity to meet inspiring role models. StartUp Nations started on Friday morning with an opening ceremony, followed by a lecture delivered by Clifford Alteo jr, a scholar of Tsimshian and Nuu-chah-nulth origin. He offered a presentation on Aboriginal economic self-sufficiency in the era of capitalism. He presented his researches and reflections on the various ways in which Aboriginal People maintain and nurture their cultural uniqueness, while



determining their relation with capitalism. A young high school drop-out and today a PhD candidate at the University of Alberta, Clifford Alteo is an inspiring example of success for Aboriginal Youth. Samian, an Algonquin rap artist from Pikogan, was also present at the event to discuss with the young entrepreneurs. A very inspiring person, Samian commended the participants for having the strength to take their destiny in their hands and he encouraged them to realize their dreams and persevere despite the challenges they will have to overcome.

A PROFESSIONAL DEVELOPMENT OPPORTUNITY The goal of the event was to allow the youth to attend several workshops presented by professionals, in addition to creating an opportunity for future entrepreneurs to network between themselves. In the program: business model, sources of financing, marketing principles, conception of logo and much, much more.de Each contributor provided Numéro commande : Nikan the young entrepreneurs with the very best of its professional know-how and Couleur(s) d’impression : 4CP the possibility of improving their project.

On the last day of StartUp Nations, each team was invited to present its project in front of four “Dragons”. The objective was to allow the participants to launch their collective projects in a friendly environment, where the youth engagement for their community was credited and recognized. In the end, the Dragons were very impressed by the types of projects and the innovative ideas that were presented to them. A huge sense of pride and accomplishment were palpable after the presentations. In parallel to the development of skills, the StartUp Nations was a bearer of emblematic values. Young entrepreneurs have evolved in an environment supporting cooperation and leadership. Some have been put to the test, having to show courage, perseverance and selfconfidence to participate actively in the evolution of their project.

Services Commission (FNQLHSSC), the First Nations of Quebec and Labrador Economic Development Commission (FNQLEDC) and the First Nations Human Resources Development Commission of Quebec (FNHRDCQ). The event was made possible thanks to funding from the Secrétariat à la jeunesse Québec in association with the Chantier de l’économie sociale, and to a privileged partnership with Concordia University. We will be following with great interest the development and progress of the projects in each of the respective community. STARTUP NATIONS IN NUMBERS: 36 participants 8 professional workshops 7 projects 5 nations 1 ton of experience

A COLLECTIVE EFFORT FOR OUR

YOUNG PEOPLE Approbation du visuel The StartUp Nations was organized


by the First Nations Social Economic Regional Coordination Table, (FNSERCT), in collaboration with the First Nations of : Quebec and Labrador Spécification Health and Social

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DO THE GST/HST AND PST TAXES TARGET E-COMMERCE?

BY LOUIS AMIREAULT, CPA, CA, SENIOR DIRECTOR, DELOITTE S.E.N.C.R.L./S.R.L.

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Recently, debates have been widely reported and discussed in the media regarding tax fairness between companies established in Canada and foreign companies selling to Canadian customers. Let’s look at Netflix for example; the company has entered into an agreement with the Government of Canada wherein Netflix doesn’t have to collect the GST/HST from its Canadian customers. This has raised several questions from Canadian companies in terms of their web-based tax obligations. This is certainly a very broad topic because there exists a plethora of commercial transactions where sales taxes apply, or not, based on the characteristics of goods or services sold and on the specifics of each transaction. In 2002, the Canada Revenue Agency (CRA) published B-090, which is a Technical Information Bulletin that provides an interpretation of key provisions in the Excise Tax Act relating to e-commerce. The same rules apply with regards to the Act respecting the Québec sales tax. In the first instance, it’s crucial to classify the type of supply that is being carried out, to know whether it is a good or a

service. This is a determining factor in terms of the location of what is being supplied (jurisdiction), the applicable tax rate, the manner in which the tax is being collected and, the tax Time of Liability. Companies that sell tangible personal property such as clothing, equipment, food products, etc., by way of a transactional online site must determine their obligations in terms of taxes the same way as they would their other sales transacted in other manners. We must therefore take into account commercial agreements pertaining to the contract and supplier place of delivery of goods. For example, a Quebec supplier who

The added value of resources

AT T H E H EA RT OF YO U B U SI N E S S P ROJECT S

T 418 275-5044 [email protected] www.domaineduroy.ca



receives an order for clothing from an Ontario customer, and who owns the task of delivering the goods in Ontario, would normally charge the HST of 13%. On the other hand, companies offering intangible personal property via e-commerce must master the rules enacted by the CRA in the matter. In determining the exact classification of what they offer, it is then possible to adequately apply the taxes. Here are the targeted goods and services categories and their classification established by the CRA: 1. Electronic ordering and downloading of digitized products (intangible personal property); 2. Software maintenance contracts (intangible personal property or service); 3. Application hosting, Web site hosting, and data warehousing (intangible personal property or service); 4. Supplies related to on-line sales (service); 5. Subscription to databases and Web sites (intangible personal property); 6. Information provided by electronic means (intangible personal property or service).

SUPPLYING GOODS IN CANADA The supply of any other service is deemed to be made in Canada if the service is, or is to be, performed in whole or in part in Canada. For example, a supply of software is deemed to be made in Canada if offered by a person registered for GST/HST and if there are no restrictions with respect to the place of use of the software. The supply of a service is deemed to be made in Canada if the service is, or is to be, performed in whole or in part, in Canada.

To determine so, the CRA has established several indicators contained in Bulletin B-090.

CONCLUSION Now that we’ve addressed the basics of e-commerce, we should retain that any or all companies registered for the GST/ HST and QST that supply taxable goods or services, wherein the supply is performed on Canada’s and/or Quebec’s territory must collect the taxes from its customers. Several other particular rules can apply therefore; it is recommended that you consult a tax specialist to determine the adequate handling of taxes.

Louis Amireault, CPA, CA Senior Manager | Indirect Taxes/Taxation Deloitte L.L.P. 100 St-Joseph Street South, suite 110, Alma (Québec) G8B 7A6 Direct line: +418-669-2762 | Fax: +418-668-2966 General line: +418-669-6969 Email: [email protected] | deloitte.ca

Your great-great-great-great-great-great-greatgreat-grandfather would have loved metal.

MinesQC.com


DC E L Q N F

Participation to the AFNQL’s day of reflection on cannabis legalization

in the

field

On September 19, 2017, the FNQLEDC participated in the day of reflection about the legalization of cannabis held in Quebec City.

ion “Tourism Training Sess for Economic Marketing” EDOs) t Officers (C Developmen 2017, ber 19 to 21, From Septem two C organized the FNQLED m is ur to ions on training sess y it un m r Com marketing fo elopment ev D ic Econom Os). Officers (CED

Conference day on Female Entrepreneurship On September 27, 2017, the FNQLEDC held a conference day in Quebec City to promote and encourage First Nations business women.

First Nations Conference and Networking Cocktail on the sidelines of the Naturallia forum On October 16, 2017 in Mashteuiatsh, the FNQLEDC organized a networking evening mainly intended for Aboriginal entrepreneurs invited to participate in the Naturallia forum.

omic ction on Econ Days of Refle QL’s Chiefs t for the AFN Developmen 17 in er 1 and 2, 20 On Novemb offered e FNQLEDC Montreal, th ys of hiefs two da to AFNQL’s C ps on and worksho conferences elopment, economic dev ation and collabor networking Nations. among First


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ss ship Awarene Entrepreneur h Mashteuiats Workshop in EI, the Youth p with the SD In partnershi hosted a ship Advisor Entrepreneur ship to youth entrepreneur workshop on teuiatsh on unity of Mash in the comm , 2017. November 10

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Participation to the Québec Mines 2017 Congress As part of the aboriginal component of Québec Mines, the FNQLEDC presented a conference-day and a networking cocktail to the colors of the First Nations on November 21, 2017.

ship Entrepreneur orkshop W ss Awarene ity in Québec C 1, 2017, the On December reneurship Youth Entrep p ed a worksho Advisor host urship to on entreprene kuaimu Ta youth of the d by the te project, initia ip Center sh Native Friend of Quebec.

FNQLEDC’S UPCOMING ACTIVITIES

BOARD OF DIRECTORS’ MEETING

TRAINING SESSION “BUSINESS NETWORKING”

Date: February 1, 2018 Place: Four Points by Sheraton Hotel, Québec

Date: February 27 and 28, 2018 (French Session) February 28 and March 1, 2018 (English Session) Place: Le Nouvel Hôtel, Montréal

CONFERENCE-DAY “THE WEB SERVING ENTREPRENEURS” Date: February 15, 2018 Place: Four Points by Sheraton Hotel, Québec

TRAINING SESSION ON ACCOUNTABILITY Date: March 15 and 22, 2018 (dates of the sessions in French and English to be confirmed) Place: Sept-Îles, location to be confirmed (French Session) Val-d’Or, location to be confirmed (English Session)

FIRST NATIONS OF QUEBEC AND LABRADOR ECONOMIC DEVELOPMENT COMMISSION 265, Place Chef Michel Laveau, bureau 200, Wendake (Qc) G0A 4V0 T: 418 843-1488 | Fax: 418 843-6672 [email protected] | cdepnql.org Redaction: Véronique Édé, Myriam Vallières Traduction: Aline Chéné Graphic design: Nancy Pomerleau, Siamois graphisme WARNING ON PROTECTION AND CONFIDENTIALITY OF INFORMATION The information contained in this newsletter is protected in accordance with the applicable laws and regulations. It is therefore prohibited to distribute or to copy any part of this document without the written permission of the FNQLEDC. Legal deposit – National Library of Canada, 2004 Legal deposit – Bibliothèque nationale du Québec, 2004