CommunityHealthNaturesWealth

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Accounts of

First Nationseconomic

development

initiatives

Community

Health,NaturesWealth

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Table of Contents

Hupacasath First Nation

China Creek Micro Hydro

Huu-ay-aht First NationShellfish Aquaculture

Lac La Ronge First Nation

Northern Lights Foods

Tsleil-Waututh Nation

Planning Sustainable Forestry

Uqqurmiut Inuit

Uqqurmiut Centre for Arts and Crafts

Acknowledgements

4

10

16

22

28

34


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1

The ecological diversity found within our traditional territories helps

to define and enrich our quality of life. Yet there are startling trends

that threaten this. Industrial resource extraction is consumingresources and our territories at an increasingly rapid rate. Within the

lifetime of our children, our territories and our resources could be

damaged beyond repair.

Protecting British Columbias ecological diversity is the driving force

behind the work of many of our First Nations. Our conservation ethic

is deeply rooted in protecting our territories most important

landscapes while promoting the wise use of our renewable naturalresources. Maintaining this balance will move First Nations towards a

conservation-based economy and lead to economic self-sufficiency.

As First Nations communities we must encourage activities that

identify new resources and technologies, and that enhance our

current resource base to maximize lasting benefits for our quality of

life and the environment. Low-impact resource developments offer

First Nations one way to create a sustainable economy. We hope theexamples in Community Health, Natures Wealth provide communities

with incentives to move in this direction.

It is clear that low-impact resource development could be of great

benefit to coastal First Nations. And it is clear that we now have a

unique window of opportunity to create this kind of development.

But it is also clear that our time is short. The decisions we make today

about how to use our lands and resources will determine whether ournext generation will have access to and be sustained by them in the

future.

We must act now.

Art Sterrit

Executive DirectorCoastal First Nations Turning Point Initiative

On the Path to Conservation


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2

Introduction

In the North and Central Coast of British Columbia, First Nations have negotiated

Land Use Agreements that help to create the conditions that make this kind of economy

possible. Coastal First Nations are now poised to embark on new economic ventures,

guided by indigenous aspirations and wisdom. This booklet was inspired by our work

with the coastal communities. We believe that the stories featured here a small sample

of the many community initiatives under way in Canada offer useful information,

ideas, and lessons from other First Nations who are pursuing conservation-based

economies.

These stories show how communities have sought to unite traditions and customs with

todays economic needs, and to develop opportunities within their traditional territories,

so their people do not have to choose between their homes and their careers. They

highlight some lessons these communities and their leaders have learned about decision-

making, planning, funding, and other issues involved in developing new businesses.

They describe the challenges that communities have overcome, and the benefits

communities have experienced.

Five different sectors are represented here: forestry, shellfish aquaculture, non-timberforest products, renewable energy, and art. This diversity reflects some of the

opportunities Coastal First Nations have already identified for their own communities.

It also points to the importance of cultivating a variety of initiatives and enterprises in

order to build strong and resilient conservation economies.

Long before the term conservation-based

economy was coined, First Nations

communities across Canada werepursuing economic opportunities aligned

with the traditions and values of their

ancestors. These economic initiatives

provide for the needs of communities,

maintain healthy ecosystems and natural

resources, and restore First Nations

stewardship of lands and waters.


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Experience shows that community ventures are most

likely to be successful if they draw on a combination of

attributes: a spirit of innovation; careful planning;perseverance and determination; faith in the project; the

courage to take risks; a willingness to seek and accept

help; and a firm grounding in the values and aspirations

of the community itself. Each of these attributes is

evident in the stories presented here.

While each of the stories gathered here is as unique as

the community that inspired it, there are some common

themes. Many of these communities faced the challenges

of remote locations; distance from markets; and lack of

capacity, capital and infrastructure. Their strategies for

success also share many elements: careful planning;

engaging partners; establishing independent companies

that have community direction (for example, through

boards with community membership); creating a market

niche based on the identity of the community; and

adapting traditions to contemporary times.

Many of the benefits of low-impact economic

development are obvious. These communities have

found ways to offer employment and income to people

living close to the land. They have created new

opportunities for skills development and training, and

they have generated capital for re-investment.

Other benefits are less tangible, but just as important.Diversified economies celebrate and honour First

Nations values, traditions, and vision for their territories.

They build a sense of pride and accomplishment. They

provide a foundation for self-governance, self-sufficiency

and self-determination.

Coastal First Nations are entering a new era. They are re-

asserting their rights and title to their lands, and are re-

establishing strong economies based on stewardship oftheir territories. We congratulate their vision and their

determination, and we offer this booklet with our hope

that coastal communities will find these stories useful as

they carve their own path to success.

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Successful nations

think strategically,

make informed

decisions, assumeresponsibility

for their own internal

affairs, and spend the

time, energy, and

resources laying

sound institutionalfoundations for

political, social,

economic and

cultural progress.

Amy Besaw, Director,

Honoring Nations

Program,

Harvard University


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The China Creek micro-hydro plant is located about 5 km south of Port

Alberni, on the east side of the Alberni inlet. Its twoturbines

produce 6.5 megawatts of electrical energy, with no harmful

emissions. Supplying this amount of renewable energy

reduces air pollution by an amount equivalent

to taking 8000 cars off the road.

4

AllphotoswithinthissectionarethepropertyofHupacasathFirstNationa

ndarenottobereproducedwithouttheir

writtenpermission.

In 2001, Chief Judith Sayers of the

Hupacasath First Nation made a fiery

presentation to the Port Alberni City

Council. She urged the council to

vote against a proposal to develop a

gas-fired power generation plant inthe Alberni Valley. Instead, Sayers

said, the city should work with local

First Nations towards a shared

economy and a shared energy plan

both based on respect for the earth

and all living beings.

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Hupacasath China Creek Project

HupacasathMicro-hydro Power


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Hupacasath China Creek Project

The Hupacasath First Nation, as the majority owner of British

Columbias only First Nation-led power corporation, was hosting the

opening ceremonies for a new micro-hydro plant at China Creek. This

green energy development realizes the vision of sustainability and

partnerships that Chief Sayers had laid out five years earlier. The China

Creek plant supplies enough electricity to light up every home in the

Alberni Valley without any impact on air quality or watersheds, and

Upnit Power Corporations corporate structure allowed the Hupacasath

Nation to offer partnerships to neighbouring communities.

In just over five years, the Hupacasath Nation answered its ownchallenge for a new approach to economic development and energy

production. During that time the Hupacasath Nation secured funding

for planning and feasibility studies, negotiated a contract to supply

power to BC Hydro, and attracted almost $14 million in investment

capital. With anticipated returns of more than $1 million per year to the

Hupacasath Nation, Upnit Power Corporation will help to finance

future community development projects. This is one community where

the future is looking brighter by the megawatt.

Even before Chief Sayers took a stand against the proposed gas-fired

power generation plant, the Hupacasath First Nation had alreadyidentified green energy production as a potential economic sector.

Once the Nation began working with Sigma Engineering, the idea

quickly became an action plan. Working together with established

experts in the planning, design and construction of alternative energy

projects, the Hupacasath Nation commissioned studies to assess the

potential for alternative power generation. These studies concluded

that Hupacasath territory held excellent potential for run-of-river

micro-hydro development. In 2002, with positive results from apreliminary feasibility assessment in hand, the community won a BC

Hydro contract to develop a microhydro plant and to deliver electrical

power into the provincial transmission grid.

From Vision to Plan

In 2006, Chief Sayers addressed the Mayor of Port Alberni again.

This time, it was to welcome him to a celebration.

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The two 3.2-megawatt turbines are a symbol of just how firmly the

Hupacasath First Nation committed itself to this project. With the

clock ticking on its agreement to supply power to BC Hydro, the

Band Council faced a major decision. The community could take

the risk of purchasing the turbines and other components before

there was any guarantee the project would proceed; or the community

could wait, and risk losing the contract. The Council put its faith in

the project first, and cashed in its GICs to buy the equipment.

At this point, the Hupacasath Nation encountered amajor obstacle. In order to secure financing, they needed

partners with expertise in running this kind of

development. However, their planned 3.2-megawatt

development was simply not large enough to attract

qualified partners. Engineering studies showed that the

scale of the development could be doubled if the hydro

plant were moved further up the river, but this meant

putting the intake upstream of the site from which theCity of Port Alberni took its municipal water supply. The

City was opposed to the plan. Without agreement from

the City, the Province would not issue a water licence

and without a water licence, the project was dead.

The Hupacasath Nation was not about to give up. Over a

period of two years, the Nation undertook a series of

studies, engineering solutions, and negotiations to reach a

water use agreement with the City of Port Alberni. As partof the final agreement, the Hupacasath Nation granted

the City a share in what was now a 6.5 megawatt micro-

hydro plant. Once an adversary, the City had become a

firm believer in the project.

Initial discussions

between Hupacasath Nationand alternative energy experts,

including Pembina Institute

and Sigma Engineering

Assessment of

alternative energy options

finds good potential for

micro-hydro power in

Hupacasath territory

Hupacasath First

Nation competes successfully

for a Independent Power

Producer contract with

BC Hydro

Hupacasath First

Nation signs 20-year Energy

Producer Agreement with

BC Hydro

BC government

issues a water licence to the

Hupacasath First Nation for

micro-hydro development

Construction begins

on hydro project

China Creek plantstarts producing electric power

2001

2002

2002

2002

2004

2004

2005

6

From Vision to Reality in Five Years


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Like First Nations everywhere in Canada, the

Hupacasath faced significant barriers in their effort to

find financing for this development project. From 2002 to2004, the Hupacasath First Nation worked hard to put

together a sound business partnership and to attract

investors for the China Creek Project. The Hupacasath

partnership with Synex Energy (the parent of Sigma

Engineering) established the engineering and financial

management expertise required to secure federal equity

matching capital for the project.

The Hupacasath researched and successfully applied for

a broad range of funds to support their project planning,

development and negotiations. The Nation also

identified a few key champions, including supportive

federal politicians, who could help bring in investment

capital. As a result of this work, the Department of

Indian and Northern Affairs invested $2 million through

an Indian and Northern Affairs economic development

fund, and the Nation received another $900,000 fromanother federal loan program. The Nuu-chah-nulth

Economic Development Corporation also contributed

some loan and equity financing.

However, conventional financing was still hard to find.

Even the Hupacasaths own bankers thought the project

too risky. The struggle required perseverance and

creativity and both of these came together when the

Hupacasath Nation teamed up with the VanCity Capital,

the venture capital arm of Vancity Savings and Credit

Union. VanCity helped the Hupacasath Nation to

establish an innovative financing structure for this

project: a nine-member debt syndicate that provided

more than $9 million in debt financing for the project.

In October 2004, as soon as the province issued a water

licence for the project, the Hupacasath Nation beganconstruction. Thirteen months later, the project was

complete: on time and under budget.

From Plan to Reality FUNDING SOURCESProject development

funding(approximate)

Hupacasath First Nationequity Aboriginal Business

Canada:$250,000

Indian and Northern

Affairs Canada:$100,000

Federation of Canadian

Municipalities (Green

Municipal Enabling fund):$90,000

Nuu-chah-nulth

Economic Development

Corp: $90,000

Aboriginal Northern

Climate Change Action

Program:$250,000

Capital Investment

Partners equity:

$1,800,000

INAC Equity Matching

Program:$2,000,000Western Economic

Diversification (Softwood

Industry Community

Economic Adjustment

Initiative): $900,000

VanCity-led debt

syndicate:$9,000,000

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As part of the work to establish Upnit Power Corporation, the Hupacasath Nation

researched a variety of possible corporate structures. The Nation wanted a business

model that would be familiar to potential partners and investors, but also wanted toprotect the tax-exempt status of the development. After considering many options, the

Hupacasath Nation decided on a limited partnership model.

Upnit Power Corporation Limited owns and operates the China Creek power plant, and

has the ability to expand in order to take on additional projects. Upnit Power is

governed by a Board of Directors with representation from each business partner.

Revenue from Upnit Power Corporation is paid out annually in

the form of pro-rated dividends to each business partner.

Revenues are forecast at $1.2 to $1.4 million annually, of which a

portion will go to paying down the debt. Upnit Power expects to

be fully debt-free by 2013.

The China Creek micro-hydro development project employs

two Hupacasath community members full-time. The project

also provides an important source of funds that will help to

finance future business ventures, and work is already under way

to create another micro-hydro project on a nearby creek. With an

established track record of success in planning, building, and

managing a significant green energy project, the Hupacasath

Nation is well-positioned to turn new community development

ideas into reality.

Even before the power plant was

officially open, the outstanding

work of the Hupacasath First

Nation was recognized by the Port

Alberni Chamber of Commerce.

Upnit Power Corporation won the

Chambers 2005 Business

Excellence award in the Valley

Environmental Award category.

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Corporate Structure and Governance

Upnit Power

Corporation

Limited

Ownership

Structure and

Board of

Directors

HupacasathFirst Nation

72.5% ownership

4 Board members

Synex Energy

12.5% ownership

1 Board member

Ucluelet FirstNation

10% Ownership

1 Board member

City of

Port Alberni5% Ownership

1 Board member

8 Hupacasath China Creek Project


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9

At the heart of the Hupacasath First Nations

community economic development strategy is the

Nuu-chah-nulth philosophy hishuk ish tsawalk, or

everything is one. This principle encompasses

the interrelationships between communities and

ecosystems, and between economic development and

environmental stewardship.

An environmentally-friendly power plant is already a big step towards balancing economy and environment. For

the Hupacasath First Nation, however, the development had to go further,

to ensure that the development would do nothing to harm fish or fish

habitat. The Nation invested $300,000 in a detailed study of the watershed

and fisheries, and took a number of additional steps to protect anadromous

and resident fish species:

As stewards of the land it is

our responsibility to ensure

the resources last for future

generations.

Chief Judith Sayers, at the ground-

breaking ceremonies for the power

plant in April 2005

Incorporating First NationsValues into the Project

This little creek and this micro hydro project stands as

a monument to a new and more responsible world.

Lieutenant Governor Iona Campagnolo, at the official opening

of the power plant in October 2006

The entire micro-hydro plant and powerhouse is located above a

waterfall that is impassable to salmon. This means there is no impact on salmon spawning.

The penstock is buried so there is no interference with wildlife

moving through the area.

The design of the plant includes a constant minimum release of

water at the intake. The study showed that this discharge could

be as low as 7.8 percent of total flows without triggering a

significant impact on resident cutthroat trout. However, the

Hupacasath decided to build in an extra margin of security by

setting the minimum discharge at 12 percent.

The China Creek project meshes economic, community, and

environmental interests for the benefit of the Hupacasath Nation

and for all the communities of the Alberni Valley. With this project,

the Hupacasath offer a powerful model of the success that is possible

when ancient traditions meet the latest technology in a spirit of

partnership, creativity, and perseverance.


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Huu-ay-aht First Nation

Shellfish Aquaculturew w w

Huu-ay-aht Shellfish Aquaculture

The original figures are no longer at the village site, but their influence

remains strong. In its contemporary economic development initiatives, the

Huu-ay-aht First Nation embraces the same principles of openness to

new ideas and opportunities, while remaining firmly rooted in

traditional practices of caring for and protecting the resources of the

land and sea.

In 1999, when the Huu-ay-aht First Nation began developing

an economic diversification plan, the community knew it did

not have to look far to find new opportunities. The Nation

already had active forest operations as well as a tourism

business. Both of these drew on the natural assets of

the Nations coastal setting. It was natural for the

leaders to turn again to the coastal

environment to find resources that

could be managed for the benefit

of the community.

10

Allphotoswithinthissectionare

byStefanOchmanunlessotherwisenoted

.Thephotosarenottobereproducedwit

houtwrittenpermissionfrom

Huu-ay-ahtF

irstNation.

In historic photographs, two tall carved figures

stand at the entrance to the traditional Huu-ay-

aht village of Kiix'in on the west coast of Vancouver

Island. These figures are welcoming, and alsoprotective. They extend an open hand to newcomers

while carefully guarding their traditional home.


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Through its resource management planning process, the

community identified shellfish aquaculture as holding the

most economic promise. And within just a few years, theNation had established the largest shellfish aquaculture

business of any west coast Vancouver Island First Nation.

Today, the shellfish aquaculture operation provides year-

round employment and capacity-building opportunities.

Like the figures at Kiixin, the operation reaches a welcoming

hand to new markets and ventures, while retaining a strong

foothold within the Nations traditional territory.

Learning by Doing

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The decision to explore opportunities in shellfish aquaculture was relatively easy. However,

the decision to go into debt in order to launch the new venture was not. After carefully

examining the options, however, the community decided to take the chance.

In 2000, the Huu-ay-aht Nation decided to direct revenues from its forest

operations to establish the foundation for the new business. Within the year,

the Nation had acquired two shellfish aquaculture leases, invested in

infrastructure, hired a local shellfish grower as the operations manager and

trainer, and begun culturing clams and oysters for market.

By 2005, it became clear that the Nations initial assumptions about sales

were not being met, and the market prices for shellfish products had fallen.

The business was not breaking even. However, several people were now

employed by the operation, and they were excited about their new skills and

opportunities. The community was determined not to let them down. So

rather than give up on the operation, the community asked for help.


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The Nation retained experts who had a history with

successful shellfish operations in Georgia Strait, to

provide advice. Huu-ay-aht workers were also sent toother, larger operations to learn skills and techniques

that would increase their productivity and make the

operations more competitive.

At the same time, the Nation drew on government

funding to provide additional training and invest in

new technology. In 2004, the Nation also obtained

$210,000 in conventional financing to purchase a 6-

hectare deepwater shellfish tenure at Danvers Inlet inBarkley Sound.

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The Huu-ay-aht First Nation

cultures clams and oysters for

market. Like other shellfish, these

species feed on the nutrients in sea

water. No added feed or chemicals

are necessary. This means the

industry matches new economic

opportunities with a relatively low

environmental impact.

Since launching its

shellfish ventures, the

Huu-ay-aht Nation has

secured funding from a

range of sources:

Conventional bank financing:

$210,000 to purchase

Community Economic Adjustment

Initiative:

$75,000 forgivable loan

$175,000 repayable loan

Indian and Northern Affairs(BC Economic Partnership

Investment): $255,000 to

launch Floating Upwelling System

Huu-ay-aht First Nation equity:

$700,000


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Seeding New OpportunitiesIn 2004, as part of its effort to strengthen its shellfish

operations, the Huu-ay-aht First Nation invested in a

promising economic niche. The Nation developed abusiness plan to establish the first commercial scale

nursery operation on the West Coast of Vancouver Island.

The plan became a reality in 2006, when the Nation began

operating its new Floating Upwelling System (FLUPSY), a

state-of-the-art shellfish nursery. The Nation is now able

to grow its own shellfish from seed, and can also sell

juveniles to other communities and businesses for

outplanting. Over time, the Nation plans to become a keysupplier of oyster and clam seed for shellfish aquaculture

operations on the West Coast of Vancouver Island.

The FLUPSY system uses a

paddlewheel to upwellseawater through

containment tanks,

bringing a continual supply

of plankton and other

nutrients to the juvenile

shellfish. Such systems offer

improved operating

efficiency as well as better-

quality seed.

The Nation is mindful of the need to separate business from politics. The shellfish leases

and the nursery project are operated by the Huu-ay-aht First Nation Fisheries

Department. Economic benefits from the project flow directly back to the community.

The oyster operation employs two to three people year-round, and the nursery provides

an additional 1.5 seasonal jobs. Another four to six people work through most of the year

harvesting clams. The clam harvest is managed on a contract basis, with the Nation

taking a 30 percent share of the revenue from sales. The nation seeds the beaches with

approximately 5 million juvenile clams each year.

For now, the shellfish are sent away to be processed before they reach urban markets.However, the Huu-ay-aht Nation plans to establish a processing plant in order to keep

this activity in the community. The Nation also plans to diversify its operation into other

species including scallops, sea cucumbers, urchins, geoducks, and abalone.


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The Abalone Project includes a coastwatch program aimed at reducing poaching, along

with research, stock enhancement, and commercial aquaculture. Through the program,

Huu-ay-aht members have been trained to conduct surveys, collect brood stock, and carefor juvenile abalone in a hatchery setting. The Nation is also working with the federal

government, through the Department of Fisheries and Oceans, to develop a streamlined

permit system to support and manage the sale of abalone products.

Bamfield-Huu-ay-aht Abalone Program:Uniting Economy and Ecology

14

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Along with its other shellfish operations,

the Huu-ay-aht Nation takes a leadership

role in efforts to protect and rebuild

abalone stocks within its territory. The

Nation hopes that it will soon be able to

include farmed abalone among its

commercial shellfish products. However, its

investment in an abalone recoveryprogram is about much more than just

economic returns.

The preferred habitat of abalone

is in the lowest intertidal zone.

This means that the shellfish areonly exposed to beach

harvesting at a few exceptionally

low tides each year. In the past,

Huu-ay-aht women would

gather the shellfish for their

families. Today, abalone are a

rare sight along the west coast.

Abalone was a highly-prized shellfish in traditional Huu-ay-aht society. The meat was

considered a delicacy, and the shells were used in jewellery, artwork, and ceremonialregalia. In recent years, over-harvesting and poaching have done more than threaten the

populations of wild abalone on the west coast. They have also threatened an important

connection between Huu-ay-aht culture and the ocean ecosystem. This intersection of

ecology, economy, and culture brought the Huu-ay-aht Nation to a key role in the

Bamfield Huu-ay-aht Community Abalone Project.

Ha-Shilth-Sa photo

Juvenile

abalone


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Bringing it Home Again, and Again

This interest is evident within the community, as dozens of youth participate

in Career Days presentations by the

aquaculture managers. The presentations

encourage youth to pursue their education, and to

consider the new opportunities that are emerging as a

result of the expanding shellfish operation.

The aquaculture operation is itself designed to promote training and capacity-building

for young people. As workers gain skills, they are moved from one part of the operation

to another. They are also coached in a range of employment-related skills, and learn how

to deliver training to new workers. With this investment in its workers, the Nation

expects to be fully self-sufficient for training purposes within the next two to three years.

These investments in capacity-building will have benefits well beyond the shellfish

business. The aquaculture operation is one component of an integrated resource

management and economic development plan. This plan aims to provide new

opportunities for young people in all aspects of stewardship of the Nations natural andcultural heritage. Through time, these opportunities will continue to build on one

another. In the same way that revenues from forestry provided the initial start-up

investment for the shellfish operation, revenues from the shellfish operation might be

used to help restore the traditional village at Kiixin launching yet another venture that

welcomes a new economy while celebrating a strong tradition.

Food is an excellent way to reach

out to community members, and

to make people feel involved. Wedefinitely intend to eat some of

our profit.

Huu-ya-aht First Nation

Natural Resources Manager

Larry Johnson

15

For the Huu-ay-aht First Nation, resource management is based on cultural values of

sound stewardship, sustainable use, and sharing. Establishing a commercial venture

around a traditional food source provides one way to bring all of these values together.Not all of the shellfish harvested are destined for the marketplace. Each year, the Nation

distributes shellfish to its members both within and beyond the traditional territory. In

return, Huu-ay-aht members participate actively in planning for the operations.

Ha-S

hilth-Saphoto


18/37

Lac La Ronge First Nation

A Lesson in Economic Diversity

The Lac La Ronge Band, with a population of just under

8000, is the largest First Nation in Saskatchewan and among

the ten largest in Canada. It is located on the shores of Lac

La Ronge, one of a series of giant lakes in the arc of theCanadian Shield. In this landscape, fresh water is everywhere

from some of the worlds largest lakes and rivers, down

to small ponds, streams and marshes.

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In the 1970s, the Lac La Ronge First Nation had just one source of income:

financial transfers from the Canadian government. The community was located

far from established markets, had no share in the resource development that

was taking place on its doorstep, and could offer few jobs to its members.

Clearly, something needed to change.

And change it did. Today, the Lac La Ronge First Nation owns Kitsaki

Management, which has become known as one of the best examples of

community-based economic development in Saskatchewan. The

community is the full or part owner of more than a dozen diverse

businesses that bring in over $70 million annually. These include a golfcourse, a catering company, a trucking company, a sawmill,

a hotel, an environmental assessment company, an

insurance broker, and an organic food company specializing

in wild rice and mushrooms.

This food company, Northern Lights Foods, is now the

worlds largest exporter of organic wild rice. The story of

Northern Lights is an example of how the emerging

non-timber forest products sector can draw onnatural environmental assets to create

exceptional business opportunities.

16

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llphotoswithinthissectiona

rethepropertyofLacLaRongeFirstNationandarenottobereproducedwithoutthe

irwrittenpermission.


19/37

For an organic food company, Northern Lights has

unlikely business roots in northern mining

development. During the 1970s, NorthernSaskatchewan had a booming resource economy. The

Lac la Ronge Band Council, and then- Chief Myles

Venne, realized that the community had a choice: they

could continue to hope that resource companies would

offer occasional jobs to Band members, or they could

create their own company and start generating some

lasting economic benefits. The Band entered a joint

venture partnership called Kitsaki-Brodsky to providetrucking and other services to northern mining

corporations. The joint venture bid successfully on a

contract with Key Lake Mining Corporation. But even

so, no banks would provide financing to the Band for

the new venture.

In response, Chief Venne and his councillors

established Kitsaki Development Corporation (now

Kitsaki Management Limited Partnership). Thecorporation was established in 1981, with shares wholly

owned by the Band members and held in trust by the

Chief. The corporation hired a professional manager,

obtained financing, bought six trucks, and went to

work. This success led to the creation of Northern

Resource Trucking, the first of Kitsaki Development

Corporations independent enterprises.

In the meantime, other economic opportunities hadcome to the region. In the late 1970s, the community

learned that there was a market for the wild rice that

grew in the lakes and ponds of their traditional territory.

The Nation worked with the provincial government to

set up an experimental harvest and sale program. By the

early 1980s, the Nation was harvesting rice from

waterways within the Reserve, and also held leases on

other waterways in the region. With KitsakiDevelopment Corporation now successfully established,

the Nation was ready to turn its experimental rice

program into a commercial operation.


Seeds of Success

Wild rice not a true rice, butrather a kind of grass. The plants

grow in shallow fresh water and

are self-seeding. This means a

sustainable harvest is possible

with no ploughing, weeding, or

sowing. In deciding to harvestwild rice commercially, the

Nation turned one of the natural

features of the local landscape

thousands of small waterways

into a major economic asset.

17

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So far, the Nation had focused on production

and harvesting. It left marketing of the product to

various brokers. These brokers bought the processed

rice from the plant, and then sold it around the world.

In the mid-1980s, however, American growers began to

farm their own wild rice. These growers used fertilizers

and pesticides to increase production, and the American crop soon farexceeded the wild Northern harvest. The brokers, in turn, used the flood

of American rice to drive down prices on the Nations products.

As the price fell lower and lower, it was hardly worth the Nations work

to continue the harvest. Faced with this crisis, the community made a

drastic decision: to eliminate the brokers, market the product themselves,

and reach higher up the economic chain to sell directly to consumers.

This decision led to the creation of Northern

Lights Foods.

From the outset, the company knew that reaching international markets

would be key to its success. With funding from the federal government,

the company retained a consulting firm to provide training in

international marketing, and to introduce the new company to European

markets. Northern Lights developed a marketing plan, started attending

trade shows, and met directly with the main companies that were buying

wild rice from Canada. Before long, NorthernLights had carved out a niche that set its

products well apart from American rice.

Taking Up the ChallengeIn 1982, the Lac La Ronge Nation partnered with

neighbouring First Nations to build a plant that could

process the rice harvest. But problems lay ahead.

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21/37

Growing a Wilderness AdvantageThe American farmed wild rice harvest depends

heavily on fertilizers and pesticides. Because it uses

neither, Northern Lights Foods was able to secure QAI(Quality Assurance International) organic certification

in 1992. This gave the company an important

advantage at a time when organic foods were beginning

to claim a growing market share.

European buyers continue to place a premium on

organic certification. To appeal to this market,

Northern Lights marketing strategy emphasizes that its

products come from a wild and isolated countrysidewith a pristine environment, including pure waters and

clean air. Using these assets, the marketing program has

built a strong demand for Northern Lights products

and also earned the company a 2001 Canada Export

Award.

Along with smart marketing, Northern Lights has been

very active in setting up wholesale and retail

distribution systems for its products. The company sells

in bulk to other companies that repackage the product

in their own retail brand for distribution. This

wholesale business includes warehouses in Europe, so

the company can provide next-day delivery to its

international clients. At the same time, the company

ships retail products, packaged under its own Northern

Lights brand, all over the world.

We process perhaps 25,000

pounds of chanterelles a year.

Morels are less predictable

because productivity is tied toforest fires. The year after a

heavy fire season we might

take in over 100,000 pounds

of morels.

Terry Helary, General Manager,


Wild rice may only be the

beginning for Northern Lights

Foods. In 2001 the company

added certified organic wild

mushrooms to its product list.

With its established client base

and distribution system, the

company is poised for

continued success.

Organic certification is an important marketing

advantage for Northern Lights. Promotional material

also highlights the fact that this is an Aboriginal

company distributing a traditional Aboriginal product.

QUA

LITY

ASSURAN

CE

I

NTERN A T I

ON

A

L

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Northern Lights Foods is just one of the family of Kitsaki-owned

enterprises. Kitsaki Management Limited Partnership consistently

ranks in the Saskatoon Star-Phoenix Top 100 Saskatchewan

Companies. The corporation has also won many provincial,

national and international awards for its business success.


Northern Lights Foods is a prime example of the business approach taken by the Kitsaki

Limited partnership. An important part of Kitsakis business strategy is to ensure that

the corporation is led by the community, but managed by business professionals. The

Bands elected Chief and Councillors form the Chair and Board of Kitsaki Limited

Partnership, and provide a long-term vision for the First Nations business sector.

However, it has always been the Boards policy to leave management of the corporation

as a whole, and the individual companies it owns, to professional staff.

Another strategy is careful handling of profits for long-term

gain. Much of the profit generated by Northern Lights

Foods is re-invested in the company: upgrading boats or

harvesting equipment, improving access to isolated

harvesting areas, or developing new markets.But the company also invests in people. Commercial wild

rice is a highly seasonal operation. The company has only

five full-time employees, but provides seasonal work for

close to one thousand contractors, harvesters, and

independent producers. Northern Lights Foods aims to pass

as much of its revenue as possible to the people who actually

harvest the rice. The company also makes an effort to hire

and train people who are still living on the land,maintaining a traditional way of life. For many young

people in the community, Northern Lights will be a first job

experience. It is a responsibility the company takes seriously,

with support for life skills as well as trades training.

The Kitsaki Business Model

Economic

development is

long term;

successful businesses

are not built in a

few short months. It

takes years to build

them up.

Chief Harry Cook

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The Future HarvestKitsaki Management has been a leader in

developing education and training programs for

the community of Lac La Ronge and other FirstNations in the region. The corporations profits

are used for developing on-reserve assets and

investing in future projects. Profits also help to

pay the Nations land claim legal bills and provide

business support services for community

entrepreneurs.

In the Cree language, the word Kitsaki means to

share. And although Kitsaki Limited Partnershipis aggressive in pursuing business profits, its real

reason for being is not to create short-term wealth,

but rather to bring long-term economic benefits

home to Lac La Ronge.

We are extremely proud of whatour people have accomplished

here and what it has meant to

native people around the world.

It gives our youth a positive

vision of the future.

Chief Harry Cook

Emerging opportunitiesNon-timber forest products, including

mushrooms, berries, medicinal herbs,

and floral greens are part of agrowing economic sector in Canada.

In many provinces, harvesters are

working together to develop new

business structures, training

programs, products and markets.

Some of these groups are also

developing formal codes of ethics that

protect ecological and cultural values.

In British Columbia, the Centre for

Non-Timber Forest Products at Royal

Roads University is exploring ways to

support individuals and communities

that are interested in pursuing non-

timber forest product ventures.

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In just a few generations, the Tsleil-Waututh

people witnessed enormous changes as heavy

urban and industrial development displaced the

resources of the land and sea. The Nations

management role also changed. As industries,

stakeholders, and government agencies competed

for development rights around the fast-growing

city, the Tsleil-Waututh people were excluded fromdecision-making. From the perspective of the

outside economy, the Nation became more and

more invisible within its own lands.

Development in Greater Vancouver has not slowed

down. However, the Tsleil-Waututh Nation has

found new and powerful ways to take part in this

development and to do so on its own terms.

Using a broad-based and integrated planningprocess, and supported by carefully-negotiated

protocols and partnerships, the Nation is

instilling its own goals and values in

management practices throughout

its traditional territories.

Tseil-Waututh means the people of

the Inlet. The traditional territory of

the Tsleil-Waututh Nation is some of

the most intensively exploited land

in BC. Along with intensive urban

development, these lands

support active logging

operations, utility corridors,

highways, water reservoirs,

recreation developments,

and parks.


Planning Sustainable ForestryCoastal First Nations know from experience

that it can be difficult to launch new economic

ventures in communities that are located a

long way from urban centres. The Tsleil-Waututh Nation, however, has the opposite

problem. This Nations traditional territory

encompasses Burrard Inlet and Indian Arm

and includes much of Greater Vancouver.

22

Allimageswithinthissectio

narethepropertyoftheTsleil-WaututhNa

tionandcannotbereproducedwithoutwrittenpermission.

w w w

Tsleil-Waututh Nation Forestry


25/37


Building Froma Solid

Foundation

In 2004, the Tsleil-Waututh Nation

received Forest Stewardship Council

(or FSC) certification for its woodlotand private land holdings.

The certification gives international

recognition to the Nations sound

stewardship practices. It also gives

access to a growing market for

sustainable wood products.

In 2004, the Nation negotiated a Forest and Range

Agreement for an additional 11,600 cubic meters per

year of wood. And in 2006, the Tsleil-Waututh began

negotiations to acquire the two remaining forest

tenures in the Indian River watershed.

In just a few years, the Nation laid the groundwork

to establish a long-term, area-based community

forest tenure for the entire watershed. From the

outside, it looks like things happened quickly but

the ability of the Nation to move quickly on new

opportunities is the result of more than a decade ofcareful planning. By investing time and effort in a

long-term planning process, the Nation is able to

make the best use of all available tools and

partnerships to pursue its vision.

Ten years ago, the Tsleil-Waututh

Nation had a clear vision of

strengthening its stewardship

presence throughout its traditional

territory, and was building

technical skills in resource

management. However theNation had few opportunities to

bring this vision and capacity to

life on a land base that was already

heavily developed.

That changed in 2001, when the

Nation purchased 315 hectares of

private forest lands in the Indian

River watershed (known as theInlailawatash lands). Once a

sound management plan was in

place for the Inlailawatash lands,

the Nation acquired an adjacent

23


26/37

Territorial planningidentifies the overall vision, values, and goals for the

territory. Traditional use and occupancy maps connect

traditional stewardship responsibilities with current

resource management goals.

Watershed planningtranslates the overall vision to watershed units that

comprise the territory. Watershed plans refine TWN

vision and goals by setting specific objectives and

actions to guide management direction.

Community and site planningestablishes social, cultural, and economic indicators

that are used to set management goals. Site plans

define harvest techniques, regeneration strategies,measures to protect cultural and ecological values, and

safety requirements.

Creating a Geography of Wisdom

The Tsleil-Waututh Nation

combines geographic information,

images, and text to map the

physical and cultural resources of

the traditional territory. Forsensitive information, such as

cultural sites, the maps use

approximations so specific sites

are not identifiable.

The Tsleil-Waututh Nation uses an integrated planning

process to bring its vision to life on the ground.

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Planning Sustainable Forestry

Based on these goals, the Nation articulated a set

of forest stewardship objectives. Each objective is

clearly linked to the overall vision of the Nation.

The Tsleil-Waututh forest management plan alsoincludes specific strategies to achieve each

objective, along with indicators that can be used

as tools to measure progress.

This comprehensive plan provides a framework

that the Nation uses to pursue a wide range of

forest-related initiatives. The forest management

planning process is also an important part of the

Nations broader planning efforts for the whole ofthe Indian River watershed.

The forest management plan is just one of a series of land

use and economic development plans developed for the

Inlailawatash lands by the Tsleil-Waututh Nation. Other

plans include eco-tourism, salmonid enhancement, and

management of archaeological and cultural sites.

To practice a high level of

stewardship and conservation of

the forest ecosystem

To maintain and, where necessary,

restore resources and

opportunities for Tsleil-Waututh

Nation activities and sustenance

uses associated with the forest

To create economic opportunities

(revenue and/or employment) for

members of the Tsleil-WaututhNation

To strengthen the skills and

knowledge base for members of

the Tsleil-Waututh Nation in forest

ecosystem management

and the forestry sector

To provide a positive example of

sustainable forest resources

stewardship

To practice an adaptive

management approach

Soon after purchasing the Inlailawatash lands, the Tsleil-Waututh Nation began a forest

management planning process to integrate economic, cultural, and ecological objectives.This planning process highlights six key goals:

25

1

2

3

4

5

6


28/37

All Tsleil-Waututh forest stewardship operations are managed

by an independent company, Inlailawatash Forest Products

Limited (IFP). The company is governed by a Board of

Directors made up of prominent community members.

Operational activities are directed by the Tsleil-Waututh Treaty, Lands and Resources Caucus. The Caucus includes

elected and traditional leaders, technical staff, and consultants.

Tsleil-Waututh forest stewardship operations are also the

subject of consultations with the community as a whole.

IFPs first harvest took place in 2002. Since then, IFP emphasis

has been on creating forest management plans and a 10-year

harvest plan for the woodlot tenure. The companys long-termgoal is to keep the complete processing of each tree from the

initial harvest to the finished product in the hands of

the Nation.


Early in its integrated stewardship planning process, the Tsleil-Waututh Nation made a

decision to separate business from politics. However, the Nation still wanted to ensure

that all planning and development would remain rooted in the traditions and vision ofthe community. With these two goals in mind, the Nation created a model that blends

corporate structure with community leadership.

Planning for Business

Along with forest tenure

management and

stewardship planning, IFP

has a highly successful

vegetation management

program that provides a

positive alternative to

herbicide use in the

territory. IFP has secured

contracts with government

and industry for utility and

right-of-way brushing, as

well as for storm clean-up

and restoration.

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TakingCommunity

LeadershipBeyond theCommunity

As the Tsleil-Waututh Nation manages its forest

operations and other activities on the land, it works

closely with a broad range of stakeholders in the

territory. These include a number of distinct federal

and provincial agencies, as well as municipal

governments, regional districts, crown corporations,

and industries, all holding different and at timescompeting interests and tenures.

Instead of seeing potential conflict, however, the

Nation has come to view this cluster of agencies and

interests as a complex, and dynamic, community of

the watershed. And over time, the Nation has begun

to play a clear leadership role in this community.

Through years of inventory and planning work, theNation has built up a storehouse of information that is

now a resource for other agencies. The Nation also has

a large and growing network of contacts, and can bring

groups together to create important links among

different organizations. The Nations independent

position also means that it can challenge policies or

practices that do not support stewardship of the land

and resources.

With this combination of technical expertise,

relationship-building skills, and long-term vision, the

Tsleil-Waututh Nation is once more extending its

stewardship influence throughout its traditional

territory.

27

The co-management agreement

between the Tsleil-WaututhNation and the Province of

British Columbia for Say Nuth

Khaw Yum Heritage Park is just

one example of the growing

influence of the Nation in land

and resource management in theregion. The Nation is also

leading provincial agencies,

stakeholders and community

groups in the development of a

Sustainable Resource

Management Plan for the IndianRiver Watershed the first time

in BC that a First Nation has

taken on this role.


30/37

Along withthe world-

famous prints,

Pangnirtung

crafts include

woollen clothing

and blankets,

woven tapestries,

and carvings.

ManH

oldingInukshuk,SimoKilabuk

The 2003 collection of prints by Pangnirtung artists celebrated 30 years of

printmaking in this community. This 30th-anniversary collection was also a

symbol of the perserverance and achievement of a group of artists who were

determined to keep printmaking, along with other arts and crafts, a vibrant

part of their community and their economy. Through the decades these

artists faced and overcame many business and administrative

challenges, and even literally pulled printmakng from the ashes to

create a successful arts and crafts enterprise.

Crafts includes a print shop, tapestry studio, a gallery and retail

space, and administrative offices. The Centre provides the

community of Pangnirtung with a major share in one of

the most important economic activities on BaffinIsland. As a fully Inuit-directed operation, the

Uqqurmiut Centre for Arts and Crafts is

firmly rooted in Pangirtung but its

reach extends to markets around

the world.

28

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Uqqurmiut Inuit

A

llimagesarethepropertyofUrrqurmiutCentreforArtsandCraftsan

darenottobereproducedwithouttheirw

rittenpermission.

High in Canadas Arctic, in theTerritory of Nunavut,

is the Inuit village of Pangnirtung. The community

is known for its spectacular surroundings on the

edge of a Baffin Island fjord, sheltered by a sheer

rock face from the bitter winter wind. The

community is also known as the home of some of

the finest Inuit artists and craftspeople in theworld. Pangnirtung prints, tapestries, stone

sculpture and woven art have been displayed in The

National Gallery of Canada and the Canadian

Museum of Civilization, and can be found in

commercial art galleries in many countries. Each

year, art collectors look forward to the release of a

new collection of Pangnirtung prints.


31/37


The Uqqurmiut Centre has been operating since 1991,

but its story begins much earlier. In 1969, as part of a

northern economic development strategy, the Canadian

government funded the establishment of the

Pangnirtung print shop. Within four years, artists in the

community had mastered printmaking techniques, and

in 1973 the print shop began releasing the annual

Pangnirtung Community Print Collection.

The art of tapestry weaving was introduced to

Pangnirtung at about the same time. The communityacquired its first loom in 1970. Women in the

community quickly adapted their traditional sewing

skills to the new art form, and weaving soon became an

important addition to the livelihood of many families.

The first collection of limited-edition, hand-woven

tapestries from Pangnirtung was exhibited and sold in

Toronto in 1972.

Through the 1970s and 1980s, arts and crafts fromPangnirtung were sold through the Pangnirtung

Eskimo Cooperative. The wholesale business

accumulated financial losses, however, and in 1988 the

Cooperative pulled its support from the printmaking

program. The decision could have spelled the end for

one of the key elements of the local arts economy in

Pangnirtung. The community was determined not to

let that happen. Instead, artists in the communityestablished a fully Inuit-owned, non-profit society

called the Uqqurmiut Inuit Artists Association.

A Tradition Renewed

People told us that

printmaking in the

North was in trouble

and perhaps should just

die. But we didnt care

about those things! We

just kept going! The

printmakers were

patient, and they knew

that some day the

Uqqurmiut would keep

its promise to them.

Rose Okpik,

then-Chairperson

of the UIAA, in the 1992 Pangnirtung Print

Collection catalogue

Led by its first Chairperson, Rose Okpik, the

Association raised funds to acquire the print

shop assets and to establish a centre for the

creation, display and marketing of arts and

crafts. In 1991, with support from the federal

government, the UIAA completedconstruction of the first two of the three

buildings that now make up the Uqqurmiut

Centre for Arts & Crafts. (The third building,

the print shop, re-opened in 1995 after a fire

destroyed the old printmaking facility.)

Talu

kauyartuqLipaPitiulak/JacoposieTiglik

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To serve Pangnirtung artists

and the community of

Pangnirtung, to keep all of

their arts and culture alive,

and to ensure their full

participation and control by

creating employment and

training opportunities forartists, providing a central

place for the creation and

marketing of art, contributing

to local tourism, and

providing an art archive to

preserve the art for futuregenerations.

Uqqurmiut

Inuit ArtistsAssociationMissionStatement

Local Control . . .

The Uqqurmiut Centre for Arts and Crafts is

owned and operated through Uqqurmiut

Arts and Crafts (1993) Limited, a joint

venture company between the Uqqurmiut

Inuit Artists Association and the Nunavut

Development Corporation (NDC). The

Artists Association holds a 49 percent share

The 2003 collection of

prints by Pangnirtungartists celebrated 30

years of printmaking in

this community.

The NDC holds the majority interest (at 51

percent), and ensures that the company

maintains sound financial accountability andfollows generally-accepted business practices.

The NDC provides an annual operating

subsidy to the Centre, and also offers

accounting and administrative support.

However, the Centres ongoing management

and decision-making responsibility for the

company is handled by the seven-member,

all-Inuit Board of Directors of UqqurmiutArts and Crafts.

30

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Dancing Bird

Malaya Akulukjuk/ Igah


33/37

This structure means that the Centre can achieve a

number of objectives:

The tapestry and print-making studios provide

full-time employment for a minimum of six artists

working on a piecework basis, and seasonal work

for up to 20 more.

The purchase of arts and crafts provide a

source of income for hundreds of other local

artists who work from their homes.

Responsibility for marketing, sales, and business

management rests with the company, rather

than with individual artists.

The company earns about

$500,000 in sales each year.It is not yet financially self-

sufficient, and continues to

rely on an annual operating

subsidy from NDC. The

Centre also receives funding

for special projects fromgovernment sources such as

the Canada Council for the

Arts.However, with the

continued development of

new markets, the Artists

Association is hopeful thatthe Centre will one day be

a self-financing venture.

Celebrating a Gathering

Ishmael Naulalik/Geetee Maniapik/Kawkysie Kakee

OwlandGooseBecomeHumanAnnieKilabuk

. . . and Local Benefits

Uqqurmiut Arts and Crafts leases the studio and

exhibit spaces from the Artists Association, and also

provides all materials and equipment for artists workingat the Centre or in their own homes.

The company buys finished art products from the

individual artists. Finished artworks are resold through

the gallery at the Centre, and through NDC-owned

sales centres in other parts of Canada.

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NightFlight,AlanAlikatuktuk/GeelaS

owdluapik


The Art of Community DevelopmentThe economic contribution made by the Centre to the

community of Pangnirtung is significant but the Centre is

about much more than economics. As a non-profit organization,the Artists Association is also committed to social, educational,

and cultural objectives.

Part of the role of the Centre is to preserve the artistic record of

Inuit culture and traditions. The Centre holds an archive of over

20,000 original drawings and other artwork that document these

traditions. In addition to protecting this artistic heritage, the

Centre also inspires and encourages new artists by offering

courses in tapestry weavingand print-making, in partnership

with Nunavut Arctic College. This ongoing training and

development helps to ensure that the arts remain a vibrant part

of community life.

The Centre purchases, displays and sells only arts and crafts

made locally. The close connection between the business and

local residents ensures that the operation is a community

initiative, rather than solely a business venture. It also meansthat the business provides an important avenue for

raising awareness of

Pangnirtungs unique

cultural heritage

among audiences

all over the world.

Traditional sewing skillsenabled Inuit women to

transform animal hides

into durable and

weatherproof clothing

that was uniquely suited

to the harsh northern

climate. Through the

Pangnirtung tapestry

studio, these traditional

skills have found a newexpression. In 2002,

the Canadian Museum

of Civilization featured

Pangnirtung tapestries in

an exhibit that toured

Canada. A large

Pangnirtung tapestry

also hangs in the Great

Hall of the Nunavut

Legislative Assembly.

Hunter on an Igloo July Papatsie

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34

Acknowledgements

Jason ForsythMarine Stewardship Coordinator


Terry Helary

General ManagerNorthern Lights Foods

Larry JohnsonEconomic Development Manager

Huu-ay-aht First Nation

Trevor Jones

Chief Executive OfficerHupacasath First Nation

Evan StewartNatural Resources Management

Coordinator


Peter WilsonGeneral ManagerUqqurmiut Centre for Arts and Crafts

ForestEthics thanks the following individuals who generously

offered their time and stories to make this booklet possible:


37/37

Interviews and text by Darcy Dobell and David Pitt-Brooke

Design and layout by Marion Syme

CommunityHealthNaturesWealth

Documents