NATIONAL ABORIGINAL FORESTRY ASSOCIATION

Aboriginal-Forest Sector Partnerships: Lessons For Future Collaboration

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1 INTRODUCTION

1.1 Background
1.2 Objectives
1.3 Organization of Report

1.1 BACKGROUND

There is little doubt that partnerships between Aboriginal communities and Forest Industry firms represent a growing phenomenon of significant importance to the economic development prospects of many Aboriginal people.

Since its establishment in 1991, the National Aboriginal Forestry Association (NAFA) has promoted cooperation in forest management and effective working relationships with forest companies. In April 1995, NAFA conducted a brief survey1 of such partnerships that identified a number of joint ventures and industry employment partnerships. More recently, other forms of partnerships have been formed, based on a growing trust and changing conditions within the forest sector.

In 1998, the Institute On Governance (IOG) published the results of its survey2 of some thirty of the largest forestry companies in the country. A wide variety of partnerships were identified, including some that featured protection of environmentally and culturally sensitive areas; training and employment agreements; and contracts with Aboriginal-owned businesses for harvesting, silviculture, hauling and other activities related to forest management and forest industry operations. The number of joint ventures, either negotiated or being contemplated, was a significant finding of this study. The overall thrust of the survey confirmed that a transformation is occurring - a transformation that is altering the way in which forestry firms relate to their Aboriginal neighbours.

Gathering Strength, the Federal government's response to the Royal Commission on Aboriginal Peoples, recognized the growing opportunities in the resource sector by outlining a number of new initiatives in this area. One such response is a new Aboriginal Business Initiative that, through increased access to capital, expanded business services and increased Aboriginal involvement in existing programs, has the potential to play an important role in the resource sectors of the economy.

As well, Canada's National Forest Strategy, renewed effective May 1, 1998, commits the forest sector at large to the pursuit of business partnerships with Aboriginal communities taking into consideration traditional use and other forest values.

Despite the NAFA and IOG studies cited above, the level of knowledge about new partnerships in the forest industry and the motivations driving their creation remains weak. Aboriginal business development in the industry is dependent on effective working partnerships. A better understanding of the constraints, challenges and achievements involved and the implications for public policy will help foster confidence and innovation in the development of Aboriginal and forest sector partnerships.

1.2 OBJECTIVES

The objectives of this study are the following:

• to determine with greater precision the number, type and geographic location of these partnerships;
• to gain a better understanding of the motivations behind agreements and the obstacles and challenges in developing these partnerships and making them succeed;
• to estimate the nature of the results in terms of employment, new business formation and other benefits to Aboriginal communities; and
• to gain a better appreciation of the implications of this growing phenomenon for public policy and for future action on the part of industry and Aboriginal communities.

1.3 ORGANIZATION OF REPORT

Following this introduction, section 2 gives a review of the forest industry and the factors influencing Aboriginal participation providing a context within which to view partnerships in the forest sector. The next section (3) discusses the results of a survey of Aboriginal organizations across Canada. This survey examined the number, type and geographic location of Aboriginal-non-Aboriginal partnerships in the forest sector. Section 4 details a set of best practices compiled through a review of national and international literature on business partnerships with a focus on multicultural settings. Detailed descriptions of four forestry partnerships of various forms are provided in section 5 with a discussion of lessons learned for each case study. The final section (6) lists a series of questions and issues for further exploration on the issue of forest sector partnerships.

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