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NATIONAL ABORIGINAL FORESTRY ASSOCIATION |
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2.1 Overview Of Industry Importance
2.2 International Commitments To Sustainable Forestry
2.3 Canadian Initiatives Influencing Partnerships
2.4 Conclusions
By any statistical measure, the forest industry is an important contributor to the country's economic prosperity. It is Canada's leading manufacturing sector and a major economic force in all regions of the country. It represented 11% of Canada's Gross Domestic Product in 1998 when combined with the logging and forest services industries. In the same year, the total value of industry exports was $39.7 billion with a balance of trade totalling $31.6 billion, making Canada the world's largest forest products exporter.
Total direct employment in the industry was 384,000 in 1998 and the sector contributed to the creation of another 465,000 indirect jobs or 1 in 16 jobs in 1998. This resulted in wages and salaries of approximately $11 billion. The forest sector is the country's largest non-urban employer with over 300 communities dependent on the sector for their livelihood.
From a regional perspective, British Columbia accounts for approximately 37% of the total value of Canadian shipments, followed by Quebec with 25%, Ontario with 20%, the Prairies with 8% and the Atlantic Provinces with 7%.
The early 1990's proved to be difficult years for Canada's pulp and paper industry, which was subject to a world economic downturn coupled with significant capital expenditure associated with already-scheduled capacity expansion and environmental control programs.
Overall profits in the wood and paper industries reached a record of $5.2 billion in 1995 compared to $2.6 billion in 1994 and total losses of about $3.9 billion in the 1991 to 1993 period. Difficult times returned to the industry in 1996 as profits plummeted to under $1 billion, the result of substantially lower prices in the pulp and paper industry coupled with a 3.3% drop in shipments. To summarize employment in the past decade, there were gains in the wood products industry offsetting job losses in the paper and allied industries, for a total increase of 26,000 jobs in the forest sector.
General forest industry statistics do not represent the importance that forests, and consequently the forest industry, have for Aboriginal peoples in Canada. Some 80% of First Nation communities are within forested areas and productive forests cover approximately 44% of reserve land areas. The forest has always had a profound effect on culture and way of life, providing everything from food, fuel and clothing to shelter, medicine and water transportation. The significance of these elements continues, not to mention the value that indigenous knowledge of forests and resources has in the worldview.
A variety of national and provincial policies and international agreements in recent decades have influenced Aboriginal participation in the forest sector. Some of these initiatives as well as emerging trends in Aboriginal communities will be listed briefly below. More detailed examination of these issues can be found in the Institute On Governance report entitled Exploring the Relationship Between Aboriginal Peoples and the Canadian Forest Industry: Some Industry Perspectives and the NAFA report entitled Aboriginal Participation in Forest Management: Not Just Another Stakeholder.
UNCED approved an action program, Agenda 21, in which the involved state governments promote sustainable development within their borders and to cooperate in a range of different areas. Significant development with respect to forests occurred in Chapter 11 of Agenda 21 and the non-legally binding "Forest Principles". Forest elements are also found in the Rio Declaration, the Convention on Biological Diversity, the Framework Convention on Climate Change and in a number of other Chapters of Agenda 21. In many instances Indigenous Peoples' issues converged with forest elements. Principle 22 of the Rio Declaration, for example, recognizes the role of Indigenous Peoples in development and environmental management and asserts that "states should recognize and duly support their identity, culture and interests and enable their effective participation in the achievement of sustainable development."
Based on concerns about the degradation of ecosystems and loss of species and genetic diversity that result from human activity, the Canadian government, with the support of the provinces and territories, ratified the United Nations Convention on Biological Diversity in 1992. Aboriginal profile has been high around the convention. Article 8 commits signatories to "as far as possible and as appropriate...(j) subject to national legislation, respect, preserve and maintain knowledge, innovations and practices of indigenous local communities embodying traditional lifestyles relevant to the conservation and sustainable use of biodiversity and promote their wider application." Aboriginal people can view the Convention, as well as other international instruments such as Agenda 21 from the Rio Conference, as strengthening their Aboriginal or Treaty rights to land and resources and their right to benefit from traditional knowledge. Further, these instruments are re-affirming and indeed, committing support for traditional, holistic approaches to wildlife habitat conservation.
By 1995 the Federal and provincial governments had developed a Canadian Biodiversity Strategy to determine the measures needed to meet the obligations of the Convention. The strategy is a product of extensive consultations that included Aboriginal organizations and points out the need to find mechanisms to implement Article 8 (j).
The Royal Commission concluded that the forest industry shows great potential for increasing Aboriginal self-sufficiency. It also recognized, however, the harmful impacts that current forestry practices can have on Aboriginal communities. Clear-cutting and extensive road construction for the purposes of logging clearly threaten First Nation hunting, fishing, trapping and holistic management practices. The Commission also noted the diminishing quantity of unallocated forest lands in most jurisdictions. In Ontario, for example, much of the Crown land has already been allotted under long-term licence. The Commission made the following recommendations with regard to Aboriginal involvement in the forest industry:
In addition, the Commission recommended a significant transfer of lands and resources resulting from the new Treaty negotiations that would occur in all regions across Canada. The size of these transfers would be based on two elements - the developmental needs of communities and partial compensation for past and present exploitation of a Nation's traditional territory. Lands would be of sufficient size and quality to foster Aboriginal economic self-reliance and cultural and political autonomy.
Both comprehensive and specific claims negotiations and those dealing with self-government regimes are now common features across Canada. There are some 80 negotiating tables involved in self-government across the country in which approximately 300 First Nations and other Aboriginal groups are participating. While progress has been slow in the past, these negotiations will result in First Nations and Aboriginal communities becoming major players in resource management, both as landowners and as partners in co-management arrangements. In addition, the financial settlements, which are a part of claims agreements, provide Aboriginal groups with the economic means to develop joint ventures and establish their own enterprises. (Since 1994, funds paid out by the Federal government annually for claims settlement have been in the $3-400 million range.)
Within the last decade, the courts have rendered a number of important judgements, some at the level of the Supreme Court. These judgements have, and continue to have, important ramifications for resource-based industries, particularly the forest industry. The Delgamuukw judgement is one of the most recent and far-reaching judgements with specific implications for Aboriginal participation in forest management in British Columbia.3 Other important judgements include R. v. Sparrow, 1990, which addressed the requirement for governments to justify proposed infringements (for example through legislation, regulations or policy) of a constitutionally protected Aboriginal or Treaty right. Four related decisions clarified what would be judged to constitute a justification (R. v. Gladstone, R. v. Adams), an infringement (R. v. Cote), and an Aboriginal right (R. v. Pamajemon).
The Federal government's environmental assessment process as defined in the Canadian Environmental Assessment Act (CEAA) provides a legal requirement on the part of Federal agencies to consult Aboriginal people when undertaking a project, approving project funding or adopting a new policy, law or regulation. Among the factors that an assessment must take into account, the CEAA makes particular note that "the current use of lands and resources for traditional purposes by Aboriginal persons" be acknowledged.
Another national initiative of some note is Canada's National Forest Strategy (NFS), which the Federal and provincial governments along with some 30 non-governmental organizations, including the National Aboriginal Forestry Association, adopted in 1992. NFS has developed under the auspices of the Canadian Council of Forest Ministers (CCFM) and deals specifically with Aboriginal issues in Strategic Direction Seven. Two objectives within the NFS are as follows:
"We will increase access to forest resources for Aboriginal communities to pursue both traditional and economic development activities
We will support Aboriginal employment and business development in the forest sector"
The NFS expands on the notion of traditional and economic development above, through commitment 7.8 that suggests "establishing business partnerships and joint ventures with existing tenure holders." The National Forest Strategy makes significant commitment to the development of Canadian criteria and indicators according to the CCFM framework.
Certification of forest products and of sustainable forest management (SFM) systems is the proposed means, via the marketplace, to provide evidence that wood and paper products are derived from sustainable, environmentally sensitive forest practices. The forest industry is complying with certification systems, not as a result of government regulation, but in a voluntary effort to convince consumers to continue to buy their forest products. There are, at present, two major groups in Canada developing approaches to certification for sustainable forest management: The Canadian Standards Association (CSA) and the Forest Stewardship Council (FSC). Both the CSA and FSC have developed criteria and management standards, which require appropriate levels of Aboriginal participation. For example, FSC Principle 3 requires that "the legal and customary rights of indigenous peoples to own, use and manage their lands, territories and resources shall be recognized and respected."
FSC Canada is working jointly with NAFA on a project that is being funded by the North American Fund for Environmental Cooperation. This project will result in a Protocol Framework for Meaningful Consultation with Aboriginal Peoples on Forest Management in Canada. This report will analyze the gap between the current consultation process and the process that Aboriginal people would like to see on the part of both government and non-governmental organizations.
In 1996, CSA published The Sustainable Forest Management System - Guidance Document (Z808) and Specifications Document (Z809) which lay out both the requirements that an owner or forest manager must meet to gain registration and the auditing procedures to be used by the registering organization. Two criteria refer to Aboriginal concerns. Criterion 6.1 speaks to the importance of forest planning and management processes considering and meeting "legal obligations with respect to duly established Aboriginal and treaty rights." Criterion 6.2 calls for increased cooperation between Aboriginal communities and all forest stakeholders to achieve the goals of sustainable forest management.
Section 3 of the CSA-SFM framework recognizes that Aboriginal peoples have a unique legal status and that they must be given the opportunity to contribute their knowledge to the management process. Another section of the SFM standard states that forest managers or owners must comply with all legislation and other requirements that relate to ownership, tenures and rights that apply to the area in question. With regard to Aboriginal and Treaty rights, the standard echoes the CCFM criteria by stating that, "Duly established Aboriginal and treaty rights must be identified and respected."
A CSA Technical Committee continues to work at these questions of how to identify Aboriginal and Treaty rights and how to give particular consideration to Aboriginal communities.
Another important backdrop to recent developments has been a number of disputes that have appeared in the form of court actions, occupations, roadblocks and, in some cases, armed confrontations. Several of these have had a direct impact on private sector firms in resource-related industries including forestry. The following is a partial list of disputes that have occurred in the 1990's:
The impact of such disputes on furthering the cause of Aboriginal issues has resulted in both positive and negative public opinion. Nonetheless, governments have come to better realize the interrelationship between forest practices, Aboriginal rights and traditional land use activities. From an industry perspective, it makes sense in the long-term to involve Aboriginal peoples in resource decisions that affect their communities considering the increased influence Aboriginal people have gained in recent years.
Constitutional responsibility for natural resources confers on provincial governments the ultimate say on how forests, other than those on Federal land, are managed and for what purposes. Such matters as sustainable forest management, as defined in the National Forest Strategy and the CCFM Criteria and Indicators, are left to the discretion of provincial government. Through forest management legislation and other policy instruments, provinces allocate forest tenure and forest harvesting licences, control timber supply and prescribe forest practices. They also determine the broad parameters on which forest-based businesses will operate.
Over the past ten years, most provincial governments have taken steps to modernize their forest policy through legislation which addresses multiple use forestry, sustainability and new realities in the forest industry. Some have implemented changes, which encourage partnerships enhancing the concept of public participation and the need to share economic benefits of forest resource development. In five provinces, new forest policy has considered Aboriginal Peoples and their organizations as potential partners.
In Ontario, the Crown Forest Sustainability Act (CFSA) of 1994 requires that forest management plans be prepared for all management units based on a new Forest Management Planning Manual. Among other requirements, this manual calls for the Ontario Ministry of Natural Resources (MNR) and representatives of willing First Nation communities in, or adjacent to, a management unit in conjunction with the plan author, to produce a Native Background Information Report. This report summarizes the following items for each First Nation community:
Once completed, the Native Background Information Report enters the public consultation process engaging Aboriginal communities and the general public. This report becomes part of the management plan and is combined with a work schedule. This package is then submitted to the Minister at which point it may be approved, modified or rejected.
The MNR has also issued Guidelines for the Implementation of Term and Condition 77, which are intended "to identify and implement ways of achieving a more equal participation by Aboriginal Peoples in the benefits provided through timber management planning." The Term and Condition numbered 77 (T&C #77), of the Timber Class Environmental Assessment (1994) decision requires MNR to negotiate with Aboriginal peoples at the local level regarding opportunities for a more equal participation in the benefits of forest management.
Notwithstanding these provisions, many First Nation communities in Ontario have serious misgivings about the implementation of the CFSA and T&C #77. Their concern is based on the preconceived manner in which Aboriginal people will partake in forest management and the degree of discretion left to MNR officials at the local level to establish business partnerships.
The Saskatchewan Environment and Resource Management Department (SERM) has a broad mandate to "manage, enhance and protect Saskatchewan's natural and environmental resources" resulting in the publication of the Aboriginal Affairs Policy Framework: A tool For Decision-Making. Among the principles in this policy document are the following:
Based on these policy principles, the SERM policy framework lays out specific policy directions. One of these is a commitment to encourage and facilitate "Aboriginal participation in renewable resource-based businesses" recognizing the demographics of northern Saskatchewan and the burgeoning need for employment. Guidance for both the policy framework and the principles of forest economic development in Saskatchewan was provided through a wide-ranging Memorandum of Understanding between SERM and the Federation of Saskatchewan Indian Nations.
As a result of this shared vision, First Nations and other Aboriginal communities in Saskatchewan have been successful in acquiring forest tenure and in negotiating favourable agreements with industry partners.
British Columbia Ministry of Forests (MoF) exercises its responsibility for timber, range and recreation resources on forested land through the BC Forest Act and the Forest Practices Code. Treaty negotiations dominate the Aboriginal agenda in the province and interim measures agreements, either completed or planned, have been compelling in bringing First Nation and industry partners to the table.
With respect to forest policy, which may promote partnerships, the MoF has promulgated Aboriginal Rights and Title Policy (1999) and Consultation Guidelines (1999) in response to the Delgamuukw decision in 1997. As well, the forest tenure system has been used as a means of facilitating Aboriginal participation. Currently, close to 100 forest tenures have been awarded to First Nations. Though most are woodlot licences or small-scale timber supply licences, they provide an opportunity for First Nations to negotiate with industry and other possible forest sector partners.
Recently, the Alberta Government has been consulting with Aboriginal communities on a policy initiative entitled Strengthening Relationships: The Government of Alberta's Proposed Aboriginal Policy Framework. Among other things, the new policy direction is intended to establish principles for cooperative management and to facilitate increased benefit for Aboriginal communities for forest-based development.
In Quebec, guidelines on Aboriginal affairs include objective statements regarding Aboriginal participation in forest management and economic development. On a case-by-case basis, the province has helped facilitate partnerships including two fairly large joint ventures - one at Waswanipi and the other at Obedjiwan. To encourage partnerships and harmonize traditional activities with licence holders, Quebec funds "native projects" under the Forest Resource Development Program to the tune of approximately $2 million each year.
Provincial forest policy and the objectives and processes embedded in forest tenure and licencing systems determine how forest-based businesses will operate. As an extension of their authority, provincial governments strongly influence how partnerships will be structured and, in fact, who will be partners. Obtaining tenure and accompanying harvesting rights strengthens the hand of the tenure holder in establishing partnerships and relationships within the sector. As with other socio-economic and ecological objectives manifested in forest management policy, Aboriginal-forest industry partnerships are more easily achieved with policy conducive to that end.
In April of 1996, the Canada-US Softwood Lumber Agreement (SLA) was announced, which limits softwood lumber exports to the United States from four Canadian provinces - British Columbia, Alberta, Ontario and Quebec - through an export (quota) allocation system administered by Canada's Department of Foreign Affairs and International Trade. Quota allocations were determined based on the historical trade patterns of forest companies. Aboriginal companies that are allocated a quota through the SLA have added lustre as a potential partner, much like the effect of having a forest licence. Nevertheless, the SLA is a double-edged sword as small, emerging Aboriginal companies do not have an export history and are at a significant disadvantage with respect to larger, long-established companies. The provisions initially made in the SLA for "new entrants" and "hardship cases" were minimal and have since become virtually non-existent. This situation has jeopardized the viability of existing First Nations' forest products companies and has made the initiation of new business or expansion in the industry near impossible. In addition to these direct impacts, by restricting access to the US market, the SLA decreases the economic potential of partnerships with non-Aboriginal forest companies.
One large British Columbia-based forest company made a useful assessment of the overall environment in which it was operating and came to the following conclusions:
These conclusions appear to be consistent with the evidence that has been presented in this section of the report with one caveat: The growing importance of international pressure to achieve sustainable forest management practices and the resulting growth in certification and labelling regimes. This pressure increases the importance of positive working relationships with Aboriginal communities.
This complex set of circumstances has resulted in an increased interest in partnership between Aboriginal companies and the forest industry. The following section will outline the types of partnerships that have emerged and provide examples from across the country.
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