Benchmarking trends in Aboriginal forestry

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Benchmarking Trends in Aboriginal Forestry

Prepared for:

The Aboriginal Forestry Initiative, Canadian Forest Services, Natural Resources Canada

and

The University of Victoria School of Public Administration ADMN 598 Policy Report

Clients: Trevor Longpre and Anna Bailie Academic Supervisor: Lynda Gagné, PhD

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Executive Summary

The purpose of this report is to compile and analyse information on Aboriginal forestry activity in Canada for the Canadian Forest Service (CFS). These findings will be used to inform future federal programming, allow for monitoring of government intervention and to provide the public with a snapshot of the current state of Aboriginal forestry activity. As there is no single metric to measure Aboriginal forestry activity, the report uses data from various datasets and a review of the related literature to capture various aspects of this activity. A criteria and indicators methodology is used to organize information about Aboriginal forestry activity. The criteria and indicators used in this report are:

Criteria 1: Economic opportunities in Aboriginal forestry

Indicator 1: Forest assets Indicator 2: Tenure

Indicator 3: Business relationships

Criteria 2: Aboriginal capacity in the forest sector

Indicator 1: Workplace demographics Indicator 2: Education

Criteria 3: Aboriginal participation in the forest sector

Indicator 1: Earned income

Indicator 2: On-reserve Aboriginal businesses

Sources for indicators include: Canadian Census and business registry data from Statistics Canada, the First Nations Forest Inventory Initiative, and various published industry and academic reports.

The analysis finds that opportunities in Aboriginal forestry are rising as the amount of forest assets and Aboriginal-held forest tenure are increasing and the types of business relationships Aboriginal peoples are engaged in are improving. Findings about the development of Aboriginal capacity in the forest sector are mixed: while the education and skill-level of Aboriginal workers in forestry improved, the average age of the Aboriginal workforce has steadily increased, reflecting a rapidly aging underlying demographic. The median total income for Aboriginal workers in the forest sector has increased. However, the number of Aboriginal workers in the forest sector has steadily declined (in all sub-sectors), and average income drastically varies depending on whether an individual is on or off-reserve. While the earnings of off-reserve Aboriginal forestry workers are very close to those of their non-Aboriginal counterparts, on-reserve forestry workers earnings are less than half of those of non-Aboriginals. Finally, the analysis found that the number of on-reserve Aboriginal businesses in the forest sector has decreased over the last 10 years.

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Figure 1: Summary of opportunities, capacity and participation in Aboriginal forestry

Opportunities Capacity Participation

▲ Forest assets ▲▼ Workforce Demographics ▲▼ Forest Sector Labour Force ▲ Aboriginal-held forest tenure ▲ Education/Skill ▲▼ Earned Income

▲ Business relationships ▼ On-Reserve Business The report makes four recommendations in regards to next steps for the CFS’ trends report on Aboriginal forestry. These are:

1) Supplement these findings with qualitative research: Much of the findings from

this report are high level statistics aggregated on a national level and do not do an adequate job in interpreting what is occurring on the ground. Further research would expand the quantitative numbers with qualitative data.

2) Bring in First Nations input to the criteria and indicators: Consultation with First

Nations can be conducted with key leaders in the community to ensure that the criteria and indicators used in the research adequately reflect trends that are important to Aboriginal communities.

3) Continue to develop trends report with new data: New data is consistently

becoming available. The trends report should be an evergreen file, which is regularly updated as new statistics become available. This would ensure that the trends report is up to date and best able to inform policy in terms of what is occurring in Aboriginal forestry.

4) Release the findings from this report to stakeholders and the public: The findings

from this report are of interest to the public, specifically academics, Aboriginal communities and the forest sector. The CFS should compile the trends report into a publishable document and distribute it through the online CFS bookstore.

5) Use the information from this report to inform CFS policy: the information in this

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Index of Figures

Figure 1: Summary of opportunities, capacity and participation in Aboriginal forestry .... 3

Figure 2: Different visions for First Nations and forestry in Canada ... 13

Figure 3: Continuum of Integration/Collaboration in Partnership Structures between Forest Sector and First Nations Communities ... 15

Figure 4: Criteria and Indicators for Aboriginal Forestry ... 18

Figure 5: Criteria, Indicators and Sources for Verifiers for Opportunities for Aboriginal Forestry ... 20

Figure 6: Criteria, Indicators and Sources for Verifiers for Aboriginal Capacity in Forestry ... 21

Figure 7: Criteria, Indicators and Sources for Verifiers for Participation in Aboriginal forestry ... 22

Figure 8: Growth in reserve land hectarage - actual and projected (in thousands) ... 23

Figure 9: Percentage workers employed in forest industry subsectors who are Aboriginal ... 27

Figure 10: Aboriginal workforce in the forest sector by age group ... 28

Figure 11: Age of Aboriginal Workers in Mining, Oil and Gas ... 29

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Figure 14: Median total income for workers in the forest sector (1996-2006) ... 32 Figure 15: On-Reserve Forest Based Businesses (2008-2010) ... 33 Figure 16: Size of On-Reserve Forest Sector Businesses (Dec. 2010) ... 33 Figure 17: Summary of opportunities, capacity and participation in Aboriginal forestry 39

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Introduction

Forestry is an important part of Canada’s economy. In 2008 the sector provided direct employment for 231 500 people, representing 1.6 percent of total employment in Canada, with $11.5 billion in wages and salaries for direct employment in 2007. Further, the forest sector’s contribution to the Canadian economy (GDP) in 2002 constant dollars was $23.8 billion, or 1.9 percent of total GDP, in 2008 (Mockler, 2011, p.81). While the sector is an important part of the Canadian economy, it is facing challenges arising from climate change, environmental stewardship, and reduced demand for Canadian forestry products.

Aboriginal forestry, the practise and execution of forest based activities by Aboriginal people for revenue in both reserve and non-reserve areas, including direct employment and investment in and/or ownership of forest sector enterprises, is gaining importance as a major contributor to the sector’s performance and sustainability. Increased

participation in the forest sector will assist in the achievement of economic, social and sustainable development objectives for Aboriginal people, who have been faring poorly relative to other groups in Canada, but who also have an opportunity for improving their future labour market outcomes as relatively younger people in a country about to face significant labour market challenges as a result of an aging population (Statistics Canada, 2007) Given these general trends, it is therefore timely to expand our collective

knowledge on the state of Aboriginal forestry activity – in terms of its capacity, its opportunities and its impacts. This report provides an overview of trends in Aboriginal forestry activity.

Canada is a country rich in forest resources, with forests covering approximately 40% of the land mass and 93% of Canada’s forested land being publicly owned. The

Government of Canada has a mandate to effectively manage these resources as well as facilitate and support the economic development of Aboriginal Canadians. Forestry plays a central role – culturally, spiritually, and economically – in the well-being of many Aboriginal communities. This importance is growing as more forest land is coming under First Nations control and management and forestry and forest-based economic development are key opportunities, particularly for the 80% of First Nations located in Canada’s forest regions. This report consolidates and analyses much of the data collected on Aboriginal forestry activity to inform government practitioners and policy makers’ r understanding of Aboriginal forestry.

This report presents trend information on Aboriginal forestry activity using quantitative and qualitative indicators such as forest assets, tenure, business relationships, workplace and education demographics, labour force activity and earned income. Quantitative indicators derived from regularly published statistical data provide a benchmark that can be revisited in later years to easily follow trends in Aboriginal forestry. Monitoring these trends is important as the forest industry is increasingly looking to the Aboriginal

population as a principal source of labour because of the proximity of their communities to forests when the sector is anticipating a labour gap of up to 100,000 by 2020 (FPSC,

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on the ground, and better encapsulate the voice of Aboriginal communities engaged in forestry.

The remainder of this report is organized into several sections. The background section provides a backdrop to Aboriginal forestry by defining key terminology, explaining the mandate of Natural Resources Canada and discussing the context and impetus of developing of an Aboriginal forestry trends report. The literature review section analyzes the research on Aboriginal forestry and situates this report in the context of existing research. The methodology section outlines the research tools used in this report. The findings section presents the data collected from the research conducted. Findings are analyzed in the discussion section, and followed by a series of

recommended options and next steps. Finally the conclusion section summarizes the

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Background

The Canadian forest sector recently started to undergo a significant transformation. The downturn in the forest sector resulted in a 20% output reduction between 2009 and 2010 as hundreds of mills closed, resulting in tens of thousands of jobs lost. The sector has been experiencing decline for the fourth consecutive year (DFAIT, 2010).There has also been a consolidation of business, with fewer but larger companies focussed on

efficiencies and technology. Further, climate change is altering forest fires, insect outbreaks and tree mortality. The forestry sector will be exposed to new risks and opportunities as climates continue to change and the industry will need to develop a toolbox of flexible new management practices for effective adaptation.

To support a healthy forestry sector in this challenging environment, the Council of Forest Ministers, provincial governments, industry associations and environmental groups have been producing a variety of reports on the state of Canada’s forest sector and forest resources (FPSC, 2011; CCFM, 2008; Pokharel, Ridish and Larsen, 2007; Dalton, 2006). These reports examine a wide range of indicators, including economic

performance indicators, socio-economic indicators of well-being, and environmental sustainability indicators. While these reports focus on the Canadian forestry sector as a whole and while a great deal of research has been conducted on various aspects of Aboriginal forestry, no attempt has been made to consolidate the research findings on Aboriginal forestry activity although as of 2010 80% of First Nations reserves are located in forested areas (Natural Resources Canada, 2010, p.2). This project was commissioned by the Canadian Forest Service (CFS) at Natural Resources Canada (NRCan) as an attempt at filling this gap. The report will establish a baseline for Aboriginal forestry activities which will then be reviewed periodically when new data becomes available or is gathered or generated. The document produced will be used to provide information for the development of future CFS programs. Further, it will be summarized and adapted for public distribution.

Canadian Forest Services and Aboriginal Affairs and Northern Development Canada

While at the departmental level, NRCan holds the broad mandate to enhance the responsible and competitive use of Canada’s natural resources, the CFS is specifically tasked to promote the sustainability and competitiveness of Canada’s forests and improve the quality of life of Canadians. In order to support local Canadian communities, the CFS regularly conducts research to identify forest-based opportunities and assess the state of the forest industry.

Further, the Canadian government has a mandate to improve the social well-being and economic prosperity of First Nations. These obligations are the responsibility of Aboriginal Affairs and Northern Development Canada (AANDC). As over 80% of Aboriginal communities in Canada live in forested areas (Natural Resources Canada, 2010, p.2), NRCan and AANDC have identified their shared responsibilities in promoting

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1999 to form and jointly fund the First Nations Forestry Program. FNFP expenditures since its inception exceeded $160 million, with more than 1,900 projects approved for funding. Many of the projects also received funding from other sources such as provincial governments, the forest industry, First Nations partners, and other federal departments. The FNFP formally ended on March 31st, 2011 and was replaced by the Aboriginal Forestry Initiative (AFI).

The First Nations Forestry Project and the Aboriginal Forestry Initiative The mandate of the First Nations Forestry Program (FNFP) was to provide funding and support to improve the capacity of First Nations to develop and sustainably manage their forest resources and to participate in and benefit from forest-based development

opportunities. The FNFP would provide either sole source funding, or partner with community stakeholders to develop forestry-based programs such as skills training, youth programs, business development and forest management (FNFP, 2007, p.16).

In 2009 NRCan adopted a new approach to engage with communities at the regional level. CFS officers will work with regions to develop proposals selected for seed funding so that they can leverage other sources of funding such as those from other departments with larger grant funding budgets, such as Human Resources and Skills Development Canada (HRSDC) and Aboriginal Affairs and Northern Development (AAND)). To support the AFI”s activities the CFS has identified the need for research material on forest-based Aboriginal communities. The CFS regularly conducts research to

continually assess the state of Canada’s forest industry. New information that specifically focuses on Aboriginal communities will serve the AFI’s objective of

understanding of the needs of Aboriginal peoples. This report was commissioned by the CFS to support that objective. The CFS asked that the report use a criteria and indicators framework to determine the trends and the current state of Aboriginal Forestry in Canada and that would use current state information as a benchmark for future AFI analysis. The report looks at data from the past 15 years while establishing a baseline for the current state of Aboriginal forestry. From this baseline, the AFI anticipates regularly conducting research on the state of Aboriginal forestry to determine its direction and where best its expertise can be used to support the industry. Further, a metric that measure Aboriginal forestry can be an important economic development tool to Aboriginal communities. The information in this report will be published and shared with the public to help local organizations gain an aggregate understanding of trends in Aboriginal forestry activity.

The CFS has an established research infrastructure, resources, in-house data and access to other government databases. While there are many benefits to having the CFS spearhead this research it is important to note that there are also shortcomings to this approach. For instance, a quantitative assessment of Aboriginal forestry on a national level does not consider the specific cultural interest of regional communities. While indicators such as forest sector labour force are valuable from a federal government perspective, they often

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ignore local variables. Moreover, no single organization has all the needed in-house expertise and infrastructure for this type of project. While the CFS is a suitable

organization to begin such an initiative, the support and input of Aboriginal organizations and other governmental departments is necessary to get a fuller representation of

Aboriginal forestry activities. Consequently, this report is only one contribution to the growing body of literature on Aboriginal forestry. The next section provides an overview of this literature.

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Literature Review

The purpose of this literature review is to gain a better understanding of what knowledge academics and practitioners have already developed in the field of Aboriginal Forestry. The review focuses on 1) defining Aborignal history, 2) the historical context of

Aboriginal forestry and 3) measuring aspects of Aboriginal forestry. Defining Aboriginal Forestry

To clarify the scope and understanding of this report, specific terminology needs to be defined. When the term forests is used in this report, it refers to forestlands and includes the importance of the land and the ecosystems that are found there, as well as the human values and sense of place that are associated with this (Wyatt, 2011, p.10). Forestry and the forest sector are used in a broad sense to encompass a variety of practices and economic activities that occur upon forests. All of these terms have been used in a similar manner in the literature as seen in Wilson and Graham (2005), Sherry et al. (2005) and FNFP (2011).

The term Aboriginal includes First Nations, Métis and Inuit peoples as described in the 1982 Constitution Act. Aboriginal people refers to members of this population while

Aboriginal communities refers to bands, reserves, nations villages and other organized

communities of Aboriginal people and their governments. Finally, Aboriginal business is defined as any registered company that is owned by a person (or persons) who

identifies with one or more Aboriginal group, acknowledges membership in an Indian Band or First Nation or acknowledges status as a Treaty Indian or Registered Indian. This definition is based on the Statistics Canada’s definition of Aboriginal business from the Aboriginal Entrepreneurs Survey (Statistics Canada, 2002). Aboriginal forestry is defined as the practise and execution of forest based activities by Aboriginal peoples for revenue (vs. traditional or other activities practised for cultural reasons), in both reserve and non-reserve areas.

Aboriginal forestry in the literature

In much of the research that has been conducted, the concept of Aboriginal communities engaging in forestry goes by various names. The term Aboriginal forestry is often used colloquially to refer to Aboriginal communities engaging in the forest sector for socio and economic purposes (Blakney, 2003; Parsons and Prest, 2003; Jaggi, 1997). However as Wyatt (2008) points out, the terminology used to define Aboriginal participation in forestry has implicit meanings and frames how we understand the role of Aboriginal peoples in natural resource management. He asks,

Will Aboriginal participation lead to a new form of forestry that improves sustainable management with the incorporation of Aboriginal values and knowledge, or if First Nations will be obliged to trade their

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values and knowledge for access to forest resources and a share in economic benefits (p. 176)

Wyatt (2008) outlines four possibilities for the evolution of the role of First Nations in Canadian forestry: forestry by First Nations, forestry for First Nations and forestry with First Nations and Aboriginal forestry (pp. 176-177). These are described in Figure 2. Forestry by First Nations encourages Aboriginal communities to undertake forestry within the existing management system. First Nations communities working in forestry would have little opportunity to modify forest practices to respect their own values or goals to see traditional institutions recognised in forest management (Wyatt, 2008, p.178; Hickey and Nelson, 2005, p. 8). In forestry for First Nations, existing government regulations and tenure arrangements would continue, but with increased consultation processes with First Nations communities. First Nations would become increasingly active in the forest sector through partnerships and joint ventures but they would be obliged to adopt existing business and economic development models (Wyatt, 2008, p. 177). Forestry with First Nations is based on significant modifications to existing

forestry regimes that allow forest management to be shared with First Nations as a means of recognising aboriginal rights (Hickey and Nelson, 2005, p. 20).

According to Stevenson and Perreault (2008), Aboriginal forestry represents a forest management system in which the interests of First Nations is dominant. Aboriginal management systems and institutions would be central to forest land management, reflecting the various traditions and interests of each Nation with both traditional

knowledge and western science being required, acknowledging the distinct basis of each. While in some circumstances we see a successful implementation of such a system, by and large most First Nation communities are still working to develop the necessary infrastructure and capacity to reach this point.

While the term Aboriginal forestry in this report is used to refer to any forest-based activity done by Aboriginal groups (as used in Blakney, 2003; Curran, 1999; NRCan, 2010), the above discussion indicates that a much broader definition has been put forward by the academic literature for Aboriginal forestry.

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Figure 2: Different visions for First Nations and forestry in Canada. Forestry By First Nations Forestry for First Nations Forestry with First Nations Aboriginal forestry Aboriginal rights and government forestry regimes Little or recognition of aboriginal rights: FN obtain tenures under existing forestry regime Aboriginal rights do not lead to significant control of forest lands; FN obtain tenures under existing forestry regime Aboriginal rights are acknowledged with new forms of tenure within forestry regimes

Aboriginal rights are fully recognised, enabling FN to establish forest management regimes Economic Participation FN work in forest industries and management; participation may exist Partnerships and joint ventures are established using existing business models Partnerships and join ventures share decision making and reflect aboriginal goals Partnerships, joint ventures and aboriginal companies are based on achieving aboriginal goals Consultation Consultations

may occur, but does not necessarily lead to changes Consultation processes are used to identify aboriginal views for inclusion in forest planning Extensive consultation results in all issues being addressed in forest management Traditional consultations within FN; separate processes for non-aboriginals Traditional Knowledge (TK) and institutions TK may be sought by managers and used to facilitate forest management planning TK is used by professional managers as additional data to support science TK and are western science are equally important in forest management Forest management is based on TK, combined with western science Co-management

Not used; use of existing forest management regimes Traditional management structures may be integrated into existing forest management regimes Equal sharing of power that builds on traditional forest management institutions Co-management of resources with FN retaining final right of approval Source: Wyatt, 2008, p. 178

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The Historical Context of Aboriginal Forestry

For many Aboriginal communities, forests play a central cultural, spiritual and economic role in their well-being (Blakney, 2003, p.63). Further, over 500 First Nations

communities are still located in commercially productive forest areas their importance to the forest sector has steadily been increasing as more and more forest land are coming under First Nations control through treaty and tenure agreements (Curran and M’Gonigle, 1999, p.713). Aboriginal people are becoming increasingly involved as partners,

managers, owners and workers in the sector (Parsons and Prest, 2003, p.781).

These gains, however, have only developed in the last 30 years and it is only since the early 1980s that First Nations have been able to take a greater role in forestry and resource utilization (Wyatt, 2008, p.171). Since the Constitution Act in 1982, the

Canadian courts have contributed to an emerging understanding of Aboriginal and treaty rights leading to an exerting of claims to ownership and control of traditional Aboriginal lands and territories. Further, a growing Aboriginal youth population alongside the need for economic development has led to many First Nations peoples seeking economic participation in the forest sector and gaining an increasingly prominent role within it (Parkins et al., 2006, p.64).

Miller et al. (1987) point out that it is important to see forestry as not only being about the actual forests, but rather to understand it through the broader notion of forest

management systems, which include the resource, the bureaucracy, the industry and the public (Miller et al., p.27). While forest management systems vary from province to province, most forestry occurs on publicly owned land (often subject to aboriginal title) where enterprises manage and log forests under government licence. In these situations, industry gains access to timber resources with commitments to undertake logging

operations and management responsibilities specified by the licence (Burton et al., 2003, p. 16). Economic partnerships are increasingly sought out by First Nations and forestry companies, and encouraged and approved by governments. Hickey and Nelson (2005) identify four main types of forestry partnerships between First Nations and the forest industry in Canada: joint ventures, memoranda of understanding, contracting

relationships, and co-operative business arrangements.

In a contracting relationships contractors are hired specific jobs (such as work contracts from an Aboriginal community to a non-Aboriginal company to conduct forestry on reserve land). Co-operative business arrangements are business collaborations to achieve mutual gains and memoranda of understanding (or protocol agreements) are long-term commitment to specific goals. Finally, joint ventures are investments in community-owned companies (Hickey and Nelson, p.15). These four classifications for how Aboriginal communities and forestry companies engage with one another is an evolving process and as Hickey and Nelson note, there is a continuum of collaboration in partnership structures with contracting having the lowest level of integration and joint ventures having the highest. Figure 3 illustrates this continuum.

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Figure 3: Continuum of Integration/Collaboration in Partnership Structures between Forest Sector and First Nations Communities

Source: Hickey and Nelson, 2005, p. 19

This continuum will be useful in analysing how integrated Aboriginals are into the industry and it provides an indication of how important non-Aboriginal forestry businesses feel it is to collaborate with Aboriginal communities.

Measuring and Studying Aboriginal Forestry

Much of the academic literature that has emerged regarding Aboriginal forestry activity has been descriptive and qualitative. Research frequently focuses on the history of Aboriginal forestry activity (Jaggi, 1997, p.3; Karjala, 2003, p. 2), on how Aboriginal peoples are engaging and consulting with forestry companies (Wyatt, 2011, p.19; Bombay, 2010, p.2), and on appreciating the importance of the varying theoretical perspectives between Aboriginal communities and the forest sector (Blakney, 2003, p.62). While these are all important areas of study, very little of the research attempts to gather quantifiable data on Aboriginal participation in the forest sector. To address this, Parkins et al. (2006) conducted a quantitative study of Aboriginal communities engaging in forestry based on 2001 census data. Consistent with previous literature (Armstrong, 1999; and Indian and Northern Affairs, 1997), they found that Aboriginal communities fare much worse than their non-Aboriginal counterpart in areas such as unemployment, median family income and number of persons in private dwellings. Moreover, after controlling for other variables (such as population size and the influence of metropolitan areas) they found a negative correlation between forest sector employment and median family income in Aboriginal communities. For every percentage point increase in forest sector employment in the community, median family income decreased by $42, while in comparison, for every percentage point increase in mining sector employment in the community, median family increased by $547.

In 2007, the National Aboriginal Forestry Association and Responsible Forestry Solutions published a discussion paper outlining the key challenges to a quantitative analysis of Aboriginal forestry activity and who it felt would be best suited to take on such a project (Levy, Marcelo and Kepky, 2007, p. 20). Challenges include jurisdictional issues of data collection, privacy and suppression issues and a lack of resources to collect and analyze data. The discussion of which organizations were best suited to take on the task included (a) non-Aboriginal organizations, (b) existing Aboriginal organizations whose mandate includes Aboriginal forestry, (c) a newly created organization with a

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focussed mandate on creating, tracking and reporting a system to measure Aboriginal forestry activity, and (d) coordinating various existing organizations and linking their expertise and capacity by sharing and aggregating their data.

While past research serves as a strong foundation for this project, most of the studies only consider a small aspect of Aboriginal forestry activity. This research takes a broader approach and utilizes a criteria and indicators methodology to consolidate various government and industry datasets. The next section describes the methodology used in this report to construct a system that measures Aboriginal forestry activity.

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Methodology

Aboriginal forestry activity has many components and no single metric can assess or quantify it. For example, while a treaty settlement could grant a First Nation great access to forested land, there may too few individuals with the necessary skills or equipment to engage in Aboriginal forestry as defined for this report. Measurement for Aboriginal forestry activity is complicated and an improvement in one indicator does not necessarily mean an overall growth in Aboriginal forestry.

To gauge Aboriginal Forestry activity, a multi-criteria methodology that identifies multiple indicators is used. These metrics were chosen based on availability of data and primarily focus on economic measures such as Aboriginal land tenure, human resources, and business relationships. To conduct this measurement a criteria and indicator (C&I) methodology is used.

C&I is a performance measurement system popular in sustainable forest management (Karjala et al. 2002; Maness and Farrell, 2003; Pokharel and Larsen, 2007) and may be used with multi-criteria analysis to generate a score for a project, policy, or sector. For example, British Columbia (Beasley and Wright, 2001), Saskatchewan (PAMFA, 1999), Ontario (Miller and Nelson, 2003), and the federal government (CCFM, 2008) have used C&I to measure sustainable forest management. Further, the C&I methodology is already widely used in measuring sustainable forestry as found in academic research (Mendoza and Prabhu, 2000; Maness and Farrell, 2004), various reports from the CCFM (CCFM, 2008) and the British Columbia provincial government (Beasley and Wright, 2001). Considering that this methodology is already widespread in measuring activity in the forestry industry as a whole, it is then logical to extend it to the more articulated sub-sector of activity in Aboriginal forestry.

A C&I methodology begins with a principle, which is a “basis of reasoning or action” (CIFR, 1999, p. 11). In this report, the principle is that Aboriginal forestry is important to the sustainability of Canadian forestry and consistent with Canadian values that support improving economic and social opportunity for First Nations. Following the principle is the criterion, a standard used to evaluate success. A criterion is a broad concept that can serve as a basis for measurement and “…can be seen as a ‘second order’ principle, one that adds meaning and operationality to a principle without itself being a direct measure of performance” (CFIR, 1999, p, 12). These are major themes that encompass the core subject matter of the topic being studied. In this project, three criteria have been selected to assess the state of Aboriginal forestry activity; these are: - Opportunities for Aboriginal forestry;

- Aboriginal capacity; and,

- Aboriginal participation in the forest sector.

These three criteria cover what the CFS has determined to be the foundation of Aboriginal forestry and are explained in detail later in this section. The criteria are

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largely economic as Aboriginal Forestry activity as defined for this research is largely economic.

Indicators are variable components of a particular criterion that when aggregated

contribute to measuring that criterion (CIFR, 1999, p. 12). The indicators for the above criteria are shown in Figure 4.

Figure 4: Criteria and Indicators for Aboriginal Forestry

For each indicator, there are measurable verifiers that serve as data sources to determine an indicator’s progress. They are often tangible, measurable data and obtained through a mix of quantitative and qualitative methods depending on what is being assessed. For example the amount of reserve land controlled by Aboriginal peoples can be measured and compared to previous years to provide a quantitative measure of whether forest tenure is growing or shrinking for Aboriginals.

The data analysed on the verifier level will feed up to inform the indicators, which in turn will be used to assess how well Aboriginal communities are doing in the three criteria areas. Since a multi-criteria methodology is based on amalgamating data from a wide variety of sources, there is no single data source for this research project. Rather, data is sought from different sources and collected depending on circumstance (such as

accessibility of data, and amount of literature available). Aggregating this data to provide a meaningful analysis is complex, and the C&I method and the categories outlined above according to this method provide the conceptual framework for this report.

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Data Sources

Quantitative data for this report were primarily based on data purchased from Statistics Canada by Natural Resources Canada. As Statistics Canada has many data sets available, the various surveys were assessed for suitability for this project and were selected based on the appropriateness of the survey to this report. To be selected, a data set needed to contain data on Aboriginal peoples who are engaged in forestry. Further, other data sets were internally available through the department, independently collected by the

Canadian Forest Service. Aboriginal Affairs and Northern Development Canada and Natural Resources Canada are also currently working on several joint research projects measuring Aboriginal forested lands, such as the First Nations Forest Inventory Initiative. While much of this data is not yet available to the public, some of it was shared with the CFS for the purposes of this report. Finally, other data was gathered through academic research and literature review when no other data sources addressed the specific indicator being studied. The data sources selected for this report are:

The Canadian Census (1996, 2001, and 2006): These data sets allowed us to create

trend statistics on areas such as Aboriginal demographics, education levels, and

employment or median income for foresters which could then be used as indicators for capacity and participation in Aboriginal forestry. These include age and education demographics, labour force activity, and median total income of Aboriginals working in the forest sector.

Statistics Canada Business Register: The national business register collects data from

all Canadian businesses. While it collects data on all forest sector businesses, there is no specific category for Aboriginal businesses making it difficult to determine a way to identify Aboriginal forestry companies. Previous literature has encountered this same problem and solved the issue by only collecting data from regions that had a high Aboriginal population, such as a minimum of 50% Aboriginal representation (Parkins et al., 2006, p.66). The report focused on census subdivisions known to be Aboriginal (First Nation reserves). While this decision means the study can only make limited claims about Aboriginal businesses in the forest sector, the findings allows us to make claims without the risk of error from non-Aboriginal data.

First Nations Forest Inventory: The collection of this data is the result of an initiative

by the Canadian Forest Services and Aboriginal Affairs and Northern Development Canada to gather data on current forest inventory of First Nations forest lands across Canada. The data collected is generated from the Earth Observation for Sustainable Development of Forests satellite land cover map and forest biomass map of Canada (circa 2000). Inventory data from the National Forest Inventory were employed in the

production of the national forest biomass map. While not yet finished, preliminary national-level data is used to assess opportunities for Aboriginal forestry and provides a different type of data that has never been collected before.

Literature Review: While many of the datasets are quantitative, some indicators simply

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literature surrounding the Aboriginal Forestry activity (namely business relationships and forest tenure) will be used. A summary of these findings will be used as an indicator and will provide a qualitative element to flush out this research project.

Criteria 1: Opportunities for Aboriginal Forestry

The National Aboriginal Forestry Association (NAFA) has encouraged Aboriginal communities to expand their interests in forestry, and to diversify their activities on forested lands. Some emerging markets that NAFA is identifying as opportunities for Aboriginal communities include non-timber forest products, value-added wood products, and forest carbon management (Bombay, 2010, p.3). The Canadian Council of Forest Ministers also views these emerging markets as top priorities for supporting forest sector transformation, but for Aboriginal Peoples to pursue these opportunities, they will often require access to- and control of forested lands. As seen in figure 5 below, indicators of Aboriginal access to- and control of forest lands include measures of (a) Aboriginal-owned lands and assets; (b) Aboriginal-held tenures on Crown forests, including responsibility for managing forests; and, (c) the emergence of alternative and collaborative business relationships.

Figure 5: Criteria, Indicators and Sources for Verifiers for Opportunities for Aboriginal Forestry

Criteria Indicators Sources for Verifiers

Opportunities in Aboriginal Forestry

Aboriginal-owned lands and assets;

First Nations Forest Inventory Initiative Aboriginal-held tenures on Crown forests, including responsibility for managing forests

Literature Review: NAFA Report alternative and collaborative business relationships Literature Review: Sustainable Forest Management Network Report

Criteria 2: Aboriginal Capacity in Forestry

There are a number of fundamental capacity issues that have historically limited full Aboriginal participation in the forest sector. These have included low levels of education, lack of business skills, inadequate financing and a range of social issues related to unemployment and poverty. However, increasing attainment of higher

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for Aboriginal people and governments to address these long standing capacity concerns. This section will look at recent trends related to Aboriginal capacity in the forest sector derived from the 1996, 2001 and 2006 censuses allowing for a 10 year snapshot that captures the overall direction of Aboriginal forestry and where it may be heading. Moreover, the comparability of Aboriginal census data is a point of concern. This concern emerges from the fact that it is difficult to compare Aboriginal census data over time as “Some Indian reserves and settlements did not participate in the census as enumeration was not permitted, or it was interrupted before completion. In 2006, there were 22 incompletely enumerated reserves, down from 30 in 2001 and 77 in 1996.” (Statistics Canada, 2006) These concerns are valid, and while a 10 year capture of this data is not reliable, it is still a useful starting point and is the best capture of this data currently possible. Indicators of Aboriginal capacity in forestry include (a) workforce demographics and (b) education and skill levels.

Figure 6: Criteria, Indicators and Sources for Verifiers for Aboriginal Capacity in Forestry

Aboriginal Capacity in Forestry

Workforce Demographics The Canadian Census _{(1996, 2001, 2006)} Education and Skill Level The Canadian Census _{(1996, 2001, 2006)}

Criteria 3: Participation in Aboriginal forestry

A third aspect to consider when measuring Aboriginal forestry activity is how

opportunities and capacity have impacted actual participation in the sector. This section will consider the forest sector labour force activity from 1996 to 2006 along with changes in earned income. As in capacity, the data for these sections are gathered from Statistics Canada, using census data on Aboriginals. Two indicators in benchmarking participation in Aboriginal forestry activity are (a) forest sector labour force activity (b) earned income and (c) on-reserve businesses.

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Figure 7: Criteria, Indicators and Sources for Verifiers for Participation in Aboriginal forestry

Participation in Aboriginal forestry

Forest Sector Labour Force

The Canadian Census (1996, 2001, 2006) Earned income The Canadian Census _{(1996, 2001, 2006)}

On-reserve

businesses Business Register Limitations

While the data sources selected are useful in assessing Aboriginal forestry activity, there are still limitations to the research methodology used in this report. One limitation is that while Statistics Canada provided many surveys to NRCan for this research project, many other surveys that touch on Aboriginal forestry were not available due to legal issues regarding privacy or problems with data collection. For example, the Annual Survey of Manufactures and Logging could have been used to supplement this project’s research, but due to the low number of Aboriginal peoples surveyed, the data had to be suppressed. The Aboriginal People’s Survey was also considered but ended up being unusable as it aggregated those working in forestry, with agriculture, fishing and hunting. Thus, while the surveys used in this report are suitable, some potentially useful data sources collected by the federal government are not available for this report. The next section provides the data collected organized according to the C & I methodology outlined in this section.

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Findings

This section summarizes key findings from the data collected and is divided into sections based on the indicators outlined in the methodology section.

Economic opportunities for Aboriginal forestry: forest assets

Aboriginal communities are becoming responsible for increasing amounts of forest timber assets. Self-government agreements, land claim settlements, treaty land entitlements, and additions to reserves triggered transfers in control and management responsibilities for almost 0.8 million hectares of land to First Nations between 1982 and 2010, with another 1.4 million hectares projected to be transferred by 2022 (Figure 8). Much of this land is forested, presenting numerous forest-based economic opportunities to Aboriginal communities. However, the size of holdings across First Nations is varied, with seven communities holding more than 50,000 hectares, and 42 holding more than 10,000 hectares. In comparison, 887 reserves have between 100 and 9,999 hectares and 1,985 have between 1 and 99 hectares. As a result, on-reserve holdings rarely afford communities the opportunity to sustain commercial opportunities comparable to those operating on Crown lands (NAFA, 2007, p.61).

Figure 8: Growth in reserve land hectarage - actual and projected (in thousands) Year Hectares 1982 2625 1992 2676 2010 3441 2012 3846 2022 4887 Source: NRCan, 2010, p.3 Trend: Increasing

While the size of reserve lands vary from group to group, on a national scale there has been a growth in reserve land hectarage since the early 1990s, with projected increase until at least 2022.

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A growing number of communities are also reaching out towards forest-based opportunities by securing Crown land co-management, tenure, and licensing

arrangements with industry and the provinces/territories (Wyatt, 2011, p.25). While measurement of forest assets are important, these findings should be understood in conjunction with the topic of Aboriginal-held tenure outlined in the following section.

Economic opportunities for Aboriginal forestry: Aboriginal-held forest tenure

Increases in Aboriginal-held Crown forest tenure and harvest allocations, along with increasing levels of Aboriginal responsibility for Crown forest management suggests that there are major opportunity for Aboriginal communities to enter the forest sector.

Between 2003 and 2006 the total wood volumes allocated through Crown tenure

arrangements increased by 12 million cubic metres with almost one-third of this increase being allocated to Aboriginal communities (NAFA, 2007, p.66). Aboriginal-held tenures generated 4.7% of the national total harvest in 2003 increasing to 6.4% in 2006.

The level of responsibility for Crown forest management that Aboriginal communities are assuming through tenure arrangements is also a telling indicator of emerging opportunities for participating in the forest sector. Longer term tenures have the most impact on Aboriginal groups as they provide a sustained financial opportunity and increased influence over Canada’s forests. NAFA currently distinguishes between four different types of forest tenures classified along a gradient that parallels increasing responsibility upon the First Nations to manage the forest. Groups I and II represent long-term tenure and significant timber volume supply while groups III and IV are primarily small-enterprise oriented tenures (NAFA, 2003, p.6).

Between 2003 and 2006, the number of Group I tenures held by Aboriginal communities increased by 16%. The number of Group II tenures held by Aboriginal groups also rose by 72% between 2003 and 2006. The largest observed increase in holdings was for Group III tenures, now accounting for half of all Aboriginal allocations (NAFA, 2007, p.61). Of the Group III tenures made available between 2003 and 2006, 92% were allocated to First Nations. Aboriginal-held Group IV tenures are limited to British Columbia and have decreased significantly reflecting the move towards higher levels of tenure for Aboriginal communities.

Trend: Increasing

Nationally, Aboriginal communities have seen an increase in forest tenure and the tenure types they are receiving are granting them greater stewardship and responsibility for Canada’s forests.

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Allocations of Crown forest tenure to First Nations in British Columbia and

Saskatchewan show the greatest increase between 2003 and 2006 – increasing by 62% and 72% respectively. Quebec, Alberta and Manitoba show modest increases in First Nation-held Crown tenure while New Brunswick’s remained essentially constant since 2003. First Nations in Nova Scotia, PEI, and the NWT hold no tenure, however there is not much forestry in these regions to begin with. An allocation of 15,000 cubic metres in 2006 was the only noted gain in Newfoundland & Labrador (NAFA, 2007, p.8). In Ontario, reporting of Aboriginal access to forest sector opportunities does not

differentiate divergent forms of access. Thus, while group I, II, III, and IV tenure do exist, it is difficult to determine how many First Nation-held tenure exist in each. As NAFA point out, although reliable tenure data from Ontario is not available, it is known that most First Nation-held tenures in that province fall in the Group III classification. The Yukon does not have a system of long-term forest tenures and only has Groups III and IV tenure available. Currently only one 15,000 cubic metre forest tenure is held by a First Nation-owned company (Group III tenure). There are some smaller volume-based available, normally for less than 1000 cubic metres per year which belong to Group IV tenure, but there is limited data available concerning how much of it is First Nation-held. Economic opportunities for Aboriginal forestry: business relationships

Relationships between Aboriginal communities and the Canadian forest industry are steadily expanding as there is growing social and political expectations for the sector to work and consult with Aboriginal communities. These business relationships are important as they provide opportunities to the local population to work with the forest sector and potentially allow for increased skills transfer and infrastructure development in these regions. Collaboration between Aboriginal groups and forestry companies take various forms. Nationally, as of 2011 60% of Aboriginal communities have treaties, agreements and/or MOUs, while 59% have forest tenures and 58% are engaged in a contract or partnership with a forestry company. Excluding B.C., 43% of Aboriginal communities have treaty agreements and MOUs, 39% have forest tenures and 50% have economic partnerships with forestry companies. As well, 36% of these communities are participating in land use studies and 39% have influence or consultation on decision making. These numbers are particularly useful in benchmarking the current popularity of the various types of collaborative agreements used by Aboriginal communities with businesses (Wyatt, 2011, p.25). These numbers indicate how the forest sector chooses to engage with Aboriginal communities. Furthermore, there is a growing policy voice representing and encouraging Aboriginal forestry activity on national and provincial

Trend: Increasing

Aboriginal communities are building business relations with forestry companies in a variety of ways, establishing a strong foundation of collaboration between Aboriginal communities and the forest industry.

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levels. Examples of this include organizations like the National Aboriginal Forestry Association (NAFA) or the B.C. First Nations Forestry Council.

Aboriginal capacity in forestry: workforce demographics

The forest sector is an important source of current and future employment for Canada’s Aboriginal youth population. Forestry firms are actively seeking to increase Aboriginal involvement in all aspects of the industry as indicated by their increased business

relationships with local communities (noted in the previous section). The demographics of the current forest sector labour force, the close proximity of Aboriginal communities to forest resources and the need for a stable pool of skilled workers has positioned

Aboriginal Canadians to play an increasingly important role in the sector.

Forestry is the largest private employer of Aboriginal people of any natural resources sector. In 2006, Aboriginal direct employment in the forest sector was 13,500 jobs, representing 3.5 percent of the Aboriginal labour force (compared to 1.8 percent of the non-Aboriginal labour force employed in the forest sector), and 2.7 percent of the total forest sector labour force (Natural Resources Canada, 2010, p.3).

As seen in Figure 9, Aboriginal workers contribute to all subsectors of the Canadian forest sector. Although the data shows growth in the Aboriginal labour force

representation in every forestry subsector over 2001, jobs in logging and forestry or support activities to the forest sector do not require high levels of education or skills and training in complex machinery, whereas jobs in manufacturing generally have higher educational requirements.

Trend: Mixed

The percentage of Aboriginal workers employed in forest industry subsectors has increased but the age demographic of the Aboriginal workforce in forestry is getting older

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Figure 9: Percentage workers employed in forest industry subsectors who are Aboriginal

Source: NRCan, 2010, p.3

A look at the age distribution of Aboriginal workers in the forest sector can be used to illustrate potential future forestry labour supply challenges. As seen in Figure 10 (below), most Aboriginal forestry sector workers are between 25 and 44 year of age. However, the number of Aboriginal forestry workers in this age group decreased by 19% between 1996 and 2006. The number of Aboriginal forestry workers aged 15 to 24 year of age decreased by 37% between 2001 and 2006. The number of Aboriginal forestry workers aged 45-64 year increased by 67% over the 10 year period, reflecting an aging Aboriginal population in a sector that is shrinking relative to other sectors. As Figure 11 illustrates, young Aboriginals moving into the labour force are finding more or better job opportunities in the mining, oil and gas industries. According to the 2006 census, the median age of Aboriginal people is 27, compared to 40 for non-Aboriginals, and Aboriginal youth constitute 17.6% of the Aboriginal labour force. The aging of the Aboriginal population raises concerns regarding the sustainability of Aboriginal forestry activity as the workforce moves closer to retirement age without a large population of younger workers to replace them. There is a trend toward aging in the Aboriginal population and the number of older Aboriginal people increased by 40 percent between 1996 and 2001 representing the largest population increase of all age groups in the Aboriginal populations and is higher than the corresponding 10 percent population increase among non-Aboriginal seniors population (Abonyi, 2011). It is expected that this trend will continue, and Statistics Canada projects that the number of Aboriginal seniors is expected to grow more than two-fold by 2017 (Statistics Canada, 2005, p.31). In 2001, seniors represented 4% of the total Aboriginal population, and this is expected to increase to 6.5% of the total Aboriginal population by 2017 (Statistics Canada, 2006, p.223). Despite being a younger population, aging is more pronounced in the Aboriginal population than in the non-Aboriginal population.

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Figure 10: Aboriginal workforce in the forest sector by age group 2560 7605 5545 2910 4080 9190 9405 4085 3325 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 1996 2001 2006 Year N u m b er o f Wo rk er s 15-24 25-44 45-64 Source: Canadian Census, 1996, 2001, 2006.

Further, an analysis into occupations in other natural resource indicates that the Aboriginal labour force is not shrinking, simply changing jobs. Figure 11 shows that Aboriginal workers in both mining and oil and gas extraction are increasing in all age demographics. Further, in 2001, the census created an additional category for those working in activities that support mining and oil and gas extraction which contains a significant number of Aboriginal workers.

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Figure 11: Age of Aboriginal Workers in Mining, Oil and Gas

Aboriginals Working in Mining

1996 2001 2006

Age: 15-24 380 300 420

Age: 25-44 1790 1845 2445

Age: 45-65 615 960 1630

Aboriginals Working in Oil and Gas

1996 2001 2006

Age: 15-24 185 395 525

Age: 25-44 875 1295 2020

Age: 45-65 255 385 895

Aboriginals Working in Support Activities for Mining, Oil and Gas

1996 2001 2006

Age: 15-24 N/A 950 1635

Age: 25-44 N/A 2240 3905

Age: 45-65 N/A 635 1590

Source: Canadian Census, 1996, 2001, 2006.

Aboriginal Capacity in Forestry: Education/Skills

Another variable to consider in Aboriginal forestry activity is the education level of Aboriginal workers. The majority of Aboriginal and non-Aboriginal workers in the forest sector have no degrees, certificates or diplomas as many jobs in the sector have not traditionally required high end skill sets. However, the proportion of Aboriginals without formal education is higher than it is the overall population. In 1996, 61% of the

Aboriginal forest sector labour force did not have any educational certificate (including high school graduation), compared to 38% non-Aboriginal workers. In 2001 these proportions fell to 52% for Aboriginal workers and to 35% for non-Aboriginal workers. The proportions fell again to in 2006 to 40% for Aboriginal workers and 26% for non-Aboriginal workers. Overall, this indicates a shift in the forest sector away from workers who have no formal education. Aboriginal workers have consistently had lower

educational levels than non-Aboriginals which is consistent with Aboriginal educational achievements overall.

Trend: Increasing

The percentage of Aboriginal workers in the forest sector with no educational certificate is decreasing while the percentage of Aboriginal workers with a university degree is increasing.

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Figure 12: Education of workers in the forest sector (1996-2006)

1996 2001 2006

Aboriginal 16865 (100%) 16330 (100%) 15945 (100%)

No degree, certificate or diploma 10320 (61%) 8465 (52%) 6335 (40%) High School Graduation Certificate 2815 (17%) 3495 (21%) 4615 (29%) Trades certificate or diploma 2355 (14%) 2885 (18%) 2720 (17%) Non-university certificate or

diploma 1130 (7%) 1235 (8%) 1790 (11%)

University certificate, diploma or

degree 245 (1%) 250 (2%) 485 (3%)

Non-Aboriginal 380860 (100%) 348855 (100%) 306200 (100%)

No degree, certificate or diploma 146260 (38%) 123690 (35%) 80295 (26%) High School Graduation Certificate 97380 (26%) 91355 (26%) 92480 (30%) Trades certificate or diploma 63900 (17%) 61535 (18%) 57160 (19%) Non-university certificate or

diploma 45320 (12%) 42195 (12%) 46790 (15%) University certificate, diploma or

degree 28000 (7%) 30080 (9%) 29475 (10%)

On the opposite side of the educational spectrum are those with university certificates, diplomas or degrees. In the non-Aboriginal population, the percentage of workers in this category fluctuated over the ten year period, starting at 7% in 1996, rising to 9% in 2001, and then 10% in 2006. Alternatively, for Aboriginals these numbers stayed consistent, at around 1.5% in both 1996 and 2001, and rising to 3% in 2006. While a majority of the Aboriginal labour force do not have any kind of degree diploma or certificate, the percentage of Aboriginals with a university education is increasing and Aboriginal foresters are well positioned to access high skilled positions. In terms of highly skilled labour currently in the Aboriginal labour pool, a 2010 study showed that there are over 225 Aboriginal forestry professionals and 800 technologists and technicians (Natural Resources Canada, 2010, p.2). While lower than the numbers seen in the 2006 census, the study is only able to take a snapshot of the labour force based on who responded to the census and likely there are many more working professionals in the Aboriginal labour force who were not counted. These numbers serve as an indicator that Aboriginal

forestry professionals are still working in their field and the upcoming 2011 census will be able to further illuminate what is occurring on the ground.

Participation in Aboriginal Forestry: Forest Sector Labour Force Trend: Mixed

The Aboriginal labour force in forestry has declined, part of a sector wide trend. However, the Aboriginal proportion of the forest sector labour force has increased.

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Another indicator of Aboriginal forestry activity is the forest sector labour force. Figure 14 shows that there was a significant decrease in labour force activity across the sector. In particular, on-reserve workers in the forest sector have gone down from 7870 in 1996 to 3470 in 2006, a 56% decrease over 10 years, the largest in any of the categories. The decrease in labour force activity is not a uniquely Aboriginal problem and the forest sector in Canada overall has seen a significant downturn.

The proportion of Aboriginal workers in the overall forest sector increased from 4.7% in 1996 to 5% in 2006. This increase in the proportion of forestry workers who are

Aboriginal happened because the sector experienced a larger proportional net loss of non-Aboriginal workers (10%) than non-Aboriginal workers (2%). All of these losses are from on reserve Aboriginals, as the number of off-reserve Aboriginal workers in the sector increased over this period.

Figure 13: Forest sector labour force (1996-2006)

1996 2001 2006

Aboriginal Proportion of the Sector 4.7% 4.5% 5.0% Aboriginal (On and Off Reserve) 16885 16335 15950

Aboriginal (On Reserve) 5915 4195 3470

Aboriginal (Off Reserve) 10970 12140 12480

Non-Aboriginal 380855 343765 306230

Participation in Aboriginal Forestry: Earned Income

Another indicator for the state of Aboriginal forestry activity is trends in median total income for individuals working in the sector. As seen in chart 14, on-reserve Aboriginal male workers have, and continue to have, lower median total incomes than their off-reserve counterparts. While the gap was close to $11,000 in 1996, it has since increased and in 2006 the difference between on and off reserve incomes was over $20,000. In 1996, the average median total income for off reserve Aboriginal men in the forest sector was $28,046. In comparison, the median total income for non-Aboriginal males in

Trend: Mixed

Off-reserve Aboriginal workers have seen significant

increases in their median total income, with Aboriginal men effectively closing the income gap between them and non-Aboriginal men. However, on-reserve workers have fared poorly in comparison to their off-reserve and

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the forest sector was $42,697, a difference of over $14,000. The gap had closed to around $4,000 in 2006.

Overall, Aboriginal women have the lowest median total incomes in the forest sector. Off-reserve Aboriginal men consistently made more than off-reserve women; in 1996 the gap between the two median total incomes was slightly under $12,000 and in 2006 the gap had not changed (around $11,000). On-reserve Aboriginal women made even less than off-reserve women, with the gap in median total income starting at around $5,000 in 1996 and increased to $11,000 in 2006.

Figure 14: Median total income for workers in the forest sector (1996-2006)

1996 2001 2006

Aboriginal Male (On-Reserve) $17,053 $12,245 $20,155 Aboriginal Male (Off-Reserve) $28,046 $37,292 $40,835 Aboriginal Female (On-Reserve) $11,123 $17,646 $18,081 Aboriginal Female (Off-Reserve) $16,825 $28,300 $29,234

Non-Aboriginal Male $42,697 $43,889 $44,432

Non-Aboriginal Female $26,827 $28,493 $31,289

Participation in Aboriginal Forestry: On-Reserve Forest-based Businesses

Since forest-based companies do not collect data on Aboriginal status, it is extremely difficult to determine how Aboriginal forestry businesses are faring on a national scale. However, Statistics Canada Business Registry data from 2008, 2009, and 2010 was sorted according to census subdivisions (selecting only reserve subdivisions), in order to locate on-reserve Aboriginal businesses engaged in forestry. As seen in the chart below there was a gradual decline in the number of on-reserve businesses in all forest-based sectors over the period. This is likely a reflection of the downturn in the forest sector as regular forest based businesses saw a similar decline in the same time period. Further, these findings show the type of forest-sector work that Aboriginal communities are engaged in, primarily logging and forestry and support activities to forestry.

Trend: Decreasing

The number of on-reserve Aboriginal businesses based in the forest sector declined between 2008 and 2010. These businesses predominantly employ fewer than 20 people. Logging and forestry is the main sub-sector representing over half the on-reserve forestry

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Figure 15: On-Reserve Forest Based Businesses (2008-2010) On-Reserve Forest-Based Businesses

Dec. 2008 Dec. 2009 Dec. 2010

Paper Manufacturing 1 1 1

Logging and Forestry 261 247 208

Wood Product Manufacturing 66 59 57

Support Activity for Forestry 95 81 77

Total 423 388 343

Source: Business Registry, 2008, 2009, 2010.

The chart below shows the size of on-reserve businesses for December of 2010 (see Figure 17). They are predominantly small in size with between 1 to 10 full-time

employees (FTE). Further, many businesses did not indicate how many FTEs they have thus being classified as indeterminate. While it is impossible to ascertain the real number of employees these businesses have, Statistics Canada points out that it can be fairly assumed that the majority of these companies are small businesses that employ family members or contract work rather than FTEs (Statistics Canada, 2009). Geographical locators indicate that most of the small and medium sized companies are distributed across the country. However, of the larger sized businesses, many are clustered in specific regions, possibly indicating a presence of economically strong on-reserve communities compared to the average of other Aboriginal reserves. Further qualitative analysis is recommended to investigate this trend.

Figure 16: Size of On-Reserve Forest Sector Businesses (Dec. 2010)

Number of Employees Indeterminate Total

1 to 4 5 to 9 10 to 19 20 to 49 50 to 99 100 to 199 200 to 499 Paper Manufacturing 0 0 0 0 0 0 0 1 1 Logging and Forestry 45 21 26 15 3 1 1 96 208 Wood Product Manufacturing 8 10 7 4 3 4 1 21 57 Support Activity for Forestry 19 8 8 11 3 1 0 27 77 Total 72 39 41 30 9 6 2 145 343

Source: Business Registry, 2010.

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Discussion

The research presented in the previous section indicates relatively clear trends in the direction of Aboriginal forestry activity. While there are increasing opportunities in terms of forest assets, tenure and business relationships, capacity and participation have stagnated and in some cases even dropped. This brings forth the question of what should be done next to ensure that a true system of Aboriginal forestry is realized with

Aboriginal communities and enterprises taking the lead to action and develop forest based opportunities. This section discusses the data analyzed in the previous section and present recommendations regarding next steps.

Opportunities in Aboriginal Forestry

The data indicates that increasing opportunities are becoming available for Aboriginal communities to engage in forestry as the amount of their forest assets are increasing, Aboriginal-held tenure is rising and the number of business relationships between Aboriginal peoples and the forest sector are growing. However, while it is tempting to assume that as a result of these gains opportunities are improving for Aboriginal communities engaging in forestry, these numbers deserve closer inspection. Despite the fact that First Nations forested lands have grown and are projected to continue to grow, it is important to understand which communities are benefitting from this development. Often First Nations communities get lumped into a single unit, rather than being treated as individual nations, and as a result, national statistics like those collected in this report may mask the differences between provinces and individual bands. Indeed the data indicates that some communities have more resources (either financial or social) to commit to land claims and thus are able to reclaim much more of their traditional territory than other groups. The aggregate gains found on the national level paint a broad picture which, while useful in telling us that Aboriginal communities may continue to play a large role in Canada’s forest sector, do not address the details regarding whether the distribution of this land is representative of the First Nations communities that exist in Canada or whether there are only particular groups that benefit. Further, even with the increasing amount of forested lands that Aboriginal communities are gaining, there is still the question of tenure. Will communities be granted permission by the government to utilise their forest resources through activities such as logging? While a national aggregate of tenure capacity show an overall growth, situations are nuanced and vary depending on the province. Indeed, there has been an increase in First Nation-held Group III & IV tenure (a more restricted form of tenure), with very limited access to Group I & II tenure (the higher levels of tenure). While an increase in any tenure group is a positive change, the trend of providing smaller permits may have future consequences, as it may not provide these communities with sufficient wood for them to consider forestry as a reliable source of income. Further, with smaller tenures, the

Benchmarking trends in Aboriginal forestry