
According to the 2016 census, 380,000 Indigenous Canadians live on reserve, many of them far from the economic opportunities that cities provide. Given concerns about economic conditions on many reserves, one of this era‘s most pressing policy problems is how to provide economic opportunity to First Nations far from urban centres.
One answer: Allow the natural resource economy on or near First Nations to flourish. A perfect example is underway in British Columbia, with the construction of the Coastal GasLink pipeline. This is the 670-kilometre project that, when complete, will transport natural gas from Chetwynd in northeast British Columbia to Kitimat on the coast, where it will be processed into liquefied natural gas (LNG) and exported mainly to Asia.
This $6.6-billion pipeline project is owned by a consortium that includes TC Energy, KKR, and Alberta Investment Management Corporation. The consortium has also offered a 10 per cent ownership stake in the project to the 20 First Nations living along the route that have signed benefit agreements with the project partners.
At its peak, construction of Coastal GasLink will employ 2,500 people, including many members of local First Nations. Returns from the 10 per cent ownership stake will outlast the immediate benefits of the construction jobs but both matter. To understand why, consider some 2016 census data on how the affected First Nations are faring vis-a-vis other British Columbians.
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See Also:
(1) Jason Kenney reaches for economic heights with a race to the bottom
(2) Rising deficits leads Fitch to downgrade Alberta’s credit rating