The Economy

2.4 Strategic Outcome: The Economy

Increased participation by Aboriginal people and Northerners in the economy

Building the economic and community foundations necessary to close the socio-economic gap between Aboriginal and non-Aboriginal people will foster safe, stable and healthy First Nations and Inuit communities with a greater participation in the Canadian and global economies.

Comprises the following Program Activities (as per PAA):

• 2.4.1 Economic and Employment Opportunities for Aboriginal People
• 2.4.2 Access to Capital and Economic Development
• 2.4.3 Community Infrastructure
• 2.4.4 Northern Economy

Financial Resources ($ millions)	Planned Spending	Total Authorities	Actual Spending
Economic and Employment Opportunities for Aboriginal People	79.2	70.3	67.9
Access to Capital and Economic Development	712.6	535.2	501.9
Community Infrastructure	1,227.6	1,139.2	1,114.3
Northern Economy	29.4	21.7	15.6

Human Resources (Full-time Equivalents)	Planned	Actual	Difference
Economic and Employment Opportunities for Aboriginal People	54	30.7	23.3
Access to Capital and Economic Development	321	244.6	76.4
Community Infrastructure	564	515	49
Northern Economy	5	13.5	8.5

Note: As per Treasury Board Guidelines, the full-time equivalents shown here represent an estimate of resources devoted wholly to this Strategic Outcome plus a pro-rata share of Departmental Management and Administration (dollars and full-time equivalents) based on the department's actual spending. In some cases, this number may appear high due to the very nature of the department's business, that is, managing financial relationships with service delivery largely devolved to our partners.

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2.4.1 Economic and Employment Opportunities for Aboriginal People

Description

Supports the expansion of existing businesses and employment opportunities and the creation of new economic development activities leading to greater employment opportunities.

Deliverables and Time Lines – Expected Results and Outputs

Priority

Establishing strong foundations for economic development.

Expected Result 1: Increase participation of Aboriginal people in the economy.

Indicators	Targets/Timing	Actual Results
Jobs. Individual earnings. Community revenues.	Ongoing.	Two main programs – the Aboriginal Workforce Participation Initiative (AWPI) and the Procurement Strategy for Aboriginal Business (PSAB) support the increased participation of Aboriginal people in the economy through jobs, individual earnings and community revenues.

Output: Advocacy initiatives.

Indicators	Targets/Timing	Actual Results
Agreements are developed between Aboriginal communities, main stream business and stakeholders.	Ongoing.	AWPI and AEDP held a conference in Saskatchewan in 2005. The Provincial Aboriginal Representative Workforce Council (PARWC) hosted its second conference entitled; "Opportunities Work - Connecting Communities". There were approximately 302 participants from across Canada who attended the conference. There were delegates from the following sectors at the conference: business, organized labour, education and training, interested public, Aboriginal communities, and federal and provincial governments. As well, there were 100 Aboriginal youth and chaperones from Saskatchewan. A total of 51 agenda speakers, presenters and facilitators supported this conference. They presented ideas on best-practice policies, strategies in education and training, on public sector involvement, most notably, unions, private-sector firms and government. The conference was given to prepare participants and organizations in the cooperative development of a business plan to implement an Aboriginal Representative Workforce Strategy. In British Columbia, the focus of AWPI has been primarily on establishing a process for employer engagement within the consortium of Aboriginal employment stakeholders – now called the British Columbia Aboriginal Workforce Strategy (BCAWS). This agreement-in-principle would provide the Métis Aboriginal Community, Career Services Society (the only recognized Urban AHRDA in BC), and First Nations, with the opportunity to deliver local and/or regional services for employers. A prominent feature of the BCAWS strategy is to engage employers and to connect them into a training and education process that will facilitate linking, in a strategic and focused manner, both demand and supply interests.
Awareness level of stakeholders in the benefits in joint First Nations and Inuit economic development initiatives.	Ongoing.	As part of the AWPI, the National Youth summit was held in the fall of 2005 and was attended by 110 Aboriginal youth from across the country. The main focus was to engage Aboriginal community youth and for them to participate in a forum that would allow their ideas to be heard by various ministers in the federal government prior to the First Minister's meeting in November of 2005. One of the emphases was economic development and specifically future employment opportunities for Aboriginal youth. The 4th Annual AWPI Aboriginal Student and Employer Networking Banquet was held in the spring of 2006 in Saskatchewan. The AWPI Banquet is a networking banquet that brings together Aboriginal students and employers who are looking specifically to hire Aboriginal students. Approximately 30 employers and about 100 students will be attending the event this year which will be held at the First Nations' University of Canada. This event gives both sides a chance to meet and discuss both part-time summer and full-time permanent employment opportunities. This initiative has been very useful for the students as they are able to sit with employers who are seeking Aboriginal workers with specific skills and education requirements. As part of the PSAB, INAC has participated over the past fiscal year in six trade shows and has led four procurement trainings sessions, as well as, delivering presentations at five national conferences and a host of work shops. These efforts educate government buyers and Aboriginal Businesses in regards the benefits of doing business together.

Output: Development of partnership agreements.

Indicators	Targets/Timing	Actual Results
Development of formal and informal partnerships.	Three formal partnerships/year.	In AWPI, there have been four new partnerships involving one national organization and three regional organizations. The focus of these partnerships is the furtherance of employment initiatives via business development or through the direct hiring of Aboriginal people. There are seven existing partnerships that had been initiated prior this fiscal year that are in various stages of development. PSAB has developed working arrangements with the PWGSC's Office of Small and Medium Sized Enterprise (OSME), the Canadian, Aboriginal and Visible Minorities Council (CAMSC), and Consulting and Audit Canada to further Aboriginal business participation. Also, PSAB has initiated four major Crown projects with the Senior Project Advisory Committee (SPAC). Finally, PSAB officers reviewed two hundred and ninety six cases with the Procurement Review Committee (PRC) to ensure that opportunities for Aboriginal participation were addressed in these contracting initiatives after weighing all extenuating circumstances.
Jobs.	Ongoing.	As part of AWPI, the Michelin partnership has resulted in forty to fifty positions within the company for local Aboriginal people. As well, the company has embarked on developing a summer student program. Finally, Michelin has identified future procurement opportunities to the Steering Committee which will encourage aboriginal businesses to supply goods and services to the Michelin organization. These procurement opportunities will have an indirect positive impact on employment. The other ten partnerships are at various stages and no employment data is available at this time.
Opportunities for employment within targeted corporations.	Increase over existing baseline data.	The Saskatchewan Region Aboriginal Inventory is another tool supported by AWPI that is used by employers wanting to employ Aboriginal people in their workforce. The Aboriginal Inventory has a good supply of post-secondary, college and clerical people seeking work. Over 1000 job postings were disseminated to the Aboriginal community in the past year, including providing information on events planned by the Aboriginal community for prospective employers to attend. INAC-Saskatchewan Region uses the Inventory and has increased Aboriginal workforce representation in its administration offices to 50%. In relation to many of the formal partnerships, employment opportunity data is not available at this time as the process to collect such data has not been finalized in these partnerships.

Expected Result 2: Increased Aboriginal contracting opportunities through the Federal Procurement Initiative and partnering agreements with corporate stakeholders.

Indicators	Targets/Timing	Actual Results
Aboriginal business sales to the federal government. Aboriginal employment. Representation in contract awards.	Ongoing.	The Procurement Strategy for Aboriginal Business (PSAB) initiative has resulted in 5,980 contracts for Aboriginal business worth $244.9 million. Aboriginal employment information is not available as federal departments do not have the necessary tracking system in place. However, the stimulation of $244.9 million dollars in contracts awarded to Aboriginal business definitely has resulted in numerous employment opportunities through business expansion and the creation of new businesses. INAC's data indicate that three percent of the total Government of Canada procurement and purchasing contracts has been awarded to Aboriginal businesses.

Output: Provide resources to support contracting opportunities for Aboriginal businesses through the Procurement Strategy for Aboriginal Business.

Indicators	Targets/Timing	Actual Results
Contracts and sales for community businesses. Community business growth. Increased sales by Aboriginal business to the federal government.	Increase in the number and value of federal contracts awarded to Aboriginal businesses. Increase in the range of Aboriginal businesses that access federal government contracts.	Throughout the Government of Canada, 5,980 contracts worth $244.91 million were awarded to Aboriginal businesses. In this past fiscal year, PSAB has been involved in eight interventions in regards to procurement opportunities having a value of two million dollars or more. These interventions have resulted in either direct procurement contracts for Aboriginal businesses or some benefit for Aboriginal people. PSAB has assisted, through its many initiatives over the years, the enhanced capacity of Aboriginal businesses in relation to federal contracting services. INAC's data indicate that Aboriginal businesses bidding and winning on open market contracts has increased over the previous year from 75% to 78%. The degree of Aboriginal participation in total procurement maintained its current percentage level over the previous year. This is despite an overall decrease in the number and value of contracts due to a reduction in the government of Canada procurement activity. The proportion of contracts awarded to Aboriginal businesses rose slightly even though there was a reduction in procurement opportunities within the federal government. This was due to Aboriginal businesses being able to complete and win contracts in the open Bidding forum.

How did these accomplishments support the priority?

The Department's advocacy and partnership initiatives over the past fiscal year have been effective in establishing relationships between Aboriginal communities and businesses and corporate Canada. These efforts have initiated the process that is opening opportunities for employment, reducing barriers and leading to jobs for Aboriginal people.

The department in its promotion of the Procurement Strategy for Aboriginal Businesses has assisted Aboriginal businesses over the past year to continue enhancing their presence and participation level in the federal landscape. This is substantiated by the fact that the number of contracts awarded to Aboriginal businesses under open competition (not set side) has steadily risen over the short term.

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2.4.2 Access to Capital and Economic Development

Description

Supports the provision of funding for: Comprehensive, Specific and Special Claims Settlements or resolution of claims, including statutory payments arising from legislated settlements against the Crown respecting lands and resources; and, Economic Development programs to facilitate access to resources, capital and expertise, and development and implementation of economic development strategies.

Deliverables and Time Lines – Expected Results and Outputs

Priority

Establishing strong foundations for economic development.

Expected Result 1: Community economic benefits, such as increased community employment, utilization and value of community lands and resources, contracts and sales for community businesses, community government revenues from economic development, community economic and other infrastructure, access arrangements for lands and resources beyond community control, increased business development and community economic capacity, and a more supportive climate for economic development.

Economic development foundations/enablers designed to accelerate a sustainable investment climate in communities.

Indicators	Targets/Timing	Actual Results
Community socio-economic return on INAC investment in community economic development measured by community revenues; community business starts, expansions and sales; employment; training; resource access arrangements; and investments in communities.	Community socio-economic rate of return of 5 to 1 on INAC contributions for economic development over the period 2005–06 to 2007–08.	The Economic Development Program has established a foundation for potential growth in more than five hundred First Nation and Inuit communities through the development of core economic capacity building initiatives within communities. The Program, complemented through the provision of financial support, has helped communities to initiate more than two hundred and eighty projects addressing specific economic opportunities for their people. These efforts have resulted, within the first year, in training for more than five hundred people that has in numerous cases turned into direct employment. In addition, these initiatives are anticipated to generate in excess of twenty one hundred employment opportunities for aboriginal community members. The culmination of many of these projects has been the stimulus for the formation of more than one hundred new businesses, as well as, the expansion of numerous existing Aboriginal businesses. Once again, this equates to abundant employment opportunities for Aboriginal people and community wealth through various sources. Finally, program support has directly impacted the establishment of more than fifty resource opportunities being capitalized upon by First Nation and Inuit communities. These resource acquisition agreements are in relation to the development of land and resources either under the control of communities or in the proximity of the community. Each of these agreements is expected to equate to employment for community people, business development and a direct stream of revenue for the community. The support and investments of the Economic Development program are a long term undertaking that seeks the increase in participation of Aboriginal people in the economy of Canada by focusing on the development of sustainable Aboriginal communities.

Output: Provide resources for First Nations and Inuit economic development initiatives and organizations.

Indicators	Targets/Timing	Actual Results
Number of projects funded under the economic development program envelope.	Approximately 300 projects approved in 2005–06.	There were two hundred and sixty-three projects funded under the Community Economic Opportunities component of the Economic Development program and seventeen projects funded under the Community Development Equity component. The funding leveraged one hundred and sixty-three million dollars in other revenue for investment in the communities. These projects have assisted First Nations and Inuit communities to pursue opportunities that will be advantageous to both their people and the community itself, though they initially lacked the financial resources to pursue them. The projects have led to employment for community members; the development of land and resources under community control; access to opportunities from lands and resources not under community control; promotion of investment in the community; and the development of community-owned and community member businesses.
Number of communities receiving core funding support under the Community Economic Development Program.	At least 400 First Nations and Inuit communities or organizations they mandate or designate to be receiving funding in 2005–06.	There are approximately five hundred First Nation and Inuit communities receiving core funding support through the Community Economic Development component of the Economic Development program. This core support has enabled recipients to carry out community economic development planning and capacity development initiatives. It further supports the pursuit of specific economic opportunities by assisting communities develop proposals and lever financial resources. The result has contributed to the employment of community members, business development and community wealth.

How did these accomplishments support the priority?

Support for projects that generate community economic benefits have enabled First Nations and Inuit communities to pursue economic visions appropriate to their circumstances.

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2.4.3 Community Infrastructure

Description

Supports the provision of funding for the acquisition, construction and operation and maintenance of: Community Facilities such as roads, bridges, water and sewer, and administration offices; Education Facilities such as schools and teacherages; remediation of contaminated sites on reserve; and, on–reserve housing.

Deliverables and Time Lines – Expected Results and Outputs

Priority

Building healthy, safe and sustainable communities.

Expected Result 1: Improved management of Capital Facilities and Maintenance Program delivery by First Nations and INAC.

Indicators	Targets/Timing	Actual Results
As set out in the Performance Measurement Framework for the Capital and Facilities Maintenance Program.	Performance trends will be monitored and specific targets will be established for subsequent years.	INAC has implemented an enhanced asset inspection process to review maintenance management plans for several critical areas of First Nation infrastructure. The Department has also begun implementing a Performance Measurement Framework for its Capital Facilities and Maintenance program to assess the effectiveness of investments in meeting objectives with a view to protecting the health and safety of First Nation communities.

Output: Implementation of the capital management regime, including priority–ranking criteria and an enhanced asset inspection regime.

Indicators	Targets/Timing	Actual Results
Milestone achievements and process compliance against plans and expectations.	Priority ranking criteria used to rank all major capital projects and an enhanced asset inspection regime fully deployed by March 2006.	INAC now employs a priority ranking framework to rank all major capital projects. Furthermore, an enhanced asset inspection regime has been implemented, so as to strengthen the quality data on funded assets and to help ensure proper and regular asset maintenance.

Output: Capital Facilities and Maintenance Program Review.

Indicators	Targets/Timing	Actual Results
Completion of Capital and Facilities Maintenance Program Review.	December 2005.	The Capital Facilities and Maintenance Program Review is now complete. INAC is currently developing a process to share the results with First Nations, as well as to work collaboratively with its clients to implement recommendations from the review.

Expected Result 2: First Nations communities will have water and wastewater facilities that meet federal guidelines.

Indicators	Targets/Timing	Actual Results
Achievements and milestones as per the First Nations Water Management Strategy (i.e., reduction of high–risk sites, number of certified operators).	Reduction/elimination of high–risk sites by 2007–08.	The number of high risk water treatment systems at the end of 2005–06 was 131 out of 755 systems (or 17%), compared to the original 207 systems out of 704 (or 29%) at the end of 2002–03.

Output: Training and certification of First Nations water and wastewater operators.

Indicators	Targets/Timing	Actual Results
Number of operators trained and certified.	Number of trained or certified operators greater than or equal to that in the previous year.	The number of trained operators has decreased from 986 out of 1130 operators (87%) at end of 2004–05 to 828 out of 1019 operators (81%) at the end of 2005–06.The number of certified operators has decreased from 452 out of 1130 operators (40%) to 377 out of 1019 operators (37%) due to employment opportunities elsewhere. To address this issue, the department is providing certified operator oversite by contracting with certified operators, where required.

Expected Result 3: Public–Private Partnerships (P3s) are considered as options for addressing on–reserve infrastructure needs.

Indicators	Targets/Timing	Actual Results
Demonstrated use of or interest in P3 concepts drawn from information sessions.	No targets established. Annual number of infrastructure projects where P3s are considered or implemented will be monitored.	A P3 arrangement has been structured for the construction, financing and operation of a water distribution system for a First Nation in Saskatchewan. Financing partnerships have been arranged for new home ownership arrangements in several First Nations. P3 approaches are in place or under review in several other First Nations concerning the management of existing water systems.

Output: Information sessions on development of P3 agreements.

Indicators	Targets/Timing	Actual Results
Number of information sessions given and the level of First Nations participation.	Maintain the number of information sessions given in the previous year but increase the level of First Nations participation.	Six sessions were held in four regions. First Nations participation has increased to include more staff and community members.

Expected Result 4: Education facilities meet School Space Accommodation Standards (SSAS).

Indicators	Targets/Timing	Actual Results
Number of schools that meet SSAS.	Number of schools that meet SSAS equal to or greater than that in the preceding year.	Of the 395 education facilities on reserve, a total of 315, or 80%, fell within INAC's space standards policy for federally funded schools.

Output: Capital plans identifying renovation and new construction of education facilities.

Indicators	Targets/Timing	Actual Results
Milestone achievements against capital plans.	Education facilities project milestones are completed in accordance with annual capital plans.	INAC regions continue to work with First Nations to ensure that all education facility projects fall within the parameters of a broader community capital plan.

How did these accomplishments support the priority?

All of INAC's efforts to improve the capacity of First Nations to manage community infrastructure, as well as to improve the performance and management of its Capital Facilities and Maintenance program, are vital to ensuring a well planned and well managed base of community infrastructure assets for First Nations. These facilities provide the necessary foundation upon which health and safety can be preserved and upon which successful economies can be built.

The provision of safe, clean drinking water is a necessity for any community to thrive. By reducing the risk associated with drinking water treatment systems and ensuring that these systems are overseen by trained and certified operators, INAC is providing the necessary foundation to ensure health and safety in the community, which itself then provides a foundation upon which successful economies can be built.

Sustainable infrastructure operations and reduced dependence on housing subsidies are strengthening the fiscal environment in participating First Nations.

INAC's investments and efforts in the area of education facilities support the priority of valuing education as a critical element for improving socio–economic outcomes by ensuring that First Nation students are educated in facilities that meet their needs, so as to better enable learning and promote the path of education as an avenue for future success.

Deliverables and Time Lines – Expected Results and Outputs

Priority

On–reserve housing.

Expected Result 1: Adequate on–reserve housing for First Nations communities.

Indicators	Targets/Timing	Actual Results
Number of new houses constructed and/or renovated to applicable standards.	Number of new houses constructed and/or renovated equal to or greater than that in the previous year.	The total number of new houses constructed and houses renovated in 2005–06 was 4095, an increase of 428 units over 2004–05 where 3667 housing units were constructed and/or renovated.

Output: Funding assistance for on–reserve housing construction and renovation.

Indicators	Targets/Timing	Actual Results
Amount of funding assistance provided.	Funding assistance provided equal to or greater than that provided in the previous year.	Funding in 2005–06 for the construction of new and renovated housing was 31.9 million. This only includes funding provided by INAC and does not include funding from Canada Mortgage and Housing Corporation.

Expected Result 2: Adoption of maintenance and management plans that ensure average design life of housing is met.

Indicators	Targets/Timing	Actual Results
Increase in the total housing stock and percentage that is considered adequate.	Total housing stock and percentage that is considered adequate are greater than or equal to levels in the preceding year.	First Nations are required to have comprehensive community housing plans that address this issue.

Expected Result 3: Implementation of joint INAC – CMHC housing action plans in response to the Standing Committee on Public Accounts.

Indicators	Targets/Timing	Actual Results
Milestone achievements and process compliance against plans and expectations.	Ongoing monitoring of progress with periodic updates.	INAC and CMHC, and the AFN Housing Liaison Committee worked to ensure Budget 2005 dollars were applied to First Nation needs.

Output: Progress reports on implementation of joint action plan.

Indicators	Targets/Timing	Actual Results
Timely completion of progress reports.	Not applicable	Needs were identified on a national basis by region and used as the basis for the equitable use of available funds from Budget 2005.

How did these accomplishments support the priority?

Investing in and increases in funding to provide new housing and housing renovations support the importance of housing as a priority for First Nations and strengthens First Nation communities.

Community housing plans address the issues of housing maintenance, design and management plans.

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2.4.4 Northern Economy

Description

Supports sustainable economic growth of the territorial economies through investments in innovation and knowledge and regional development programming, advocacy and activities which lead to Northerners participating and benefiting from resource development.

Deliverables and Time Lines – Expected Results and Outputs

Priority:

Establishing strong foundations for economic development

Expected Result 1Economic development investments addressing federal and territorial priorities.

Indicators	Targets/Timing	Actual Results
Investments are being made in priority areas, such as building the knowledge base and increasing northern capacity to participate in economic activities.	Investments are being made, with periodic reviews of progress in each territory.	INAC's new set of northern economic development programs was approved May 2005. Through the Targeted Investment Program and the Innovation and Knowledge Fund, over $13 million was invested in priority areas including geoscience, tourism, and support to small and medium sized enterprises and organizational capacity building.

Output:Delivery of last year of Infrastructure Canada Program.

Indicators	Targets/Timing	Actual Results
All planned projects completed.	March 31, 2006.	Delivery of the Infrastructure Canada Program was completed on March 31, 2006. The delivery role was started for the new Municipal Rural Infrastructure Fund in all three territories and bundled water and sewer project in Nunavut under the Canada Strategic Infrastructure Fund.

Output: Delivery of new strategic investments in Northern Economic Development programming.

This output was changed to:
Delivery of new Targeted Investment Program under the Strategic investments in Northern Economic Development initiative.

Indicators	Targets/Timing	Actual Results
Investment plans for each territory to guide investment decisions. ["Strategic" was removed in describing the investment plans] Programming in place. Territorial partners drawing available funds.	Plans in place by December 2005, ongoing 2006–09. Project [previously Program] funding to flow to territorial partners under new program in late 2005 or early 2006.	Programming was put in place in all three territories (May 2005). The Investment Plan for Nunavut was approved and announced (November 2005). The Investment Plans for Northwest Territories and Yukon were completed in draft (March 31, 2006) – approved by Minister in May and August 2006 respectively. Investment Plan oversight processes involving key northern partners were established in all three territories. Over 70 projects were funded across the North in 2005–06.

Output:Continue Innovation and Knowledge funding.

Indicators	Targets/Timing	Actual Results
Successful delivery of funding [text "envelope that addresses agreed-upon priorities" was removed] by the end of each fiscal year.	Completion of agreements and project work before the fiscal year end, March/April 2005–07. This target was replaced by: Projects that meet funding priorities approved and generating planned outputs.	28 projects were approved across the North during 2005–06.

How did these accomplishments support the priority?

During 2005–06 INAC worked collaboratively with its key economic partners, including territorial governments, Aboriginal governments and organizations, community organizations and other federal departments, to develop territory-specific Investment Plans which will guide federal investments until March 31, 2009 focussed on strengthening economic foundations. Over $12 million dollars was invested under the Targeted Investment Program across the North and another $900,000 under the Innovation and Knowledge Fund in areas linked to knowledge development, economic infrastructure, capacity development and economic diversification. Projects funded included: geoscience projects in all three territories; a variety of fisheries projects in Nunavut; a number of studies in areas such as tourism, trade development, connectivity and arts and crafts; tourism marketing; broadband; workshops and symposiums; the development of skills inventories; business incubators; and support for training initiatives in areas such as internet use, fish harvesting, and business/entrepreneurial skills. The territorial governments, First Nation and Inuit organizations, sectoral and community organizations, including official language minority communities; and small and medium sized enterprises were all beneficiaries of project funding.