F I R ST N AT I O N S O F Q U E B E C A N D L A B R A D O R E CO N O M I C D E V E LO P M E N T CO M M I SS I O N ( F N Q L E D C ) FEBRUARY 2013 | VOLUME 12 | ISSUE 1

Lac-Saint-Jean

Summary A project that will create

THE COMMUNITY OF MASHTEUIATSH INVESTS IN HYDROELECTRICITY

wealth for the future...................................... 2 A family-owned business, in operation since 30 years!.......................4 Ecological heating products...................... 5 A custom created tool geared towards helping entrepreneurs................6 Band Council of Mashteuiatsh Conferences that suit all tastes!............... 7 A Word on the Clubs ................................... 8 Saguenay Student Entrepreneurship Club ................................9 Legal Column.................................................. 10 Entrepreneurial Chronicle...........................11 Next Activities of the FNQBN..................12

The idea of investing in hydroelectric power goes back to 1988. At that time, Hydro-Québec was planning to construct a hydroelectric power plant on Ashuapmushuan River (a project which has since been dropped) and several persons and environmental groups opposed it for multiple reasons. Pekamiulnuatsh Takuhikan (formely known as Conseil des Montagnais du Lac-Saint-Jean, whose offices are situated in Mashteuiatsh) shared the same reluctance, but still initiated a reflection on hydroelectric development, in the belief that surely there was a way that such projects could come to fruition while respecting nature and Aboriginal values. As a result of that reflection, the community decided to invest in hydroelectricity for the following reasons: • Hydropower is a stable investment; • There is no competition in that sector; • It is a long-term investment since there will always be demand for electricity;

Other relevant events…................................12

We wish to thank our Funders

• This type of investment ensures regular income which can be re-invested in job-creating sectors; • There was a certain potential for hydroelectric resources situated on the ancestral territory of the community. Consequently, in 1990, the Band Council creates société Hydro-Ilnu, which is vested with the mandate of assessing the hydroelectric potential of the rivers located on the territory. The names of two rivers emerge from this analysis: the Mistassibi River and Métabetchouan River. The community finally decides to go with the Mistassibi River, more precisely on a site within the municipality of Dolbeau-Mistassini, and the Minashtuk power plant starts its operations in 1999.

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Val-Jalbert Small Hydropower Plant A PROJECT THAT WILL CREATE WEALTH FOR THE FUTURE OVER THE LAST SEVERAL YEARS, PEKAMIULNUATSH TAKUHIKAN HAS BEEN INVOLVED IN MEETINGS WITH REGIONAL MUNICIPAL REPRESENTATIVES, MORE SPECIFICALLY MRC DOMAINE-DU-ROY AND MARIA-CHAPDELAINE, WITH WHICH THE COMMUNITY ALREADY ENJOYS GOOD RELATIONSHIPS. DURING THESE MEETINGS, THERE WAS A CONSENSUS THAT ONE DAY, A JOINT ENERGY PROJECT WOULD TAKE PLACE, BUT EVERYONE WAS WAITING FOR THE PERFECT OPPORTUNITY TO ARISE. In 2009, the Quebec Government launched the Program for the purchase of electricity generated by hydropower plants of 50 MW or less, for a total of 150 MW, aimed at the development of small hydropower projects. In this program, a segment was specifically meant for projects presented by Aboriginal communities and another for community initiatives. Seeing as this was the opportunity Mashteuiatsh and the two MRCs had been waiting for, they immediately went to work on developing two small hydropower projects.

View of the future power plant at peak operation. Photo: Société de l’énergie communautaire du Lac-Saint-Jean

Advisory Column Three advices for a successful partnership, as offered by Mr. Alain Paul 1. Communities must be opened to partnerships, all the while keeping in mind that a partnership must not serve only for the purposes of making money. In fact, a partnership must be created in a spirit of respect and fairness between the partners and each and every one has to bring value to the enterprise. 2. The expectations of all partners towards partnership must be clear right at the outset, in order to avoid any misunderstanding or deception; 3. Everything has to be discussed, and be conducted as openly as possible and with the greatest possible transparency.

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In 2010, the Government retained the two projects submitted by the three partners. One to be built on the Ouiatchouan River, which crosses the Parc régional de Val-Jalbert, a tourist site located in the MRC Domaine-duRoy, and the other on the Mistassini River, located in the Girardville sector on the MRC MariaChapdelaine territory.

Environmental assessment and social acceptance of the project A small hydropower plant development project must go through a mandatory environmental assessment that is supervised by the Ministère du Développement durable, de l’Environnement, de la Faune et des Parcs (MDDEFP) and the Bureau d’audiences publiques sur

CEDO’S PATH

development, infrastructures, culture, etc.). In any case, this type of project does not create many jobs during the operation phase seeing as the plant is highly automated.

l’environnement (BAPE). The first step is filing a project notice with the MDDEFP and completing the impact study of the project. The second step, which wasn’t mandatory, but was nevertheless carried out based on the three partners’ wishes, was to organize consultation sessions with citizens.

Nevertheless, The Société de l’énergie communautaire du Lac-Saint-Jean entrusted supervision of the work to Développement Piekuakami Ilnuatsh (DPI), a limited partnership belonging to the Band Council that is primarily dedicated to the implementation of contracts and economic actions on behalf of the community. DPI holds a general contractor’s license therefore, is competent in terms of supervising engineers and other labourers in the construction industry. The firm manages the administrative and conceptual sides of the project and since it is a public firm, its best interests are to respect costs related to the project which are evaluated at 53.3M$. This is a big advantage for the partners and is also a practical use of the expertise acquired in the field by one of them.

The Société held sessions in Mashteuiatsh and in several Lac-Saint-Jean municipalities. These sessions were, among other things, aimed at informing the public about the project and its impacts, gaining awareness of citizen concerns and opinions as well as validating and completing the preliminary assessment of the project’s impacts. In doing so, we were able to improve the project based on citizen concerns. Subsequently, the BAPE conducted a study and held hearings where the people were able to share their opinion. At these hearings, representatives from various ministries, including MDDEFP specialists, which according to their field of expertise, were also able to make their assessments on the environmental part of the project. Following this process, the BAPE submitted a positive report.

Distribution of profits As mentioned beforehand, the small hydropower plant project is carried out by the Société d’énergie communautaire du Lac-Saint-Jean and founded through investments by Pekamiulnuatsh Takuhikan and the two MRCs. However, a limited partnership specific to the project was also established in order for the project’s host municipality to benefit from the impacts. Specifically, this limited partnership will have ownership of the Val-Jalbert small hydropower plant and sell the electricity produced to Hydro-Québec. The profits will then be divided among partners according to their respective shares.

Economic benefits for the region The Decree representing the last step of the environmental assessment process was adopted by the Quebec Cabinet in December 2012. On this day, Premier Pauline Marois stated the project is “a promising example of a partnership between Aboriginals and non-Aboriginals.” In fact, it is one of the first 100% public partnership involving municipal elected officials and an Aboriginal community, which is very innovative!

• Pekamiulnuatsh Takuhikan: 45% • MRC Domaine-du-Roy and Maria-Chapdelaine: 45%

The project is currently at the beginning of the construction phase, but no contract has been issued to a Mashteuiatsh company. The issue being that construction of a small hydropower plant requires a very specialized labour force, however all the contracts have been awarded to companies in the region, with the one exception being the turbine construction. It will be custom built by a company in Poland. All this represents a total of approximately 45M$ in direct economic benefits for the region.

• Municipalité de Chambord: 10% In total, the Val-Jalbert project is expected to result in net cash (taking into account confirmed financing conditions) of approximately 90M$ for the partners over a period of 25 years. As for Mashteuiatsh’s share, it should amount to approximately 40M$. For Mashteuiatsh, the profits will be distributed to various funds, of which 60% are reserved funds (for future generations) and 40% being allocated funds (economic development, infrastructures, culture, etc.)

By becoming a partner in the project, the objective of the community was not to create jobs, but rather to create an independent and stable source of income enabling the community to invest in its own development (economic

The plant will be up and running in May 2014. 3

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GROUPE ADL A FAMILY-OWNED BUSINESS, IN OPERATION SINCE 30 YEARS! GROUPE ADL IS ONE OF THE MOST PROSPEROUS COMPANIES OF MASHTEUIATSH, AND ALSO ONE OF THE BIGGEST JOB GENERATORS FOR THE MEMBERS OF THE COMMUNITY. IN THIS ARTICLE, WE WILL PRESENT AN OVERVIEW OF THE HISTORY OF THE COMPANY WHICH WILL CELEBRATE ITS 30th ANNIVERSARY THIS YEAR.

Groupe ADL is a familyowned and operated business founded in 1983 by three brothers - Alain, Donald and Luc Paul. In its first year of existence, Groupe ADL started its operations in the residential and commercial construction sector, before investing in real estate and tourism. It is only in 1993, after Groupe ADL took ownership of a tobacco Mr. Alain Paul, director general and president, factory - ADL Tobacco- that Groupe ADL the company began to gather strength. The venture of this growing business in the tobacco industry started with the packaging of tobacco leaves and then continued with the manufacturing of cigarettes in 1995-1996. Its products were generally sold under the brands of Azur, Suprême, Baileys and Maximum. At the very beginning, 35 persons were employed at the ADL Tobacco factory and at the peak of its activities and its production, this number increased to 150, with a turnover of 80 M$.

Subsidiaries of Groupe ADL Paul & Fliss International (health products) This subsidiary owns three probiotic strains purchased at Université Laval, from which it develops health products for farm animals and domestic animals.

Forestry • Lamco Forest Products Designs, develops and manufactures structural and architectural engineering wood products from small size lumber. • Granules LG Wood Pellets Production of wood pellets for heating, litter and ecological firelog.

Real Estate • Residential housing • Business premises • Storage, warehousing

A Company with a Proactive Approach

Tourism

In 2005, seeing that the number of smokers had begun to decline and the laws overseeing the tobacco businesses were being increased, such as “black out” in the convenience stores, Groupe ADL decided to diminish gradually its cigarette production. The CEO of the company, Mr. Alain Paul, then decided, together with the other corporate leadership, to start looking and analyzing other sectors of activity which could offer promising ways forward for the company, before the latter starts losing profits. As a result of this reflection, they decided to invest in health products and in the secondary and tertiary processing of wood products.

• Camping de la pointe Currently, Groupe ADL employs approximately 50 % of Aboriginal persons in its subsidiaries, depending on the expertise required to fill these posts.

A New Generation Ready to Take Over In 2002, Mélanie, Suzie and Carl Paul decided to join the family business, thereby ensuring a solid future for the company, to whom the FNQLEDC wishes continued success for another thirty years!

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Granules LG International inc. ECOLOGICAL HEATING PRODUCTS IN THIS ARTICLE, THE FOCUS IS PREDOMINANTLY ON ONE OF THE SUBSIDIARIES OF GROUPE ADL, GRANULES LG INTERNATIONAL INC.

In 2009, Groupe ADL partners with Granules LG Inc., a company founded in 1995 and specialized in the production of pellets for supplementary heat source, a very innovative green energy. Placement GLG was created as a result of this partnership to operate the plant of Granules LG Inc. in Saint-Félicien. Placement GLG then partnered with Pekuakamiulnuatsh Takuhikan, a partnership that paved to way for the creation of Granules LG International Inc. which operates the Mashteuiatsh plant, located in the old facilities of ADL Tobacco. Pekuakamiulnuatsh Takuhikan owns 49% of Granules LG International Inc. Granules LG Plant of Mashteuiatsh In 2012, Granules LG Inc. encounters certain difficulties and Mr. Alain Paul, who is both the Director General and the President of Groupe ADL and president of Granules LG International Inc., decides to invest once again by presenting an acquisition bid to his partners. As a result, since August 31, 2012, Groupe ADL holds 100% of the shares in Placement GLG. The Saint-Félicien plant is therefore fully owned by Groupe ADL, which also holds 51% of the shares in the Mashteuiatsh plant.

whom the company has in fact a supply agreement. The plants are also supplied by other area sawmills.

Products and markets Different products are produced in the two factories, including pellets made out of softwood and hardwood trees, horse bedding, and also energy-efficient logs known for its longer combustion time and for generating more heat than the traditional log. More recently, the company has placed on the market, litter for cats.

The two plants employ about 45 persons altogether; more specifically, the Mashteuiatsh plant primarily employs Aboriginal peoples.

It is the wood pellets that represent the biggest production of the two factories with an annual production of approximately 100 000 tons, confirming Groupe LG as one of the most important suppliers of residential and industrial pellets in Quebec. However, the equipment of both factories can achieve an optimal production of up to 200 000 tons.

Why this interest for pellets? The pellet industry is still extremely recent in Quebec, but it’s a very promising energy. In fact, green energies have been gaining in popularity since a few years, and this type of heating system, considered as being “carbon neutral” and highly energy efficient, is increasingly preferred to other types of energy. Also, wood pellets are ecological since they are made of residual forest biomass, thus allowing the recuperation of certain materials that would have been otherwise wasted. The two plants are mainly supplied by Produits forestiers Résolu, a forestry company that has maintained a strong presence in Lac-Saint-Jean and with

The evolution of the housing market remains at the stage of development, but the commercial and industrial sectors are increasingly adopting this low-cost fuel. In fact, the company is working on markets for exports, such as the United States and Europe, where wood pellets heating is being used for over 20 years.

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Mashteuiatsh Loan Guarantee Fund A CUSTOM CREATED TOOL GEARED TOWARDS HELPING ENTREPRENEURS IN 2011, THE MASHTEUIATSH COMMUNITY ESTABLISHED A NEW LOAN GUARANTEE FUND, WHICH HAS ALLOWED THE COMMUNITY TO BETTER MEET THE NEEDS OF ITS ENTREPRENEURS.

Finding Partners

Under the Indian Act, a nonAboriginal individual or entity cannot seize Aboriginal property located on reserve. It is therefore difficult to instil a guarantee on such property in order to obtain a loan from a financial institution. In this context, very few financial institutions are willing to grant a loan to an Aboriginal entrepreneur whose assets are located on Ms. Colette Robertson, reserve. “Communities have to President of Masteuiatsh be very creative in developing Loan Guarantee Fund tools that allow entrepreneurs to counteract the negative effect of the Act and to positively contribute to the economic development of their communities”, states Ms. Colette Robertson, President of the Mashteuiatsh Loan Guarantee Fund.

In recent years, the Mashteuiatsh community has developed beneficial relationships with large companies. It has expanded its business relationships by creating Joint Committees comprising of Pekuakamiulnuatsh Takuhikan representatives as well as representatives of the company in question. These committees are an excellent way to become better acquainted with the community and its developing businesses. Furthermore, in recognizing the credibility of Mashteuiatsh entrepreneurs and seeing that the Fund was bearing fruit, it wasn’t hard to convince some individuals to invest towards growing the Fund, hence establishing the new Loan Guarantee Fund.

Loan Guarantee Fund Establishment This Loan Guarantee Fund, totalling 4.3M$ includes 1.4M$ from the first Security Fund to which Pekuakamiulnuatsh Takuhikan added 1.9M$, the Fédération des caisses Desjardins du Québec, with 1 M$, and Rio Tinto Alcan, with $430,000. These partners act as sponsors, and have created a limited partnership that includes representatives from each of the sponsors, to administer the Fund.

Through 2003-2004, while serving as Director General for the Société de développement économique Ilnu (SDEI), and with the support of her Board of Directors, Ms. Robertson created the first Security Fund (forerunner for the current Loan Guarantee Fund). This Security Fund in the amount of 1.4M$ included $600,000 from the Conseil des Montagnais du Lac St-Jean (currently known as Pekuakamiulnuatsh Takuhikan), $600,000 from the Aboriginal Development Fund (ADF) and $200,000$ from the Caisse Desjardins Pekuakami Mashteuiatsh. Although this first fund did a good job at serving start-up and growing entrepreneurs, it did however limit the guarantee to $100,000, which represented 50% of a loan from any given financial institution. With the ever-increasing financial requirements of businesses, the Security Fund was no longer sufficient to meet their needs. It is then that steps were undertaken to find partners to create a new Fund that would better serve the Mashteuiatsh entrepreneurial community.

The Loan Guarantee Fund makes it possible to broaden the guarantees all the while maintaining the 50% risk factor of the financial institution. This being said, the goal is to support the financial risk at the financial institution level as a result of the Indian Act, while allowing the entrepreneur to develop his or her financial credibility with aforementioned institution.

Fund Management Seeing as the SDEI managed the first Security Fund and has done a good job at doing so, the Loan Guarantee Fund’s Board of Directors has decided to continue the mandate with this organization.

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SDEI has the responsibility of overseeing loan guarantee requests from entrepreneurs, ensures the files are in order, submits the requests for an independent and objective financial analysis and, finally submits recommendations to the Loan Guarantee Fund’s Board of Directors, who in turn will make the final decision.

definitely what is wished for by the Board of Directors of the Loan Guarantee Fund which is comprised of: President, Ms. Colette Robertson, Vice-President, Mr. Hugues Lajoie, Secretary-Treasurer, Mr. Christian Rock and the Administrators, Mr. Sébastien Kurtness and Mr. François Rompré.

The use of this tool to finalize a loan from a financial institution to Mashteuiatsh entrepreneurs should encourage them to grow their business as well as entice future entrepreneurs to go into business. This is most

The FNQLEDC most certainly commends the Mashteuiatsh community for its innovation, and hopes that this successful initiative has a ripple effect on other communities!

ENTREPRENEUR’S CORNER

Nature, Trade and Industry Conference CONFERENCES THAT SUIT ALL TASTES! On next February 28th, the FNQLEDC and the Société de développement économique Uashat mak Mani-Utenam will present the Nature Trade and Industry Conference at the Sept-Îles Convention Centre. The event will be presented for the first time in the area of the Côte-Nord region. For the occasion, a program especially tailored to the needs of the local entrepreneurs was prepared by the organizers. In total, four conferences will be presented, addressing topics such as, how to do business with the mining companies, and the designation of Indian lands. Also, tips and advices will be provided on how to better market your company and yourself. And finally, a concrete example of partnership between Aboriginals and Non-Aboriginals will be presented under the form of a ‘success story’.

HANDY REMINDER

The day will begin at 9:00 am and will end at 3:30 pm with a networking cocktail reception. The registration for the event, at the cost of $50, includes the access to the conferences, the luncheon buffet and the participation in the networking cocktail reception. To register, to consult the program, or simply to get more information on the event, please visit www.firstnationstradeshow.com

What? Nature, Trade and Industry Conference When? February 28,2013 Where? Sept-Îles Convention Centre Costs? $50 For more information: www.firstnationstradeshow.com

The organizers expect to see you in large numbers!!

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ENTREPRENEUR’S CORNER

A Word on the Clubs

TWO NEW CLUBS HAVE BEEN CREATED IN THE FALL OF 2012! Student Entrepreneurship Clubs, (SEC), a novelty in town!! This fall, two SECs were created in two communities. Following is a brief presentation of these two clubs along with their projects.

The Institut Kiuna Club The first SEC, which has been in operation since the fall of 2012, consists of students from Institut Kiuna and is supported by Mr. François Bastien, who acts as resource person. This group comprises very dynamic students originating from several communities, including Manawan and Pessamit. The mission of Kiuna SEC is to facilitate student life and make it more attractive and more positive for students, by promoting special, different and creative activities. In several cases, it was the first time that the youths left their reserve for a long period and they had to get properly settled into their new lifestyle. The greatest success of the fall was undoubtedly the Indian Tacos event. About sixty people took

part in this special lunch. The main purpose of that activity was to raise money to support and finance the future activities of the club, such as the organization of the graduation dance of the first cohort of students of Institut Kiuna. The students’ committee will meet at the beginning of the winter session to establish the action plan for winter 2013 and suggest new activities.

Aishkat Coop The second club was formed this past fall in Saguenay, in the beautiful Saguenay-Lac-Saint-Jean area. The club consists of seven Aboriginal students who live in urban setting and who wish to become initiated into the concept of entrepreneurship, under the supervision of Ms. Mélanie Boivin, the highly energetic resource person of the club. After several weeks of representations and efforts to find partner organizations and a location for the meetings, the first meeting of the club took place on October 15, 2012. The youths’ project consists mainly in organizing specific cultural and recreational events for the

people of Ville de Saguenay and the surrounding area. They chose to join forces in the form of new cooperative and they are currently in the process of obtaining accreditation to be legally recognized as such. The ultimate goal of this project is to get young people interested in entrepreneurship and introduce them to all possible forms it can take. The youths already had a first contact with the concept of entrepreneurship at the time they participated in the workshops held within the framework of Inspired Symposium in Montréal. As for winter 2013, the new cooperative is preparing visits to industry (such as IBM), the organization of a cultural day in Saguenay, and a regional tournament (which will be announced shortly) for the youths of SaguenayLac-Saint-Jean. If you wish to create a club in your community, please do not hesitate to get in touch with Jean-François Côté, by phone at 418 843-1488 or by email at [email protected]

MEMO

to entrepreneurs

To share any news or success story from your business, a new working tool that you discovered, etc. do not hesitate to get in touch with Marie-Christine Tremblay either by email ([email protected]) or by phone at 418 843-1488 and we will be more than happy to spread the information with the readers of our Nikan magazine or by posting it on our Website.

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ENTREPRENEUR’S CORNER

Saguenay Student Entrepreneurship Club THE LEADER OF THE CLUB IS VOTED VOLUNTEER OF THE MONTH OF DECEMBER MÉLANIE BOIVIN IS THE RESOURCE PERSON RESPONSIBLE FOR THE SAGUENAY STUDENT ENTREPRENEURSHIP CLUB. ORIGINALLY FROM THE INNU COMMUNITY OF MASHTEUIATSH, MÉLANIE IS ACTIVELY INVOLVED IN HER SETTING AND WITH THE YOUTHS. HER COMMITMENT HAS EARNED HER RECOGNITION BY THE TOWN OF SAGUENAY, WHICH VOTED HER “VOLUNTEER OF THE MONTH OF DECEMBER”. THE COORDINATOR OF THE STUDENT ENTREPRENEURSHIP CLUBS, JEAN-FRANÇOIS CÔTÉ, TRAVELLED TO SAGUENAY AND TOOK THE OPPORTUNITY TO ASK HER A FEW QUESTIONS: Mélanie Boivin

J.F.C. Tell us a little about yourself ...

and it allows me also to share my experience with young Aboriginals living in Saguenay, who bring a lot to me in return. It’s a way to stay in contact with my culture and this is what matters most to me. I sincerely believe that the actions we take today for our youths will sprout and bear fruits tomorrow.

M.B. I work for Ville de Saguenay on a part-time basis as trainer in computer science, and on a full-time basis at Centre de perception Desjardins within the litigation team. I have the privilege to work with two amazing work teams who encourage me in my projects and respect individual differences.

J.F.C. Tell us about the new Aboriginal Cooperative. M.B. Our coop project is called Aishkat, meaning “future”. The coop is composed of young Aboriginals and non-Aboriginals who have greater control over their future. Among the activities foreseen in the schedule of the cooperative, it should be noted that we will have representation from Desjardins, who will be holding a workshop on financial management The Coop Verte will also suggest cultural and fun activities. These two models of coop are motivating success stories for me and the youths and it encourages us to pursue our collective project. We are planning a regional competition in link with video games, but for the time being, I can’t tell you more, because the project is to be presented by our team in a near future. Lately, we have defined the roles of each and every one of us, and we each have our own responsibilities, while all contributing to every step of the project. In the meantime, we are in the planning stages of a visit of IBM’s facilities in Bromont. In conclusion, our cooperative has a bright future in front of it!

I also volunteer my time with the team of Jeux du Québec à Saguenay, scheduled to take place in March 2013. It is a privilege for me to get involved in an organization which prioritizes the development of the youths, and in fact, I was voted the volunteer of the month of December. I find it very energizing to know that my work is acknowledged, and in spite of the fact that at times, I am confronted to obstacles, to me, these challenges always remain opportunities for self-improvement. J.F.C. How do you explain your passion for entrepreneurship? M.B. I am fascinated with the whole concept of entrepreneurship. I wanted to live an entrepreneurial experience, and most of all, share it with other peoples. This is exactly what the new aboriginal cooperative in Saguenay allows me to achieve. I can work on the establishment of entrepreneurial and community projects

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ENTREPRENEUR’S CORNER

Legal Column OMNIBUS BILL by Benoît Champoux, Neashish & Champoux S.E.N.C.

This time in the legal column, I propose reviewing briefly with you, from a legal point of view, a subject that is very topical these days: the adoption of an Omnibus Bill.

What exactly, is an Omnibus Bill? In general, an omnibus bill seeks to enact several acts through one single bill. Usually, the amendments proposed by an omnibus bill need to be linked together or have a common aim, which is the case when a regime or a policy is revised, and when several acts are being affected by the new desired orientation. An omnibus bill is a legislative tool at the disposal of the government, whose main goal is to facilitate parliamentary debates, along with the interventions leading to its adoption. It thus limits the debates, and combines into one single legislative act, all the different stages of the normal progression towards the adoption of several different laws.

Bill C-38 and C-45 Let’s explore more particularly the two most recent omnibus bills of the federal government, namely Bills C-38 and C-45. Bill C-45 adopted on December 14, 2012 and now referred to as the Jobs and Growth Act 2012 amends dozens of laws. It includes 456 pages and some of its provisions are directly

linked to the 2012 March budget, which, along with the navigable waters, seems to represent the core of the bill itself.

ancestral territories, on traditional activities, such as fishing, or on the land management regime in Indian reserves.

In fact, in addition to allowing the adoption of several budgetary provisions (tax credit, salary, etc.), it amends substantially the Navigable Water Protection Act by placing hundreds of lakes and watercourses outside the protection of the Act. With these changes, only 97 lakes and 62 rivers will be protected by the new Act. It also proposes changes in the land management regime in Indian reserves.

Therefore, the elaboration of these measures and its adoption took place without any real consultation and participation by the First Nations, and let’s admit it, in a somewhat accelerated manner

As for Bill C-38, adopted on June 29, 2012 and referred to as the Jobs, Growth and Long-term Prosperity Act, it amends some sixty federal laws. There were implications with this enactment on the Canadian environmental legislation and on several other acts with an environmental scope, including the Fisheries Act, The Species at Risk Act, and the Kyoto Protocol Implementation Act.

For several years now, a wellestablished case-law has recognized, according to certain criteria, the obligation for the governments to consult and accommodate the First Nations for all projects or decisions which may affect their different rights. Also, the fiduciary obligation of the government towards the First Nations has been repeatedly specified by the Courts. Based on the discourses and the sharp reaction expressed by the different Aboriginal groups, it certainly appears that these obligations have not been adequately addressed!

What impact is this having on Aboriginal Peoples? At the outset, what is shocking just as much as the legislative measures itself and its effects, is the government’s approach in adopting it. Several of the adopted modifications have or will have, in one way or the other, direct impacts on the protection of

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1 Consult to this effect the relevant documents on taxation on the FNQLEDC Website at www.cdepnql.org

ENTREPRENEUR’S CORNER

Entrepreneurial Chronicle HOW TO SUCCESSFULLY TRANSFER A FAMILY-OWNED BUSINESS

A study of Family Firm Institute released in the United States in 2003 revealed that only 30% of family-owned businesses in a situation of business transfer are successful in their first generational transition, that between 10% to 15% are successful in the third generation transfer and only 3% to 5% of those businesses are able to move into the fourth generation *. Although this study goes back already to a few years, it still shows to what extent the transfer of a business can be a sensitive operation if it is not properly planned.

to have a good understanding of the challenges and perspectives they will be faced with. It also allows to: • educate and train family members, most particularly the younger ones; • identify, communicate and promote the family values, with a view to build a common vision; • prepare the family members for their evolving roles; • establish a process to ensure a peaceful settlement of family disputes;

What are the potential barriers to the transfer of a business?

• etc.

When is the proper time to form a family council?

Sometimes, the leader of a family-owned business may feel as if he is too young to retire, or he cannot trust his potential successors, or he simply delays the planning of his succession because it’s time consuming and costly. Certain executives are reluctant to confide to others the cumulative achievement of a career-long of hard work and efforts.

It’s never too early to form a family council, since it allows for a better communication and forge closer links between the family members. By being prepared well in advance, the successor family members will be more than ready when time comes for the leader to pass the torch.

In any case, it is preferable to proceed seamlessly and with diplomacy in order to make the leader of the company understand that the aim is not to remove him from his position within the company, but to make him understand that there is a need to plan the succession in advance in order to maximize the chances of success.

Who should be appointed on the family council? There is no rule to that effect, the composition of the council being at the discretion of the family. The council can be open to the members of the immediate family only, as it can also be to the extended family (spouses, children, grandchildren, etc.). The important thing is that the appointment is accepted by all concerned.

A family council is instrumental in opening up the discussion in an atmosphere of mutual respect

For more information on the subject, please visit the FNQLEDC Website to get the links leading to the websites that will answer your questions.

One of the more common instruments used to facilitate the transfer of a family-owned business is to form a family council. The purpose of a family council is to teach family members to learn how to work together and allow them

* Sources : Facts and Perspectives on Family Business, Family Firm Institute, 2003 et Le conseil de famille, pour se dire les vraies choses au bon moment, paru dans le Guide transfert d’entreprise, Les Affaires

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LA VOIE DES ODEC

NEXT ACTIVITIES OF THE FNQBN Activity: CEDOs Training « How to Succeed at Public Speaking » Date: February 20, 2013 Place: Hôtel Clarion, Quebec City Clientele: CEDOs, FNQBN members and entrepreneurs

Other relevant events… Activity: Entrepreneurial Symposium «Towards the Development of Sustainable Partnerships in Northern Quebec» Date: March 12-13, 2013 Place: Chibougamau

Activity: Nature, Trade and Industry Conference Date: February 28, 2013 Place: Sept-Îles Convention Center Clientele: General population

Activity: CEDOs Training « Introduction to Economic and Financial Analysis » Date: March 19 and 20 2013 (French), March 20 and 21st 2013 (English) Place: To be confirmed… Clientele: CEDOs, FNQBN members and entrepreneurs

MEMO

to CEDOs

For any news or success story from your community that you would like to share and which is remotely connected to economic development, do not hesitate to get in touch with Marie-Christine Tremblay either by email ([email protected]) or by phone at 418 843-1488. We will be more than happy to share the information with the other CEDOs through our Nikan magazine or by posting it on our Website.

FIRST NATIONS OF QUEBEC AND LABRADOR ECONOMIC DEVELOPMENT COMMISSION 250, Place Michel-Laveau, suite 101, Wendake, Quebec G0A 4V0 Tel.: 418 843-1488 | Fax: 418 843-6672 E-mail: [email protected] Internet: www.cdepnql.org Graphic design: Siamois graphisme WARNING ON PROTECTION AND CONFIDENTIALITY OF INFORMATION The information contained in this newsletter is protected in accordance with the applicable laws and regulations.

For information on all the news that are of interest to you, to know the dates of the next training sessions or to have many other information, please visit the following website : www.cdepnql.org

It is therefore prohibited to distribute or to copy any part of this document without the written permission of the FNQLEDC. Legal deposit – National Library of Canada, 2004 Legal deposit – Bibliothèque nationale du Québec, 2004