The Ripple Effect Newsletter
June 17, 2009
Inaugural Newsletter
Ripple Effects if proud to present the inaugural edition of The Ripple Effect Newsletter.
Story 1
Aboriginal truth panel set for relaunch under new chair
By Jorge Barrera, Canwest News Service
A commission charged with gathering the stories of residential school survivors received a second start Wednesday when the Conservative government announced the names of the three people who will lead the journey into one of Canada's darkest chapters.
Manitoba's Justice Murray Sinclair was chosen to chair the Truth and Reconciliation Commission, which will also include Marie Wilson of the Northwest Territories and Wilton Littlechild of Alberta, said Indian Affairs Minister Chuck Strahl.
The announcement came the day before the one-year anniversary of Prime Minister Stephen Harper's apology to residential school survivors.
"Aboriginal people across Canada have waited a long time for this venue in which they will be able to recount their experiences with Indian residential schools," said Strahl. "All Canadians must open their hearts to forge a new relationship with aboriginal people."
Sinclair, who sits on Manitoba's Court of Queen's Bench, was the province's first native judge. He was also the co-commissioner of an inquiry into the treatment of native people by Manitoba's justice system after the death of native leader J.J. Harper.
Littlechild, a lawyer and former MP, was the first Treaty First Nations person to obtain a law degree from the University of Alberta. The Assembly of First Nations' regional chief for Alberta, Littlechild was also involved in the effort to get indigenous people consultation status with the Economic and Social Council of the United Nations.
Wilson, a former CBC regional director and radio and television reporter, is currently a senior manager of the Workers' Safety and Compensation Commission of the Northwest Territories and Nunavut.
The announcement was welcomed by Assembly of First Nations national Chief Phil Fontaine.
"First Nations citizens and survivors across the country are eager to see the commission begin its work as soon as possible. It is important that survivors and all those involved in the schools have a chance to tell their stories," said Fontaine.
The five-year, $60-million commission is charged with collecting stories from victims of abuse in the residential school system and encouraging reconciliation within Canadian society over the dark chapter in the country's history. It is expected to complete a report at the end of its mandate that will include recommendations to the government on the issue.
The commission was established as part of a $2-billion class-action settlement stemming from the government-funded, church-run residential schools where many students were abused physically and emotionally.
It is also expected to host seven national events and create a public research centre on the residential school system and its impact.
The commission got off to a rocky start last year after Ontario Court of Appeal Justice Henry LaForme resigned as commission chair, complaining of meddling by the AFN and of a power struggle with the other two commissioners. His resignation was quickly followed by that of the other two commissioners.
About $3 million has been spent to set the groundwork for the commission's work, said Strahl.
© Copyright (c) Canwest News Service
Story 2
Emerging Trends Offer Promise To Aboriginal Peoples: TD Economics
TORONTO – A new report from TD Economics argues that an economic transformation for Aboriginal Peoples and their communities could be finally at hand. The report credits an “alignment of interests” between Aboriginal communities, business and governments as the main driver for improved conditions.
TD’s Chief Economist, Don Drummond, and Director of Economic Analysis, Derek Burleton, note a confluence of trends is now merging. One, Aboriginal communities are seeking out more opportunities in the market economy. Two, a growing number of Canadian companies are recognizing that employing Aboriginals and partnering with Aboriginal communities is a smart business strategy. Three, the federal and provincial governments are linking Aboriginal education and social issues with Canada’s future prosperity challenges.
“The nature of these reinforcing mutual interests is a positive development for Canada,” said Mr. Burleton, Director of Economic Analysis at TD Economics. “All Canadians have a vested interest in the economic prospects of Aboriginals, given that they represent the youngest and fastest growing segment of our population and will therefore make up an increasingly larger portion of our workforce. Our economy’s future is inextricably linked to their future.”
Portrait of an Aboriginal person as a young entrepreneur
By some estimates, there are as many as 27,000 Aboriginal-owned businesses operating across the country spanning a wide array of businesses from airlines to mining supply to business services. Business owners are seeing opportunities to fill the gaps that were opened up by past market failures. For example, a shortage of available credit on reserve has been a particular issue, partly due to the fact that real and personal property on a reserve cannot be used as collateral for a loan. As a result, Aboriginal-owned financial institutions have emerged, including First Nations Bank of Canada. Today, there are more than 50 Aboriginal Capital Corporations and financial institutions operating across Canada.
Mr. Burleton notes: “An important catalyst for the emergence of Aboriginal enterprises is their growing belief they can move into the mainstream economy without sacrificing their core values. Chief among them is the protection of land and the environment.” In this vein, the report highlights a real mark is being made by Aboriginal entrepreneurs in areas such as renewable power and alternative energy development.
Partnerships with the private sector starting to take off
The growing number of partnerships between Aboriginal and non-Aboriginal businesses, largely in western Canada, is a particularly encouraging sign. To some extent, the catalyst for these partnerships within the resource sector has been legal in nature – namely, the requirement to consult and accommodate Aboriginal communities following a couple of 2004 Supreme Court decisions. However, more and more companies across all sectors are worried about longer-term labour shortages and actively looking for solutions. One avenue is making more effort to connect with under-represented populations such as Aboriginal people.
Barriers remain
The 2006 Census data revealed that Aboriginal people made up some lost ground in terms of labour market performances, including employment and income figures. Yet the good news lost some of its shine when other elements of the data are considered. For one, there was evidence that on-reserve First Nations communities are falling further behind on virtually every count. And, second, the gap in high school completion rates, particularly on reserve, remained substantial.
“In one sense, the resource boom that ended in mid-2008 had a downside since it likely convinced many young Aboriginal people to forgo a formal education in order to seek good income,” said Mr. Burleton. “The resource sector is cyclical and when it declines, as has been the case lately, there is little to fall-back without the broader, higher education. That’s why the resource and construction booms and the benefits they delivered in terms of Aboriginal employment cannot be allowed to divert attention from the education imperative.”
Fortunately, Canadian governments and Aboriginal communities are beginning to move forward with innovative solutions to this key challenge, including more collaborative models, E-learning and efforts at making education “relevant” for Aboriginal people. A number of post-secondary institutions have also developed creative programs and services. However other key areas have not received as much focus, such as adult education, or may not be gaining the desired traction, such as private sector take-up of co-op programs for Aboriginal students.
The dismal state of infrastructure on reserve and the limits imposed by the Indian Act are two other barriers to the economic success of Aboriginal communities. The federal government’s 2009 budget, which announced $1.4 billion down-payment targeted at Aboriginal skills training and infrastructure was a step in the right direction. In addition, the federal government is currently working on a new Policy Framework for Aboriginal economic development, which could include needed changes to the Indian Act.
More comprehensive information
Issues faced by Aboriginal communities cannot be adequately addressed unless the dimension of the problem is known and can be measured. Unfortunately there are sizable gaps in data, particularly around labour market information. For various reasons, some of the nation’s largest bands did not participate in the Census. Furthermore, an estimated one-quarter of the residents on an additional 166 First Nations reserves were not counted. All parties are urged to collaborate on this issue.
TD optimistic
“We are hopeful that the alignment of mutual interests among various stakeholders could mark the start of a more meaningful positive transformation with respect to Aboriginal Peoples’ labour market and education outcomes in the future,” said Mr. Burleton. “The economic success within the Aboriginal communities will reap dividends for all Canadians in terms of higher government revenues, lower social services costs and increased productivity.”
For more information, please contact:
Don Drummond
TD Economics
don.drummond@td.com
416-473-5720 (cell)
Derek Burleton
TD Economics
derek.burleton@td.com
416-982-2514
Story 3
RBC First to Offer Unique Mortgage Program to First Nations Members
TORONTO, May 13, 2009 — RBC today announced a new mortgage program, the Leasehold Mortgage Program that will provide First Nations members with greater flexibility and choice when it comes to financing the purchase or construction of a home. It also helps create marketable housing in reserve communities.
"RBC has worked with First Nations leaders/governments for many years to find and provide options for financing a home in the same manner that is offered off a reserve," said David Cutway, manager, Residential Mortgages Policy, RBC. "Created by RBC, this new CMHC default-insured program does just that. It allows qualified borrowers - on qualified reserve lands - to obtain a home mortgage, benefitting both the purchaser and the First Nation community."
Options to finance on-reserve housing in the past have been limited. For example, First Nations members had to obtain a band or Ministerial Loan Guarantee (MLG) to secure a loan to purchase a home on reserve land. In addition, the First Nation government was responsible for the construction, maintenance and repair of these homes, which is why many turned to leased land options to capitalize on opportunities for greater economic growth.
The Leasehold Mortgage Program can help First Nations improve economic development through the construction of new homes, renovations to existing homes, purchases of new or existing homes, and construction of duplexes to four-plexes. First Nations communities may also use the program to attract non-Aboriginal homebuyers to properties developed on leasehold land, such as the housing development projects undertaken by the Westbank and Tzeachten First Nations, both of which are located in British Columbia.
To implement the Leasehold Mortgage Program, a First Nation government must formally designate, in accordance with the procedure set out by applicable law, reserve land for leasing purposes. Qualified individuals who want to purchase or build a home on the reserve can apply for a Canada Mortgage and Housing Corporation (CMHC) default-insured RBC mortgage. Once the borrower and the property are approved by RBC and for CMHC mortgage default insurance, RBC can make a loan to the individual.
"Some First Nations are structuring their land tenures to allow for social and mid-market housing for First Nations members only, while others see tremendous benefit in sharing the lands with the community at large," explains Dale Sturges, national director of Aboriginal Banking, RBC. "This unique mortgage program enables First Nation communities to create an environment with full market potential. It also helps many Canadian families who want financial security and are seeking the opportunity to grow their personal worth through home ownership."
Story 4
TransCanada and ExxonMobil to Work Together on Alaska Pipeline Project
Anchorage, Alaska (June 11, 2009) - TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) today announced that TransCanada and ExxonMobil have reached an agreement to work together on an Alaska gas pipeline.
TransCanada's Alaska Pipeline Project is designed to deliver a reliable and secure source of clean energy to markets for decades to come. With an initial forecasted capital cost of US$26 billion, the project would provide a variety of benefits to Alaska and Canada, as well as the rest of the United States, including substantial revenues, jobs, business opportunities and new, long-term stable supplies of natural gas.
"TransCanada's Alaska Pipeline Project will connect Alaska's natural gas resource to new markets. We are pleased that TransCanada and ExxonMobil have reached agreement on initial project terms to progress this exciting initiative," said Hal Kvisle, TransCanada president and chief executive officer. "TransCanada envisions that our combined activities with ExxonMobil, along with the support of the State of Alaska, the U.S. and Canadian governments, and other interested parties, will result in the timely completion of the project. Today's announcement is an important step toward that goal."
Rich Kruger, president of ExxonMobil Production Company, said, "ExxonMobil and TransCanada have the experience, expertise and financial capability to undertake this project. We have on-the-ground knowledge of Alaska and Canada, experience working in the Arctic, a strong history of technology and innovation, and the proven ability to build and operate projects of enormous scale in the most challenging environments."
TransCanada Alaska Company, LLC and subsidiaries of Foothills Pipe Lines Ltd. will remain the Alaska Gasline Inducement Act (AGIA) licensees and TransCanada will continue as the primary point of contact with the State of Alaska and the general public for this project. As TransCanada and ExxonMobil work together with the goal of successfully advancing a pipeline project, the AGIA contract obligations of TransCanada to the State remain unaffected.
In November 2007, TransCanada Alaska and Foothills jointly submitted an application under AGIA to build a 4.5 billion cubic feet per day 48-inch diameter natural gas pipeline running approximately 2,700 kilometres (1,700 miles) from a new natural gas treatment plant at Prudhoe Bay on Alaska's North Slope to Alberta, Canada with an LNG option to deliver gas supplies to a liquefaction facility at Valdez. In December 2008, TransCanada was awarded the AGIA license after prevailing in an open and transparent competitive bid process and receiving the approval of the Alaska legislature. TransCanada has moved forward with project development, which includes engineering, environmental reviews, Alaska Native and Canadian Aboriginal engagement, and commercial work to conclude an initial binding open season by July 2010.
For more information on the Alaska Pipeline Project, please visit: www.transcanada.com/company/alaska_pipeline_project.html.
About TransCanada
With more than 50 years' experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas pipelines, power generation, gas storage facilities, and projects related to oil pipelines and LNG facilities. TransCanada's network of wholly owned pipelines extends more than 59,000 kilometres (36,500 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent's largest providers of gas storage and related services with approximately 370 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, over 10,900 megawatts of power generation in Canada and the United States. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP.
About ExxonMobil
ExxonMobil is the world's largest publicly traded international oil and gas company, providing energy that helps underpin growing economies and improves living standards around the world. ExxonMobil uses innovation and technology to deliver energy to a growing world. The company operates facilities or markets products in most of the world's countries and explores for oil and natural gas on six continents.
TransCanada Forward-Looking Information
This news release may contain certain information that is forward looking and is subject to important risks and uncertainties. The words "anticipate", "expect", "believe", "may", "should", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward-looking information. Forward-looking statements in this document are intended to provide TransCanada shareholders and potential investors with information regarding TransCanada and its subsidiaries, including management's assessment of TransCanada's and its subsidiaries' future financial and operational plans and outlook. Forward-looking statements in this document may include, among others, statements regarding the anticipated business prospects and financial performance of TransCanada and its subsidiaries, expectations or projections about the future, and strategies and goals for growth and expansion. All forward-looking statements reflect TransCanada's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among others, the ability of TransCanada to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the operating performance of TransCanada's pipeline and energy assets, the availability and price of energy commodities, regulatory processes and decisions, changes in environmental and other laws and regulations, competitive factors in the pipeline and energy sectors, construction and completion of capital projects, labour, equipment and material costs, access to capital markets, interest and currency exchange rates, technological developments and the current economic conditions in North America. By its nature, forward-looking information is subject to various risks and uncertainties, which could cause TransCanada's actual results and experience to differ materially from the anticipated results or expectations expressed. Additional information on these and other factors is available in the reports filed by TransCanada with Canadian securities regulators and with the U.S. Securities and Exchange Commission (SEC). Readers are cautioned to not place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. TransCanada undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
For more information, please contact
TransCanada
Media Inquiries
Cecily Dobson
(403) 920-7859 or (800) 608-7859
Investor & Analyst Inquiries
David Moneta/Myles Dougan/Terry Hook
(403) 920-7911 or (800) 361-6522
Website: www.transcanada.com
ExxonMobil
Media Inquiries
Margaret Ross
(713) 656-4376
