News Release
For Immediate Release
96:13 December 16, 1996
Socio - Economic Report
Outlines Benefits of Nisga’a Treaty
[NOTE: Copies of the report
can be obtained by calling the numbers
noted at the bottom of this release.]
PRINCE RUPERT — A treaty based on the
Nisga’a agreement-in-principle will provide economic benefit
and have a positive impact on economic activity in northwest B.C.,
according to a report released today by Aboriginal Affairs Minister
John Cashore.
The Regional Socio-Economic Assessment of the
Nisga’a Agreement-in-Principle provides an economic picture
of the region and examines how components of the agreement, once
implemented in a final treaty, could affect sectors such as forestry,
commercial fishing, pine mushroom harvesting, mining and tourism.
Financial transfers, taxation and fiscal financing arrangements
are also assessed, and a reasonable range of possibilities are
identified.
"This report delivers on the province’s
promise to local governments and stakeholders to assess the potential
impacts of a Nisga’a treaty," said Cashore. "The Nisga’a
agreement points toward economic and social benefits for northwest
British Columbia."
"I have always believed a treaty would generate
economic benefit for the region," said North Coast MLA and Employment
and Investment Minister Dan Miller. "The local industry, unions,
community representatives and Nisga’a who have been consulted
in the development of this report have contributed to a greater
understanding of economic activity in the region."
"This report adds to previous findings that
treaties bring positive benefits," said Skeena MLA Helmut Giesbrecht.
"A study by KPMG Management Consultants released earlier this
year concludes that British Columbians can expect $3 in financial
benefits for every $1 in costs to taxpayers."
The foundation of British Columbia’s
first modern-day treaty, the Nisga’a agreement provides
for a cash payment of $190 million and the establishment of a
Nisga’a central government with ownership of approximately
2,000 square kilometres of land.
Government called on its analysts and economists
in its ministries responsible for business, mining, employment,
forests and fisheries to develop the report last April, following
the signing of the Nisga’a agreement in March.
-30-
For more information:
Peter Smith
Ministry of Aboriginal Affairs
(250) 356-8750
Harold Demetzer
Ministry of Small Business,Tourism and Culture
(250) 638-6505
Backgrounder
Regional Socio-Economic Assessment of the
Nisga’a Agreement-in-Principle
The communities of Prince Rupert, Port Edward,
Kitimat, Terrace, Stewart and the Nass Valley are examined in
the Regional Socio-Economic Assessment of the Nisga’a Agreement-in-Principle.
The report is based on a treaty reflecting the AIP and coming
into effect in 1998.
The Nisga’a agreement-in-principle provides
for a cash payment of $190 million and the establishment of a
Nisga’a government with ownership of approximately 2,000
square kilometres of land. Negotiations are under way between
the province, Canada and the Nisga’a to reach agreement
on a final treaty.
The socio-economic study finds that a treaty
based on the AIP will bring economic benefits in the long term
and reduce uncertainty in the region. The opportunities provided
by treaties will improve quality of life for Nisga’a people
by reducing unemployment, increasing incomes and providing local
authority over their own affairs.
Possible reduction or transfer of activity
in the forestry and fishing industries will be minor relative
to the size of the regional industry. Transition periods to be
included in the treaty help to minimize the treaty’s effects
and job loss experienced by Non-Nisga’a may be offset by
naturally occurring vacancies within the affected industries.
The overall effect of the treaty and exact
numbers for some of the impacts cannot be determined due to such
unknown factors as timing of cash payments, changes in the regional
economy, changes occurring within specific sectors and future
decisions to be made by the Nisga’a.
The assessment was conducted by analysts in
the ministries of Small Business, Tourism and Culture; Employment
and Investment; Agriculture, Fisheries and Food; and Forests.
Industry, union and community representatives and the federal
government and Nisga’a Tribal Council were consulted.
The report follows two studies released earlier
this year on the impact of treaties. An analysis by KPMG Management
Consultants concludes that the benefits of treaties will outweigh
the costs to taxpayers. Increased certainty, the infusion of funding
into a region, and greater employment and self-reliance aboriginal
people will benefit all British Columbians.
ARA Consulting Group Inc. examined the impact
of six treaties reached in Canada, Alaska, Australia and New Zealand.
The report found that there were no dramatic changes to the non-aboriginal
community and that benefits of the treaty became evident over
time as aboriginal people gained income, skills and training through
employment.
Forestry
The Nisga’a will assume responsibility
for approximately 45,000 hectares of productive forest land the
North Coast, Nass and Kalum timber supply areas and Tree Farm
Licence #1 located north of Terrace. There may be a gradual transfer
of jobs over several years associated with the cutting rights
transferred to the Nisga’a.
The province will no longer collect stumpage
and rents for forest activities on Nisga’a lands. The Nisga’a
will retain this revenue which will help reduce transfer payments
from provincial and federal governments to the Nisga’a government.
New economic activity could result should the
Nisga’a establish a new primary processing plant after 10
years and if existing plants are able to maintain a sufficient
supply of wood. A Nisga’a venture in value-added timber
processing would also increase economic activity.
Commercial Fishing
Under the terms of the AIP salmon provision,
in an average year, the salmon entitlement and allocation for
the Nisga’a will be about double their current harvest for
food, social and ceremonial purposes.
In order to offset the Nisga’a harvest
of this additional quantity of salmon, harvesting capacity will
be retired from the commercial fleet on a voluntary basis. A maximum
loss or transfer of 11 to 19 crew and operator positions could
result. This figures does not take into account additional workers
the Nisga’a may hire to harvest the larger quantity of salmon.
The Nisga’a will be provided with $11.5
million to purchase licences and vessels. Economic activity could
increase if the Nisga’a purchase licences and vessels from
outside the region and operate them in the North Coast.
The Lisims Fisheries Conservation Trust, which
under the terms of the AIP will receive $13 million, will increase
economic activity on the North Coast through improved fisheries
management.
The Nisga’a have agreed not to establish
a new large-scale fish processing plant until 12 years after the
effective date of the final treaty. Impacts associated with the
construction of any new facility would depend on the facility
size, location, type and the supply of the fish to North Coast
processors.
Pine Mushroom Harvest
The Nass Valley is an important pine mushroom
region where an estimated 160,000 kg of pine mushrooms were harvested
in 1994. Nisga’a will have the right to control the harvest
of pine mushrooms on Nisga’a lands.
Non-Nisga’a mushroom harvesters could
be replaced by Nisga’a. However, the Nisga’a labour
force may not be large enough to harvest all available mushrooms.
Depending on how the Nisga’a harvest is managed, new activity
could result.
Tourism
Over 10 per cent of the region’s employment
results from tourism which serves mostly the touring and outdoor
recreation market. Angling guides and outfitters currently operating
on Nisga’a lands will not be affected under the terms of
the AIP.
The backcountry recreation tenure and angling
guide licence provided to the Nisga’a under the terms of
the AIP could support at least 10 jobs annually and generate $300,000.
Increased traffic to Nisga’a lands would raise revenues
for other tourism businesses in the region.
Nisga’a tourism offerings will build
on the region’s tourism strengths such as social and cultural
wealth and have a positive impact on the entire region’s
tourism industry.
Financial Transfers
Under terms of the treaty, the Nisga’a
will receive about $190 million. Investment of these funds will
provide economic development and employment opportunities for
the Nisga’a which could result in spin-offs for the region.
Businesses established in the Nass Valley that
compete with existing business in the area could result in a transfer
of activity. However, it is unlikely Nass communities would be
able to provide the services and selection of the surrounding,
more populated communities.
Fiscal Financing Arrangements and Taxation
The fiscal financing arrangements section of
the AIP ensures the Nisga’a have the ability to provide
a level of agreed-upon public services comparable to other communities
in northwest B.C. The specifics on financing to the Nisga’a
government will be agreed upon by the Nisga’a, the province
and Canada outside the treaty.
The Nisga’a government will also receive
revenue for programs and services through taxation of Nisga’a
citizens. Potential improvements to economic and social conditions
brought about by Nisga’a service delivery could result in
reductions to the number and expense of government programs provided
to the Nisga’a.
Businesses established in the Nass Valley that
compete with existing business in the area could result in a transfer
of activity. However, it is unlikely Nass communities would be
able to provide the services and selection of the surrounding,
more populated communities.
Fiscal Financing Arrangements and Taxation
The fiscal financing arrangements section of
the AIP ensures the Nisga’a have the ability to provide
a level of agreed-upon public services comparable to other communities
in northwest B.C. The specifics on financing to the Nisga’a
government will be agreed upon by the Nisga’a, the province
and Canada outside the treaty.
The Nisga’a government will also receive
revenue for programs and services through taxation of Nisga’a
citizens. Potential improvements to economic and social conditions
brought about by Nisga’a service delivery could result in
reductions to the number and expense of government programs provided
to the Nisga’a.
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Nisga'a Final
