The Dominion - gas

What if Natives Stop Subsidizing Canada?

Tim McSorley — Tue, 08 Jan 2013 17:01:13 +0000

This piece was originally posted on the Media Co-op. For more #IdleNoMore coverage, click here.

MONTREAL—There is a prevailing myth that Canada's more than 600 First Nations and native communities live off of money—subsidies—from the Canadian government. This myth, though it is loudly proclaimed and widely believed, is remarkable for its boldness; widely accessible, verifiable facts show that the opposite is true.

Indigenous people have been subsidizing Canada for a very long time.

Conservatives have leaked documents in an attempt to discredit chief Theresa Spence, currently on hunger strike in Ottawa. Reporters like Jeffrey Simpson and Christie Blatchford have ridiculed the demands of native leaders and the protest movement Idle No More. Their ridicule rests on this foundational untruth: that it is hard-earned tax dollars of Canadians that pays for housing, schools and health services in First Nations. The myth carries a host of racist assumptions on its back. It enables prominent voices like Simpson and Blatchford to liken protesters' demands to "living in a dream palace" or "horse manure," respectively.

It's true that Canada's federal government controls large portions of the cash flow First Nations depend on. Much of the money used by First Nations to provide services does come from the federal budget. But the accuracy of the myth ends there.

On the whole, the money that First Nations receive is a small fraction of the value of the resources, and the government revenue that comes out of their territories. Let's look a few examples.

Barriere Lake

The Algonquins of Barriere Lake have a traditional territory that spans 10,000 square kilometres. For thousands of years, they have made continuous use of the land. They have never signed a treaty giving up their rights to the land. An estimated $100 million per year in revenues are extracted every year from their territory in the form of logging, hydroelectric dams, and recreational hunting and fishing.

And yet the community lives in third-world conditions. A diesel generator provides power, few jobs are available, and families live in dilapidated bungalows. These are not the lifestyles of a community with a $100 million economy in its back yard. In some cases, governments are willing to spend lavishly. They spared no expense, for example, sending 50 fully-equipped riot police from Montreal to break up a peaceful road blockade with tear gas and physical coercion.

Barriere Lake is subsidizing the logging industry, Canada, and Quebec.

The community isn't asking for the subsidies to stop, just for some jobs and a say in how their traditional territories are used. They've been fighting for these demands for decades.

Attawapiskat

Attawapiskat has been in the news because their ongoing housing crisis came to the attention of the media in 2011 (MP Charlie Angus referred to the poverty-stricken community as "Haiti at 40 below"). More recently, Chief Theresa Spence has made headlines for her ongoing hunger strike. The community is near James Bay, in Ontario's far north.

Right now, DeBeers is constructing a $1 billion mine on the traditional territory of the Āhtawāpiskatowi ininiwak. Anticipated revenues will top $6.7 billion. Currently, the Conservative government is subjecting the budget of the Cree to extensive scrutiny. But the total amount transferred to the First Nation since 2006—$90 million—is a little more than one percent of the anticipated mine revenues. As a percentage, that's a little over half of Harper's cut to GST.

Royalties from the mine do not go to the First Nation, but straight to the provincial government. The community has received some temporary jobs in the mine, and future generations will have to deal with the consequences of a giant open pit mine in their back yard.

Attawapiskat is subsidizing DeBeers, Canada and Ontario.

Lubicon

The Lubicon Cree, who never signed a treaty ceding their land rights, have waged a decades-long campaign for land rights. During this time, over $14 billion in oil and gas has been removed from their traditional territory. During the same period, the community has gone without running water, endured divisive attacks from the government, and suffered the environmental consequences of unchecked extraction.

Sour gas flaring next to the community resulted in an epidemic of health problems, and stillborn babies. Moose and other animals fled the area, rendering the community's previously self-sufficient lifestyle untenable overnight. In 2011, an oil pipeline burst, spilling 4.5 million litres of oil onto Lubicon territory. The Lubicon remain without a treaty, and the extraction continues.

The Lubicon Cree are subsidizing the oil and gas sector, Alberta and Canada.

What will Canada do without its subsidies?

From the days of beaver trapping to today's aspirations of becoming an energy superpower, Canada's economy has always been based on natural resources. With 90% of its settler population amassed along the southern border, exploitation of the land's wealth almost always happens at the expense of the Indigenous population.

Canada's economy could not have been build without massive subsidies: of land, resource wealth, and the incalculable cost of generations of suffering.

Overall numbers are difficult to pin down, but consider the following: Canadian governments received $9 billion in taxes and royalties in 2011 from mining companies, which is a tiny portion of overall mining profits; $3.8 billion came from exports of hydroelectricity alone in 2008, and 60 per cent of Canada's electricity comes from hydroelectric dams; one estimate has tar sands extraction bringing in $1.2 trillion in royalties over 35 years; the forestry industry was worth $38.2 billion in 2006, and contributes billions in royalties and taxes.

By contrast, annual government spending on First Nations is $5.36 billion, which comes to about $7,200 per person. By contrast, per capita government spending in Ottawa is around $14,900. By any reasonable measure, it's clear that First Nations are the ones subsidizing Canada. (2005 figures; the amount is slightly higher today.)

These industries are mostly take place on an Indigenous nation's traditional territory, laying waste to the land in the process, submerging, denuding, polluting and removing. The human costs are far greater; brutal tactics aimed at erasing native peoples' identity and connection with the land have created human tragedies several generations deep and a legacy of fierce and principled resistance that continues today.

Canada has developed myriad mechanisms to keep the pressure on and the resources flowing. But policies of large-scale land theft and subordination of peoples are not disposed to half measures. From the active violence of residential schools to the targetted neglect of underfunded reserve schools, from RCMP and armed forces rifles to provincial police tear gas canisters, the extraction of these subsidies has always been treated like a game of Risk, but with real consequences.

Break the treaty, press the advantage, and don't let a weaker player rebuild.

Idle? Know More.

The last residential school was shut down in 1996. Canadians today would like to imagine themselves more humane than past generations, but few can name the Indigenous nations of this land or the treaties that allow Canada and Canadians to exist.

Understanding the subsidies native people give to Canada is just the beginning. Equally crucial is understanding the mechanisms by which the government forces native people to choose every day between living conditions out of a World Vision advertisement and hopelessness on one hand, and the pollution and social problems of short-term resource exploitation projects on the other.

Empathy and remorse are great reasons to act to dismantle this ugly system of expropriation. But an even better reason is that Indigenous nations present the best and only partners in taking care of our environment. Protecting our rivers, lakes, forests and oceans is best done by people with a multi-millenial relationship with the land.

As the people who live downstream and downwind, and who have an ongoing relationship to the land, Cree, Dene, Anishnabe, Inuit, Ojibway and other nations are among the best placed and most motivated to slow down and stop the industrial gigaprojects that are threatening all of our lives.

Movements like Idle No More give a population asleep at the wheel the chance to wake up and hear what native communities have been saying for hundreds of years: it's time to withdraw our consent from this dead end regime, and chart a new course.

Dru Oja Jay is a writer, organizer, Media Co-op co-founder. Co-author of Paved with Good Intentions and Offsetting Resistance.

Barriere Lake Protest

DeBeers Victor Mine

In BC, Pipes Spell Double Trouble

Moira Peters — Mon, 20 Jun 2011 09:01:27 +0000

KSL gas pipeline is low profile, high threat

VANCOUVER—The struggle against the proposed Enbridge pipeline, which has galvanized First Nations throughout northern BC and earned popular support from people across the country, has become one of the highest profile Indigenous and environmental issues in Canada. Concerns are mounting that in Enbridge's shadow, other energy projects are slipping under the radar—with potentially explosive consequences.

The Kitimat Summit Lake (KSL) gas pipeline, also called the Pacific Trails Pipeline, is of emerging concern to Wet'suwet'en land defenders and local residents. If built, this pipeline would connect to an existing Westcoast Energy Pipeline at Summit Lake, near the geographical centre of BC, and cut west to Kitimat.

“The general location of the pipeline was the first phase of BC’s new and controversial Energy Corridor discussions; other phases...included the Enbridge oil pipeline from Alberta’s tar sands to Kitimat, which many First Nations strongly opposed in early 2011,” reads a recent report prepared by the BC Tap Water Alliance about the KSL pipeline proposal.

At the western end of the proposed pipeline would sit a brand new Liquid Natural Gas (LNG) port, which is being built by a handful of former Duke Energy insiders on Haisla reserve land at Bish Cove, an area described in media reports as pristine beachfront. First planned as a pipeline to supply the tar sands with natural gas, the project has since been modified to provide an export channel for the emerging shale gas bonanza in northeastern BC and Alberta.

“In 2004, for all of the energy processes in North America, we didn’t have enough gas,” said Will Koop of the BC Tap Water Alliance. “Now they want to export this gas, they want to change the direction of the import gas proposal from Kitimat to the tar sands and reverse it,” Koop told The Dominion.

The proposed KSL pipeline would be almost 500 kilometres in length and 91 centimetres in diameter; it would also be flanked by an 18-metre right-of-way on each side. The project has quietly received approval from both the federal and provincial governments, and is awaiting the final nod from the National Energy Board, the federal agency that oversees oil and gas projects in Canada.

“Nobody showed up for the first open house in Houston—three people I think—so they cancelled all the other open houses. There was never another open house on the KSL pipeline,” said Glenda Ferris, a long time environmentalist who lives in the Buck Creek Valley near Houston BC. “There was never even a news article about this pipeline in the local papers...They did this all under the table,” she said.

In February 2011, Vancouver-based Pacific Northern Gas sold its stake in the KSL project to the Houston-based Apache Corporation and EOG Resources (formerly Enron).

Ferris is not alone in feeling left in the dark about the plans to build the KSL pipeline.

In early April 2011, Freda Huson, a spokesperson for the Unist'hot'en Clan of the Wet'suwet'en, received a letter from Pacific Trails Pipeline, indicating that the company planned to put drilling pads on the site of her family’s camp. A week later, Huson visited the location, the company having neglected to seek permission or prior consent from her clan as traditional land owners.

On the site, Huson noted fluorescent ribbons inscribed with the words “Pacific Trails Pipelines” hanging from tree branches, marking the path the pipeline would follow. Enraged, Huson took down the ribbons, and returned the next day with members of her family to build a makeshift fence around the area.

These days, Huson is entertaining the idea of moving into a cabin on-site so that she can keep a closer eye on what is happening on the land she says her family has depended on for trapping and fishing for hundreds of years.

“I received a telephone call and they said they were wanting to meet with us, because we told them they were not coming in, and we would block them,” said Huson, referring to her last interaction with one of the pipeline companies.

Unlike in the case of the Enbridge pipeline, elected officials from the 14 First Nations along the KSL pipeline path have already agreed to the project. Some have received incentives, including employment for band members, for agreeing to the project. The Haisla Nation did not respond to a request for an interview before press time.

The cumulative impacts of the infrastructure connected to the KSL pipeline will be enormous, and range from LNG terminal and storage areas near the coast to the massive shale gas projects in northeastern BC, which are slated to use a significant portion of the energy generated by the proposed Site-C dam. A recent study from Cornell University indicates that natural gas extracted from shale through a process known as hydraulic fracturing (“fracking”) may actually release more carbon emissions in the long run than coal or oil.

Oil and gas pipelines running side by side also make a dangerous combination.

East of the Morice River, lying to the west of the town of Smithers, BC, a significant distance separates the proposed route of the Enbridge oil pipeline and that of KSL. However, closer to the river as well as to the west, the proposed pipelines would run side by side.

“When they go up the Morice and through the coast mountains to Kitimat, they’re right on top of each other,” said Ferris. “The basic probability of failure is an explosion, why would you ever allow an oil pipeline to be built next to the KSL pipeline?"

“I’ve never seen Enbridge acknowledge the KSL pipeline,” she said, “and what hazard the KSL pipeline is going to pose to an oil pipeline.”

Enbridge did not return this reporter’s request for an interview before press time.

Dawn Paley is a journalist in Vancouver.

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