Thank you, Mr. Chair.

Good day, everyone. My name is Karen Restoule. I'm from Dokis First Nation, with relations in Nipissing and Temagami first nations. I'm pleased to join you here today to discuss the barriers to economic development and success among indigenous people.

As we know, the procurement strategy for aboriginal business, or PSAB, was introduced in 1996 by the Chrétien government. It held the following policy objectives, which I researched just out of curiosity: to increase indigenous participation in federal procurement, to promote business development, to enhance economic opportunities, to create employment and to support economic self-sufficiency for indigenous communities. When it comes to policy, I'm continuously motivated by one key question: What are the results? In the case of the procurement policy, have these five objectives been met?

I dove into the data. It appears that at the time of the introduction of the policy, there was little data on indigenous participation in federal procurement, although it was clear that the Indian Act and other barriers had resulted in very low participation rates. The aboriginal business survey conducted by StatsCan in 1996 gathered information from roughly 2,500 indigenous business owners across the country. It's my understanding that there were roughly 20,000 indigenous businesses at the time.

By 2018 the number of indigenous-owned businesses had grown to about 62,000. This data was shared by the Canadian Council for Indigenous Business. Most recent estimates suggest that there are now over 70,000 indigenous-owned businesses in Canada. As it relates to federal contracts, my understanding is that in the last fiscal year, $1.6 billion for indigenous businesses was noted by the federal government, representing 6.27% of total federal procurement and exceeding the mandatory 5% target.

On face value, this data, albeit limited, shows growth in entrepreneurship among indigenous people across Canada. However, we now have a strong and compelling reason to question the validity of this data, given the rise in appropriation of indigenous identity, also referred to as pretendianism, and the rise in fraudulent bids, all done to gain access to and advantages in federal procurement opportunities. It is an understatement to point out that this issue undermines the integrity of programs like PSAB, disadvantages genuine indigenous entrepreneurs and disrespects the public dollar.

While the federal government maintains the indigenous business directory, which requires proof of majority indigenous ownership, these measures, in my view, are not sufficient. Strengthening the verification processes and ensuring swift consequences for non-compliance are critical to preserving trust, not only in indigenous procurement programs but also in government as an institution. I look forward to the findings and recommendations of this committee, of the Auditor General and of anyone else who is involving themselves in correcting the course here and getting us back on track.

My next point is that, beyond procurement, I believe the question of the capacity and capabilities of indigenous entrepreneurs and businesses has not yet really been fully covered in our discussions to date. The increased number of indigenous-owned businesses alone does not necessarily translate to economic competitiveness or sustainability. It's one thing to have many indigenous businesses, but the reach of those businesses should also be discussed. This, to me, is critical for rebuilding what I believe to be the bold and successful entrepreneurship that once thrived among indigenous people across these lands before being stifled by the robust imposition of the Indian Act.

I have just a few observations on this point. As it relates to skills development and expertise, indigenous businesses have expanded into diverse industries like tech, finance and energy. However, access to training, mentorship and certification is still limited, which constrains growth and competitiveness.

Access to capital, I believe, has been discussed at length. I won't reiterate.

With regard to emerging markets, indigenous businesses are beginning to participate in global and tech-forward industries, but more support is needed to foster innovation and entry into these markets.

With regard to scalability and sustainability, while community-owned enterprises and indigenous economic development corporations are growing, individual businesses often struggle to scale. Greater access to supply chains, procurement opportunities, and partnerships is key. It's worth mentioning that in terms of governance and sovereignty, self-governing nations and indigenous organizations are leading major projects, but inconsistent governance models and limited capacity-building efforts hinder progress on that end.

Finally, there is measurement of success. I'm a huge fan of metrics. They really are the only way to measure results.

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