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SPECIAL REPORT
 TD Economics
June 18, 2012


DEBUNKING MYTHS SURROUNDING CANADA’S
ABORIGINAL POPULATION
    We thank the Canadian Council for Aboriginal Business (CCAB), whose re-
    search and insights were instrumental in the preparation of this report.

Highlights	
•	 In recognition and celebration of National Aboriginal Day on June 21st, TD Economics continues its
   tradition of carrying out Aboriginal-related economic research, raising awareness about Aboriginal
   peoples, businesses and communities.  This report represents our third in the series of articles on
   Aboriginal social and economic issues.
•	 In this report we attempt to put to bed ten myths surrounding Canada’s Aboriginal population.  The
   myths were chosen on the basis of misconceptions we encountered while carrying out the research
   on our previous reports.  We also sought insight from organizations like the Canadian Council for
   Aboriginal Business (CCAB) which have community and business reach.
•	 The misperceptions put to rest are broad-based, including: access to free post-secondary education,
   taxation exemption rules, and the prevalence and success of Aboriginal-owned small businesses
   and economic development corporations.

    In celebration of National Aboriginal Day on June 21st, TD Economics continues its tradition of
carrying out Aboriginal-related economic research, raising broader awareness about issues confronting
Aboriginal peoples, businesses and communities. This report represents our third in the series of articles.
The first concluded that the tide had shifted in the right direction for Aboriginal peoples and there was
a renewed spirit of entrepreneurship in the air. In our second article, we noted that Aboriginal people
and businesses were increasingly leaving their mark on the national economic scene. We attached a
$32 billion figure to the size of the Aboriginal market by 2016, higher than the level of nominal GDP of
two Atlantic provinces combined.
    These two reports explored the economic footprint for Aboriginal peoples and how the future might
unfold. To carry out this work, we needed to research the existing body of literature and craft our own
stories with analysis and data in hand. In doing so, we have come across a number of myths about
Aboriginal peoples which simply do not fit reality. These beliefs could influence the way in which the
non-Aboriginal population looks at Aboriginal peoples. In order to set the record straight, we have
compiled a list of ten myths to debunk.
Myth 1: Aboriginal people do not pay taxes.
   Some don’t, some do. According to the Canada Revenue Agency, Aboriginal people pay the same
taxes and are subject to the same tax rules as non-Aboriginals.1 There are a few limited exemptions for
Status Indians which are stated in Section 87 of the Indian Act.2 A Status Indian is generally the member


Derek Burleton, VP & Deputy Chief Economist, 416-982-2514
Sonya Gulati, Senior Economist, 416-982-8063
TD Economics | www.td.com/economics


of an Indian band or community with rights under the Indian
Act to live on reserve, vote for band council and chief, share                                           ABORIGINAL PEOPLES PRESENT IN EVERY
                                                                                                               PROVINCE AND TERRITORY
in band monies, and have an interest in property on reserve.
                                                                                            Estimated	Population	for	2012,	000s
Approximately half of the one million people who identify                                    350
themselves as Aboriginal are classified as Status Indian.                                    300
Those Aboriginal people who are Inuit or Métis pay the
                                                                                             250
same taxes as anyone else in Canada.
    According to legislation, the personal property of an In-                                200

dian or a band situated on a reserve is exempt from taxation.                                150

In court rulings, this provision has historical roots and is                                 100
intended to preserve entitlement to the land.3 Employment                                     50
income while working on a reserve also can be tax exempt.
                                                                                               0
However, location of work and residence of employees are                                            NL    PE   NS    NB   QC    ON   MB      SK    AB    BC   YK   NT   NU
two examples of criteria used to assess whether the indi-                                    Note:	2012	estimates	by	TD	Economics	as	of	June	2012.
vidual must pay taxes. The federal Goods and Services Tax                                    Source:	Population	Projections	by	Aboriginal	Identity	in	Canada,	2006	to	2031.

(GST) is not levied for purchases by Status Indians, but in
order to qualify, the purchase must be made on reserve or                                 ary education.6 At present, there are no similar programs
delivered to a reserve by a vendor or the vendor’s agent.                                 for students who identify as Non-Status Indian and Métis.
    Each province has set up policies with regard to tax                                      While post-secondary education support is available to
exemptions for areas under their own jurisdiction. In some                                some Aboriginal students, not everyone who is eligible re-
provinces, like Ontario and Québec, a Status Indian with                                  ceives it. With more demand than funds, some communities
the appropriate accreditation can receive a rebate on the                                 have resorted to limiting applications to only those students
provincial portion of the Harmonized Sales Tax (HST) for                                  who are pursuing their first post-secondary certification.7 In
eligible purchases.4,5                                                                    other cases, they limit eligibility to include those students
                                                                                          who live on reserve while they undertake their studies.7
Myth 2: Aboriginal people do not have to pay for post-
secondary education.                                                                      Myth 3: Almost all Aboriginal people live on reserve
    Some don’t, some do. The federal government does                                      and in rural areas.
provide money to First Nation and Inuit governments for                                       False. Statistics Canada is not scheduled to release up-
students to attend a post-secondary institution. Programs                                 dated data on Aboriginal peoples until mid-2013. However,
have been set up to defray tuition costs, travel costs and                                if we use their most recent population projections, we can
living expenses associated with the pursuit of post second-                               dispel this myth.

          NOTABLE DIFFERENCES IN HIGHER EDUCATION                                                     GREATER REPRESENTATION OF ABORIGINAL
          ATTAINMENT RATES ACROSS ABORIGINAL AND                                                     PEOPLES IN THE TERRITORIES AND THE WEST
                NON-ABORIGINAL POPULATIONS
                                                                                            Aboriginal	Share	of	Total	2012	Population	(%)
  %	of	15+	Population	by	Highest	Level	of	Schooling                                          100
20
                                                                                              90
                                                    Aboriginal
16                                                  Population                                80
                                                                                              70
                                                    Non-Aboriginal
12                                                                                            60
                                                    Population
                                                                                              50
 8
                                                                                              40

 4                                                                                            30
                                                                                              20
 0
                                                                                              10
      Apprenticeship	or College,	CEGEP	or University	Certificate University	Certificate
     Trades	Certificate	or other	Non-University or	Diploma	Below      or	Degree                0
          Diploma              Certificate	or    Bachelor	Level                                    NL    PE    NS   NB QC ON MB         SK    AB    BC   YK   NT   NU   CA
                                 Diploma
                                                                                             Note:	2012	estimates	by	TD	Economics	as	of	June	2012.
 Source:	Statistics	Canada,	2006	Census.                                                     Source:	Population	Projections	by	Aboriginal	Identity	in	Canada,	2006	to	2031.



June 18, 2012                                                                                                                                                                 2
TD Economics | www.td.com/economics


    Aboriginal peoples currently reside in every province
                                                                                       ABORIGINAL-OWNED BUSINESS REGIONAL
and territory. In terms of scale, British Columbia, the Prai-                         DISTRIBUTION MIRRORS NATIONAL PICTURE
ries, and Central Canada are home to the highest number of
                                                                             %	of	SMEs/Aboriginal-Owned	SMEs	by	Region
Aboriginal people. This outcome is not very surprising as                    45
                                                                                          All	SMEs              Aboriginal-Owned	SMEs
these provinces have the most number of Canadians. When                      40

the Aboriginal population is expressed as a share of total                   35

provincial or territorial population, we see that the territories            30

indeed have the highest concentration of Aboriginal resi-                    25

dents. Still, nearly one-in-five Saskatchewan and Manitoba                   20

residents identifies as Aboriginal, which is more than four                  15

times the national average.                                                  10
                                                                              5
    In terms of the on- and off-reserve breakdown, one-
                                                                              0
in-five Aboriginal Canadians lived on reserve in 2011.                                Atlantic            Quebec   Ontario    Prairies      British
In addition to most living off-reserve, the majority of all                                                                                Columbia
                                                                             Note:	Territories	have	been	suppressed	due	to	data	limitations.
Aboriginals (54% in 2011) live in an urban setting. Both                     Source:	Key	Small	Business	Financing	Statistics	-	December	2009
of these shares have been relatively constant over the past
decade, cementing the fact that most Aboriginals are urban
                                                                             From 2001 to 2008, a commodity price boom prevailed
and off-reserve dwellers and have been for some time.
                                                                          and, as a result, there was a major shift in employment and
Myth 4: Aboriginal people are falling further behind in                   economic growth towards the natural resource sector for Ab-
the job market.                                                           original people and communities. Construction projects also
    False. To debunk this myth, we must piece together                    surged, as heightened activity in this sector often goes along
data from the Census and a new publication that reports                   with natural resource development. In 2008, for example,
employment outcomes for Aboriginal people from 2008                       36% of all employed Aboriginal people worked in the goods-
to 2010.8 While these recent data are helpful, the Labour                 producing sector and construction. The unemployment rate
Force Survey does not sample Aboriginal people living                     made significant progress during these years – it dropped
off-reserve or in the territories. In spite of the underlying             from 17.4% in 2001 to 9.3% in 2008. Labour force partici-
data limitations, information leading up to, and immediately              pation rates also increased four percentage points over this
after, the recession allows us to analyze employment trends               timeframe. As we argued in our previous report, enhanced
with the global economic downturn in mind. Unfortunately,                 job opportunities allowed Aboriginal people to grow their
Statistics Canada has not yet published Aboriginal labour                 economic footprint and improve their income prospects.9
force data beyond 2010.                                                      Some of the employment and income gains seen during

          ABORIGINAL LABOUR OUTCOMES IMPROVING                                        OUT-SIZED POPULATION GROWTH EXPECTED
   %       AFTER BEING HARD HIT BY THE RECESSION                     %
                                                                                        FOR ABORIGINAL PEOPLES IN CANADA*
   20                                                                79      1,400

   18     Unemployment	Rate	(lhs)                  Participation	
                                                   Rate	(rhs)        78      1,200
   16
   14                                                                77      1,000

   12                                                                         800
                                                                     76
   10
                                                                              600                                                        2006     2031
                                                                     75
    8
    6                                                                74       400
    4
                                                                     73       200
    2
    0                                                                72           0
           2001        2006         2008        2009         2010                                Indian              Métis                Inuit
                                                                             Note:	*	Relative	to	the	non-Aboriginal	population	growth	average.
  Source:	Statistics	Canada,	Census	2001	and	2006;	The	Aboriginal	
                                                                             Source:	Statistics	Canada,	Catalogue	no.	91-552-X
  Labour	Force	Analysis	Series,	Publication:	71-588-XWE.	



June 18, 2012                                                                                                                                            3
TD Economics | www.td.com/economics



          ABORIGINAL BUSINESSES SERVICE CLIENTS IN                                        HEALTHY EXPECTATIONS FOR FUTURE GROWTH
                NORTH AMERICA AND ABROAD                                                             AMONG BUSINESSES
     In	countries	other
                                                                                   %	of	Respondents	by	Expectations	of	Growth	in	Sales	Revenue	in	2	Years
   than	Canada/United
                                                                                   80
          States                                                                                71
                                                                                   70
   In	the	United	States
                                                                                   60
           In	other
   territories/provinces                                                           50
         in	Canada
                                                                                   40
      In	other	parts	of
      province/territory                                                           30
                                                                                                                             23
           Within	local                                                            20
           community
                                                                                   10                                                                    6
                           0    20        40         60        80        100
                               %	of	survey	respondents	by	location	of	clients        0
                                                                                                   Yes                       No                    No	Answer
 Source:	Canadian	Council	for	Aboriginal	Business:	Promise	&	Prosperity.
                                                                                   Source:	Canadian	Council	for	Aboriginal	Business:	Promise	&	Prosperity.



the early part of the decade were given back with the onset                     to the Canadian Council of Aboriginal Business, there were
of the global financial crisis. Aboriginal communities were                     approximately 262 active EDCs in Canada in 2010.9 We do
hit particularly hard given their out-sized exposure to the                     not have more recent data than 2010, but we suspect that
primary sector: the Aboriginal jobless rate hit 11.6% in                        there are roughly 275 of these firms up and running today.
2009 and the labour market participation rate fell by a half
                                                                                Myth 6: Even if there are Aboriginal businesses,
percentage point. The data show that this deterioration was
                                                                                they’re not very successful.
temporary, with 2010 numbers bouncing back with some
vigour. If we were to forecast out these measures to the                            False. The Aboriginal Business Survey provides some
present, both should be close to 2008 levels.                                   insight on the success of Aboriginal-owned businesses.11
    The past decade cements the idea that Aboriginal people                     Most have only a handful of employees and operate in an
are increasingly participating in the market economy. Both                      environment which they define as highly competitive. Even
the labour market participation rate and unemployment rate                      with these headwinds, the majority of firms are profitable –
are better today than where they stood in 2001. These trends                    six in ten reported a profit in 2010 and a third managed to
demonstrate real progress in a relatively short period of time.                 boost annual revenues in 2010 despite the global downturn.
                                                                                Last but not least, roughly half of survey respondents labeled
Myth 5: Very few Aboriginal people start their own
business.
                                                                                          ABORIGINAL BUSINESSES REPRESENTED WELL
    False. Roughly 2% of all small and medium-sized en-                                               ACROSS SECTORS
terprises (SMEs) are operated by Aboriginal entrepreneurs,                                  Other	services
slightly lower than the 3.8% share of Aboriginals in the                           Arts,	entertainment	and
population.10 Even so, this translates into approximately                                   food*

32,000 businesses, both on- and off-reserve. The data also                         Professional/Scientific**

suggest that women play an important role in Aboriginal-                              Wholesale	and	retail
                                                                                            trade                                            Non-Aboriginals
owned businesses – 51% of these firms belonged entirely                                Manufacturing	and

or partly to women, while the Canadian average was 47%.                                  transportation                                      Aboriginals
                                                                                              Construction
    The count of Aboriginal SMEs is conservative, as it
does not include firms who are incorporated under pro-                                             Primary

vincial and territorial charter. It also does not capture the                                                  0   5    10     15     20     25     30       35     40
                                                                                                                                     %	of	entrepreneurs	by	sector
number of economic development corporations (EDCs) or
                                                                                 Note:	*	Also	includes	technical	services,	education,	health	and	social.	**	Also	
community-owned enterprises which have become a more                             includes	accommodation	and	cultural.
popular business model over the past decade.10 According                         Source:	Canadian	Council	for	Aboriginal	Business:	Promise	&	Prosperity.



June 18, 2012                                                                                                                                                            4
TD Economics | www.td.com/economics


their business a success. Interestingly, the criteria used to      as stipulated by the Indian Act. Aboriginal Financial Insti-
make this assessment were not just based on dollars and            tutions (AFIs) across the country sprung up to fill the gap
cents, but other factors like personal satisfaction with their     and provided access to loans where needed. The National
line of profession and having a steady client base.                Aboriginal Capital Corporations Association estimates that
    The future for Aboriginal entrepreneurs also looks bright      since the late 1980s, AFIs have provided over $1.3 billion in
as seven in ten survey respondents anticipated revenue             financing and 30,000 loans to Aboriginal small businesses.14
growth over the next two years. This same proportion also          Myth 8: Aboriginal communities are protected by
thinks they will be at the helm of their business in five years.   government Treaties – which pretty much guarantee
In addition, the growth rate of Aboriginals in self-employed       their economic and political rights.
positions is exceeding that of non-Aboriginals. This trend,
                                                                       Yes and no. A treaty is a negotiated, written agreement
combined with the rapid growth and success of the economic
                                                                   which defines the rights and responsibilities for all parties
development corporation business model, suggests that the
                                                                   involved. Issues resolved in treaties include land owner-
number of Aboriginal-owned SMEs should continue to
                                                                   ship, governance structures, wildlife and environment
increase. While barriers to competitiveness remain for this
                                                                   management, financial benefits and taxation rights.15 More
group of entrepreneurs, many are finding ways to overcome
                                                                   generally, agreements can sometimes capture the spiritual,
these challenges. An example of an innovative solution is
                                                                   philosophical and cultural views of those Aboriginal com-
the urban reserve near Saskatoon which is home to many
                                                                   munities involved. Eleven historical treaties were signed
Aboriginal and non-Aboriginal businesses.12
                                                                   from 1871-1921 covering much of Canada, except British
Myth 7: Aboriginal businesses are simply riding the                Columbia, Québec and Newfoundland and Labrador. 16
coattails of the resource sector.                                  There are twenty comprehensive land claims settled since
    False. Roughly 13% of all Aboriginal-owned small               1973, involving 96 communities and over 70,000 Aboriginal
and medium-sized businesses in 2010 were directly linked           people. These claims have involved 4,106,958 square kilo-
with the primary sector, which includes agriculture, for-          metres in settlement land and $2 billion in settlement dollars.
estry, mining, and oil and gas extraction.11 Given a period            Recent court decisions highly recommend that treaties be
of relatively strong commodity prices and an increase in           negotiated with government and Aboriginal communities to
resource exploration, many First Nation, Inuit and Métis           bring greater certainty to land use and to ensure a clear defi-
communities have reaped the economic benefits.                     nition of rights and responsibilities has been agreed upon. At
    Despite the emphasis on natural resources, Aboriginal          present, not all Aboriginal communities have either histori-
entrepreneurs are operating successful businesses across           cal or modern-day agreements in place – most are situated
all industries. In fact, the majority of Aboriginal-owned          in British Columbia. For instance, 60% of all First Nations
establishments are linked to service-producing sectors like        (or 116 communities) in the province are not governed by
construction and business services.                                a treaty. Negotiations with senior Aboriginal leaders and
                                                                   Crown representatives are ongoing. It can often take years
    In addition to being diversified in terms of area of focus,
                                                                   for one agreement to be signed. The British Columbia
business owners are filling niches in the marketplace which
                                                                   government estimates that the total benefits from signed
were victim to gaps or previously viewed as uncompetitive.
                                                                   treaties, including increased investment, could reach $50
For example, Inuit Air is a regional airline company which
                                                                   billion, or $1-2 billion per year for the next 20-25 years.17
began in the mid-1970s shortly after the first modern land
claims’ agreement was signed.13 The company now em-                Myth 9: Aboriginal people receive a huge, immediate
ploys roughly 500 people and services Northern Québec – a          boost to their income when they settle a claim.
region which lies at the heart of the Québec government’s
                                                                       Not always. In settling a land claim, governments often
Plan Nord initiative.
                                                                   use different payment methods: cash and other consider-
    There are many other examples of innovation in Ab-             ations such as economic development initiatives.18 With
original-owned businesses outside the resource sector. A           land claim settlements, many Aboriginal communities are
case in point is access to credit for businesses on reserve        able to seek out opportunities for economic prosperity while
which was once an issue. This is because real and personal         offering their community members a more stable and certain
property on a reserve cannot be used as collateral for a loan      future. It has been estimated that yet-to-be-settled compre-

June 18, 2012                                                                                                                   5
TD Economics | www.td.com/economics



        REPRESENTATION CONTINUES TO LAG BEHIND                                           REPRESENTATION OF ABORIGINAL PEOPLES IN
           AVAILABILITY OF ABORIGINAL PEOPLES                                             PRIVATE INDUSTRY GRADUALLY IMPROVING
 %	of	People	who	Identify	as	Aboriginal                                           %	of	People	who	Identify	as	Aboriginal	by	Sector
  3.5                                                                              3.5

  3.0                                                                              3.0

  2.5                                                                              2.5

  2.0                                                                              2.0

  1.5                                                                              1.5

  1.0                                                                              1.0
                        Availability                    Representation
                                                                                   0.5                   Banking                            Communications
  0.5
                                                                                                         Transportation                     Other
  0.0                                                                              0.0
        1996     1998       2000       2002      2004        2006        2008            1997      1999        2001         2003        2005           2007
 Note:	Captures	federally-regulated	employers.                                    Source:	Canadian	Human	Rights	Commission	-	Impact	of	the	Employment
 Source:	Canadian	Human	Rights	Commission.                                        Equity Act 	&	of	the	CHRC	Employment	Equity	Program	over	the	Years.



hensive and specific land claims could yield $9-$13 billion.19                  employed) was 66%. This share is fifteen percentage points
    The financial portion of a comprehensive claim is usu-                      lower than the comparable statistic posted by non-Aboriginal
ally handed over to the community over 12-15 years, while                       people. Noticeable differences between the two groups of
specific land claims are paid as a lump sum. However, this                      individuals is also seen when we review the unemployment
money is rarely a flow through transfer from the federal                        rate measure: for Aboriginals it stood at 12.3%, almost
government to an individual Aboriginal person. Instead,                         double the number recorded for non-Aboriginals.8
the Aboriginal government often directs these funds be                              The different labour outcomes among Aboriginals and
placed in a Trust.                                                              non-Aboriginals suggest that the former are under-repre-
    Although settlement funds are paid to the Aboriginal                        sented in the labour market. To achieve better equality in
government (and placed in a Trust), there is often a per                        the workplace, the Employment Equity Act was enacted in
capita distribution payment made to all registered commu-                       the late 1980s to help increase the representation of four
nity members at the time of the settlement then living, both                    designated groups: women, Aboriginal peoples, persons with
on- and off-reserve. Adults receive their payment immedi-                       disabilities, and members of a visible minority. Federally-
ately, while payments to Minors are deferred (held in trust)                    regulated private sector firms,20 Crown corporations, and
until the person reaches the age of majority. The decision                      much of the federal public service are just some of the
to distribute per capita payments is made throughout the                        employers governed by this legislation.21 Each firm must
settlement process. Any per capita money must be stated
                                                                                          PUBLIC SECTOR REPRESENTATION EXCEEDS
in the agreement itself and the decision must be ratified by a                              THE PRIVATE SECTOR FOR ABORIGINALS
community vote. The reason for these up-front payments is                         %	of	People	who	Identify	as	Aboriginal	by	Sector
that it usually takes many years to settle a claim. In addition,                   4.5

given that the Trust is meant to be a long term benefit to all                     4.0

current and future generations of members, the Aboriginal                          3.5

government usually recommends a one time immediate                                 3.0

payment to share in the celebration of the settlement with                         2.5

all its members.                                                                   2.0

                                                                                   1.5
Myth 10: There is a quota system for how many
                                                                                   1.0
Aboriginal people must be hired by Canadian                                                               Public	Sector                     Private	Sector
                                                                                   0.5
employers.
                                                                                   0.0
  False. At the end of 2010, the employment rate of                                      1996     1998       2000         2002       2004       2006          2008
Aboriginal people (the per cent of the adult population                           Source:	Canadian	Human	Rights	Commission.



June 18, 2012                                                                                                                                                        6
TD Economics | www.td.com/economics


adhere to reporting requirements and is responsible for          Myths equal misperceptions
showing “reasonable progress” on increasing representation
                                                                     There are many myths surrounding Canada’s Aboriginal
of these groups.22
                                                                 population and they encompass a wide range of areas. In this
    Since the implementation of the legislation, progress has    report, we have assembled the necessary facts and figures
indeed been made – representation of Aboriginal people in        to debunk just ten – many more exist. Misperceptions like
the federally-regulated workforce has increased steadily         these can lead to a lack of understanding about Aboriginal
from 1.5% in 1996 and 2.5% in 2008.23 In the public sector,      communities or underlying Aboriginal socio-economic
Aboriginal peoples were well represented overall in 2008         conditions. In addition, non-Aboriginals may think of the
compared to the private sector.23 Certain industries like        Aboriginal community as one homogenous group, forget-
transportation and communication have made important             ting that many have their own unique history, culture and
strides over the past decade. It is important to stress that     traditions. Myths could also distort non-Aboriginal thinking
takeaways from these statistics should be made with cau-         about the effectiveness of government programs targeted
tion as the definition surrounding Aboriginal ancestry and       to the Aboriginal community or the appropriate policy to
identity changed in different Census iterations.                 improve certain indicators such as labour market participa-
    Representation and availability of Aboriginal workers        tion. This is unfortunate as there are more than a million
should converge so that their full employment potential          people who identify as Aboriginal in Canada. In addition,
can be secured. However, federally-regulated employers           Aboriginal people are important contributors to our history,
adhere to the equal opportunity principle, such that candi-      culture and values, and the national economic picture.
dates for a position must be judged without discrimination
and/or bias. This means for a certain hire, managers must                                                Derek Burleton,
choose the best candidate for the position, based on the job                                             Vice President &
description, regardless of race, gender, sexuality and many                                       Deputy Chief Economist
other criteria. With this in mind, and even with employ-                                                    416-982-2514
ment equity legislation in place, there is no quota system for
employers on how many Aboriginal people must be hired.                                                       Sonya Gulati,
                                                                                                         Senior Economist
                                                                 	                                           416-982-8063




June 18, 2012                                                                                                              7
TD Economics | www.td.com/economics


Notes and References
1. “Aboriginal Peoples”, Canada Revenue Agency. < http://www.cra-arc.gc.ca/brgnls/menu-eng.html >
2. Status Indians have their names on the Indian Register (maintained by the federal government) and as such, are recognized as Indians under the
   Indian Act and entitled to certain rights and benefits under the law. Roughly half of the people who identify as Aboriginal are Status Indians and
   included on the Indian Register.
3. Christmas, Bernd. (2010) “Aboriginal Taxation Exemption”, Atlantic Business Magazine, January 6, 2010. < http://www.atlanticbusinessmagazine.
   ca/blogs/aboriginal-taxation-exemption/ >
4. “Ontario Point-Of-Sale Exemption For Ontario Status Indians”, Ontario Ministry of Revenue, June 23, 2010. < http://news.ontario.ca/rev/en/2010/06/
    ontario-point-of-sale-exemption-for-ontario-status-indians.html >
5. “Consumption Taxes”, Revenu Québec. < http://www.revenuquebec.ca/en/citoyen/clientele/indien/taxes.aspx >
6. “Post-Secondary Student Support Program (PSSSP)”, Aboriginal Affairs and Northern Development Canada. < http://www.aadnc-aandc.gc.ca/
    eng/1100100033682#elc >
7. “In-Depth: Aboriginal Canadians, FAQs”, CBC News Online. < http://www.cbc.ca/news/background/aboriginals/faqs.html >
8. Usalcas, Jeannine (2011). “The Aboriginal Labour Force Analysis Series”, Statistics Canada, November 23, 2011. Publication: 71 588-XWE. <
   http://www5.statcan.gc.ca/bsolc/olc-cel/olc-cel?catno=71-588-XWE&lang=eng >
9. Gulati, Sonya and Burleton, Derek. (2011). “Estimating the Size of the Aboriginal Market in Canada: $32 billion in combined income across households,
   businesses and governments by 2016”, June 17,2011, TD Economics. < http://www.td.com/document/PDF/economics/special/sg0611_aboriginal.pdf >
10. “Key Small Business Financing Statistics — December 2009: SME Business Owner Characteristics”, SME Financing Data Initiative, Government
    of Canada. < http://www.sme-fdi.gc.ca/eic/site/sme_fdi-prf_pme.nsf/eng/02178.html#pointf >
11. “Promise and Prosperity: The Aboriginal Business Survey”, Canadian Council for Aboriginal Business in partnership with Environics Research
   Group. < http://www.ccab.com/ >
12. “Urban Reserves in Saskatchewan”, Western Economic Diversification. < http://www.wd.gc.ca/eng/home.asp >
13. “Air Inuit History” < http://www.airinuit.com/en/History.aspx >
14. National Aboriginal Capital Corporations Association < http://www.nacca.net/eng-about.html >
15. Ministry of Aboriginal Relations and Reconciliation, Government of British Columbia, < http://www.gov.bc.ca/arr/treaty/faq.html >
16. “Timelines and Maps”, Aboriginal Affairs and Northern Development Canada, < http://www.aadnc-aandc.gc.ca/eng/1100100032297 >
17. Ministry of Aboriginal Relations and Reconciliation, Government of British Columbia, < http://www.treaties.gov.bc.ca/overview_accomplish.html >
18. Aboriginal Land Claim Settlements, Ministry of Aboriginal Affairs, Ontario Government, < www.ontla.on.ca/library/repository/mon/20000/278014.
    pdf >
19. Burleton, Derek and Drummond, Don (2009). “Aboriginal People in Canada: Growing Mutual Economic Interests Offer Significant Promise for
    Improving the Well-Being of the Aboriginal Population.” TD Economics. June 11, 2009. < http://www.td.com/document/PDF/economics/special/
    td-economics-special-db0609-aboriginal.pdf >
20. A list of these employers can be found here: < http://www.hrsdc.gc.ca/eng/labour/employment_standards/regulated.shtml >
21. “Federally Regulated Private Sector and Crown Corporations”, Human Resources and Skills Development Canada. < http://www.hrsdc.gc.ca/eng/
    labour/equality/employment_equity/private_crown/index.shtml >
22. “Employment Equity Act”, < http://laws-lois.justice.gc.ca/eng/acts/E-5.401/FullText.html >
23. “Impact of the Employment Equity Act and of the CHRC Employment Equity Program over the Years”, Prepared by the Statistical Analysis Unit,
    Employment Equity Compliance Division, March 2010. Canadian Human Rights Commission.


This report is provided by TD Economics. It is for information purposes only and may not be appropriate for other purposes. The report
does not provide material information about the business and affairs of TD Bank Group and the members of TD Economics are not
spokespersons for TD Bank Group with respect to its business and affairs. The information contained in this report has been drawn from
sources believed to be reliable, but is not guaranteed to be accurate or complete. The report contains economic analysis and views,
including about future economic and financial markets performance. These are based on certain assumptions and other factors, and are
subject to inherent risks and uncertainties. The actual outcome may be materially different. The Toronto-Dominion Bank and its affiliates
and related entities that comprise TD Bank Group are not liable for any errors or omissions in the information, analysis or views contained
in this report, or for any loss or damage suffered.


June 18, 2012                                                                                                                                         8

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Debunking Myths Surrounding Canada's Aboriginal Population by TD

  • 1. SPECIAL REPORT TD Economics June 18, 2012 DEBUNKING MYTHS SURROUNDING CANADA’S ABORIGINAL POPULATION We thank the Canadian Council for Aboriginal Business (CCAB), whose re- search and insights were instrumental in the preparation of this report. Highlights • In recognition and celebration of National Aboriginal Day on June 21st, TD Economics continues its tradition of carrying out Aboriginal-related economic research, raising awareness about Aboriginal peoples, businesses and communities. This report represents our third in the series of articles on Aboriginal social and economic issues. • In this report we attempt to put to bed ten myths surrounding Canada’s Aboriginal population. The myths were chosen on the basis of misconceptions we encountered while carrying out the research on our previous reports. We also sought insight from organizations like the Canadian Council for Aboriginal Business (CCAB) which have community and business reach. • The misperceptions put to rest are broad-based, including: access to free post-secondary education, taxation exemption rules, and the prevalence and success of Aboriginal-owned small businesses and economic development corporations. In celebration of National Aboriginal Day on June 21st, TD Economics continues its tradition of carrying out Aboriginal-related economic research, raising broader awareness about issues confronting Aboriginal peoples, businesses and communities. This report represents our third in the series of articles. The first concluded that the tide had shifted in the right direction for Aboriginal peoples and there was a renewed spirit of entrepreneurship in the air. In our second article, we noted that Aboriginal people and businesses were increasingly leaving their mark on the national economic scene. We attached a $32 billion figure to the size of the Aboriginal market by 2016, higher than the level of nominal GDP of two Atlantic provinces combined. These two reports explored the economic footprint for Aboriginal peoples and how the future might unfold. To carry out this work, we needed to research the existing body of literature and craft our own stories with analysis and data in hand. In doing so, we have come across a number of myths about Aboriginal peoples which simply do not fit reality. These beliefs could influence the way in which the non-Aboriginal population looks at Aboriginal peoples. In order to set the record straight, we have compiled a list of ten myths to debunk. Myth 1: Aboriginal people do not pay taxes. Some don’t, some do. According to the Canada Revenue Agency, Aboriginal people pay the same taxes and are subject to the same tax rules as non-Aboriginals.1 There are a few limited exemptions for Status Indians which are stated in Section 87 of the Indian Act.2 A Status Indian is generally the member Derek Burleton, VP & Deputy Chief Economist, 416-982-2514 Sonya Gulati, Senior Economist, 416-982-8063
  • 2. TD Economics | www.td.com/economics of an Indian band or community with rights under the Indian Act to live on reserve, vote for band council and chief, share ABORIGINAL PEOPLES PRESENT IN EVERY PROVINCE AND TERRITORY in band monies, and have an interest in property on reserve. Estimated Population for 2012, 000s Approximately half of the one million people who identify 350 themselves as Aboriginal are classified as Status Indian. 300 Those Aboriginal people who are Inuit or Métis pay the 250 same taxes as anyone else in Canada. According to legislation, the personal property of an In- 200 dian or a band situated on a reserve is exempt from taxation. 150 In court rulings, this provision has historical roots and is 100 intended to preserve entitlement to the land.3 Employment 50 income while working on a reserve also can be tax exempt. 0 However, location of work and residence of employees are NL PE NS NB QC ON MB SK AB BC YK NT NU two examples of criteria used to assess whether the indi- Note: 2012 estimates by TD Economics as of June 2012. vidual must pay taxes. The federal Goods and Services Tax Source: Population Projections by Aboriginal Identity in Canada, 2006 to 2031. (GST) is not levied for purchases by Status Indians, but in order to qualify, the purchase must be made on reserve or ary education.6 At present, there are no similar programs delivered to a reserve by a vendor or the vendor’s agent. for students who identify as Non-Status Indian and Métis. Each province has set up policies with regard to tax While post-secondary education support is available to exemptions for areas under their own jurisdiction. In some some Aboriginal students, not everyone who is eligible re- provinces, like Ontario and Québec, a Status Indian with ceives it. With more demand than funds, some communities the appropriate accreditation can receive a rebate on the have resorted to limiting applications to only those students provincial portion of the Harmonized Sales Tax (HST) for who are pursuing their first post-secondary certification.7 In eligible purchases.4,5 other cases, they limit eligibility to include those students who live on reserve while they undertake their studies.7 Myth 2: Aboriginal people do not have to pay for post- secondary education. Myth 3: Almost all Aboriginal people live on reserve Some don’t, some do. The federal government does and in rural areas. provide money to First Nation and Inuit governments for False. Statistics Canada is not scheduled to release up- students to attend a post-secondary institution. Programs dated data on Aboriginal peoples until mid-2013. However, have been set up to defray tuition costs, travel costs and if we use their most recent population projections, we can living expenses associated with the pursuit of post second- dispel this myth. NOTABLE DIFFERENCES IN HIGHER EDUCATION GREATER REPRESENTATION OF ABORIGINAL ATTAINMENT RATES ACROSS ABORIGINAL AND PEOPLES IN THE TERRITORIES AND THE WEST NON-ABORIGINAL POPULATIONS Aboriginal Share of Total 2012 Population (%) % of 15+ Population by Highest Level of Schooling 100 20 90 Aboriginal 16 Population 80 70 Non-Aboriginal 12 60 Population 50 8 40 4 30 20 0 10 Apprenticeship or College, CEGEP or University Certificate University Certificate Trades Certificate or other Non-University or Diploma Below or Degree 0 Diploma Certificate or Bachelor Level NL PE NS NB QC ON MB SK AB BC YK NT NU CA Diploma Note: 2012 estimates by TD Economics as of June 2012. Source: Statistics Canada, 2006 Census. Source: Population Projections by Aboriginal Identity in Canada, 2006 to 2031. June 18, 2012 2
  • 3. TD Economics | www.td.com/economics Aboriginal peoples currently reside in every province ABORIGINAL-OWNED BUSINESS REGIONAL and territory. In terms of scale, British Columbia, the Prai- DISTRIBUTION MIRRORS NATIONAL PICTURE ries, and Central Canada are home to the highest number of % of SMEs/Aboriginal-Owned SMEs by Region Aboriginal people. This outcome is not very surprising as 45 All SMEs Aboriginal-Owned SMEs these provinces have the most number of Canadians. When 40 the Aboriginal population is expressed as a share of total 35 provincial or territorial population, we see that the territories 30 indeed have the highest concentration of Aboriginal resi- 25 dents. Still, nearly one-in-five Saskatchewan and Manitoba 20 residents identifies as Aboriginal, which is more than four 15 times the national average. 10 5 In terms of the on- and off-reserve breakdown, one- 0 in-five Aboriginal Canadians lived on reserve in 2011. Atlantic Quebec Ontario Prairies British In addition to most living off-reserve, the majority of all Columbia Note: Territories have been suppressed due to data limitations. Aboriginals (54% in 2011) live in an urban setting. Both Source: Key Small Business Financing Statistics - December 2009 of these shares have been relatively constant over the past decade, cementing the fact that most Aboriginals are urban From 2001 to 2008, a commodity price boom prevailed and off-reserve dwellers and have been for some time. and, as a result, there was a major shift in employment and Myth 4: Aboriginal people are falling further behind in economic growth towards the natural resource sector for Ab- the job market. original people and communities. Construction projects also False. To debunk this myth, we must piece together surged, as heightened activity in this sector often goes along data from the Census and a new publication that reports with natural resource development. In 2008, for example, employment outcomes for Aboriginal people from 2008 36% of all employed Aboriginal people worked in the goods- to 2010.8 While these recent data are helpful, the Labour producing sector and construction. The unemployment rate Force Survey does not sample Aboriginal people living made significant progress during these years – it dropped off-reserve or in the territories. In spite of the underlying from 17.4% in 2001 to 9.3% in 2008. Labour force partici- data limitations, information leading up to, and immediately pation rates also increased four percentage points over this after, the recession allows us to analyze employment trends timeframe. As we argued in our previous report, enhanced with the global economic downturn in mind. Unfortunately, job opportunities allowed Aboriginal people to grow their Statistics Canada has not yet published Aboriginal labour economic footprint and improve their income prospects.9 force data beyond 2010. Some of the employment and income gains seen during ABORIGINAL LABOUR OUTCOMES IMPROVING OUT-SIZED POPULATION GROWTH EXPECTED % AFTER BEING HARD HIT BY THE RECESSION % FOR ABORIGINAL PEOPLES IN CANADA* 20 79 1,400 18 Unemployment Rate (lhs) Participation Rate (rhs) 78 1,200 16 14 77 1,000 12 800 76 10 600 2006 2031 75 8 6 74 400 4 73 200 2 0 72 0 2001 2006 2008 2009 2010 Indian Métis Inuit Note: * Relative to the non-Aboriginal population growth average. Source: Statistics Canada, Census 2001 and 2006; The Aboriginal Source: Statistics Canada, Catalogue no. 91-552-X Labour Force Analysis Series, Publication: 71-588-XWE. June 18, 2012 3
  • 4. TD Economics | www.td.com/economics ABORIGINAL BUSINESSES SERVICE CLIENTS IN HEALTHY EXPECTATIONS FOR FUTURE GROWTH NORTH AMERICA AND ABROAD AMONG BUSINESSES In countries other % of Respondents by Expectations of Growth in Sales Revenue in 2 Years than Canada/United 80 States 71 70 In the United States 60 In other territories/provinces 50 in Canada 40 In other parts of province/territory 30 23 Within local 20 community 10 6 0 20 40 60 80 100 % of survey respondents by location of clients 0 Yes No No Answer Source: Canadian Council for Aboriginal Business: Promise & Prosperity. Source: Canadian Council for Aboriginal Business: Promise & Prosperity. the early part of the decade were given back with the onset to the Canadian Council of Aboriginal Business, there were of the global financial crisis. Aboriginal communities were approximately 262 active EDCs in Canada in 2010.9 We do hit particularly hard given their out-sized exposure to the not have more recent data than 2010, but we suspect that primary sector: the Aboriginal jobless rate hit 11.6% in there are roughly 275 of these firms up and running today. 2009 and the labour market participation rate fell by a half Myth 6: Even if there are Aboriginal businesses, percentage point. The data show that this deterioration was they’re not very successful. temporary, with 2010 numbers bouncing back with some vigour. If we were to forecast out these measures to the False. The Aboriginal Business Survey provides some present, both should be close to 2008 levels. insight on the success of Aboriginal-owned businesses.11 The past decade cements the idea that Aboriginal people Most have only a handful of employees and operate in an are increasingly participating in the market economy. Both environment which they define as highly competitive. Even the labour market participation rate and unemployment rate with these headwinds, the majority of firms are profitable – are better today than where they stood in 2001. These trends six in ten reported a profit in 2010 and a third managed to demonstrate real progress in a relatively short period of time. boost annual revenues in 2010 despite the global downturn. Last but not least, roughly half of survey respondents labeled Myth 5: Very few Aboriginal people start their own business. ABORIGINAL BUSINESSES REPRESENTED WELL False. Roughly 2% of all small and medium-sized en- ACROSS SECTORS terprises (SMEs) are operated by Aboriginal entrepreneurs, Other services slightly lower than the 3.8% share of Aboriginals in the Arts, entertainment and population.10 Even so, this translates into approximately food* 32,000 businesses, both on- and off-reserve. The data also Professional/Scientific** suggest that women play an important role in Aboriginal- Wholesale and retail trade Non-Aboriginals owned businesses – 51% of these firms belonged entirely Manufacturing and or partly to women, while the Canadian average was 47%. transportation Aboriginals Construction The count of Aboriginal SMEs is conservative, as it does not include firms who are incorporated under pro- Primary vincial and territorial charter. It also does not capture the 0 5 10 15 20 25 30 35 40 % of entrepreneurs by sector number of economic development corporations (EDCs) or Note: * Also includes technical services, education, health and social. ** Also community-owned enterprises which have become a more includes accommodation and cultural. popular business model over the past decade.10 According Source: Canadian Council for Aboriginal Business: Promise & Prosperity. June 18, 2012 4
  • 5. TD Economics | www.td.com/economics their business a success. Interestingly, the criteria used to as stipulated by the Indian Act. Aboriginal Financial Insti- make this assessment were not just based on dollars and tutions (AFIs) across the country sprung up to fill the gap cents, but other factors like personal satisfaction with their and provided access to loans where needed. The National line of profession and having a steady client base. Aboriginal Capital Corporations Association estimates that The future for Aboriginal entrepreneurs also looks bright since the late 1980s, AFIs have provided over $1.3 billion in as seven in ten survey respondents anticipated revenue financing and 30,000 loans to Aboriginal small businesses.14 growth over the next two years. This same proportion also Myth 8: Aboriginal communities are protected by thinks they will be at the helm of their business in five years. government Treaties – which pretty much guarantee In addition, the growth rate of Aboriginals in self-employed their economic and political rights. positions is exceeding that of non-Aboriginals. This trend, Yes and no. A treaty is a negotiated, written agreement combined with the rapid growth and success of the economic which defines the rights and responsibilities for all parties development corporation business model, suggests that the involved. Issues resolved in treaties include land owner- number of Aboriginal-owned SMEs should continue to ship, governance structures, wildlife and environment increase. While barriers to competitiveness remain for this management, financial benefits and taxation rights.15 More group of entrepreneurs, many are finding ways to overcome generally, agreements can sometimes capture the spiritual, these challenges. An example of an innovative solution is philosophical and cultural views of those Aboriginal com- the urban reserve near Saskatoon which is home to many munities involved. Eleven historical treaties were signed Aboriginal and non-Aboriginal businesses.12 from 1871-1921 covering much of Canada, except British Myth 7: Aboriginal businesses are simply riding the Columbia, Québec and Newfoundland and Labrador. 16 coattails of the resource sector. There are twenty comprehensive land claims settled since False. Roughly 13% of all Aboriginal-owned small 1973, involving 96 communities and over 70,000 Aboriginal and medium-sized businesses in 2010 were directly linked people. These claims have involved 4,106,958 square kilo- with the primary sector, which includes agriculture, for- metres in settlement land and $2 billion in settlement dollars. estry, mining, and oil and gas extraction.11 Given a period Recent court decisions highly recommend that treaties be of relatively strong commodity prices and an increase in negotiated with government and Aboriginal communities to resource exploration, many First Nation, Inuit and Métis bring greater certainty to land use and to ensure a clear defi- communities have reaped the economic benefits. nition of rights and responsibilities has been agreed upon. At Despite the emphasis on natural resources, Aboriginal present, not all Aboriginal communities have either histori- entrepreneurs are operating successful businesses across cal or modern-day agreements in place – most are situated all industries. In fact, the majority of Aboriginal-owned in British Columbia. For instance, 60% of all First Nations establishments are linked to service-producing sectors like (or 116 communities) in the province are not governed by construction and business services. a treaty. Negotiations with senior Aboriginal leaders and Crown representatives are ongoing. It can often take years In addition to being diversified in terms of area of focus, for one agreement to be signed. The British Columbia business owners are filling niches in the marketplace which government estimates that the total benefits from signed were victim to gaps or previously viewed as uncompetitive. treaties, including increased investment, could reach $50 For example, Inuit Air is a regional airline company which billion, or $1-2 billion per year for the next 20-25 years.17 began in the mid-1970s shortly after the first modern land claims’ agreement was signed.13 The company now em- Myth 9: Aboriginal people receive a huge, immediate ploys roughly 500 people and services Northern Québec – a boost to their income when they settle a claim. region which lies at the heart of the Québec government’s Not always. In settling a land claim, governments often Plan Nord initiative. use different payment methods: cash and other consider- There are many other examples of innovation in Ab- ations such as economic development initiatives.18 With original-owned businesses outside the resource sector. A land claim settlements, many Aboriginal communities are case in point is access to credit for businesses on reserve able to seek out opportunities for economic prosperity while which was once an issue. This is because real and personal offering their community members a more stable and certain property on a reserve cannot be used as collateral for a loan future. It has been estimated that yet-to-be-settled compre- June 18, 2012 5
  • 6. TD Economics | www.td.com/economics REPRESENTATION CONTINUES TO LAG BEHIND REPRESENTATION OF ABORIGINAL PEOPLES IN AVAILABILITY OF ABORIGINAL PEOPLES PRIVATE INDUSTRY GRADUALLY IMPROVING % of People who Identify as Aboriginal % of People who Identify as Aboriginal by Sector 3.5 3.5 3.0 3.0 2.5 2.5 2.0 2.0 1.5 1.5 1.0 1.0 Availability Representation 0.5 Banking Communications 0.5 Transportation Other 0.0 0.0 1996 1998 2000 2002 2004 2006 2008 1997 1999 2001 2003 2005 2007 Note: Captures federally-regulated employers. Source: Canadian Human Rights Commission - Impact of the Employment Source: Canadian Human Rights Commission. Equity Act & of the CHRC Employment Equity Program over the Years. hensive and specific land claims could yield $9-$13 billion.19 employed) was 66%. This share is fifteen percentage points The financial portion of a comprehensive claim is usu- lower than the comparable statistic posted by non-Aboriginal ally handed over to the community over 12-15 years, while people. Noticeable differences between the two groups of specific land claims are paid as a lump sum. However, this individuals is also seen when we review the unemployment money is rarely a flow through transfer from the federal rate measure: for Aboriginals it stood at 12.3%, almost government to an individual Aboriginal person. Instead, double the number recorded for non-Aboriginals.8 the Aboriginal government often directs these funds be The different labour outcomes among Aboriginals and placed in a Trust. non-Aboriginals suggest that the former are under-repre- Although settlement funds are paid to the Aboriginal sented in the labour market. To achieve better equality in government (and placed in a Trust), there is often a per the workplace, the Employment Equity Act was enacted in capita distribution payment made to all registered commu- the late 1980s to help increase the representation of four nity members at the time of the settlement then living, both designated groups: women, Aboriginal peoples, persons with on- and off-reserve. Adults receive their payment immedi- disabilities, and members of a visible minority. Federally- ately, while payments to Minors are deferred (held in trust) regulated private sector firms,20 Crown corporations, and until the person reaches the age of majority. The decision much of the federal public service are just some of the to distribute per capita payments is made throughout the employers governed by this legislation.21 Each firm must settlement process. Any per capita money must be stated PUBLIC SECTOR REPRESENTATION EXCEEDS in the agreement itself and the decision must be ratified by a THE PRIVATE SECTOR FOR ABORIGINALS community vote. The reason for these up-front payments is % of People who Identify as Aboriginal by Sector that it usually takes many years to settle a claim. In addition, 4.5 given that the Trust is meant to be a long term benefit to all 4.0 current and future generations of members, the Aboriginal 3.5 government usually recommends a one time immediate 3.0 payment to share in the celebration of the settlement with 2.5 all its members. 2.0 1.5 Myth 10: There is a quota system for how many 1.0 Aboriginal people must be hired by Canadian Public Sector Private Sector 0.5 employers. 0.0 False. At the end of 2010, the employment rate of 1996 1998 2000 2002 2004 2006 2008 Aboriginal people (the per cent of the adult population Source: Canadian Human Rights Commission. June 18, 2012 6
  • 7. TD Economics | www.td.com/economics adhere to reporting requirements and is responsible for Myths equal misperceptions showing “reasonable progress” on increasing representation There are many myths surrounding Canada’s Aboriginal of these groups.22 population and they encompass a wide range of areas. In this Since the implementation of the legislation, progress has report, we have assembled the necessary facts and figures indeed been made – representation of Aboriginal people in to debunk just ten – many more exist. Misperceptions like the federally-regulated workforce has increased steadily these can lead to a lack of understanding about Aboriginal from 1.5% in 1996 and 2.5% in 2008.23 In the public sector, communities or underlying Aboriginal socio-economic Aboriginal peoples were well represented overall in 2008 conditions. In addition, non-Aboriginals may think of the compared to the private sector.23 Certain industries like Aboriginal community as one homogenous group, forget- transportation and communication have made important ting that many have their own unique history, culture and strides over the past decade. It is important to stress that traditions. Myths could also distort non-Aboriginal thinking takeaways from these statistics should be made with cau- about the effectiveness of government programs targeted tion as the definition surrounding Aboriginal ancestry and to the Aboriginal community or the appropriate policy to identity changed in different Census iterations. improve certain indicators such as labour market participa- Representation and availability of Aboriginal workers tion. This is unfortunate as there are more than a million should converge so that their full employment potential people who identify as Aboriginal in Canada. In addition, can be secured. However, federally-regulated employers Aboriginal people are important contributors to our history, adhere to the equal opportunity principle, such that candi- culture and values, and the national economic picture. dates for a position must be judged without discrimination and/or bias. This means for a certain hire, managers must Derek Burleton, choose the best candidate for the position, based on the job Vice President & description, regardless of race, gender, sexuality and many Deputy Chief Economist other criteria. With this in mind, and even with employ- 416-982-2514 ment equity legislation in place, there is no quota system for employers on how many Aboriginal people must be hired. Sonya Gulati, Senior Economist 416-982-8063 June 18, 2012 7
  • 8. TD Economics | www.td.com/economics Notes and References 1. “Aboriginal Peoples”, Canada Revenue Agency. < http://www.cra-arc.gc.ca/brgnls/menu-eng.html > 2. Status Indians have their names on the Indian Register (maintained by the federal government) and as such, are recognized as Indians under the Indian Act and entitled to certain rights and benefits under the law. Roughly half of the people who identify as Aboriginal are Status Indians and included on the Indian Register. 3. Christmas, Bernd. (2010) “Aboriginal Taxation Exemption”, Atlantic Business Magazine, January 6, 2010. < http://www.atlanticbusinessmagazine. ca/blogs/aboriginal-taxation-exemption/ > 4. “Ontario Point-Of-Sale Exemption For Ontario Status Indians”, Ontario Ministry of Revenue, June 23, 2010. < http://news.ontario.ca/rev/en/2010/06/ ontario-point-of-sale-exemption-for-ontario-status-indians.html > 5. “Consumption Taxes”, Revenu Québec. < http://www.revenuquebec.ca/en/citoyen/clientele/indien/taxes.aspx > 6. “Post-Secondary Student Support Program (PSSSP)”, Aboriginal Affairs and Northern Development Canada. < http://www.aadnc-aandc.gc.ca/ eng/1100100033682#elc > 7. “In-Depth: Aboriginal Canadians, FAQs”, CBC News Online. < http://www.cbc.ca/news/background/aboriginals/faqs.html > 8. Usalcas, Jeannine (2011). “The Aboriginal Labour Force Analysis Series”, Statistics Canada, November 23, 2011. Publication: 71 588-XWE. < http://www5.statcan.gc.ca/bsolc/olc-cel/olc-cel?catno=71-588-XWE&lang=eng > 9. Gulati, Sonya and Burleton, Derek. (2011). “Estimating the Size of the Aboriginal Market in Canada: $32 billion in combined income across households, businesses and governments by 2016”, June 17,2011, TD Economics. < http://www.td.com/document/PDF/economics/special/sg0611_aboriginal.pdf > 10. “Key Small Business Financing Statistics — December 2009: SME Business Owner Characteristics”, SME Financing Data Initiative, Government of Canada. < http://www.sme-fdi.gc.ca/eic/site/sme_fdi-prf_pme.nsf/eng/02178.html#pointf > 11. “Promise and Prosperity: The Aboriginal Business Survey”, Canadian Council for Aboriginal Business in partnership with Environics Research Group. < http://www.ccab.com/ > 12. “Urban Reserves in Saskatchewan”, Western Economic Diversification. < http://www.wd.gc.ca/eng/home.asp > 13. “Air Inuit History” < http://www.airinuit.com/en/History.aspx > 14. National Aboriginal Capital Corporations Association < http://www.nacca.net/eng-about.html > 15. Ministry of Aboriginal Relations and Reconciliation, Government of British Columbia, < http://www.gov.bc.ca/arr/treaty/faq.html > 16. “Timelines and Maps”, Aboriginal Affairs and Northern Development Canada, < http://www.aadnc-aandc.gc.ca/eng/1100100032297 > 17. Ministry of Aboriginal Relations and Reconciliation, Government of British Columbia, < http://www.treaties.gov.bc.ca/overview_accomplish.html > 18. Aboriginal Land Claim Settlements, Ministry of Aboriginal Affairs, Ontario Government, < www.ontla.on.ca/library/repository/mon/20000/278014. pdf > 19. Burleton, Derek and Drummond, Don (2009). “Aboriginal People in Canada: Growing Mutual Economic Interests Offer Significant Promise for Improving the Well-Being of the Aboriginal Population.” TD Economics. June 11, 2009. < http://www.td.com/document/PDF/economics/special/ td-economics-special-db0609-aboriginal.pdf > 20. A list of these employers can be found here: < http://www.hrsdc.gc.ca/eng/labour/employment_standards/regulated.shtml > 21. “Federally Regulated Private Sector and Crown Corporations”, Human Resources and Skills Development Canada. < http://www.hrsdc.gc.ca/eng/ labour/equality/employment_equity/private_crown/index.shtml > 22. “Employment Equity Act”, < http://laws-lois.justice.gc.ca/eng/acts/E-5.401/FullText.html > 23. “Impact of the Employment Equity Act and of the CHRC Employment Equity Program over the Years”, Prepared by the Statistical Analysis Unit, Employment Equity Compliance Division, March 2010. Canadian Human Rights Commission. This report is provided by TD Economics. It is for information purposes only and may not be appropriate for other purposes. The report does not provide material information about the business and affairs of TD Bank Group and the members of TD Economics are not spokespersons for TD Bank Group with respect to its business and affairs. The information contained in this report has been drawn from sources believed to be reliable, but is not guaranteed to be accurate or complete. The report contains economic analysis and views, including about future economic and financial markets performance. These are based on certain assumptions and other factors, and are subject to inherent risks and uncertainties. The actual outcome may be materially different. The Toronto-Dominion Bank and its affiliates and related entities that comprise TD Bank Group are not liable for any errors or omissions in the information, analysis or views contained in this report, or for any loss or damage suffered. June 18, 2012 8