Aboriginal Joint Ventures: Top Ten Tips
LSUC-OBA Aboriginal Economic Development
Program: Developing Aboriginal Cooperatives
and Consortiums, June 20, 2012
Timothy J. Murphy
Chief Marketing Partner
tim.murphy@mcmillan.ca
Top Ten Tips
1.
Understand the Legal Underpinning:
1)
2)
Capacity – “persons” and “unincorporated associations” (Man.
vs. Alta.)
Creating binding contracts
1)
2)
3)
Doing business on reserves
1)
4)
Band Council resolutions
No “indoor management” rule
An agreement which permits a non-band member to use or occupy a
reserve is void unless a Ministerial permit is issued.
Enforcement of Remedies
1)
Cannot charge, attach, seize etc assets “on a reserve”
2
Top Ten Tips – Cont’d
2.
Economic Development is Stage 3
1.
3.
Process Matters
1.
2.
4.
Capacity Building and Planning come first
Leave time
Negotiations style – consultative vs. adversarial/relational
Aboriginal Values Need to be Respected
1.
Kinds of Projects:
1.
2.
3.
Socially responsible
Environmentally sustainable
Economically viable
3
Top Ten Tips Cont’d
5.
Long Term Considerations Matter
1.
2.
3.
6.
Seven Generation Principle
Remediation obligations
Historical grievances
The First Nation as Government and as Business
1.
Trying to keep them separate
1.
2.
3.
2.
3.
Government authority on reserve
Paramountcy
Contracting
Keep an eye on politics
Referendum or Council Approval?
4
Top Ten Tips – Cont’d
7.
True Partnership for Success
1.
Sharing:
1.
2.
3.
4.
5.
6.
8.
Authority
Investment
Responsibility
Engagement
Information
Problems (Role of Council, Chief, Elders in the Community)
Understand the Resources Available
1.
2.
3.
Federal and Provincial capacity, funding, cost sharing, loan
programs
Lending programs (Banks)
Participation Agreements
5
Top Ten Tips Cont’d
9.
Contracting with Aboriginal Businesses
1.
2.
3.
4.
5.
Know what works – from unbundling large contracts to a First
Nation GC;
Fairness in contracting (information flow)
Union halls
Bonding/security (project finance)
Domestic content requirements in FIT Contracts
6
Top Ten Tips (Cont’d)
10. Aboriginal Values (Part 2)
1.
2.
3.
4.
5.
6.
7.
Relationships matter
Respect for Elders and community
Collective vs. individual rights and approach
Process vs. time
Sustainability
Short term benefits and long term improvement (distributions
and jobs now and training and capacity later)
Respect for jurisdiction
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McMillan LLP
Timothy J. Murphy
tim.murphy@mcmillan.ca
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