Cutbacks force Native Outreach to close Ft. McMurray office

Page 3

The Native Outreach Association of Alberta has closed its Fort McMurray regional office, effective March 31, 1987. The decision to terminate career and employment services in Fort McMurray is due to the latest financial cutback of $67,569. This cutback has forced the Association's Board of Directors to act promptly alleviating some uncertainties within the organization.

The Native Outreach Association of Alberta is a service organization designed to provide career and employment placement services for Native people of Alberta ? off-reserve Indians, Metis and non-Status.

The Association is funded by Alberta Career Development. Minister Rick Orman informed Native Outreach representatives that the decision to reduce the Association's budget is non-negotiable. The minister made a commitment to review the association's financial counter-proposal and to consult with Minister Connie Osterman, Social Services; and Minister Ken Rostad, Solicitor General.

The economic variables outside the budget restraint, contributing to the decision to shut down Native Outreach's services in Fort McMurray are:

(1) the world price for oil is low and marketing trend of oil is unstable;

(2) the instability of oil is forcing a down-turn in Alberta's energy industry;

(3) the overall economy of Alberta is on a downward trend;

(4) bleak economic projections by Syncrude and Suncor;

(5) industries are streamlining operations;

(6) expansion plans by major and minor oil contractors are shelves; and

(7) spin-off and secondary industries are encountering financial instability.

Interpreting the variables to the decision simply means very little employment placement opportunities in the hard pressed area of Fort McMurray. This particular region, (due to its reliance on the energy development) is encountering drastic ramifications from the low world oil prices.

This reality compounded with the downward trend of the overall economy in Alberta is hurting all sectors of business in the region. One direct ramification of this is the lack of employment opportunities in the area.

The president of Native Outreach Association of Alberta, Don Logan, cites this decision as " regrettable and unfortunate." Don Logan, serving his ninth year as president, acknowledged the Fort McMurray's operational track record and its achievements in providing career and employment placement services to the Native people.

To reiterate this recognition, Logan paid tribute to the office's "viability" and its significant "contributions" toward the career and employment placement needs of the Native people.

This decision to shut down Fort McMurray is an interim measure. The Board of Directors and administrators of Native Outreach will monitor the economic trend in the area and will provide liaison services to the Native community.