First Nations ripe with opportunities

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Hardened hunters know the best game is won by early risers with vision, quick wits, and a sharp read of the land. And savvy business leaders know that these are the keys to success in the '90s.

While Canadian business chants the mantra of free trade with the United States and Mexico, and chases the hot markets of the Pacific Rim, Latin America, the European community and Eastern Europe, there's a huge potential in our own Native land. Canada's First Nations are ready for business, and late entrants may be surprised when they open their eyes to the opportunities.

But access to capital is the single biggest obstacle to tapping the vast potential of the First Nations market. The Indian act must change, and lenders must explore creative solutions - the message was clear at a two-day Native finance conference in Vancouver last week.

A modest crowd of 97 delegates heard an impressive panel of Native and non-Native experts explore the fields of finance law, capital markets and asset allocations at the conference, entitled Financing First Nations: "Investing in Aboriginal Business and Government."

With strong support by such sponsors as the Bank of Montreal, IBM Leasing, the Canadian Imperial Bank of Commerce and Westin Hotels, not a penny of government funding was requested for the conference.

"We try to be self-funding," noted Patrick Green of Vancouver-based Native Investment and Trade Association, organizers of the event.

Delegates and panelists explored various ways of structuring business loans, leases and investment sources, but all agreed that the Indian Act's restriction on Native collateral security is an outmoded impediment that discriminates against Native business.

While Roger Gruben of the Inuvialuit Regional Corp. wowed innovative Aboriginal Global Investment Corp., Six Nations Mohawk Ron Jamieson stole the show by announcing the Bank of Montreal's $500-million First People's Trust.

Gruben's fund provides Native and international investors with the investment expertise of the Inuvialuit Investment Corp. and a stable of five leading management groups, including its partner, the London-based Regent Pacific Group.

"The Asian and Pacific Rim economies are especially attractive for investment," said Gruben, Chairman of the I.R.C. "Our investments in international markets and currencies have netted a return of 25 per cent over the previous recession year."

He told the conference diversification and a conservative mix of risks were the keys to the corporation's success.

"I can count on one hand the Aboriginal communities in Canada who can invest on their own now," Gruben said.

"We recognize the opportunities of First Nations finance, and we're at the forefront of the Native investment market, which is growing rapidly," said Eugene Ferguson, vice-president of Salmon Brothers, the major U.S. investment banking house.

Dean Hay, the general manager of the Nunavut Territories Oikiataaluk Corp. in Iqaluit, provided the strongest commentary at the close of the two-day conference.

"Just as General Motors and Coca-Cola adapt their marketing to the differing cultures of the global marketplace, major corporations must treat the north as a separate and unique market," Hay told Windspeaker. "It's about time that southerners realized the tremendous investment opportunities in Native nations, especially in the north."