Province pulls plug on BANAC

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Seventy Native people will hit the jobless rolls if BANAC can't survive a recent funding slash by the Alberta government, says the company's general manager.

Seven of the 20 businesses BANAC serves will go under if it can't find alternate sources of funding. Said Johan Louw. "That means 70 Natives will lose their jobs and go back on welfare."

He said it makes poor economic sense not to renew funding for BANAC (Business Assistance for Native Albertans Corporation).

He said the government "gets a lot back" by funding BANAC because "people are taken off welfare and start paying business taxes to the government."

The department of Economic Trade and Development funded BANAC, giving it five years to become self-sufficient.

The agreement ended March 30. Economic Trade and Development Minister Peter Elzinga told Windspeaker his department informed BANAC "we would not extend beyond our obligation. We involved ourselves for a specific time period. The self-sufficiency didn't come as quickly as they would have liked, so we gave them $50,000 to help in the transition."

Louw said the concept of self-sufficiency for BANAC "is just wrong." BANAC is a private, non-profit corporation.

"We have a proven track record. It seems as though when Natives get ahead, the government cuts funds. It's damn sad," he said.

He said BANAC enjoys an 80 per cent success rate while most businesses have an 85 per cent failure rate during their first five years of operation.

BANAC helps Native entrepreneurs get rolling in their business and then tries to help them stay in business providing advice on investment opportunities, management and accounting.

Jane Hummel got such advice three years ago to set up Hummel's Gas 'N' Splash Ltd. She said BANAC's advice and support is not a one-shot deal "They don't just support you during the initial start-up, it's ongoing. I can phone them at home if I have any problems. They care. I get my financial advice, personal advice, emotional support and hands-on assistance form BANAC."

Hummel said her business, which employs 14 people in Rimbey, about 50 km southwest of Edmonton, will survive if BANAC can't pull through.

"They taught me the ropes. But businesses just starting up will suffer."

Elzinga said the government won't renew BANAC's funding because the province "made a commitment to balance the budget."