Market Demand Study

Capital, and access to it, is a key ingredient in economic activity. As we look to future economic development it is imperative that First Nations have ownership and control over such an essential lever of the economy. Alternatively, a nation which does not control the essential levers of its economy will always be subject to the influence of the external forces which do control these levers. The financial services industry which provides capital to our communities is an essential element for our future growth and development.

In February 2007, Chief Terrance Paul, Chair of Ulnooweg Development Group addressed the Atlantic First Nations All Chiefs Meeting in Moncton and made the following observations:

"In order for us to catch up with the Canadian economy we need access to larger amounts of capital. We need financing for our community and economic infrastructure, for housing, developing our fishery and forestry resources and for business development. At the present time we just do not have access to the capital we need. If we do not act now to lay the foundations for our own institutions to take advantage of our collective spending power, then the benefits will continue to flow out of our communities. Our need for capital will continue to grow and we should own the financial institution that will be providing that capital. We need to determine if our idea of setting up our own financial institution is viable."

The creation of an Atlantic First Nation solution to access-to-capital issues, must by its nature be comprehensive and cohesive. This comprehensive approach cannot be the function of a one-off study addressing a single aspect of the need for financial services. The development process for an Atlantic First Nation solution to access to capital will require vision, commitment, dedicated resources and infrastructure.

This Study addresses the development of unregulated and regulated financial institution options in response to identified and anticipated demand. They attempt to be inclusive of the broad spectrum of activities that are required to develop these options. None of the recommendations should be seen as closing the door on any options.