First Nations Tax Commission – Commission de la fiscalitè des premières nations

RESEARCH: Turning on the Taps of Investment Flow to First Nation Jurisdictions

Challenge Description Response Reduce Search Costs First Nations seem to do far less marketing of their jurisdiction and its sites than do other jurisdictions Incomplete separation of politics and administration The separation of politics and administration sends a positive message to investors that the regulatory environment is fair and stable. ITAB/FNTC Institution building and coordination (AFN & DIAND) Build Administrative Capacity Most First Nations have not developed administrative procedures for investment facilitation. AFN-LTS Joint Initiative First Nation Financial Management Board(FNFMB) Improve Regulatory Certainty First Nations have not developed a body of law to govern land use and development. First Nation Land Management Act ITAB/FNTC AFN-LTS Joint Initiative Reluctance of the Crown to take risk This problem manifests itself in the negotiation of lease documents. First Nation Land Management Act AFN-LTS Joint Initiative Develop Competitive Infrastructure Most large investment projects on First Nation lands have required extensive infrastructure improvements. ITAB/FNTC First Nation Finance Authority (FNFA) Improve Access to Financing Financing of both public infrastructure and private developments has been a significant obstacle to the development of First Nation economies.  (FNFA) Lessons from the Literature

  1. Support market forces.
  2. Co-operate with neighbours to create a regional plan.
  3. Build upon strengths and recognize weaknesses.
  4. Public sector should provide institutions that the private sector will not provide on its own.
  5. A low technology trajectory can involve substantial amounts of innovation.
  6. Cultural homogeneity can enhance productivity.
Lessons from Investor Interviews
  1. Large institutional investors have the resources to overcome regulatory uncertainty and higher costs of doing business.
  2. Small and medium size enterprises require low costs of doing business to initiate projects. High costs of doing business are steering these crucial investors from First Nations.
  3. All types of investors want access to reliable and timely information and transparent investment processes.
  4. The most important consideration for resource industry investors is certainty of resource access
Turning on the Taps of Investment Flow The diagram at the top of the page show show the flow of investment to First Nation lands can be turned on.   comparison    ]]>

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