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September 16, 1996
(Government Services and Lands)


The following statement was issued today by Ernest McLean at a news conference held at Confederation Building:

The government was informed by the RCMP on Friday that it had been called to Cartwright to deal with protesters who were interfering with the commercial activities of a private company seeking to develop a sports fishing lodge in the Eagle River.

I will say up front that the government did not call the RCMP. That call was made by a private citizen. Consequently I will leave any comments about the police operation to the RCMP.

My purpose is to bring you up to date on the government's views on the protest situation. I want to say that it is most unfortunate that the leaders of the protest have allowed this matter to progress to this stage. These kinds of activities can only harm our attempts to show the world that Labrador is a good place in which to do business.

I would like to give you a little background on this issue.

This issue came up as a result of a decision to call for proposals for the development of a quality sports fishing camp on the Eagle River in Labrador. This was made possible when DND closed its camp and made available a 300 salmon per season allocation.

Government took the position that this salmon allocation should be used as a basis to establish a new commercial sports fishing lodge which would enhance its tourism infrastructure and draw tourism expenditures in Labrador.

A thorough and legitimate process was followed; 56 information kits were distributed as a result of the proposal call, and three proposals were submitted. The two proposals not approved were from Portland Creek Outfitters Ltd. and the Investment Group (a Labrador Company). The KGY proposal was accepted based on higher levels of proposed investment, better quality, commitments to marketing and commitments to local economic benefits.

KGY is now trying to develop the lodge. However, when the company tried to move materials to the site to begin construction, it was prevented from doing so because of the actions of protesters in Cartwright.

At this point, KGY requested police assistance. This matter is now a law enforcement issue, and as such, it is in the hands of the police.

It should be noted that, in light of local concerns, KGY offered to give up half of the approved salmon allocation to a local outfitter. However, this offer was not taken up.

It should also be recognized that this issue is not only about whether a fish camp should, or should not be established on the Eagle River. It is about the actions of a group who are trying to establish an aboriginal land claim.

The LMA has accepted more than $500,000 in federal funds since 1993 to support claim preparation through the federal system. However, they are at the initial stage. They only filed their claim in March 1996. Clearly they have not followed the process through to its conclusion.

This situation appears to have begun as a protest about a fishing camp. However, if the issue for the protestors is, in fact, land claims, then there is a structured and legitimate process to be followed by groups who wish to make aboriginal claims. The Innu and Inuit are in the midst of that process. The LMA, however, are in the early stages. They have to let the process follow its course. Instead, however, they have abandoned the process in mid stream, and elected to use threats and intimidation to hijack the process.

I am also concerned about the impact that actions such as those by the LMA, may have on economic development for Labrador. The government of this province, and the people of Labrador, are working very hard to try to bring economic development opportunities to Labrador. Actions such as those taken by the LMA can only harm Labrador's prospects in the global market place.

At a time when we have high hopes for business and industrial development in Labrador from Voisey's Bay and other opportunities, we should be sending a message that we are open for business. Activities such as this protest send this wrong message about Labrador to investors and potential investors.

I hope the protestors will now reconsider their actions, and choose to go through the necessary processes to determine whether they have the basis for a land claim.



BACKGROUNDER - LMA LAND CLAIM

  • There is a well established process in place through which the legitimacy of Aboriginal land claims is established. This process is clearly outlined in the Comprehensive Land Claims policy of the Government of Canada.
  • In November 1991, the LMA submitted a preliminary statement of claim to the federal government claiming an area of Labrador south of a line drawn from Cape Harrison to the height of land.
  • In 1992, the federal government rejected the claim because the LMA had not demonstrated it was the "present day representative of an organized aboriginal society" or that its members practised "traditional and current use of land and resources within the land claim area." The Minister of Indian and Northern Affairs suggested the LMA contact the Innu Nation and the Labrador Inuit Association "to explore the possibility of participating as beneficiaries to any future comprehensive land claim settlement agreement with them."
  • Since 1992 the federal government has provided the LMA $300,000 to conduct land use, genealogical and archival studies. The LMA resubmitted its documentation to the federal government in March 1996. This secondary statement of claim now includes an area to the north of the original claim area, including Voisey's Bay. The federal government is currently reviewing this renewed documentation.
  • Land Claim documentation is assessed on the basis of legal criteria established by the Supreme Court of Canada. The assessment process involves reviewing submitted documentation to determine whether it meets the criteria established by the Court as necessary to demonstrate the existence of Aboriginal rights and title.
  • At such time as the federal government determines whether it will accept the revised LMA claim, the province will be called upon to assess the documentation and decide whether it establishes a valid basis upon which the province should pursue negotiation of a comprehensive land claim.
  • Both the Labrador Inuit Association and Innu Nation were required to go through this process to establish a basis for negotiation of their comprehensive land claims. Similarly, other organizations, notably the Micmac of Conne River, have submitted land claim documentation which has been rejected by the federal government and the province as failing to demonstrate a valid basis for negotiations.
  • The process applies to all potential comprehensive land claims and is being applied on an equal basis to the claim of the LMA. Until such time as the process has run its course, it is not possible to determine the validity of the LMA claim.

    BACKGROUNDER - Sportsfishing Lodge on the Eagle River

  • December 7, 1993 - Department of National Defence announces plans to close its fishing camp on the lower Eagle River; this action opens opportunity to establish a new commercial sportsfishing operation that would provide economic benefits at the local and regional level.
  • January 20, 1996 - Department of Tourism, Culture and Recreation announces a public proposal call for persons interested in establishing a sportsfishing lodge on the Eagle River. A proposal call was considered to be the best method to ensure fairness to interested parties and a top quality operation. The information package indicated that proposals would be assessed on the quality of the operation and ability to compete in the international marketplace. For conservation reasons, it was also specified that any new operation would be limited to a maximum of 300 retained salmon on an annual basis (the same level as the DND camp).
  • A thorough and legitimate process was followed; 56 information kits were distributed as a result of the proposal call, and three proposals were submitted. The two proposals not approved were from Portland Creek Outfitters Ltd. and the Investment Group (a Labrador Company). The KGY proposal was accepted based on higher levels of proposed investment, better quality, commitments to marketing and commitments to local economic benefits.
  • February 23, 1996 - Deadline for proposals; three proposals received - two from Newfoundland companies and one from a Labrador group. Proposals were assessed by staff of Departments of Tourism, Culture and Recreation, and Forest Resources and Agrifoods.
  • The proposal by KGY Group Limited of Corner Brook was accepted; KGY Group Limited proposed to construct a modern full service quality lodge of 6400 square feet.
  • KGY proposal stated that 14 labourers were to be employed during construction with 10 staff employed on a seasonal basis thereafter. All staff were to be hired locally and trained to operate a high quality facility.
  • April 18, 1996 - Government approves KGY proposal.
  • May 9, 1996 - Ernest McLean, Minister of Government Services and Lands, and Gudrid Hutchings of KGY meet with representatives of the Labrador Metis Association in Goose Bay to outline the result of the proposal call and explain the type of operation and benefits to the local economy.
  • May 30, 1996 - Officials of the Department of Tourism, Culture and Recreation meet with the Eagle River Development Association and the general public in Cartwright. Approximately 200 residents attend the public session. While the community understood that the approval for the new lodge was through a public proposal call, they felt that the local Labrador bidder, the Investment Group, should have been the successful bidder.
  • June/July 1996 - Significant efforts were made by KGY, ministers and government officials to accommodate local concerns. KGY offered to provide half of the 300 salmon allocation to a local company to establish a second lodge. In meetings with local residents, KGY offered to:
  1. share their annual catch quota on a 50/50 basis with the local company;
  2. hire local staff to construct/operate the lodge;
  3. do staff training for other community members so they would be qualified for jobs in other outfitting operations in Labrador;
  4. establish educational scholarships for Sandwich Bay students;
  5. work for the further conservation and protection of the natural resources of the Eagle River;
  6. foster and assist with the development of other tourism related local initiatives; and
  7. collaborate and assist local groups on any future requests for proposals related to sportsfishing and adventure tourism projects in the region.
  • While these arrangements satisfied many local concerns, they continued to be unacceptable to the Labrador Metis Association.
  • Since these meetings, over 85 people from Labrador have come forward seeking employment with KGY - 64 of these people from Cartwright. Also, on July 4, 1996 the government received a petition from Cartwright in which some 150 people indicated support for the KGY proposal, 24 were opposed and 22 people were neutral and did not express any opinion. This petition was circulated on the initiative of several local residents.
  • August/September 1996 - KGY makes arrangements to transport materials to Eagle River site. Labrador Metis Association make public statements that action will be taken to prevent the transport and construction of the lodge.
1996 09 16   4:00 p.m.

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