Distribution Update

Distribution Update

August 30, 2017

To the Community,

It has come to the attention of the Council and the Directors of the Qathen Xwegus Management Corporation that there has been discussion in the community regarding a possible distribution from the company. We want to be upfront with the community.

The concerns, ideas and thoughts of the membership particularly around distribution of very important to the Board and the Leadership of the Klahoose.  These conversations regarding distribution remind us of the need for a renewed conversation with the community about reasons and purpose of our business enterprises. However, we want to be honest with the community, at this point in time, we cannot commit to providing a distribution.

Qathen Xwegus Management Corporation is mandated on behalf of the Klahoose First Nation to develop, operate and participate in economic development operations. The members gave our board a mission to pursue when this company was formed. QXMC is there to create independence for the KFN through economic opportunities. The QXMC objective is to carefully invest in opportunities that will grow the capacity of the Nation and ensure the Klahoose Nation has the capacity and sustainability to determine its own destiny. Right now, QXMC has a series of long term opportunities you are going to hear about in the coming weeks and months.

We were taught by our elders to take a long view toward our Nation’s growth. It is understood in our teachings and culture that there are times where we must save and be patient so that we have the resources at hand to take advantage of opportunities when they arise.

We have challenges that we must face that require careful planning. Forest operations and Run of River construction have provided a large part of the revenues that we drew upon to provide distributions to the members in the past. These funds are not going to be available to our company immediately, due to the fact that the cut control has been reached and there is no proposed logging in the valley until 2019. In addition, the Tahumming Run of River project is on hold because BC Hydro has not yet committed to buy the power through the Standing Offer program, keeping in mind that those discussions are ongoing.

The revenues we receive from the existing Run of River operations in Toba are required to support community initiatives from paying down the loan to build the community hall, to funding for programs for capacity development and training.

This process will be part of our renewed conversations with the community. The Board will be instructed to review, renew and develop the policies needed to ensure future growth within the Nation.

At the Council table discussions are taking place to try and make available a Christmas bonus to membership.

Best Regards, Chief & Council