First Nations to be consulted about alternatives to INAC's Food Mail Program review
Major changes proposed for 'food mail' program in North
April 28, 2009
An interim report on the federal government's northern "food mail" review contains a number of proposals that could significantly change the multimillion-dollar subsidy program.
The program pays part of the cost of shipping nutritious perishable food and other essential items by air to isolated northern communities that are not accessible year-round by road, rail or marine service.
It helps stores in 135 communities across the North to offer healthy food at prices that are not prohibitive.
For example, if the program — available over the last five decades — didn't exist, a 10-pound (4.5-kilogram) bag of potatoes would increase from about $18 to $64 in Pond Inlet, according to a retailer in the Nunavut community.
Proposals in the recently released report include:
- Eliminating personal orders to improve retailer purchasing power.
- Abolishing some entry points and adding others to improve efficiency.
- Introducing measures to ensure retailers are passing on savings to consumers.
- Developing a retailer agreement to improve program visibility and accountability.
- Updating the list of eligible foods in accordance with Health Canada’s nutrition guidelines.
- Examining the possibility of subsidizing wild food shipments and local greenhouse production.
The program cost the federal government almost $50 million last year. It's estimated the cost will rise to more than $58 million this year.
The interim report says the review is looking into the program's strengths and weaknesses, ways to improve its efficiency and effectiveness and to contain costs.
Review team to address spoilage problems
Shippers and retailers have raised concerns about spoilage and quality-control problems with some goods shipped under the program. The review team has proposed discussion of a claims process to create incentives for the airlines to improve the quality of shipped goods.
Review team director Marc-Andre Poisson of Indian and Northern Affairs said his team is also looking at alternatives to how the subsidy is distributed.
"Rather than provide the funding directly to Canada Post, which provides it to the airlines, we would think of different ways of providing it to the retailers," he said.
Currently, individuals can bypass their grocery stores and place their own food mail orders with stores in the south.
A proposal to drop that option doesn't please Grise Fiord Mayor Meeka Kiguktak.
"It's available down there, so why not take advantage of making your own choices and ordering food where you want," she said.
A second report by Ottawa's special representative for the food mail review said the program is clearly burdened with many problems.
Graeme Dargo said it should be replaced with a new program developed in partnership with retailers.
He also recommends a debate about whether the program should be transferred to become Health Canada's responsibility.
Consultations will continue over the next few months to determine how and where changes can be made.
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INAC press release
Government of Canada Moves Forward on Food Mail Program Review
Ottawa, Ontario (April 22, 2009) - The Honourable Chuck Strahl, Minister of Indian Affairs and Northern Development and Federal Interlocutor for Métis and Non-Status Indians, today released two reports and announced next steps in the final stages of the comprehensive review of the Food Mail Program.
“Our Government knows that Northerners living in isolated communities need access to healthy food at affordable prices,” said Minister Strahl. “These reports on the Food Mail Program will help guide our discussions with Northerners on exploring long-term, sustainable solutions for meeting that objective.”
The Food Mail Program provides an air transportation subsidy to reduce the cost of shipping nutritious food and other essential items to Northern communities that have no year-round road, rail or marine service.
The INAC Interim Report on the Food Mail Program provides a synopsis of research findings to date on issues related to the existing Program, including current challenges and alternative options. The Food Mail Program Review: Findings and Recommendations of the Minister’s Special Representative reflects the findings of Mr. Graeme Dargo following his meetings with Food Mail stakeholders.
Over the next several months, the Food Mail Program Review team will conduct consultations with Northern consumers and stakeholders on the two Food Mail review reports and possible alternatives to a transportation subsidy. While the review continues, current Food Mail shipping rates will remain unchanged.
Today’s announcement supports the Government’s integrated Northern Strategy, which aims to strengthen Arctic sovereignty, protect the North’s environmental heritage, promote social and economic development, and improve and devolve Northern governance.
Backgrounder - The Food Mail Program
Frequently Asked Questions - Food Mail Program Review
For more information, please contact:
Minister's Office
Nina Chiarelli
Canada Press Secretary
Office of the Honourable Chuck Strahl
(819) 997-0002
Media Relations
Indian and Northern Affairs Canada
819-953-1160