NUNAVUT - The federal government announced a new food subsidy program on May 21 that will replace the current Food Mail program in April 2011.

Federal health minister and Nunavut MP Leona Aglukkaq and Northern Affairs Minister Chuck Strahl announced a new food subsidy program in Iqaluit on May 21. - Kassina Ryder/NNSL photo

The new program, Nutrition North Canada, passes the shipping subsidy which used to be allotted to Canada Post directly to retailers, Northern Affairs Minister Chuck Strahl said.

Retailers will be directly responsible not only for the price, but the quality of the food they sell, Strahl said.

"Under the new program, retailers are getting the subsidy and retailers are going to be making supply management decisions, supply chain decisions on how to get the best product at the best price," he said.

A consistent problem with the current Food Mail program was the lack of accountability for the quality of goods during their journey from southern entry points to their final destination in Northern grocery stores, Strahl said. Vegetables and fruit often arrived in Northern communities in poor condition.

The responsibility of providing quality products at a reasonable price now lies solely with retailers.

"The person you'll be buttonholing when you don't like what you see, that will be the retailers because you can get your hands right on them, they're right there," he said. "There won't be any finger-pointing."

Ensuring retailers pass the subsidy on to their customers is another key focus of the new program, something the current Food Mail program lacks, federal health minister and Nunavut MP Leona Aglukkaq said.

"It was so apparent to the consumers that the subsidy was not being passed on and as Northerners, we deserve better," she said.

Under the new program, customers will be able to see how much their food has been subsidized right at the cash register, Strahl said. The amount subsidized will depend on the location of communities.

"On their sales receipt they'll be able to see what that rate is for the community, not for every single product, but for each community," he said.

An advisory committee made up of people across the North will also be established to ensure accountability, Strahl said.

"They (retailers) have to be prepared to open up their books to our folks and to the advisory board to say 'here's how its working for consumers,'" he said.

The board will also allow Northerners to express their concerns and help with the direction of the new program over the next 10 months.

Anyone with a "vested interest," including retailers and airline representatives, will be ineligible to sit on the board, Strahl said.

While the program won't be fully implemented until April 2011, a revised list of eligible products will take effect on Oct. 3.

Individuals will still be able to make personal food orders and 80 per cent of the items available under Food Mail will still be available under the new program, Strahl said.

The most nutritious food will get the highest subsidies. The budget for the program is $60 million.

Premier Eva Aariak said the advisory board will allow Nunavummiut to have their say.

"The fact that they are forming an advisory committee I think is a great idea," she said.

"Because this will not happen until April 2011, there will be enough time for people to provide input while they are making changes."

Nunavut Tunngavik president Paul Kaludjak said he is pleased the new program aims to pass savings directly to shoppers.

"We have been asking for a change for a long time; we've been addressing the impact of the program with our Inuit beneficiaries for a long time over the years," he said. "With the Food Mail program, we have not seen the difference at the consumer level."

Country food included

The new program will also cover commercial country food, Aglukkaq said.

"For the very first time country food will be subsidized in the shipping from community to community," she said.

For example, fish shipped from the Pangnirtung Fish Plant to Iqaluit will be subsidized. However, that subsidy does not apply to shipping country food to family and friends.

Strahl said there is the possibility of extending the subsidy and he anticipates the advisory board will have input on that issue.

"We're open to ideas on how that could be expanded," he said. "I expect that will be one of the first things they wrestle with."

Aglukkaq also said Health Canada funding will be provided to train harvesters.

"Community members will also receive funding to teach people harvesting skills and this will involve taking people out on the land," she said. "Community, territorial governments and stake holders will determine what will work best in each community."

Iqaluit mayor Elisapee Sheutiapik said she is particularly happy country food will be subsidized.

"The one other thing that I'm really excited about is country food," she said. "That's quite exciting."

--with files from Emily Ridlington