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NUNAVUT - The demand for fresh foods in the North is increasing, but the federal government is review Food Mail Program before committing any more money.

In 2006-2007, Indian and Northern Affairs Canada (INAC) spent approximately $40 million to subsidize the service, which provides funding to Canada Post for the air transport of nutritious perishable foods and other essential items to isolated communities. Service to Nunavut accounted for 56.5 per cent of the total program funding.

While the increasing demand means more people are benefiting from fresh foods in their diet, manager of Northern food security and the Food Mail program Fred Hill said the cost of providing the service is increasing. He said the government wants to review the program before committing more funding.

"The program faces a number of challenges, always around money," Hill said. "The government wants to make sure that ... it is the most effective means of relating to the issues of high food costs."

Internally, INAC will review various options for delivering the service, as well as ways in which the food supply could be supplemented locally.

He said there are a number of avenues to explore, such as providing funding directly to shippers, and reducing subsidization while increasing Northern incomes accordingly.

"There also may be opportunity for production in communities as well," says Hill, mentioning the community greenhouse in Iqaluit.

"For certain kinds of produce, that might be a reasonable alternative."

According to Hill, a ministerial representative would do community consultations in August and September.

By October, the representative's report, along with any research done by consultants, should be available to INAC minister Chuck Strahl, who will then make recommendations based on the findings.

As a user of the service, Cambridge Bay MLA Keith Peterson said he knows how important the Food Mail program is to the health of Northern communities.

He said he would like to see the government increase its subsidization and make nutritious foods affordable for those living in poverty.

"The poverty figures are quite startling in Nunavut," said Peterson. "Close to 14,000 people are under the poverty line. There are only 30,000 people in the whole territory. That means a lot of people aren't eating properly.

"We need to work to get more affordable food into our communities."