NUNAVUT - After confusion and speculation surrounding the new Nutrition North Canada program, the federal government has taken a step back, reinstating shipping subsidies for foods dropped from the eligibility list last October.

The federal government announced it would put foods like bacon and sour cream back on the shipping subsidy eligibility list until October 2012. They were removed from the list in October 2010. From left, John Duncan, Minister of Indian and Northern Affairs Canada and Leona Aglukkaq, Nunavut MP and federal Minister of Health speak to reporters at a press conference in Iqaluit on March 9. - Emily Ridlington/NNSL photo

"This government is listening to Northerners and to consumers and we've made changes to ensure Northerners benefit from nutritious and affordable food," said Minister of Indian and Northerner Affairs Canada John Duncan at a press conference in Iqaluit on March 9.

He and Nunavut MP and federal Minister of Health Leona Aglukkaq announced adjustments to the Nutrition North Canada program, Food Mail's replacement, designed to direct freight subsidies to retailers instead of Canada Post with savings geared towards the consumer.

Full implementation of the program is still scheduled to kick in on April 1 but the pair announced all items removed from the eligibility list in October 2010 like bacon and sour cream will be back on the list until October 2012.

"We had a very aggressive timeline and that timeline is what we're extending and we think the program is sound but the implementation period was overly aggressive," Duncan said.

The extension will allow retailers two sealift cycles to order products which are cheaper to ship by sea than by air.

As per the original program changes, higher subsidy levels according to each community will be applied to the most nutritious and perishable foods.

About 80 people, including federal and territorial employees, residents and politicians, came to the press conference. Listening in on the phone from company headquarters in Winnipeg was Michael McMullen, executive vice-president of the North West Company which owns the Northern Stores.

He said he was pleased with the announcement.

"They've been hearing the same things we've been hearing," he said.

In October 2010, McMullen said 2,700 products or 20 per cent of the inventory which most of the Northern Stores carry that accounts for 80 per cent of their sales was removed from the eligibility list, including things like bacon and sour cream.

He said the company was given about a month and half to try and bring in the products at a lower cost. A freight rate increase at the same time did not help.

Now, the job for the long term is to plan ahead at getting as many of the eligible products up on sealift as possible.

For items that are more costly to ship, like things in jugs or cans, McMullen said they're looking at alternative products like in a powdered format for soups or juices.

The initial budget for the Nutrition North Canada program was set at $60 million.

Duncan said because of the adjustments the government will spend an additional $1 million per month until October 2012 – an additional $18 million.

"We have a fixed amount of money to put into the program, as a government were making a larger commitment to this program that previous governments, let's utilize that to the maximum advantage," he said.

In February, with the help of his constituents, Quttiktuq MLA Ron Elliott got people talking when he helped circulate a set of photos with outrageously high food prices including shots of Cheez Whiz at $29 a jar, bottles of Ocean Spray cranberry cocktail for $38 and $77 for breaded chicken strips.

Elliott said he was surprised the photos caused the stir that they did.

"I applaud the federal government for moving on this whatever their motives. The end results for the communities is what we want to see happen is where food prices go down," Elliott said.

And in regards to the expensive processed cheese spread, Elliott said it comes down to the mother who is on social assistance.

"She's going to buy Cheez Whiz before she buys a block of cheese because the Cheez Whiz can go further – it's the buying power and the ability of families to feed their children," he said.

With the pricey cranberry cocktail, he said a family could buy one bottle of it or three days' worth of pop at the same price.

"The idea is -- what are you going to buy to feed your family when you're on a limited income, social assistance or even struggling with minimum wage?"

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