Major changes proposed for 'food mail' program in North

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 storesin 135 communities across the Northto offer healthy food atprices 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 Canadas 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 andto contain costs.

Review team to addressspoilage 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 tohow 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.