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Prentice orders review of food mail

JIM BELL

The federal government will take a long hard look at its food mail program, Jim Prentice, the minister of Indian affairs and northern development, said last week.

A news release issued from Prentice’s office this past Friday said the federal government will look at “the structure, focus, funding and other criteria of the food mail program.”

The news release goes on to say the review will be partly based on evidence produced by three test projects that in 2002 were started at Kugaaruk, Nunavut; Kangiqsujuaq, Nunavik; and Fort Severn, Ont.

It’s estimated that at least 13.4 million kg. of nutritious food is shipped to northern Canada every year, under cargo rates subsidized by Indian and Northern Affairs Canada. INAC uses Canada Post to hire airline transport and to make its postal codes available for the “designated entry points” from which food mail must be shipped.

The lion’s share of that food, 93 per cent, now goes to the eastern Arctic: about 59 per cent to Nunavut, and about 34 per cent to Nunavik.

At the same time, the program has been overshooting its budget.

INAC puts aside $27.6 million each year to pay for the program, but its actual costs hit an estimated $36.5 million in the 2004-05 fiscal year.

As well, the Auditor General of Canada and others have criticized the use of mandatory “designated entry points,” such as Churchill for the Kivalliq region and Val d’Or, Que. for Baffin and Nunavik.

Critics say perishable food sent via long truck and rail routes through Churchill and Val d’Or may suffer in quality and price.

And Canadian North airlines has complained to a federal trade tribunal that a recent food mail contract award to First Air was made unfairly.

Also last week, Prentice declared that Winnipeg will now become an additional designated entry point for the Kivalliq.

This means food mail customers in Rankin Inlet may have food mail shipped to them directly from Winnipeg, and their perishable food will be at least 24 hours fresher.

Food mail shipped to Baker Lake, Chesterfield Inlet, Repulse Bay, Coral Harbour, Whale Cove and Arviat will still move through Churchill. But to reduce the amount of time it spends in Churchill, verification of the shipments will be done in Winnipeg.

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