Evidence of meeting #33 for Indigenous and Northern Affairs in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was product.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Andy Morrison  Chief Executive Officer, Arctic Co-operatives Limited
Kenn Harper  President, Arctic Ventures 2000 Ltd
Scott Bateman  President and Chief Executive Officer, First Air
Eric Pearson  Owner, Newviq'vi Inc.
Michael McMullen  Executive Vice-President, Northern Canada Retail Division, North West Company
Bill Thompson  Vice-President, Commercial Operations, First Air

5:10 p.m.

Conservative

The Chair Conservative Bruce Stanton

Great.

Mr. Harper.

5:10 p.m.

President, Arctic Ventures 2000 Ltd

Kenn Harper

We're told by INAC that there will be a signage program implemented, and we intend to participate in that. It was one of the recommendations that I consistently made.

I just want to correct the misrepresentation that I said I was not consulted. I didn't say I was not consulted; I was responding to a specific question about whether I was consulted by Mr. Dargo, which I was not. I did participate in many other consultations after that.

We buy a full-page advertisement in Nunatsiaq News every week. We will use that to advertise the food program.

I hope, despite Mr. Pearson's comments, no one wants to go back to looking at the point of sale on the cash register thing, because at the risk assessment workshop that we all participated in, we were told...I believe North West Company and the co-ops each said it would cost about $5 million to change their cash register system. It would cost me a lot for mine as well, so please don't go there.

But we will cooperate totally with the signage program.

5:15 p.m.

Conservative

The Chair Conservative Bruce Stanton

You have means to make that.

Okay, Mr. Morrison.

5:15 p.m.

Chief Executive Officer, Arctic Co-operatives Limited

Andy Morrison

Mr. Chairman, throughout the consultation process we've had a number of discussions with INAC and a number of the consultants who have been working with INAC on an appropriate method of promoting the program and educating consumers. Many of the methods that have been suggested across the table here are the kinds of things that we've discussed.

I know certainly from our side we're prepared to work with INAC, with whatever method is finally agreed on: posters, shelf information, pamphlets, newspapers, cable television, whatever works.

5:15 p.m.

Conservative

The Chair Conservative Bruce Stanton

But the main thing is that it's going to be clear to them to what extent the program is helping the price of that particular item, whatever it happens to be.

5:15 p.m.

Chief Executive Officer, Arctic Co-operatives Limited

Andy Morrison

That's correct, yes.

5:15 p.m.

Conservative

The Chair Conservative Bruce Stanton

Thank you, all.

Mr. Lemay, at last, for five minutes.

He will be followed by Ms. Glover.

November 3rd, 2010 / 5:15 p.m.

Bloc

Marc Lemay Bloc Abitibi—Témiscamingue, QC

Firstly, I would like to thank you. My colleague Yvon Lévesque, for Abitibi—James Bay—Nunavik—Eeyou, has mentioned the problem raised by the new Nutrition North Canada program. I suggest you make note of that date in your agendas and to reserve it also for next year. I have the feeling that we will meet again because I intend to make sure that we will follow very closely that program and its implementation. It is a program that will become extremely important.

There is a kind of grey area which I hope will be clarified to your satisfaction before April. If it does not happen, I would suggest that you communicate with us as soon as possible—it does not matter if it is with members on the government side. What is important around this table are the interests of Northerners. If there is any problem, please, contact us.

I have two questions and I would like a short answer. I would like to hear you concerning the shipping of country food because that subject has not been mentioned yet. Arctic char, caribou and muskox are part of country food. Have provisions been made for that type of food in your area?

If you had only one recommendation you would like to make to our Committee—because we are going to meet with the officials—what would it be? What issue would you like to see resolved rapidly? I will let you answer. There must be three minutes left.

5:15 p.m.

Conservative

The Chair Conservative Bruce Stanton

Sure. We'll start with Mr. Morrison and then we'll go across the table.

Mr. Morrison, go ahead.

5:15 p.m.

Chief Executive Officer, Arctic Co-operatives Limited

Andy Morrison

On the matter of country foods, as I understand the new Nutrition North program, there is a provision for country food, which we think is a very important addition. The country food provision will provide for the transport.... Food processed in federally inspected facilities will be eligible for the Nutrition North program. There are not enough federally inspected facilities to meet all the needs, but I think it's a very important step forward.

In terms of a recommendation that you could bring to the officials of INAC, it would be this: provide us with the rates and the process that will be required for the reporting.

5:15 p.m.

Bloc

Marc Lemay Bloc Abitibi—Témiscamingue, QC

Yesterday.

5:15 p.m.

Chief Executive Officer, Arctic Co-operatives Limited

Andy Morrison

Yesterday, yes.

5:15 p.m.

Bloc

Marc Lemay Bloc Abitibi—Témiscamingue, QC

Okay.

5:15 p.m.

Conservative

The Chair Conservative Bruce Stanton

Mr. Harper.

5:15 p.m.

President, Arctic Ventures 2000 Ltd

Kenn Harper

You're asking for one recommendation. I'm going to try to speak quickly--not too quickly--and give you more than one.

I would recommend to find a way in this subsidy program to re-level the playing field for the freight costs between companies operating in the same community for nutritious perishable food.

I would also suggest that with the elimination of a lot of product eligibility, it's possible that this program will come in under-budget, and I would suggest that this possibility be looked at very carefully to make the subsidy portion higher so that the cost to the consumer is lower on nutritional perishable food products, way lower.

5:20 p.m.

Conservative

The Chair Conservative Bruce Stanton

Mr. Bateman.

5:20 p.m.

President and Chief Executive Officer, First Air

Scott Bateman

As far as the country food issue is concerned, we currently offer deeply discounted rates to move country food between the communities that we serve. We would welcome the opportunity to participate in a formal program through INAC on the distribution of country food.

One recommendation at large is that I think the whole review that we've undergone has taken a good, hard look at 25% of the selling price of a product. I would consider expanding the scope of this review to look at the other 75% and look at further subsidizing and increasing the subsidies to further reduce the cost to the ultimate consumer.

5:20 p.m.

Conservative

The Chair Conservative Bruce Stanton

Thank you.

Mr. Pearson.

5:20 p.m.

Owner, Newviq'vi Inc.

Eric Pearson

As Scott has mentioned, there already is a subsidy in place, a special rate with First Air, for country food. Unfortunately, the communities covered are in the western Arctic, other than Pangnirtung, so it becomes very inaccessible for us in northern Quebec.

As for a recommendation, I second what Scott has said. I believe we have to get some definitive answers for April 1, and we have to look at if we can get back to expanding the program, because we're having severe issues with consumable income in the north.

5:20 p.m.

Conservative

The Chair Conservative Bruce Stanton

Thank you.

Mr. McMullen.

5:20 p.m.

Executive Vice-President, Northern Canada Retail Division, North West Company

Michael McMullen

We currently ship country food and will continue to do so. We will embrace the program, but I think Mr. Morrison brings up a good point: we'll need more federally inspected plants to make it really work.

One recommendation: I'd put this recommendation on INAC, that the rights and processes are important, and bigger bang for your buck. Go after those high-volume, high-value nutritional products.

And I'd also make one recommendation to the retailers: product innovation. Look at your produce—we all do all the time, every day—and find out if there's a way that we can secure from our vendors, as I think Scott was alluding to, different packaging, different ways of getting nutritious goods to the north that are more cost-effective.

5:20 p.m.

Conservative

The Chair Conservative Bruce Stanton

Thank you, all.

Merci, Monsieur Lemay.

Madam Glover.

5:20 p.m.

Conservative

Shelly Glover Conservative Saint Boniface, MB

Thank you, Mr. Chair. I was having so much fun the last time, I thought I'd take another kick at the cat.

I'm a mother of five children, and what really interests me in the Nutrition North Canada program is that as a mother, the interest of my children's health is something that's being considered heavily in this program, which under the food mail program didn't exist. It wasn't about getting nutritious food on the tables of northerners, it was more about just getting food to the north.

When we look at the non-perishables—we've talked a little bit about it—I want to get a clear idea of why these prices have gone up. I, as a mother, go to the store, and if the non-perishables that you're talking about that have gone up in price have gone up because of transportation costs or things like that, I'd like to know that. If the foods that have gone up in price are the foods that we removed because they had low nutritional value, like ice cream or bacon, I'd like to know that as well.

The reason I ask is that we're trying to promote to mothers and fathers, all northerners, to buy foods that are nutritious. Frankly, as a mother, I don't care if bacon and ice cream go up because they're not nutritious for my children. I do care if items like perishables have gone up, items that are nutritious and that have been identified in our eligibility list go up.

Mr. McMullen, can you give me examples of what foods went up in price as of October 3 so that I have a better understanding of what happened October 3?

5:20 p.m.

Executive Vice-President, Northern Canada Retail Division, North West Company

Michael McMullen

Let's take the examples of bacon and Arctic Bay. Bacon in Arctic Bay went up in retail price because the freight rate moved from 65¢ a pound to $3.93 a pound. So that's an item that became non-eligible. The same thing happened to pumpkins.

So yes, we—meaning INAC or us—could have informed the public in advance of the magnitude of the change because we knew the freight rates going in and we know what we pay for the rest of our freight.

5:25 p.m.

Conservative

Shelly Glover Conservative Saint Boniface, MB

Just so I make it clear, it's the foods that are no longer considered either nutritious, or, like a pumpkin...it's heavy and it's going to cost a lot to move that, and for the price you can get a can of puréed pumpkin. It's just common sense. But as for foods that we deemed as nutritious that are going to be subsidized, did they go up? I understand the ice cream and the bacon. We said we're not going to subsidize those anymore because they're not nutritious.