Indigenous and Northern Affairs Committee on Nov. 22nd, 2010

[Chief Napoleon Mercredi]

Yes. The wild food in my community is very important because there is a proof there. My dad and my mom are still living. They're both 80 years old. All they eat is caribou meat and fish, and all the food that they use is the tea and sugar from the store, and they're way healthier than I am. They're out there on the trapline right now.

I think the problem is that since the TV days it's getting to the point where it's all getting to be modern, like Subway. Even the kids right now, at 12 years old, they're affected with diabetes. It's very sad to see that. A community like that could even subsidize their own hunting trips, like a caribou hunt. We're not asking for a whole lot of money, but to me, if we can start supplying wild food to the community, it would be very beneficial, not only to Fond du Lac, but to the surrounding communities too.

[The Chair, Conservative, Bruce Stanton]

Merci, Chief.

Thank you Mr. Bevington.

Now we have time for three short questions. I have Mr. Clarke, Mr. Bélanger, and Mr. Lévesque, for just two minutes, though. Then we'll have to wrap this up, because we have some committee business to do.

Go ahead, Mr. Clarke.

[Rob Clarke, Conservative, Desnethé—Missinippi—Churchill River, SK]

Mr. McDonald, you mentioned that the money going out from the Northern Store is $3 million to $7 million. If the co-op was up and functional, how much time would it take to pay that off, for the building plus the storage area?

[Darryl McDonald]

Well, right now, we are challenged with the grants, fundraising for that aspect, and there are three or five models that we looked at. The first one could be paid off if we had a full subsidy of $1.8 million over a three-year time span; we could have that community-owned business. The worst case would be a five-year, where we finance it fully through the first nation, through our local bank, but that will take a 10- to 25-year process of paying back and ownership. But if community members don't see the returns immediately, then I think that whole concept will fall apart.

[Rob Clarke, Conservative, Desnethé—Missinippi—Churchill River, SK]

For Air North, just in regard to that, have you addressed the issue of competition? Also.... Well, first answer that question, because I'm not sure how long I have.

[Ben Ryan]

Okay. Competition in what sense? Competition from Whitehorse to Old Crow? Like somebody else coming in...?

[Rob Clarke, Conservative, Desnethé—Missinippi—Churchill River, SK]

With the airlines.

[Ben Ryan]

Okay. I don't really understand, because we're the sole carrier on that route. We feel like there's not really any competitive advantages to competition coming in.

[Rob Clarke, Conservative, Desnethé—Missinippi—Churchill River, SK]

Okay.

Have you addressed the issues of the subsidies in your report?

[Ben Ryan]

In what sense? The monetary amounts or the type of subsidies?

[Rob Clarke, Conservative, Desnethé—Missinippi—Churchill River, SK]

Both.

[Ben Ryan]

Okay.

We've illustrated what type of subsidies we were achieving under the old system given our cost structure, given what Canada Post was being charged on our routes, and then given what the subsidies were set at. These are our estimates.

But the primary argument has to do with where the subsidy resides, and the report just provides you with the information on the company, the cost structure, and our ability to deliver low-cost service to Old Crow.

[The Chair, Conservative, Bruce Stanton]

Thank you, Mr. Clarke.

Mr. Bélanger, you have two minutes.

[Mauril Bélanger, Liberal, Ottawa—Vanier, ON]

Thank you, Mr. Chairman.

I want to thank Mr. Payne for the information. I understand that there is a list of items, but we'll know on December 1 how much they can be subsidized.

My question, then, is this. Is there a list--and could there be a list, if there isn't one--of products that cannot be subsidized, a list of products that are not eligible, such as, for instance, soda pop?

[LaVar Payne, Conservative, Medicine Hat, AB]

I think those are already on the website, Mr. Bélanger.

[Mauril Bélanger, Liberal, Ottawa—Vanier, ON]

That list does exist?

[LaVar Payne, Conservative, Medicine Hat, AB]

Yes.

[The Chair, Conservative, Bruce Stanton]

But it does raise the question, as one looks ahead with this program, of the issue around what items should be or should not be on that list. This is something that I'm sure will evolve, but it will be a subject of concern for this committee.

[Mauril Bélanger, Liberal, Ottawa—Vanier, ON]

Thanks.

[The Chair, Conservative, Bruce Stanton]

Thank you.

Mr. Lévesque, you can ask a short question.

[Yvon Lévesque, Bloc, Abitibi—Baie-James—Nunavik—Eeyou, QC]

Thank you, Mr. Chair.

I won't ask for a moratorium right away; I could perhaps do it when the report is being drafted.

Mr. Frappier, we were just looking at the bids that were placed. You mainly deliver from LG2, with Inuit Air, and from Val-d'Or, with First Air.

What are First Air's delivery points, for instance, and how far north does that company deliver?

[Jasmin Frappier]

First Air leaves from Val-d'Or and goes to Iqaluit and Kuujjuaq. Then, it loads products and goes as far as Pond Inlet and Grise Fiord, to name only a few. The products are taken from Iqaluit and then distributed through other channels.

[Yvon Lévesque, Bloc, Abitibi—Baie-James—Nunavik—Eeyou, QC]

Is that part of the original bid, or do you work based on contracts?

[Jasmin Frappier]

Under the current program, the price per kilogram is the same everywhere, be it in Grise Fiord, Pond Inlet, Iqaluit, Kuujjuaq or Salluit.

[Yvon Lévesque, Bloc, Abitibi—Baie-James—Nunavik—Eeyou, QC]

However, First Air must submit a price to Canada Post to obtain contracts in various locations, right?