Mr. Speaker, it is ironic that we are here talking about nutrition north Canada when the department officials and the chair of the advisory board attached to nutrition north Canada were in committee this afternoon.
The important task of helping people access healthy food is one the government takes very seriously. We recognize that having access to healthy food is vital to the quality of life in the north. We are committed to ensuring that we do this efficiently and effectively.
That is why in budget 2010 we have created a stable and secure funding base to support northern food security. Every year we are going to invest $60 million to help improve the health of northerners.
On May 21 the Minister of Indian Affairs and Northern Development announced a new food retail subsidy program, nutrition north Canada, in Iqaluit. I would add, in response to the member for Yukon, we had the minister before committee and he answered questions. That was weeks ago. There has been no shortage of information provided. This has a long phase-in. It actually comes into effect next April.
The program is innovative and modern. It is a new program which will respond effectively to northern needs. We sought advice from the best possible source, and that was from the people living in the north. Northerners, including those in the community of Old Crow in Yukon, made it clear that in order to make the program sustainable and to maximize resources they were open to focusing the subsidy on the healthiest foods that must be shipped by air. For all those items that do not need to be shipped by air, retailers can use more efficient modes of transportation.
We know that marine service is not an option for Old Crow in Yukon. Accordingly, Old Crow will continue to receive a subsidy for the shipment of certain non-perishable and essential non-food items.
As far as Canada Post's role in the new program goes, the member for Yukon is correct. Rather than providing a subsidy to Canada Post, as the previous program did, in order to ship perishable food to isolated northern communities, this is a subsidy to retailers and wholesalers. They are in the best position to negotiate low transportation rates and to ensure food is shipped in a timely manner so that consumers have better quality and fresher food with a longer shelf life.
The new program will include a higher rate of subsidy for the most nutritious foods, like fruits, vegetables, milk and eggs. This will provide an incentive and affordability for families to make the right choices.
More than 80% of the goods that are shipped under the existing program will continue to be eligible under the nutrition north Canada program. An effective, efficient and responsive food subsidy program is essential for a strong and vibrant north. We will continue to work with northerners to realize this potential.