External review of Nutrition North food subsidy program coming in 2025

An external review of the Nutrition North food subsidy program is coming.

Federal Northern Affairs Minister Dan Vandal announced the new external review in Iqaluit on Friday.

In an interview with CBC North after the announcement, he said the audit was spurred by recent media reports about the program.

Launched in 2011, Nutrition North is a subsidy program that aims to reduce the delivery costs of perishable items and some non-food products to remote communities. Retailers receive the subsidy, which is then supposed to be passed on to the client.

But a University of Toronto study last year found, on average, only 67 cents of each dollar invested into the program is passed on. 

The Nutrition North program has undergone several reviews since its inception, including an internal one which is still ongoing. Vandal declined to comment on the status of that review.

Speaking to CBC North, Vandal maintained the program is working well, but it just needs some fine-tuning. 

"I think it's just important to always keep the saw sharp… and the world has changed a lot in 11 years," he said. 

"Inflation is rampant… and there's good economic news now, but things are more accelerated in the North." 

A special ministerial representative, to be appointed early 2025, will launch the external review.

According to a media release accompanying the announcement, the special ministerial representative will be independent of the public service, and will be asked to meet with Indigenous governments and other stakeholders as part of the review.

A final report based on the investigation will be released in 2026, the announcement said.

Nunavut NDP MP Lori Idlout told CBC after the announcement that she believes that's too long of a wait. 

"The CEO of The North West Company earned $3.91 million in one year in salary and benefits. That means it's going into the pockets of corporations. That should not have to be studied for a year to figure out how to improve that," she said.

Idlout said that compared to grocery chains down south, she believes stores in the territories face little to no scrutiny, though Vandal disputes that. 

"I don't think a week goes by where somebody doesn't tell me how to better run the program," he said.

Michael Beaulieu is the vice president of canadian store operations at The North West Company, which operates its Northern Stores and Northmart stores in many remote Northern communities. 

He said he's hopeful the independent research can lead to "informed, data-driven decision making".

"The current subsidy rates must keep pace with the rate of inflation," he said in a written statement. 

CBC News also reached out to Arctic Co-operatives Limited but is yet to hear back. 

The Nutrition North Canada subsidy currently serves 125 communities across Canada.