A federal New Democrats motion to reform the Nutrition North program failed to pass in the House of Commons.
The motion called on the federal government to stop delaying reforms to Nutrition North, force major grocery chains and suppliers to lower prices of essential goods and end “Liberal and Conservative corporate subsidies to big grocers.”
The bill failed to pass last week after 26 MPs (23 New Democrats, 1 Liberal and 2 Greens) voted in favour and 286 opposed.
NDP Nunavut MP Lori Idlaut seconded the motion, while Liberal MPs Brendan Hanley and Michael McLeod, who represent Yukon and the Northwest Territories, opposed it.
“Governments have a duty to make things fair for their people, yet Indigenous and northern communities are being ripped off at the grocery store register,” Idlaut said in a press release.
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“Meanwhile, Northwest received $67 million in subsidies from the Liberal party last year through the Nutrition North program. There are serious allegations that this money is intended to line the CEO’s pocket, rather than helping families pay for food.”
Nutrition North is a federal grant distributed through grocery stores, aimed at reducing soaring food costs in the North.
The North West Company, which operates North Mart and Northern Stores, has been accused of not passing on the full amount of mandated subsidies to northern customers while continuing to record large profits.
A study published last year found that for every dollar paid to retailers through Nutrition North, the average retail price fell by just 67 cents. In areas with only one store, the subsidy passed on to customers was 18 to 69 cents lower, the study found, and most of those were run by the North West.
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Its chief executive, Dan McConnell, has argued that 100% of the profits received by North West from Nutrition North should be passed on to customers.
Northern Affairs Minister Dan Vandal said Nutrition North was under internal review.
The minister promised that an external review would be carried out once that was complete and he would ensure that the grant money was passed on in full to northerners.
