OTTAWA — The federal government is looking to have the Competition Bureau investigate pricing practices of food retailers in Canada's North, Northern Affairs Minister Gary Anandasangaree said Tuesday.
He made the remark at a news conference in Ottawa where he announced the appointment of Inuk leader Aluki Kotierk to head an external review of the Nutrition North food subsidy program.
While taking questions from reporters, Anandasangaree said he's working with Innovation, Science and Economic Development Minister François-Philippe Champagne to explore whether the Competition Bureau should look deeper into the underlying costs of doing business in the North.
"If there are costs that are somewhat fixed, if prices are not quite up to market conditions, it may be appropriate for the Competition Bureau to also look at this issue in the North especially," Anandasangaree said.
"That would potentially require enforcement, and that's something the Competition Bureau can look at. So I do believe that's another additional step that can be taken, and I'm in discussions with (Champagne) on this issue."
Kotierk is the former president of Nunavut Tunngavik, which represents the territory's Inuit, and will serve as a special representative to the northern affairs minister.
The launch of the external review comes nearly four years after a parliamentary committee recommended it, which the government initially resisted before finally announcing its intention to undertake one in October.
Nutrition North is a food subsidy program that provides money to retailers to help bring down the high cost of groceries in 124 communities.
But some retailers have faced accusations of not applying the full subsidy to items. It was such accusations in media reports last year which prompted the government to act, former Northern Affairs Minister Dan Vandal told CBC North at the time.
Kotierk will be asked to evaluate the program's effectiveness and produce a report next year.
"It's often a treat when you travel to southern Canada," Kotierk explained about the realities of buying groceries in the North, at a news conference in Ottawa.
"You'll see, with our airlines for instance, so many of us travel around with big (tote bins), because any opportunity we have to go to the South, we fill it up with groceries to bring back home."
Northern Affairs Minister Gary Anandasangaree said along with this external review, his department is already in the midst of its own evaluation of the program, which is set to be complete this summer.
Anandasangaree also announced a $20-million injection into the program, which he said is to cover the increases in cost of living.
The program already gets about a five per cent increase annually to account for inflation. The program had a budget of $144.8 million this fiscal year.
Whether the full subsidy is being passed on, however, is now before the courts.
Former Nunavut Commissioner Nellie Kusugak is part of a group leading a proposed class-action lawsuit against the North West Company, alleging the retailer has kept millions of Nutrition North program dollars for itself.
Kusugak filed a statement of claim on Feb. 5 in Manitoba's Court of King's Bench. She is joined by Inuk film producer Malaya Qaunirq Chapman, who recently appeared in CBC's comedy North of North, and Isabelle Chapadeau, who has lived in Nunavut for four years.
"The defendant has been unjustly enriched by retaining portions of the subsidy as profit," the statement of claim reads.
"As a result ... plaintiffs and class members acquired products at prices that were significantly higher than the subsidized price. Further, the (department of Crown-Indigenous Relations and Northern Affairs) has relied upon the misrepresentations in administering the program."
In a statement to The Canadian Press, the Northwest Company said it is "reviewing the claim and cannot directly respond to it out of respect for the legal process."
"We look forward to engaging with the Minister’s Special Representative Aluki Kotierk and are fully committed to working with her as she leads Canada’s review of the Nutrition North Program," said Brigitte Burgoyne, the company's director of communications and public relations.
"Affordability is a critical issue for us and we are committed to working with the Government of Canada, Indigenous peoples and northerners to address the high cost of living in the North, including the lack of infrastructure and other structural factors that drive high prices in the first place."
This report by The Canadian Press was first published Feb. 25, 2025.
Nick Murray, The Canadian Press
