Ministers announce interim funding for Foodlift Subsidy Program

Works, Services and Transportation Minister Tom Rideout and Trevor Taylor, Minister Responsible for Labrador, today announced interim funding for the Air Foodlift Subsidy Program for Coastal Labrador. Government has allocated an additional $20,000 to cover the subsidy for the period of December 22, 2003 to January 22, 2004, as an interim measure to allow government to address the longer-term future of the program.

"The subsidy will be paid to retail stores to offset the higher cost of flying perishable foods into Labrador�s coastal communities. This should keep down the price for residents purchasing needed fresh food supplies," said Minister Rideout. "The program will be administered directly by officials in Labrador Affairs. The Southeastern Aurora Development Corporation (SADC) will not be involved with the interim funding."

Under a 1997 agreement with the Department of Works, Services and Transportation, the foodlift subsidy program was administered until December 2003 by the Southeast Aurora Development Corporation. Having overspent its $300,000 funding cap by more than 30 per cent in 2001, SADC carried an annual program deficit since that time. On December 2, 2003, without notifying the province of its intention, SADC advised retailers eligible for the foodlift subsidy that the program would be cancelled on December 4, 2003, due to lack of funds and lack of government commitment to further funding. The province has provided the $300,000 in funding for the program for fiscal year 2003/04.

"Works, Service and Transportation staff are working with Labrador Affairs staff on a full review of the program. We now have a clear picture of the current status, which has led to our decision to solve the short-term problems by taking over its administration and injecting some additional funds," said Minister Taylor. "We�re also looking at options for the future, working on a long-term solution to the high cost of fresh food for coastal Labradorians."

Minister Rideout noted: "Government cannot and will not ignore this problem."

"We will take the time to consider all our options," said Minister Taylor, "but in the meantime, we are going to do something for the people of coastal Labrador: $7.25 is simply too much to pay for a two-litre carton of milk, especially when you don�t expect the increase, just before Christmas. I am pleased to be taking over administration of the program and injecting some additional funds for this interim period."

Media contact:

Deirdre Robinson Greene (WST) (709) 729-0084 / (709) 685-7678
Alex Marland (Labrador Affairs) (709) 729-3733 / (709) 690-6047

2003 12 18                                        3:25 p.m.