NLIS 4
April 12, 2006
(Labrador and Aboriginal Affairs)
(Health and Community Services)

Subsidy increased to help lower the cost of nutritious foods in Coastal Labrador

Residents in Labrador�s coastal communities will soon see a decrease in their grocery bills, thanks to an increase in the budget for the Air Foodlift Subsidy Program paid out by the Government of Newfoundland and Labrador.

Under the program, a subsidy is paid to retail stores in Labrador�s coastal communities to offset the high cost of flying in perishable foods. This funding goes into effect 10 days after marine coastal services cease due to ice conditions. Retailers in communities such as Postville, Lodge Bay and L�anse au Loup will begin receiving an increase of eight percent in their subsidy payments for claims dated after April 1, 2006. Consumers should notice a corresponding decrease in prices within the coming weeks.

�As of April 1, 2006, we have increased the Air Foodlift Subsidy Program budget by 33 per cent to $400,000 to help ensure that nutritious, perishable foods are available to residents in Labrador�s coastal communities,� said Paul Shelley, Minister responsible for Labrador Affairs and the lead minister for government�s Poverty Reduction Strategy. �We recognize that consumers in communities such as Nain, Black Tickle, and Forteau pay higher than average prices for nutritious food. That is why we are providing subsidies to more than 50 retail stores to help keep the price down for perishable food such as fruit, vegetables and dairy products.�

�Through our recently released provincial wellness plan, Go Healthy, government is committed to supporting healthy lifestyles among all residents of the province,� added Health and Community Services Minister Tom Osborne. �An increase in the Air Foodlift Subsidy will ensure that healthy food is both accessible and affordable, thereby supporting people in their efforts to maintain a healthy lifestyle.�

This is the first budget increase for the Air Foodlift Subsidy since 1997 and is part of the provincial government�s emphasis on poverty reduction and promoting healthy lifestyles. As part of Budget 2006, the Williams administration will invest $62 million annually towards reducing poverty. This includes $38.2 million to expand the eligibility of the Newfoundland and Labrador Prescription Drug Program to include more low income families and individuals as of early 2007, and $7.4 million annually to increase income support rates by five per cent as of July 1, 2006.

 A further $1.3 million will be directed to support implementation of the provincial wellness plan - Go Healthy. This investment builds on last year�s record $2.4 million investment in wellness. The plan�s first phase will be implemented over the next three years and will focus on some key areas including healthy eating, physical activity, tobacco control, and injury prevention.

Concern over the high cost of nutritious, perishable foods was raised by Aboriginal people in consultations prior to the First Ministers� Meeting with National Aboriginal Leaders in Kelowna, B.C. last November.

Media contact:

Alex Marland, Labrador Affairs, (709) 729-4062, 690-6047
Tansy Mundon, Health and Community Services, (709) 729-1377, 685-1741

2006 04 12                                                        11:05 a.m.