Public Advisory: Changes Made to Air Foodlift Subsidy Program

As a result of the Federal Government restructuring its Food Mail Subsidy program, the Government of Newfoundland and Labrador has made adjustments to the provincial Air Foodlift Subsidy program (AFS). The AFS helps provide consumers in remote Labrador communities with nutritious, perishable foods at a reasonable cost.

On May 21, 2010, the Government of Canada announced the Food Mail Subsidy would be replaced by the Nutrition North Canada (NNC) program, effective April 1, 2011. The introduction of the NNC made adjustments to the AFS necessary, which are retroactive to April 1, 2011. The adjustments will be implemented and monitored on a one-year pilot basis. Officials from the Department of Labrador and Aboriginal Affairs have been in contact with retailers and wholesalers to inform them of the pilot project.

To align with the federal NNC program, the NNC Category 1 list of eligible food items is being adopted for the AFS. As a result, the AFS will now subsidize some new items, while some items that were on the previous eligibility food list will no longer be subsidized. The majority of eligible food items remain unchanged.

The AFS will continue to provide an 80 per cent air freight subsidy on eligible food items from the NNC Category 1 list and 100 per cent air subsidy on fresh milk to retailers and wholesalers who participate in the federal NNC program after the NNC subsidy has been applied. As confirmed in Budget 2011 Standing Strong: For Prosperity. For Our Future. For Newfoundland and Labrador, the annual budget of $230,000 for the AFS remains unchanged.

The AFS will now operate year-round, as opposed to the previous structure of providing the subsidy during the winter months when the marine service ceased operations. However, the AFS program for the Straits and South Coast of Labrador remains status quo – it will be initiated when and if there is an extended continuous interruption in marine service due to mechanical or weather delays, or prolonged road closures on the Tran Labrador Highway due to inclement weather.

The monitoring and evaluation of the AFS is ongoing and carried out by the Department of Labrador and Aboriginal Affairs and officials across a number of provincial departments.

A complete list of eligible food items can be found at:
www.gov.nl.ca/laa/programs_we_offer/air_foodlift_subsidy.html.

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Media contact:
John Tompkins
Director of Communications
Department of Labrador and Aboriginal Affairs
709-729-1674, 728-7762
jtompkins@gov.nl.ca 

2011 05 06                                                                       9:45 a.m.