Thank you, Mr. Speaker. There are many factors that affect the cost of foods in the High Arctic communities relative to the cost in Yellowknife. Even Yellowknife itself experiences high food costs when compared to southern Canada, like Edmonton. Transportation costs are
the primary factor that directly impacts retail prices. Some food stuffs such as frozen food, fresh vegetables must be frequently flown into the communities. While the government is working on reducing the cost of air travel in the north through improvement to airports, it is still extremely costly as compared to the frequent road transportation that is available for Yellowknife and other communities on the highway system. Other foods are delivered on the annual sealift at a much lower cost. However, the transportation costs of sealift are very significant as well. In addition, the overall cost of doing business is a lot higher in our remote communities. Businesses must reflect these high costs in their prices. Competition and the relative size of a local marketplace also affect retail prices. Small communities are served by few business outlets which result in less competition than larger centres such as Yellowknife. It is difficult for small businesses to obtain low prices available to large national food chains such as Extra Foods. Thank you.
