Thank you, Mr. Chair.

I represent Kimik Co-op, based in Kimmirut, formerly known as Lake Harbour.

Having a business in the Arctic is one thing, but operating it is another. It is very complicated. The operating costs are disproportionate to operating costs for businesses in the south.

Electricity costs 55 cents a kilowatt, while in the south they pay 10 cents or 15 cents. Water costs $90 a cubic metre, while in the south it might cost $2 to $5 a cubic metre where there are water metres. Dual energy programs are not available to help the business.

What is more, maintenance costs are truly extreme. There is a lack of qualified tradespeople at the local level, such as plumbers, electricians or carpenters. In many cases, they have to be flown in.

Our insurance premiums have tripled because of our geographic situation. In the past three years, they have gone from $4,500 to $14,000 a month.

There are also the maintenance costs associated with the Nutrition North Canada program. Providing discounts to our clients through Nutrition North Canada is both an obligation and a pleasure. It is our duty: We receive the money, we distribute it to the clients. However, to distribute that money, we need to have a computer system that meets Nutrition North Canada requirements. Not every software program has that capacity. Supply is limited. Once we get our hands on the software, it then needs daily updates. This costs money and that cost is not covered by Nutrition North Canada.

There has also been an influx of new merchants. New merchants constantly appear online offering very low or no shipping fees. These merchants are looking for a share of the market. For our part, we have to pay shipping fees to the airline companies. The clients have limited funds and want to optimize the cost. The merchant offering the lowest prices wins. We cannot compete. This pushes the price of food up. Sales volumes are going down every month, not because consumers are eating less, but because they are buying their food online. An online store based in Ottawa, Montreal or Winnipeg does not have the same operating costs that we do, as I mentioned earlier. We have to absorb these costs; those merchants do not.

The Nutrition North Canada program should take this into account and perhaps review the amount of the contributions made to merchants located in the Arctic.

We understand that air transportation is subject to very strict regulations from Transport Canada or other organizations, but the fact remains that it is hard to be a supplier right now. For reasons unbeknownst to us, flights are cancelled because of the weather and then 15 minutes later a plane lands, without merchandise, to pick up someone in the community. The plane arrives quickly and leaves again carrying just one passenger, but no cargo arrives. We have to wonder if that is efficient.

Thank you for your time and for providing the Kimik Co‑operative the opportunity to testify.

Qujannamiik. Thank you.