Nunavik Cost-of-Living Reduction Measures
The KRG administers six innovative measures to help mitigate the effects of the high cost of living on Nunavimmiut. The measures are:
- Elders' Assistance
- Airfare Reduction Program
- Country Food Community Support Program
- Household Appliance and Harvesting Equipment Program
- Food and Other Essentials Program
- Gasoline Program
Under the Agreement on the Financing of Measures to Reduce the Cost of Living in Nunavik, the Québec government committed to pay $10 million in 2014–2015, $11 million in 2015‒2016 and $12 million in 2016–2017. Article 4.8 of the Agreement moreover provides for an automatic one-year renewal, at the same conditions as the last year of the present agreement, if a new one was not signed by March 31, 2017.
The Nunavik Cost-of-Living Reduction Measures are intended to target assistance to the most disadvantaged and to promote healthy lifestyles that take into account Inuit traditions and culture. The measures and their criteria are determined jointly by the Makivik Corporation and the KRG. The criteria applicable to the measures are subject to modification or cancellation at any time. The KRG is responsible for administering the implementation of the measures. Simple and effective reporting procedures to assess the impact of the measures ensure that expenditures are in line with available funding.
Under the Agreement on the Financing of Measures to Reduce the Cost of Living in Nunavik, the Makivik Corporation, the KRG and the Québec government also agreed to generate hard data on the cost of living in Nunavik through in-depth analysis of the consumer patterns of Inuit households with a view to developing a comparative cost of living index. The two-year study is being carried out by the Canada Research Chair in Comparative Aboriginal Conditions at Université Laval. On completion of the study and before the end of the Agreement, the Makivik Corporation, the KRG and the Québec government will undertake discussions to define effective and long-lasting solutions to the cost-of-living in Nunavik.
On December 9, 2013, the Québec government also announced that it would double the overall amount of the residency component of the refundable solidarity tax credit for individuals living in Nunavik. The annual base amount per eligible adult was $1620 in 2014 and $1,637 in 2015. The amount is indexed every year. The maximum credit per eligible child is $354.