NL

Economy, food-bank demand both booming in Lab West

The economy in the mining towns in Labrador West is on a roll, and so are calls for help at the regional food bank.

The economy in the mining towns in Labrador West is on a roll, but so are calls for help at the regional food bank.

Demand for land in Labrador City and its neighbouring community of Wabush has risen steeply, pushing up the cost of living in the area. Both towns are home to an iron ore mine.

While steelworkers have been able to keep up with increased expenses, those on more modest incomes have not been as lucky.

"We've had 28 new people— that's adults and children— registered over the summer," said food bank worker Rose Marie Murphy.

"The whole cost of everything [is] going up, and their income is not increasing at the same pace as their expenditures."

The mining industry has been picking up strength in recent months, with the iron ore industry expecting an expansion in the coming years.

The service economy has also been growing, although social activists warn that a housing shortage in a boom is making for a tight squeeze.

"It's all extra stresses on families," said Noreen Careen, the executive director of the Labrador West Status of Women Council.

"I guess [it's] forcing them to decide, 'Do I pay the rent, do I pay the light bill or what do I do next? You know, I have to use the food bank in order to survive and make ends meet.'"

About 10,000 people live in the two towns.

Murphy said the food bank has been fortunate in that residents of the area have been very generous. She said she expects they will be able to respond to increased demand.