The northern Manitoba town of Churchill is in a “crisis” and its people are “being held hostage” by a rail company that won’t repair flood damage to tracks that bring in critical supplies, says the town’s mayor.

“When you have depended on a rail line to bring your supplies and everything you need in terms of daily living, once you don’t have that, then it becomes a crisis,” Mayor Mike Spence told CTV News Channel on Friday.

He says soaring prices for food, building materials, fuel and propane, which now must be flown in at sometimes five or six times normal costs, are crippling local businesses and residents. The rail’s owner, Denver-based Omnitrax, says it won’t make repairs before next spring.

Spence, along with the chiefs of nearby First Nation communities, are demanding the provincial and federal governments fund repairs to the line that runs from southern Manitoba to Churchill.

“Our community is basically being held hostage because of Omnitrax’s inability to deal with a rail line that has suffered some damage.”

Spence says he’s met with both levels of government and has been told the rail owner is responsible.

“That’s unacceptable. It doesn’t happen elsewhere in Canada. Let’s get on with the repairs that need to be done.”

According to Spence, Omnitrax says it doesn’t have the funds for repairs.

“That is sending a message to me, very clearly, that these folks are abandoning the rail line. So if governments need to step in to fund this, well then governments need to then look at the present model. The ownership model does not work. This is unacceptable in this day and age in Canada.”

Food prices at Churchill’s Northern Store are already so high that a jar of Cheez Whiz costs $17.49 and a package of Kraft Singles costs $17.89. A provincial subsidy called Affordable Food in Remote Manitoba Program (AFIRM) is already factored in to prices, and the North West Company that owns the store has said it will be forced to raise prices even higher on Sunday.

Omintrax released a statement Friday saying it will likely be late July before an assessment can be completed.

“We need to inspect almost 300 km of railway, inspect 24 known breaks in the line, 28 potentially compromised bridges and 600 culverts,” the statement read.

Ted Bland, Chief of York Factory First Nation, said that “immediate action” from Canada and Manitoba would allow northerners to fix the railway themselves -- and have it running by the fall.

“Our northern First Nations have the capacity to fix the railway line and it will not require 10 or more months,” he said.

Rail line to Churchill

Graphic by Nick Kirmse / CTVNews.ca

Bland pointed out that the rail closure has also impacted tourism in the area, where people come from far and wide to see beluga whales and polar bears. Tourism is especially crucial to the local economy after the closure of the town’s port last summer.

War Lake First Nation Chief Betsy Kennedy said the First-Nations-run Keewatin Railway Company is prepared to get the repairs done quickly.

Manitoba Premier Brian Pallister said last week that it was too early to know if the province would provide a subsidy.

Local resident Joe Stover, who lost his job when the port closed, said he doesn’t believe governments have grasped the “gravity” of the situation.

“People are having to leave the community because they can’t afford to live here," he said.