This photo, taken by an Iqaluit resident on July 26, showing two boys sleeping outside the local NorthMart, has sparked public outrage and raised concerns from Prime Minister Stephen Harper and Health Minister Leona Aglukkaq. (Submitted by Evie Eegeesiak)

Prime Minister Stephen Harper says the North's social problems, in the spotlight since controversial photos surfaced last week, are "more acute" than those in many other regions.

There has been a public outcry over the photos, which appeared in northern and national media, showing two boys sleeping on the ground outside a downtown Iqaluit supermarket, surrounded by garbage and cigarette butts.

"Obviously this is a terrible tragic story, and I think it pains all our hearts when you see that kind of story," Harper told reporters Tuesday.

While Harper said social problems exist across Canada, he acknowledged that Nunavut is unique in some ways.

"As you go to more northern and isolated communities, we know historically and presently these kinds of problems are more acute," he said.

Social worker shortage, no treatment centre

The photos have raised concerns about a lack of programs and services to assist vulnerable children. For example, territorial government officials have said there is a chronic shortage of social workers in Nunavut, making it difficult to create new programs.

Iqaluit city Coun. Glenn Williams said Nunavut does not have facility to address drug and alcohol addictions that leave some parents unable to care for their children.

"It's embarrassing for us to see our youth and our children out doing those kind of things," he said. "Now that there's a lot of media attention, I'm surprised that it's not common knowledge that we don't have a treatment centre in Nunavut."

But John Amagoalik of the Qikiqtani Inuit Association, a regional Inuit organization, said Harper's government seems more interested in economic development and military strength than addressing social issues.

"The prime minister today seems to think that every problem — social, economic and everything else — the answer is economic opportunity," Amagoalik said.

"You know, it's like [former U.S. president Ronald] Reagan saying anybody can dig for oil."

Nunavut working to improve

Earlier Tuesday, Harper announced that Iqaluit would be the headquarters of the federal government's new northern economic development agency, to be called CanNor.

Harper said the Nunavut government receives significant amounts of money from Ottawa to administer social services.

Federal Health Minister Leona Aglukkaq, who is also the Conservative MP for Nunavut, said the territorial government is working to make improvements.

"It is very concerning for me as well," Aglukkaq said of the photos.

"I had a conversation with the premier about it yesterday [Monday] and talked to her about some of the challenges that they face as well."