The federal government has introduced limited price caps on essential grocery items in some remote First Nations communities to help combat food insecurity and exorbitant prices.
The announcement follows a CHOICE investigation which revealed people in four remote First Nations communities in Western Australia and Northern Territory were paying more than double that of shoppers in the capital cities for a basket of essential items.
"We are also tackling issues of access to affordable food in remote communities," Prime Minister Anthony Albanese told the parliament on Monday as part of the annual Closing The Gap statement.
The resulting food insecurity can have serious health impacts, including cardiovascular and kidney disease
Prime Minister Anthony Albanese
"Consumer advocacy organisation CHOICE found, on average, groceries cost more than double what they do in capital cities, and supplies can be erratic. The resulting food insecurity can have serious health impacts, including cardiovascular and kidney disease," the Prime Minister said.
The measure will be limited to 30 essential grocery products, which includes things like flour, bread, rice, milk and cereal as well as fresh produce such as apples, bananas and tomatoes. Prices in remote grocery stores involved in the scheme will be locked to the prices of the same items in capital cities.
The scheme will initially be rolled out in 76 remote First Nations communities and will be based on where there is the highest level of need. The government will also invest in freight services and warehouse storage to help bring down the cost of transportation and increase the stability of transport networks.
Closing the price gap
In October last year, CHOICE conducted mystery shopping in four remote First Nations communities – two in Western Australia and two in the Northern Territory.
The Western Australian stores were in the Great Sandy Desert and the Pilbara, while the Northern Territory shops were in the West Daly region and Tiwi Islands. In each of the four communities, we purchased a list of nine basic items – many of which could be deemed "essentials" – and compared the cost of the basket to identical items from capital cities around Australia.
In a submission to a government inquiry last year, CHOICE recommended that price caps be explored in consultation with local communities
The basket of items cost, on average, $44.70 at Woolworths, Coles, Aldi and IGA across all capital cities. The average price in the four remote First Nations communities' stores was more than double that at $99.38. The highest price we found was in the West Daly region, where the same basket cost a whopping $110.82.
In a submission to a government inquiry last year, CHOICE recommended that price caps be explored in consultation with local communities.
The Prime Minister also said the government will boost funding to roll out the Arnhem Land Progress Aboriginal Corporation's Nutrition Workforce initiative, which trains First Nations shop staff to promote good nutrition to more communities around the country.
Advocates welcome the announcement
Boandik woman Bettina Cooper is a financial counsellor with Mob Strong Debt Help and says it is good to see the government commit to tackling this issue.
"According to the ABS [Australian Bureau of Statistics], the majority of remote First Nations communities are in the most disadvantaged socio-economic areas in Australia. We know First Nations consumers living in these communities have very limited options about where to shop and the plan to lock prices for essential items in some 76 remote stores will make a big difference to those communities," she says.
Lynda Edwards, a Wangkumara and Barkandji woman from Financial Counselling Australia also welcomed the announcement, but says more needs to be done.
"We also need a mandatory code of practice for stores operating in remote areas, so they are forced to do the right thing by their communities. There also needs to be stricter enforcement of the Unit Pricing Code by the ACCC," she says.
Essential grocery items purchased in a CHOICE mystery shop of remote stores.
"If Australia is serious about Closing the Gap, food security for First Nations people must be a priority. They are paying premium prices in remote areas for food and groceries that are often substandard and are then left with little or no money for other household expenses. It's got to stop."
Bunuba woman Martina Kingi from the Indigenous Consumer Assistance Network (ICAN) adds that implementation will be important.
"It is great to see that the government has acknowledged the link between food insecurity and poor health outcomes in these communities," she says.
"It will be critical to the success of this scheme to ensure it is well monitored and enforced and that people in communities know who they can complain to if they experience problems with their local store."
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