House of Representatives Standing Committee of Indigenous Affairs Inquiry into food pricing and food security in remote Indigenous communities Submission National Indigenous Australians Agency June 2020 National Indigenous Australians Agency submission to the Inquiry into food pricing and food 1 security in remote Indigenous communities 1. INTRODUCTION 1.1.1 The National Indigenous Australians Agency (NIAA) welcomes the House of Representatives Standing Committee of Indigenous Affairs inquiry into food pricing and food security in remote Indigenous communities. Food security in remote communities is a long standing issue that has seen some progress over time, however, there are challenges that persist or remain unresolved. The NIAA is committed to working with stakeholders to address ongoing, unresolved issues. 1.1.2 This submission responds to the terms of reference and provides additional information as requested by the Committee during the preliminary hearing. • Section 2 outlines the operating environment for community stores; including the unique relationship between stores and their communities, the challenges of operating in remote areas, and the stores’ governance arrangements (Terms of Reference 1 and 3). • Section 3 provides a more detailed overview of NIAA’s role in food security through the operation of the Northern Territory Licensing Scheme (Terms of Reference 2, 3 and 8). • Section 4 outlines the ongoing challenges such as distance, infrastructure and seasonal changes; the barriers to reliable access and affordable products faced by remote residents; and the demand for locally produced food in remote communities, including through community gardens (Terms of Reference 4, 5 and 6). • Section 5 outlines roles and responsibilities of food and grocery manufacturers and suppliers and other stakeholders in securing food for remote communities during COVID-19, and pathways towards greater sectoral cooperation (Terms of Reference 7). 1.1.3 Further, the NIAA is preparing a simple ‘basket of goods’ report, which provides a snapshot of current food prices across remote communities in the Northern Territory (NT), Queensland (QLD), Western Australia (WA) and South Australia (SA). The report will be based on available information from the five managed store companies involved in the Food Security Working Group and is not intended to be a comprehensive survey. This report will be provided to the Minister for Indigenous Australians, the Hon Ken Wyatt AM MP, and will be submitted separately to the Committee. Overview 1.1.4 The price of food in remote Australia is consistently higher than in metropolitan and regional centres. Previous reviews have indicated this is due to, for example, transport logistics costs and the relatively smaller purchasing power of remote communities. There is the additional challenge of making sure that healthy choices are available, and that these choices are incentivised (e.g. community National Indigenous Australians Agency submission to the Inquiry into food pricing and food 2 security in remote Indigenous communities initiatives to increase the prices of sugary foods). Each store operates in its own unique context, with varying degrees of remoteness, population size, community engagement, jurisdictional regulations, and management structures (see Attachment A). Responsibility for food security and fair prices falls across all levels of government and in partnership with the communities, store managers, wholesalers, retailers, manufacturers, the food producers and freight companies. 1.1.5 Access to nutritious and affordable food is essential to closing the gap between Indigenous and non-Indigenous Australians, particularly related to health and social determinants (e.g. child mortality, early childhood development, educational attainment, housing, justice, and employment). 1.1.6 The NIAA is responsible for a number of relevant investments as part of the Commonwealth Government’s commitment to improve the lives of all Aboriginal and Torres Strait Islander peoples (see Attachment B for further details). For example, the NIAA: • works with the independent Commonwealth-owned company Outback Stores to support store viability in remote communities • assists store owners and managers to address issues related to store governance, employment, management, financial practices and the promotion of good nutrition under the community stores licensing scheme in the NT, and • works to improve food security and nutrition in school age children through school nutrition projects in the NT. 1.1.7 A key priority for the Commonwealth Government during the Coronavirus (COVID- 19) pandemic has been to secure a reliable supply of essential goods (groceries, pharmaceuticals etc.) in remote communities. To coordinate and secure the ongoing supply of essential goods to remote communities, the NIAA: • convened a dedicated Food Security Working Group with community store management companies and suppliers, and state and territory, and • worked with the Supermarkets Taskforce under National Cabinet’s National Coordination Mechanism to encourage national level supermarkets and wholesalers to support supply to remote communities. National Indigenous Australians Agency submission to the Inquiry into food pricing and food 3 security in remote Indigenous communities 2. OPERATING ENVIRONMENT FOR COMMUNITY STORES 2.1 OVERVIEW 2.1.1 The remote stores landscape supports an estimated 150,000 Indigenous Australians who live across more than 1,200 remote and very remote communities.1 In remote communities, the community store is often the primary source of food and other goods so plays an important role in improving social, economic and health outcomes. The NIAA estimates there are currently over 200 stores servicing remote communities across Australia (see Figure 1), of these, 80 are in remote Indigenous communities with a population of less than 200 people.2 A list of remote community stores is at Attachment C. Figure 1: Map of remote community stores across Australia 2020. 1 Remote and Very Remote communities are defined in line with the Accessibility and Remoteness Index of Australia (ARIA). ARIA is a geographic accessibility index that aims to reflect the ease or difficulty people face accessing services in non–metropolitan Australia. ARIA measures remoteness in terms of access along the road network from over 11,000 localities to five categories of service centres. Areas that are more remote have less access to service centres; areas that are less remote have greater access to service centres. 2 Australian Bureau of Statistics. 2006. Housing and Infrastructure in Aboriginal and Torres Strait IslanderCommunities,Australia,2006 Retrieved from: https://www.abs.gov.au/AUSSTATS/[email protected]/Latestproducts/4710.0Mainper20Features42006?opendocu ment&tabname=Summary&prodno=4710.0&issue=2006&num=&view= National Indigenous Australians Agency submission to the Inquiry into food pricing and food 4 security in remote Indigenous communities 2.1.2 The relationship between a remote community store and its community differs compared to major or metropolitan retailers in regional and urban settings in a number of important ways. For example: • remote community stores are often owned by the community, employing a store manager to run the store on its behalf. In some cases, the store has a committee that oversees the operations of the store and employees. In other situations, a store management company, like Outback Stores or Arnhem Land Progress Aboriginal Corporation (ALPA), might be selected by the community to help with operation of the store • remote community stores are often the primary vehicle to ensure reliable access to affordable and nutritious food supply to residents of remote Indigenous communities. Most estimates suggest that between 90 and 95 per cent of food eaten in remote Aboriginal communities is food purchased in the store, with traditional foods now contributing only a small amount to people's dietary intake.3 • remote community stores often stock a limited range of other consumer goods such as clothes, household hardware, televisions and toys. Some community stores also provide fuel, or have takeaways attached • remote community stores are often the only business or source of income being generated within the community. Well-managed community stores can have an important role in stimulating the local economy and can act as the conduit for broader economic and business opportunities, and • remote community stores often act as the communities’ social hub, supporting social interactions with other community members, as well as fulfilling other needs such as banking. 2.1.3 In addition, the operations of remote community stores are different to retailers operating in urban or metropolitan settings: • smaller market size means the purchasing power is lower. Purchasing power is a function of the price of goods and the volume ordered, and impacts on the range, quality and value of goods which can be offered for sale; • supply is less reliable. Physical isolation, poor roads, and seasonal changes such as wet seasons can result in disruptions to supply; • operating costs are higher. Wages and housing are more expensive, as is store infrastructure and repair costs for electrical and other equipment. Freight 3 House of Representatives Standing Committee on Aboriginal and Torres Strait Islander Affairs. 2009. Everybody's Business: Remote Aboriginal and Torres Strait Community Stores. National Indigenous Australians Agency submission to the