Consumer watchdog must monitor Indigenous food and grocery prices: report

Most remote community stores also operate in a difficult trading environment and cannot purchase at volumes that allow them to negotiate for better wholesale prices while the supply chains for food, particularly perishable food, into remote areas are costly, are often severely affected by seasonal weather conditions.

It is the third time the issue in remote Australia has been examined in the past decade with the report noting none of the inquiries had resolved the concerns about food prices and food security that have been expressed.

The committee found complaints concerning food pricing needed to be examined by a body that is equipped to do the thorough, forensic examination that will satisfy the public.

It recommended several measures including for the Australian Competition and Consumer Commission to conduct a market study of prices at remote community stores.

The market study would aim to highlight ways competition could be increased and prices could come down, the report said. Improving the complaints process, laws to stop price gouging and the impact of rebates would also be considered by the proposed study.

In addition it wants real-time price monitoring, better governance training at the local level to help bolster public confidence, a national licensing scheme and inspection of remote community stores.

The committee also recommended the federal government support local food production in remote communities and other regulations to encourage the greater use of locally sourced food.

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It called for the introduction of a remote community competitive grants program, with a focus on access and continuity of power, improving cold and dry storage in communities and supporting local food production schemes such as mobile abattoirs, fishing enterprises and community gardens.

The five-month inquiry was unable to hold sittings or visit remote communities in person because of bio-security zones, which were put in place in March to keep vulnerable remote communities safe from the coronavirus pandemic.

Committee chair, Liberal MP Julian Leeser, said security issues for remote Aboriginal and Torres Strait Islander communities was not new.

“For many people living remotely, food security is a constant concern. The supply of quality and affordable food is often unstable due to poor infrastructure, seasonal changes and the high costs of living.”

“It became clear that these stories reflected a persisting disquiet regarding the supply of affordable, nutritious, quality food in many remote Aboriginal and Torres Strait Islander communities.”