One of Australia's most isolated Aboriginal communities experienced an unexpected boost during Western Australia's coronavirus shutdown.
When hundreds of communities were closed to outsiders, Centrelink benefits were increased – and in some cases doubled – to help those experiencing financial hardship.
The effect was plain to see at Wirrimanu Community Store in Balgo, which caters for more than 400 residents.
"People are now buying the stuff they could never afford while on standard Centrelink benefits," said Warren Bretag, co-chief executive of the Wirrimanu Aboriginal Corporation (WAC).
"Our store has gone from $100,000 turnover a week to $150,000 a week."
Mr Bretag said spending on general items like blankets, sheets, fridges and furniture, which usually account for 5 per cent of turnover, jumped to 35 per cent.
Spending on food, which can be prohibitively expensive in remote communities, also increased because of the support payments.
"COVID provided a silver lining in that people could afford to feed their families properly during this period," Mr Bretag said.
"I don't know what's going to happen when the funds are reduced in September."
Food cost inquiry
A Federal inquiry is underway into the cost of food in remote community stores.
Outback Stores, which operates 40 stores nationally and was evicted from Balgo, testified at the inquiry, which was prompted by concerns about price gouging.
Chief executive Michael Borg told the Indigenous Affairs Committee store prices reflected higher operating costs, like staffing, insurance, and repairs.
"Our mark-ups range from minus 10 per cent to 60 or 70 per cent," he said.
"And for core products most mark-ups are 50 per cent on top of the landed cost, and therefore you get a higher sell price."
Mr Borg said healthy foods were priced lower than other items.
"Our strategy is to be as competitive as possible and as affordable as possible on key items and healthy items," he said.
"So you won't find cheap frozen pies, frozen pizzas, full sugar soft drinks or concentrate cordial in the stores we manage."
Wirrimanu co-chief executive Hugh Lovesy said freight costs to Balgo, which is often isolated for months by monsoonal rains, could be hefty.
"That's the deep, deep cost of being remote out bush," Mr Lovesy said.
"We make sure we charge as low as possible for healthy foods and we think that does have a significant impact [on shopping choices]."
Mr Lovesy said WAC's submission to the inquiry would focus on the importance of flexibility for communities in how their supermarkets were run.
"When government comes and makes organisations a one-stop shop it's not going to work," he said.
"It's going to waste public money, it's going to be more expensive.
"We believe with proper safeguards built in, self-management and working on the local level can produce far better results."
