The cost of living crisis is biting across the continent, but in remote areas like the Torres Strait Islands, where access to shops is often limited and difficult, the pain is acute and some businesses struggle to stay afloat.
Fiona Emeny lives in the small community of Kirriri (Hammond Island) – population 260 – and must travel to neighbouring Waiben (Thursday Island) to get her essentials.
A fifteen-minute ferry to Waiben costs $40 dollars return on top of her grocery shop.
Kirriri local Fiona Emeny says the community has wanted an IBIS for years. Credit: Carli Willis
“I live by myself and I went shopping yesterday and it was like $300 dollars,” she said.
Now she and other residents are hoping the acquisition of Kirriri’s store by the region’s only supermarket chain – state owned not-for-profit Community Enterprises Queensland (CEQ) – will see cheaper, and a better selection, of groceries
“I hope this is a good change for the community, especially in prices,” she said.
But Ms Emeny says sea-faring locals are still vulnerable to exorbitant fuel costs that can reach over $3 per litre in the region, on top of rising electricity prices.
And while the acquisition is a win for her community, it highlights a dwindling number of independently owned businesses.
State of freight
Ms Beckley loves what she does but the cost of freight is weighing on her. Credit: Carli Willis.
On Waiben, independent business owner Kelly Beckley’s vending machine business stocks everything from sweets to grocery items and is the only 24-hour store in the Torres Strait.
But she says its the cost of freight that’s keeping her up at night.
In September, the regions only major freight company, Sea-Swift, raised its prices by 8.9 percent.
Ms Beckley says she was denied a commercial freight rate and in the space of a month the cost to have a ‘hip-high’ pallet shipped jumped from $600 dollars to over $900 dollars.
“I look at the future [and] think, how am I going to afford it long term,” she said.
“At the end of January [I’m going to] have a look at turnover, have a look at the freight and see if it’s still worth going.”
Earlier in the year, Ms Beckley relied on online retailers Amazon and Catch for subsidised freight offers, but both have since cancelled delivery to the region.
Federal government called on to help
Christine Pearson Sabatino and Cellistina Pearson were one of the first customers to grab some fresh produce. Credit: Carli Willis
Last month, in an attempt to reduce the financial burden on households, the Queensland state government announced a $64 million dollar freight subsidy package for the Cape York, Gulf and Torres Strait regions.
It aims to take 5.2 per cent off the cash register total from the new year.
Now CEQ is calling on the federal government to neutralise remote freight costs.
CEO Michael Dykes says nine of its twenty nine IBIS and ABIS supermarket stores ran at a loss last year.
“You will notice it, it will mean you can put another few things in your basket,” he said.
“The concept is great, it’s the percentage discount that would never be enough.”
He believes something similar to the Tasmania Freight Equalisation Scheme would benefit the region.
The federally funded scheme provides financial assistance to eligible goods moved by sea to make the cost equivalent to that of road freight.
In a statement to NITV, a spokesperson for Transport and Main Roads Department said an independent reviewer commissioned by the government, Deloitte, had considered the scheme.
“Deloitte noted … the scheme had some elements of a freight operator subsidy, but also had high administrative costs [and] appears to have some challenges at addressing broader issues that affect the cost of living,” the TMR spokesperson said.
‘No one’s approached us’
Sea Swift has it is not immune to rising costs either. Credit: Carli Willis.
Ms Beckley says it’s now cheaper for her to rent a small property in Cairns, have goods shipped there and have family pack and ship it to the island.
“This is the thing with that subsidy being called, I don’t know anything about it,” she said.
“No one’s approached us on if it will impact us.”
In a statement to NITV, Sea Swift’s CEO Chris Pearce said the company was not part of discussions regarding the roll out of the scheme either.
“We have been conducting meetings with key industry stakeholders regarding the commercial viability of our services and how we can work safely and feasibly for the people that rely on Sea Swift,” he said.
“We are calling on the state and federal governments to consider tailoring a freight subsidy to suit the service providers of the Far North.
“We work in a unique part of the world, and that needs to be taken into account when devising a freight scheme.”
Ms Beckley says she’s had to pass some costs on to customers, and other items she’s stopped stocking altogether.
With rising electricity prices, she says the costs of her tiny shop front jumped from $1400 to $2000 dollars per month in a year.
“It just feels like I’m just not going anywhere,” she said.
“I’m just treading water, just whatever I spend, I get that back and only a little bit extra.”
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