Community stores
The way community stores operate and the quality of food they provide are critical to the Australian Government’s efforts to improve the lives of Indigenous people through the Northern Territory Emergency Response (NTER), announced by the former Australian Government in June 2007
The quality and integrity of stores is also important to the initiative to manage the income of people receiving welfare payments.
The Australian Government has set up a licensing system for community stores in the Northern Territory. Stores that are licensed are able to participate in the income-management arrangements.
At 31 October 2008, a total of 71 community stores had been licensed under a special NTER scheme: 44 stores operating under their own licences and 27 stores operating under corporate or other licences.
Licences are being issued to stores that:
- are able to participate in the requirements of the income-management scheme
- have a reasonable quality, quantity and range of groceries and consumer items, including healthy food and drink, available and promoted at the store
- can demonstrate sound financial structures, retail practices and governance.
If a store operator initially cannot meet some of the assessment criteria, then a conditional licence may be issued, with guidance on how to meet the assessment criteria fully.
As a last resort, the Minister for Families, Housing, Community Services and Indigenous Affairs may make a declaration transferring the assets of the store to the Commonwealth. This would then enable the Commonwealth to appoint an operator who could meet licensing conditions.
Store operators report that income management has been positive for their businesses. Many stores have had an increase in turnover, which has enabled them to provide fresher produce and a wider range of goods.