“In good conscience we cannot continue to stand back and let the price gouging of Aboriginal people in remote communities to continue,” Aboriginal Investment Group CEO Steve Smith has said. 

“It is having a negative impact on health and wellbeing and we need to be involved in stopping it.”

The former assistant director of compliance and enforcement of the ACCC said, “enough is enough, it needs to stop”. 

A supermarket chain Aldi could be the answer if it was able to provide competition, he said.

However, a spokesman from Outback Stores has disagreed saying, “improving access to a nutritious and affordable food supply is really important to us”.

“The communities that we work with are in remote locations, meaning much higher freight and operating costs are required to get stock into stores. Logistically it makes things really difficult to price products comparatively to a mainstream supermarket,” the spokesman said. 

On a recent Darwin shopping trip, Mr Smith said he spent just $14 for basics such as milk, oats, flour and cleaning products. 

And in a community store, the same products racked up a $79.90 bill. 

“We have concerns that major players may be limiting brand options, because the higher profile stocked brands provide rebates. Whilst this is not illegal, it is absolutely unconscionable,” Mr Smith said. 

“It raises the individual shelf price of items, and the rebates are not passed on to stores. 

“Outback Stores annual rebates in 2015/16 was $592,000 and 2016/17 $615,000. Shoppers cannot choose the budget version because often it isn’t stocked.”

Mr Smith said in some cases there was “no reasonable argument” for some store’s freight rate to increase prices so dramatically. 

“There is no reasonable explanation that a shelf price for something in Barunga is more than twice the price of something in Katherine.

“Only 80 kilometres out of town, on tar, for goods to be that price, it is out of control,” he said. 

Arnhem Land Aboriginal Progress Association (ALPA) and Outback Stores, owned by the Commonwealth, dominate community stores, limiting competition and allowing price spikes, Mr Smith said.

“Our primary concern is the lack of competition which leads to high prices and limited choice, meaning Aboriginal people are simply unable to afford even the most basic and fundamental goods.

“I completely understand community store prices can’t be as cheap as Coles or Woolworths, but there is a serious issue when Outback Stores charge $62 for nappies that can be bought elsewhere for $25,” Mr Smith said.

Mr Smith said the market needs competition to drive prices down. 

“We welcome [Aldi’s] business to remote NT,” he said. 

Outback Stores has said they are not in a position to comment on price comparison.

“We are not in a position to comment on the price comparison as we are not sure if the suggested prices relate to a store managed by Outback Stores. We also don’t believe these prices reflect Outback Stores pricing,” a spokesman said.

“We continue to look at ways to reduce costs and keep costs as low as possible whilst encouraging healthy choices for our customers. Some of our work [in] this area includes significantly reducing the price of fruit and vegetables and selling 600ml water every day for only $1.”

Concerned with the lack of supply of high quality food at reasonable prices in remote regions of the Northern Territory, Mr Smith said AIG is well-placed to assist a new entrant into the retail grocery sector.

The organisation has the capacity to provide stores and warehousing facilities in both Darwin and Alice Springs.

AIG can also assist in establishing supply chain networks, quickly facilitating access to Aboriginal land and has the ability to negotiate and facilitate supply agreements with Aboriginal community stores, Mr Smith said.