Thursday, May 25, 2006

IBA Information Sheet re Outback Stores proposal

Innovative approach to Indigenous community stores, Outback Stores Commonwealth Budget 2006-07 Questions and Answers

Source: HERE

What are the intended outcomes of Outback Stores?

• To improve the commercial viability of community stores through improved management, supply chain logistics and infrastructure;
• A broader and better range of goods and services including healthy food which will contribute to improved health outcomes;
• Consistency in the delivery, supply, quality and range of products in line with established standards, including health and hygiene;
• Increased employment opportunities;
• Business and financial skills training;
• A more efficient and reliable store;
• Better pricing of products.

What are the key components of the Outback Stores model and what will be the general method of delivery?

• Collaboration with the private sector to provide a framework for better governance, financial and stock management, supply chain, staff employment conditions, hygiene and nutrition.

In which communities is IBA proposing to introduce Outback Stores?

• Community stores that are seeking assistance to improve their operation can join the Outback Stores group.

What employment opportunities are expected to be derived for communities participating in Outback Stores?

• Communities and individuals will benefit to the extent that a commercially operated community store will facilitate employment together with business and financial skills training;
• Increasing the range of business and products within stores will also lead to additional employment opportunities;
• Employment conditions will be consistent with established standards.

What does the Government know about the state of existing community stores?

• The Government is aware that many existing community stores are in a poor condition, are poorly managed and do not always supply the grocery items that are necessary for good health;
• A survey of the 170 existing community stores is being undertaken to provide more detailed information about each store.

Will the commercial framework enable Outback Stores to take over the management of participating stores in the event that conditions do not improve?

• Where participating community stores breach their contractual conditions Outback Stores will be able to step in to redress any shortcomings.

What are the conditions for the provision of loan funds to a community store?

• Loans will be available to upgrade or replace store infrastructure to enable greater security, improved food handling and increase the range of stock where necessary. Loans will only be made to community stores that participate in the arrangement.

Will Indigenous communities currently operating a community store be forced to participate?

• No. Participation is voluntary.

Will loans be available to stores that do not participate in the arrangement?

• No. Only participants will have access to loans and associated benefits.

How is IBA intending to develop and implement Outback Stores?

• IBA will work on the details of the arrangement in collaboration with experts in the wholesale and retail grocery sector eg Woolworths, Coles and Metcash. IBA will draw on their experience and expertise during the development and implementation phases of Outback Stores.

When will Outback Stores be implemented?

• IBA expects that all arrangements will be in place around July this year and that Outback Stores will begin the task of marketing its services to community stores during the second half of 2006.

How many stores does IBA expect will participate in the arrangement?

• The number of participants is unknown at this early stage.

What will be the conditions of participation?

• These are still under consideration. However, in return for a range of services including assistance with the supply chain, store management and finance, participating stores will have to adhere to a number of conditions that include corporate governance, employment regulations, payment for goods and services, and, dietary and hygiene policies.

Will participating stores be required to pay a fee for the services provided by Outback Stores and if so how will the fee be set?

• Participating stores will be required to pay a fee for service. Although the exact nature of that fee is yet to be determined, it will be based on individual store turnover.

Will customers be allowed to “book up” their payments?

• We are currently working with bodies such as ASIC, ACCC, NT Consumer Affairs that are developing guidelines in relation to ‘book up’.

What are the benefits to communities participating in the “Outback Stores” arrangement?

• The benefits will be numerous and include a broader range of fresh and affordable goods leading to improved health outcomes, improved services and increased employment and training.

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