Hungry Australians

By any standard, Australia is a wealthy country. It’s rather surprising, therefore, that charitable food distribution appears to be a growth industry. This is indeed “food for thought” and in this blog I will share my thoughts and hope that this will encourage others to join the conversation.

Wealth in Australia

The wealth created here in Australia is not equally distributed amongst our citizens. Official employment statistics show an unemployment rate of around 4-5%. This is misleading, as those who can find only a few hours of employment each week are deemed to be employed, when they should be more accurately regarded as under-employed. Such people are often little better off than those on Newstart/Job Seeker unemployment benefits: payments that have been designed simply to keep people just above the poverty line and force them back into the workforce. However for those with without marketable skills and training finding stable employment is difficult. Casualization is becoming commonplace which means that employees can have their hours of work (and pay) reduced or their employment terminated at short notice. There are also an increasing number of people working on a self-employed basis in the “gig economy”. People working in the “gig economy” have no job security whatsoever and none of the protections that employees might have. All of this means that an increasing number of people face uncertain employment opportunities with consequent fluctuations in their income. In past decades collective bargaining helped employees employees achieve fair wages and working conditions. With the rapid decline of Union membership workers (particularly those in unskilled jobs) have become progressively disempowered. Until decisive political action is taken to change this state of affairs, there is little that individuals can do to improve their employment prospects, apart from engaging with reputable job centres and participating in vocational and educational training that is likely to make them more marketable.

Food Support Services

In general, Aussies are a generous bunch who hate the thought of anyone going hungry and are quick to support organizations that provide food support.

Furthermore, quite a lot of food seems to be going to waste: just look at what the supermarkets throw out every day because it’s near the end of its shelf life: isn’t it better that its given to people in need rather than consigned to the bin? My answer is, of course yes, but in my opinion the discussion shouldn’t be allowed to rest there. Let me explain.

When I started my career as a Social Worker back in Northern Ireland, one of my duties was to respond to requests for assistance from people who had run out of food. The prospect of a hungry week-end would often see a Friday afternoon queue of food seekers forming outside our office. When my career took me to Australia some 44 years ago I was quite surprised to discover that the demand for food assistance here was just as great. After I retired, I spent several years working as a volunteer with community organizations and regularly assisted people in need of food for themselves and their families. Thinking back over these experiences I’ve come to a rather surprising conclusion: despite massive social and economic changes in recent decades, the reasons why households run out of food have remained much the same. In my opinion households are most often left without food for the following reasons:

• Cash flow issues

• Accumulated debt

• Substance abuse

• Health and Disability issues

• Trauma & Domestic Violence

Cash flow issues

To elaborate on this I need to, first of all, identify some of the key aspects of household financial management:

Income All households need some form of income to survive. This could be in the form of wages and or government benefit(s). Usually wages are paid regularly at a fixed rate, although sometimes the amount may vary. Notwithstanding occasional adjustments, the amount of government benefits is generally fixed.

Payments that just have to be made. Each household will be obliged to make a number of payments; some with fixed and others with variable amounts. For example, a fixed amount of rent is paid each week. If payments are missed there are likely to be unwelcome consequences, including eventual eviction. The amount due on power bills will, however vary but must be paid to avoid the risk of the eventual disconnection of supply.

Purchases that promote wellbeing and may be made if and when householders decide to do so. All households buy food on a regular basis with the amount spent depending on personal choices and the amount of money available. Whilst prescribed medicines may be vitally important for some people, purchasing and using them is optional. There are lots of other goods and services that may be purchased to enhance householders’ wellbeing; shoes and clothing, hairdressing, toiletries etc.

Recreational Expenditure Obvious examples of this are the purchase of Movie Tickets, Alcohol, Cigarettes and Street Drugs and money spent on lotteries, poker machines and other forms of gambling.

Unexpected Necessary Expenditure For example - urgent car repairs or repairing or replacing a fridge (particularly during summer).

Cash Flow Process As income flows into the household the amount of money available (commonly referred to as the balance) increases and as money flows out to pay bills or on forms of spending the balance decreases. Problems occur when the balance is insufficient to make one or more obligatory payments such as rent. For most of us, managing household cash flow is an unwelcome task; one that is likely to curb our capacity for the kind of spontaneity and self-indulgence that adds a little joy to our lives.

This is an example of the cash flow history of a fictional lower income family during a few rather difficult weeks.

Date Transaction Amount. $ Balance $

Day 1 Liquor Barn -45 350

Day 1 Pay +800 1150

Day 2 Rent -375 785

Day 3 Groceries -213 572

Day 4 Lottery tickets -35 537

Day 5 Car Rego -384 153

Day 6 Petrol -65 88

Day 7 Centrelink +1300 1388

Day 8 Pay +800 2188

Day 9 Pay Day Loan Instalment -95 2093

Day 10 Rent -375 1718

Day 11 Groceries -195 1523

Day 12 Liquor Barn -52 1417

Day 13 Lottery Tickets -35 1382

Day 14 Petrol -65 1317

Day 15 Pay +800 2117

Day 16 Overdue Speeding Fine - 1500 617

Day 17 Rent -375 242

Day 18 Groceries -195 47

Day 19 School Books -250 (paid on Day 21)

Day 20 Electricity Account -350 (paid on Day 21)

Day 21 Centrelink +1300 747

Day23 Pay + 800 1547

Day 23 Emergency Car Repair -1000 547

Day 24 Rent - 375 172

Day 25 Telco Account – 85 80

Day 26 Petrol - 65 15

This fictional household has emerged from this difficult period relatively un-scathed.

Their rent has been paid, thus ensuring that their tenancy has been safe-guarded and the power bill has been paid to ensure that there is no future risk of disconnection of the electricity supply. The speeding fine has been paid and the car is back on the road ensuring that the driver can resume driving to work. With only $15 left, the household does, however, face the problem of putting food on the table for the next few days and this could be remedied by a visit to a local food support service. Next time, they may not be quite so fortunate.

There are, however, a few things that householders such as this can do to decrease the risk of a cash flow crisis:

1. Make a household budget designed to ensure that enough money is available to pay those absolutely essential bills when they arise and accumulates some savings to deal with emergencies. Simple money manager – Moneysmart.gov.au is a practical and understandable calculator that simplifies household budgeting. For the reasons, outlined earlier there will be a significant number of low income households who will struggle financially. Operating a household budget will not make life easy but it may be a means of avoiding what I describe as the “spiral of debt”. Here are some tips and tricks that may also help.

2. Arrange to pay car registration fees and power bills in advance by regular instalments. If fines are incurred , arrange to pay them off in instalments. In some instances it may be possible to undertake unpaid work as an alternative to paying a fine.

3. Avoid loans from Payday Lenders. As the name suggests loans from pay day lenders need to be repaid in full within a short time, if very high interest payments and charges are to be avoided. If a loan is needed it is better to discuss alternatives with a financial information service such as https://www.vinnies.org.au/…/QLD/Finances/No_Interest_Loans_Scheme_NILS

Accumulated Debt

Then along comes the need to pay another obligatory bill. No credit is available on their card so they turn to a payday lender for the money to meet this commitment. Things are beginning to get difficult, but there is worse to come.

A car registration payment is due and there are no funds available. So a householder may take a chance and drives without registration, hoping that soon enough money will be available. Soon afterwards, when the vehicle is stopped for a random breath test, the police discover that it is unregistered. This results in a fine and even more financial hardship. Unfortunately this “spiral of debt” is not uncommon and inevitably money to purchase food is scarce. In situations such as this, regular food support can provide some help, particularly if there are children in the household. However, on its own, food support may do little to address these long-term underlying problems. Financial counselling and advocacy may help if those in the household are willing to engage in the behavioural changes which this will necessitate.

Alcohol, Tobacco and Other Drugs

Using these substances can be expensive. Alcohol and Tobacco are heavily taxed and, although not subject to taxation, street drugs can also be expensive depending on current prices on the “underground market”. For some people, these substances are a pleasant diversion that doesn’t have a significant impact on their household finances.

For regular users, however, the cost of supporting substance use can place a lot of pressure on the household budget . Some people become compulsive users who may experience distressing physical and/or psychological withdrawal effects, if they attempt to stop or reduce their usage. As a result a continuing dependence is established which thwarts all attempts to successfully manage household finances. A future blog will be devoted to issues surrounding alcohol and/or drug dependence.

Health and Disability

These are complex matters with physical, psychological and social dimensions. For the first time in their adult lives some people may find themselves unable to work, and instead must rely on savings and/or government benefits.

This loss of income can be accompanied by new financial demands: such as out of pocket medical specialist fees and associated travel costs, medication and appliances etc. To make matters worse, some people in these circumstances may find themselves quite isolated, as their illness and/or disability may prevent them from going out and about and they are no longer interacting with family, friends and workmates. It’s understandable why people might feel overwhelmed and unable to attend to the difficult task of ensuring that they have budgeted for food.

Trauma

The term trauma is used to describe a range of devastating life events:

• fires, floods earthquakes and other natural disasters

• being a victim of, or witness to, a crime, act of violence or armed robbery

• being involved in, or witnessing, a serious car or transport accident

• being in an airplane that is forced to make an emergency landing

• being physically or sexually abused and assaulted being exposed to images, news reports or social media posts of these types of events.

More than often ongoing food support will be required following natural disasters and there is usually a swift and generous public response. Following some other traumatic events, the need for food support may not be quite so obvious. However, there is now a growing recognition of the psychological effects and behavioural consequences that can follow most kinds of trauma. Post trauma distress may be such that people are unable to manage day to day finances or the acquisition of food and can benefit from short term food support as an adjunct to other forms of help.

Domestic Violence

A common feature of domestic violence is pathological control exercised by the perpetrator.

This is likely to include strict control over finances which may prevent the victim from having sufficient food for herself and any children that the couple may have. This may result in the victim making regular requests for food support.

Leaving an abusive domestic relationship is not only stressful but in many cases very dangerous. The victim must usually make a hurried departure and find secure temporary accommodation. There may be little time opportunity to take clothing and personal effects and money will be very scarce until such times as government benefits can sorted out. Food support is often needed in such circumstances.

Discussion

Generosity is a common Australian characteristic and most people are quite happy with the work of food charities. Some people, however, complain about scroungers misusing the system. There are, no doubt, some people who make a deliberate choice to seek food support, at times when they could easily afford to buy groceries. However, it would be difficult to actually determine which consumers were really in need and those that just want free food. This would require a rigorous assessment process which would include verification of financial records, rent and electricity payments and so on. This would, not only, be time consuming but it might appear so daunting that it would deter people in genuine need from seeking assistance. Some agencies do, however, impose checks and balances. For example, some services impose limits on the number of food “baskets” provided each year with the proviso that this limit can be waived for consumers with complex problems who are receiving ongoing help from a Social Worker or Counsellor.

During my years of working with food recipients I and my colleagues were able to provide food recipients with tips and tricks with them about household budgeting and how to negotiate with creditors. We have also been able to refer them to family and financial counsellors, mental health services, legal services, domestic violence agencies and child protection services. This was an accessible gateway which enabled people to gain timely access to a range of services that could enhance their wellbeing and that of their families. I believe that opportunities like this should somehow be structured into the provision of food support services.

It's difficult for many people to disclose that they are in financial difficulties and can't afford the necessities of life. To escape from this embarrassment they may resort to risky short term solutions such as skipping rent or electricity payments or visiting their local pawn broker or pay day lender. It is therefore important, for food support services to ensure that consumers feel welcomed, respected and empowered. For example a number of food support services now utilize a self-service supermarket style distribution system which is open to anyone who pays a nominal membership fee.

This blog has not discussed a number of other aspects of food support :

1. A growing number of schools now provide breakfast for children who are hungry when they arrive at school. Anecdotal evidence would suggest that this may have improved recipients’ classroom performance.

2. Perhaps the increased availability of processed food, and takeaway meals has decreased the availability and the nutritional value of food available within households.

3. To what extent to food services actually contribute to the ongoing wellbeing of consumers? More research is needed.

4. How satisfied are consumers with current food services? More research is needed.