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"You will be a massive failure": Steve Price unleashes on Kyle Sandilands

The feud between Steve Price and Kyle Sandilands has taken a new turn, as Price unleashed on Sandilands over the launch of The Kyle and Jackie O Show in Melbourne. The Project panel were discussing the show's first episode in the Victorian capital which was met with a mixed reception, given the use of coarse language. Price took the discussion to the next level as he made it clear he is not a fan of the KIISFM show or its host. “Kyle, last time I mentioned you on this program I called you a grubby buffoon. That was a compliment in hindsight,” Price said on Monday night's episode of The Project. “That garbage you put to air this morning, sexualised rubbish, toxic, nobody should listen to it and you will be a massive failure in Melbourne.” Price continued his tirade, accusing Sandilands of sending him a “threatening message” last November after his “grubby buffoon” comments, and he dared the KIIS FM star to “do it again”. He ended the spray by saying, “I do note that you didn’t have the guts to sit down and do an interview with me to talk about your new radio show, perhaps because you’ve got the intellect of a cumquat”. Sandilands responded to Price's comments live on air on Tuesday morning, taking aim at the co-host and the show at large. “[The Project] is no good,” he said about the Channel 10 program. “It’s a piece of s**t”. “No one watches it, and they don’t like us.” As for Price's claims, Sandilands accused the fellow broadcaster of being “fake”, and claimed that Price sent a revealing note to his manager last month. The note allegedly said, “I’m very aware Kyle and I have had some interesting whacks at each other over the years but as we know, it’s all part of the game.” “See, I’m right, it is feigned outrage,” Sandilands said. “Does he mean what he says or is he just full of s**t?” Kyle and Jackie O tried to call Price on Tuesday morning to address their ongoing feud, but he didn’t answer. Image credits: The Project / Instagram

Police release new images in search for church rioters

The images of 12 men who were allegedly involved in the violent riot outside The Good Shepherd Church in Wakeley have been released by NSW Police. Three men have been charged over their alleged involvement in the riot last Monday, shortly after bishop Mar Mari Emmanuel was stabbed during a service that was being live-streamed. A 16-year-old boy has been <a href="https://www.oversixty.com.au/finance/legal/teenage-boy-in-custody-after-stabbing-at-sydney-church" target="_blank" rel="noopener">arrested</a> over the stabbing incident, with police describing it as a "terror incident". Now, Strike Force Dribs have been established to investigate the violent incidents, and they have released the images of the men they would like to speak to. Acting Assistant Commissioner Andrew Holland said that around 2,000 people were at the scene but up to 50 were there "to start problems". "We know that there's groups of families involved that have gone there to support their parishioners, and we're not looking for those people," he said. "We're looking to speak with them if they can provide us information about the people involved." In the immediate aftermath of the incident, dozens of police were injured, their cars vandalised, and some officers and paramedics were forced to take shelter inside the church. One police officer had their jaw broken, while another suffered facial and knee injuries. Superintendent Andrew Evans said that the images of the men have been released "due to the violent and aggressive nature of their actions". "We are doing everything we can to identify these men and are now appealing for public assistance," he said in a statement. "Someone in the community knows who they are." One man — known as Person A — had his face covered but was filmed jumping on top of police cars. He has a large tattoo of Jesus Christ on his stomach, and others on his left arm. Another — known as Person C — was described as being of Mediterranean or Middle Eastern appearance with short black hair and a beard. A full list of all the people police believed were involved in the riots were released on their <a href="https://www.police.nsw.gov.au/news/news?sq_content_src=%2BdXJsPWh0dHBzJTNBJTJGJTJGZWJpenByZC5wb2xpY2UubnN3Lmdvdi5hdSUyRm1lZGlhJTJGMTExNTU0Lmh0bWwmYWxsPTE%3D" target="_blank" rel="noopener">website</a>, with descriptions of their features and the clothes they were wearing. Investigators are also collecting evidence including mobile phone and CCTV footage to identify those involved. Over the weekend, Issa Haddad, 28, was charged and granted bail for over the public disorder incident. Two others, Dani Mansour, 19, and Sam Haddad, 45, have also been charged and granted bail. Images: NSW Police/ SBS News

Legal

Why is the Sydney church stabbing an act of terrorism, but the Bondi tragedy isn’t?

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/greg-barton-10990">Greg Barton</a>, <a href="https://theconversation.com/institutions/deakin-university-757">Deakin University</a> Just days after the deadly <a href="https://www.abc.net.au/news/2024-04-14/several-killed-in-mass-stabbing-at-westfield-bondi-junction/103705354">Westfield Bondi attacks</a>, a <a href="https://www.abc.net.au/news/2024-04-16/albanese-says-there-is-no-place-for-violence-in-our-community/10372830">second knife attack</a> in Sydney has generated widespread shock and grief. This time, a 16-year-old entered an Assyrian church and rushed forward to stab the popular bishop presiding over a service, together with a priest who rushed to his defence. The shocking events were captured on the church’s video stream, and the news quickly reached thousands of members of Sydney’s large Assyrian community. While both priests were injured, thankfully the knife blows were not fatal. Parishioners immobilised the attacker, and police and paramedics swarmed the church. Police moved quickly to identify the assailant and analyse his apparent motivation before announcing they were treating the attack as a <a href="https://www.bbc.com/news/world-australia-68823240">terrorist incident</a> early this morning. Public knife attacks are rare in Australia, and for Sydney to experience two in quick succession has rightfully alarmed many and, understandably, led to comparisons between the two. A lot of the discussion is around why the Bondi Junction shopping mall attack in which six were killed wasn’t considered terrorism, but this shocking, but non-lethal, attack was. So what do we know about the church attack, and what important distinctions can be made between it and the awful events at Bondi? <h2>What happened at the church?</h2> Bishop Mar Mari Emmanuel has developed a large following, not just in Australia but in the Assyrian diaspora <a href="https://www.abc.net.au/news/2024-04-16/who-is-bishop-mar-mari-emmanuel-wakeley-church-attack/103728808">around the world</a>, with his live-streamed sermons. Shortly after seven o'clock on Monday night, the video feed of the Christ The Good Shepherd Church in Sydney’s outer west went dead, but not before it captured the shocking attack and parishioners rushing forward to help. Almost immediately, crowds gathered outside the church. We don’t yet know the motivations of the people who turned up, but it can be assumed they were there because they either saw or heard of what had happened and rushed over out of concern. Tragically, at some point the dynamics of the fast-swelling crowd took a dark turn. Instead of letting the large police and ambulance presence continue to handle the situation, some emotional onlookers turned on the authorities. Multiple police officers and paramedics were injured and vehicles were heavily damaged. It’s likely the fact the attack was captured on video, and therefore able to be shared and watched over and over again, added to the combustibility of an already volatile situation. It would appear the attack was deliberately planned to provoke an angry response. But what exactly happened in the crowd is the subject of one police investigation. <h2>Why is it considered a terrorist act?</h2> The other investigation is an anti-terrorism one. This is because while the teenager acted alone, it’s very likely they had received encouragement and backing from others. <a href="https://www.fbi.gov/history/famous-cases/unabomber">The Unabomber</a> is one of the very few documented cases of someone committing violence for ideological reasons truly in isolation. This lone actor attack in Sydney is reminiscent of the <a href="https://www.abc.net.au/news/2015-10-03/nsw-police-headquarters-gunman-was-radicalised-youth/6825028">2015 murder</a> of police accountant Curtis Cheng. He was shot dead by a 15-year-old who had been radicalised by supporters of Islamic State. It later came out <a href="https://www.abc.net.au/news/2019-03-14/curtis-cheng-murder-surveillance-man-guilty-of-terror-plan/10900982">in court</a> the attack had been planned by three other people, who also supplied him with the gun. Police were quick to pronounce the knife attack on Monday to be an act of terrorism. Having identified the attacker, they would have been studying his social connections and examining his digital footprint. The police assessment would have also given attention to the particulars of the church targeted. <a href="https://www.britannica.com/topic/Assyrian">Assyrians</a> (people from northwest Iraq, northeast Syria and southeast Turkey) are almost exclusively Christian, belonging to one of the oldest churches in existence, living in precisely that part of the world in which the Islamic State established its brutal caliphate. It’s telling that before the caliphate was established, Assyrians made up just 3% of the Iraqi population. But in the wake of Islamic State sweeping across northern Syria and Iraq, Assyrians soon made up <a href="https://www.sbs.com.au/news/article/assyrian-australians-plead-for-second-special-refugee-settlement-deal/x7ej8ix2y">40%</a> of Iraqi refugees. The trauma of those years is <a href="https://theconversation.com/diversity-and-religious-pluralism-are-disappearing-amid-iraqs-crisis-29832">recent history</a>, fresh in the minds of many. The recent Islamic State claim of responsibility for the <a href="https://edition.cnn.com/2024/03/27/europe/missing-people-russia-moscow-concert-hall-attack-intl/index.html">recent deadly attacks in Moscow</a>, is a reminder the group remains a live and growing threat. For these reasons police will be looking for any evidence Islamic State might have played a role in inspiring this attack. <h2>Terrorism or not terrorism?</h2> Events at the church have been under a bigger spotlight given the events of the days preceding it. Despite <a href="https://www.theguardian.com/australia-news/2024/apr/15/false-claims-started-spreading-about-the-bondi-junction-stabbing-attack-as-soon-as-it-happened">early misinformation</a>, police said thathey believe the Bondi killer, Joel Cauchi, was not motivated by a larger political cause – that is, a terrorist motivation. Instead, they say he lashed out violently because of anger control issues related to <a href="https://www.theguardian.com/australia-news/2024/apr/14/joel-cauchi-who-was-the-queensland-man-who-carried-out-the-bondi-junction-mass-stabbing">mental ill-health</a>. But of the <a href="https://www.theguardian.com/australia-news/2024/apr/14/bondi-junction-mass-stabbing-attack-who-are-the-six-victims">six people</a> he killed, five were women. Women also make up the majority of those injured. The one man who lost his life, security guard Faraz Tahir, a Muslim refugee from Pakistan, was attacked because he bravely <a href="https://www.1news.co.nz/2024/04/16/friend-of-bondi-security-guard-says-his-last-moments-were-brave/">rushed towards</a> danger in an attempt to try to stop Cauchi. NSW Police Commissioner Karen Webb said Cauchi <a href="https://www.abc.net.au/news/2024-04-15/westfield-bondi-attack-stabbing-investigation/103706698">deliberately targeted women</a>. So if someone is targeting a specific group of people, isn’t that terrorism? Why does it matter if they were killing based on gender or religion? Is misogyny not terrorism? Put simply, the defining characteristic of terrorism is perpetuating violence in the name of a higher, broader cause. Terrorists have a belief in a collective goal, and see themselves as being backed by people who share that belief. Misogyny can be an element of their motivation and justification of hatred, but it’s part of a larger political project. Basically, it boils down to whether these violent actors think they’re part of a political or religious movement that’s going to <a href="https://theconversation.com/social-inclusion-is-important-in-aotearoa-new-zealand-but-so-is-speaking-honestly-about-terrorism-167429">change the system</a>, or whether they are simply angry men projecting loathing and driven by personal demons. The two, of course, are <a href="https://www.smh.com.au/national/nsw/not-since-the-lindt-siege-has-sydney-known-grief-like-this-20240414-p5fjnl.html">not mutually exclusive</a>. This is not to undermine the damage that angry men can, and do, inflict. Domestic violence is a bigger threat to Australians than terrorism. Calling something a terrorist act doesn’t make it more or less serious than anything else, rather the categorisation is to provide conceptual clarity for the sake of the ensuing investigation. Events at Westfield Bondi Junction and the Assyrian Christ The Good Shepherd Church are both awful, but while they share some similarities, they are different sorts of crimes with different drivers and enablers. As police investigations continue, we’ll come to better understand the nature of both.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/227997/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/greg-barton-10990">Greg Barton</a>, Chair in Global Islamic Politics, Alfred Deakin Institute for Citizenship and Globalisation, <a href="https://theconversation.com/institutions/deakin-university-757">Deakin University</a> Image credit: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/why-is-the-sydney-church-stabbing-an-act-of-terrorism-but-the-bondi-tragedy-isnt-227997">original article</a>. </div>

Caring

Teenage boy in custody after stabbing at Sydney church

A 15-year-old boy has been arrested after he stormed a church service in Western Sydney and stabbed a bishop and a priest. The Orthodox Christian church service was being live-streamed from the suburb of Wakeley on Monday night and captured the moment Bishop Mar Mari Emmanuel's sermon was interrupted by the teen, who allegedly stabbed him several times. Father Isaac Royel was also stabbed, with two parishioners also sustaining injuries as they subdued the teenager until police arrived. The bishop and priest were both taken to hospital with non-life threatening injuries. Acting Assistant Commissioner Andrew Holland said the churchgoers did a "fantastic job" trying to calm the scene, but outside the church, an emotional crowd quickly built. NSW Premier Chris Minns chaired an urgent crisis control meeting with leaders from multiple faiths, all agreeing to a call for calm. When police arrived on the scene, the riot officers attempted to forcibly move the crowd away from the church, which led to violence against the officers. Police cars were smashed and two officers were taken to hospital after being injured by members of the crowd who broke into “a number of houses to gain weapons to throw at the police”. The 15-year-old, who was known to police, was arrested once officers gained access to the church and was taken to an undisclosed location for his own safety. Premier Minns later confirmed that the attack is being treated as a terror event, saying Police Commissioner Karen Webb had designated the stabbing a "terror incident" just prior to 2am. Chris Minns urged the community to keep calm and not perpetuate further violence, saying he and religious leaders “endorsed and supported a unanimous condemnation of violence in any form, called for the community to follow first responder and police instructions and called for calm in the community”. “We’re calling on everyone to act with kindness and respect for each other,” he said. The church said Bishop Emmanuel and a senior priest were in a stable condition and also appealed for calm. “We ask for your prayers at this time,” the church said in a statement posted on social media. Image credits: Facebook / Nine News

Legal

Loyalty programs may limit competition, and they could be pushing prices up for everyone

<a href="https://theconversation.com/profiles/alexandru-nichifor-1342216">Alexandru Nichifor</a>, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a> and <a href="https://theconversation.com/profiles/scott-duke-kominers-1494057">Scott Duke Kominers</a>, <a href="https://theconversation.com/institutions/harvard-university-1306">Harvard University</a> Loyalty programs enable firms to offer significantly lower prices to some of their customers. You’d think this would encourage strong competition. But that isn’t always what actually happens. <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4377561">New research</a> shows that paradoxically, by changing the way companies target customers, loyalty programs can sometimes reduce price competition. The research also points to solutions. <h2>A win-win proposition?</h2> Joining a loyalty program is supposed to be a win-win. You – the customer – get to enjoy perks and discounts, while the company gains useful commercial insights and builds brand allegiance. For example, a hotel chain loyalty program might reward travellers for frequent stays, with points redeemable for future bookings, upgrades or other benefits. The hotel chain, in turn, records and analyses how you spend money and encourages you to stay with them again. Such programs are commonplace across many industries – appearing everywhere from travel and accommodation to supermarket or petrol retailing. But they are increasingly coming under scrutiny. In 2019, the Australian Competition and Consumer Commission (ACCC) <a href="https://www.accc.gov.au/about-us/publications/customer-loyalty-schemes-final-report">cautioned</a> consumers about the sheer volume of personal data collected when participating in a loyalty program, and what companies can do with it. Hidden costs – such as having to pay a redemption fee on rewards or losing benefits when points expire – are another way these schemes can harm consumers. But a larger question – how loyalty programs impact consumers overall – remains difficult to settle, because their effect on competitiveness is unclear. As the ACCC’s <a href="https://www.accc.gov.au/about-us/publications/customer-loyalty-schemes-final-report">final report</a> notes, on the one hand: "Loyalty schemes can have pro-competitive effects and intensify competition between rivals leading to competing loyalty discounts and lower prices for consumers." But on the other hand: "Loyalty schemes can also reduce the flexibility of consumers’ buying patterns and responsiveness to competing offers, which may reduce competition." <h2>How a two-speed price system can hurt everyone</h2> A new economic theory research <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4377561">working paper</a>, coauthored by one of us (Kominers), suggests that on competitive grounds alone, loyalty programs can sometimes harm all consumers – both ordinary shoppers and the program’s own members. It’s easy to see how the ordinary shopper can be worse off. Since a firm’s loyalty program enables it to offer discounted prices to its members, the firm can raise the base prices it offers to everyone else. Those not participating in the program pay more than they otherwise would have, and the firm can respond by saying “join our program!” instead of having to lower its price. But sometimes, even the program’s own members can end up worse off. When a given customer’s loyalty status is not visible to a firm’s competitors – as is the case in many loyalty programs today – it’s hard for those competitors to identify them and entice them to switch. The main way to compete for those customers becomes to lower the base price for everyone, but this means missing out on the high base margins achieved through the existence of your own loyalty program – remember, having a loyalty program means you can charge non-members more. It’s often more profitable for firms to just maintain high base prices. This, in turn, reduces overall price competition for loyal customers, so firms can raise prices for them, too. <h2>What’s the solution?</h2> Despite these effects on competition, loyalty programs still offer benefits for consumers and an opportunity for brands to form closer relationships with them. So, how do we preserve these benefits while enabling price competition? The research suggests an answer: making a customer’s loyalty status verifiable, transparent and portable across firms. This would make it possible for firms to tailor offers for their competitors’ loyal customers. This is already happening in the market for retail electricity. While there aren’t loyalty programs there per se, a consumer’s energy consumption profile, which could be used by a competitor to calibrate a personalised offer, is known only to their current electricity supplier. To address this, in 2015, the Victorian government launched a <a href="https://compare.energy.vic.gov.au">program</a> encouraging households to compare energy offers. This process involved first revealing a customer’s energy consumption profile to the market, and then asking retailers to compete via personalised offers. By opening information that might have otherwise been hidden to the broader market, this approach enabled firms to compete for each other’s top customers, in a way that could be emulated for loyalty programs. Such systems in the private sector could build upon “<a href="https://thepointsguy.com/guide/airline-status-matches-challenges/">status match</a>” policies at airlines. These allow direct transfer of loyalty status, but currently rely on a lengthy, individual-level verification process. For example, a design paradigm known as “<a href="https://hbr.org/2022/05/what-is-web3">Web3</a>” – where customer transactions and loyalty statuses are recorded on public, shared blockchain ledgers – offers a way to make loyalty transparent across the market. This would enable an enhanced, decentralised version of status match: a firm could use blockchain records to verifiably identify who its competitors’ loyal customers are, and directly incentivise them to switch. Both startups and established firms have experimented with building such systems. <h2>What next?</h2> New academic research helps us model and better understand when loyalty programs could be weakening supply side competition and undermining consumer welfare. A neat universal solution may prove elusive. But targeted government or industry interventions – centred on increasing the transparency of a customer’s loyalty status and letting them move it between firms – could help level the playing field between firms and consumers.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/220669/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/alexandru-nichifor-1342216">Alexandru Nichifor</a>, Associate Professor, Faculty of Business and Economics, University of Melbourne, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a> and <a href="https://theconversation.com/profiles/scott-duke-kominers-1494057">Scott Duke Kominers</a>, Sarofim-Rock Professor of Business Administration, <a href="https://theconversation.com/institutions/harvard-university-1306">Harvard University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/loyalty-programs-may-limit-competition-and-they-could-be-pushing-prices-up-for-everyone-220669">original article</a>.

Money & Banking

Think $5.50 is too much for a flat white? Actually it’s too cheap, and our world-famous cafes are paying the price

<a href="https://theconversation.com/profiles/emma-felton-143029">Emma Felton</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> Even in a stubborn cost-of-living crisis, it seems there’s one luxury most Australians <a href="https://www.comparethemarket.com.au/news/what-australians-wont-give-up-cost-of-living-crisis-report/">won’t sacrifice</a> – their daily cup of coffee. Coffee sales have largely <a href="https://www.statista.com/statistics/866543/australia-domestic-consumption-of-coffee/">remained stable</a>, even as financial pressures have bitten over the past few years. So too have prices. Though many of us became upset when prices began to creep up last year, they’ve since largely settled in the range between $4.00 and $5.50 for a basic drink. But this could soon have to change. By international standards, Australian coffee prices are low. No one wants to pay more for essentials, least of all right now. But our independent cafes are struggling. By not valuing coffee properly, we risk losing the <a href="https://bizcup.com.au/australian-coffee-culture/">internationally renowned</a> coffee culture we’ve worked so hard to create, and the phenomenal quality of cup we enjoy. <h2>Coffee is relatively cheap in Australia</h2> Our recent survey of Australian capital cities found the average price of a small takeaway flat white at speciality venues is A$4.78. But in <a href="https://pabloandrustys.com.au/blogs/drinkbettercoffee/global-coffee-prices">some international capitals</a>, it’s almost double this, even after adjusting for local <a href="https://www.investopedia.com/updates/purchasing-power-parity-ppp/">purchasing power parity</a>. <iframe id="gaplH" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/gaplH/" width="100%" height="400px" frameborder="0"></iframe> In London, a small flat white costs about A$6.96. Singapore, A$8.42. In Athens, as much as A$9.95. <h2>The cafe business is getting harder</h2> Over the past few decades, coffee prices haven’t kept pace with input costs. In the early 2000s, after wages, food costs, utilities and rent, many cafes <a href="https://www.coffeecommune.com.au/blog-why-are-cafes-so-expensive/">earned healthy profit margins</a> as high as 20%. The <a href="https://www.ibisworld.com/au/industry/cafes-coffee-shops/2015/">most recent data from IBISWorld</a> show that while Australian cafe net profits have recovered from a drop in 2020, at 7.6%, they remain much lower than the Australian <a href="https://www.money.com.au/research/australian-business-statistics">average business profit margin of 13.3%</a>. For an independent owner operating a cafe with the <a href="https://www.ibisworld.com/au/industry/cafes-coffee-shops/2015/">average turnover of A$300,000</a>, this would amount to a meagre A$22,800 annual net profit after all the bills are paid. <h2>What goes into a cup?</h2> Just looking at the cost of raw inputs – milk, beans, a cup and a lid – might make the margin seem lucrative. But they don’t paint the whole picture. <figure class="align-center "><img src="https://images.theconversation.com/files/584949/original/file-20240328-24-rlngpk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/584949/original/file-20240328-24-rlngpk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=600&fit=crop&dpr=1 600w, https://images.theconversation.com/files/584949/original/file-20240328-24-rlngpk.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=600&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/584949/original/file-20240328-24-rlngpk.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=600&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/584949/original/file-20240328-24-rlngpk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=754&fit=crop&dpr=1 754w, https://images.theconversation.com/files/584949/original/file-20240328-24-rlngpk.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=754&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/584949/original/file-20240328-24-rlngpk.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=754&fit=crop&dpr=3 2262w" alt="A takeaway coffee cup showing the price inputs, with wages and operation costs making up over 65% of the cost of a coffee" /><figcaption>Chart: The Conversation. <a class="source" href="https://pabloandrustys.com.au/blogs/drinkbettercoffee/whats-in-the-cost-of-coffee">Data: Pablo and Rusty's Coffee Roasters</a>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></figcaption></figure> Over the past few years, renting the building, keeping the lights on and paying staff have all become <a href="https://www.reuters.com/business/ground-down-australia-coffee-shops-an-early-inflation-casualty-2023-07-10/">much bigger factors</a> in the equation for coffee shop owners, and many of these pressures aren’t easing. 1. Green coffee price Increasingly <a href="https://www.aa.com.tr/en/environment/brewing-crisis-how-climate-change-is-reshaping-coffee-production/3113886">subject to the effects</a> of climate change, the baseline commodity price of green (unroasted) coffee is <a href="https://perfectdailygrind.com/2024/02/demand-for-robusta-prices-record-high/">going up</a>. Arabica – the higher quality bean you’re most likely drinking at specialty cafes – is a more expensive raw product. Despite levelling off from post-pandemic highs, its price is still trending up. In 2018, it <a href="https://www.statista.com/statistics/675807/average-prices-arabica-and-robusta-coffee-worldwide/">sold</a> for US$2.93 per kilogram, which is projected to increase to US$4.38 dollars in 2025. Robusta coffee is cheaper, and is the type <a href="https://www.lavazza.com.au/en/coffee-secrets/difference-type-arabica-robusta-coffee">typically used to make instant coffee</a>. But serious drought in Vietnam has just pushed the price of robusta to an <a href="https://www.barchart.com/story/news/25094367/coffee-rallies-with-robusta-at-a-record-high-on-shrinking-coffee-output-in-vietnam">all-time high</a>, putting pressure on the cost of coffee more broadly. 2. Milk prices The price of fresh milk has risen by <a href="https://cdn-prod.dairyaustralia.com.au/-/media/project/dairy-australia-sites/national-home/resources/reports/situation-and-outlook/situation-and-outlook-report-march-2024.pdf?rev=b0222df4b01b40d0ae36cf8ac7b01bc0">more than 20%</a> over the past two years, and remains at a peak. This has put sustained cost pressure on the production of our <a href="https://gitnux.org/australian-coffee-consumption-statistics/#:%7E:text=Coffee%20is%20a%20beloved%20beverage,approximately%206%20billion%20cups%20annually.">most popular drink orders</a>: cappuccinos and flat whites. 3. Wages and utilities Over the past year, Australian wages have grown at their <a href="https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/real-wages-growth-back">fastest rate</a> since 2009, which is welcome news for cafe staff, but tough on operators in a sector with low margins. Electricity prices remain elevated after significant inflation, but could <a href="https://www.sbs.com.au/news/article/heres-how-much-your-energy-bills-might-go-down-by-and-when/k8g00jheg">begin to fall mid-year</a>. <h2>Specialty vs. commodity coffee: why price expectations create an industry divide</h2> One of the key factors keeping prices low in Australia is consumer expectation. For many people coffee is a fundamental part of everyday life, a marker of livability. Unlike wine or other alcohol, coffee is not considered a luxury or even a treat, where one might expect to pay a little more, or reduce consumption when times are economically tough. We anchor on familiar prices. <iframe id="oDbah" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/oDbah/" width="100%" height="400px" frameborder="0"></iframe> Because of this, it really hurts cafe owners to put their prices up. In touch with their customer base almost every day, they’re acutely aware of how much inflation can hurt. But in Australia, a huge proportion of coffee companies are also passionate about creating a world-class product by only using “<a href="https://medium.com/@samandsunrise/why-is-specialty-coffee-so-expensive-6cf298935e4b#:%7E:text=Specialty%20Shops%20Feature%20High%20Grade%20Coffees&text=Their%20coffees%20are%20hand%2Dpicked,even%20on%20the%20same%20tree.">specialty coffee</a>”. Ranked at least 80 on a quality scale, specialty beans cost significant more than commodity grade, but their production offers better working conditions for farmers and encourages more sustainable growing practices. Although not commensurate with the wine industry, there are similarities. Single origin, high quality beans are often sourced from one farm and demand higher prices than commodity grade coffee, where cheaper sourced beans are often combined in a blend. Running a specialty cafe can also mean roasting your own beans, which requires a big investment in expertise and equipment. It’s an obvious example of doing the right thing by your suppliers and customers. But specialty cafes face much higher operating costs, and when they’re next to a commodity-grade competitor, customers are typically unwillingly to pay the difference. <h2>Approach price rises with curiosity, not defensiveness</h2> When cafe owners put up their prices, we often rush to accuse them of selfishness or profiteering. But they’re often just trying to survive. Given the quality of our coffee and its global reputation, it shouldn’t surprise us if we’re soon asked to pay a little bit more for our daily brew. If we are, we should afford the people who create one of our most important “<a href="https://theconversation.com/how-cafes-bars-gyms-barbershops-and-other-third-places-create-our-social-fabric-135530">third spaces</a>” kindness and curiosity as to why. <img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/226015/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/emma-felton-143029">Emma Felton</a>, Adjunct Senior Researcher, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/think-5-50-is-too-much-for-a-flat-white-actually-its-too-cheap-and-our-world-famous-cafes-are-paying-the-price-226015">original article</a>.

Money & Banking

Qantas announces major price hike

Qantas customers have been warned that they will see a significant increase in price to the airline’s domestic club lounges from next month. For the first time in seven years, the airline will charge Qantas Club membership holders 17 per cent more to access their lounges, with price changes set to be made from April 18. The increase coincides with Qantas' plans to renovate 24 of their domestic lounges over the next year, with the carrier spending an estimated $100 million on renovations. This means that annual fees for new members will increase from $699 to $828, including the $129 joining fee. For current members looking to renew, their annual fees will rise from $540 to $629. “This is the first time the Qantas Club membership fees have increased in seven years and will help cover cost increases passed on from a range of suppliers over that time. This follows a reduction in the membership fees for several years during the pandemic,” a spokesperson told news.com.au. They added that these changes will not affect Qantas Frequent Flyers members who will continue to receive complimentary access to the Club through Points Club Plus or their Gold, Platinum or Platinum One status. Members can also avoid the price hike if they renew their membership before April 18. Image: Getty

Money & Banking

West Side Story returns to Handa Opera on Sydney Harbour

Get ready to snap your fingers, tap your toes and experience the magic of Broadway in Sydney as Opera Australia presents the electrifying musical extravaganza West Side Story – making its triumphant return to the Handa Opera on Sydney Harbour stage in 2024. The 2019 production of West Side Story, if you were fortunate enough to grab seats, was an absolute smash hit. With record-breaking ticket sales and rave reviews, it's no wonder this show stole the hearts of over 65,000 theatre and musical buffs. Directed by the incomparable Francesca Zambello, West Side Story promises to once again whisk audiences away to the bustling streets of New York City, complete with iconic songs, heart-pounding dance numbers, and enough drama to fill the harbour twice over. Leonard Bernstein and Stephen Sondheim's musical masterpiece will once again take centre stage, accompanied by Jerome Robbins' legendary choreography – and this year, we were fortunate enough to be able to pose a few pre-performance questions to none other than Guy Simpson, the show’s musical director, and the all-singing, all-dancing Wayne Scott Kermond, who is playing “Doc” onstage. Let’s raise the curtain and see what they have to say! <img src="https://oversixtydev.blob.core.windows.net/media/2024/03/Guy-Simpson.jpg" alt="" width="1280" height="720" /> Guy Simpson Guy Simpson, a seasoned musical director with nearly 45 years of experience, boasts an illustrious career spanning global productions. Notably, his involvement with iconic shows like Miss Saigon and The Phantom of the Opera has taken him across continents, from Australia to Asia and beyond. Simpson's extensive repertoire includes serving as Musical Supervisor and Director for Opera Australia's acclaimed productions such as Evita, My Fair Lady, and of course West Side Story. Additionally, his contributions as an orchestrator and producer of cast recordings further solidify his stature in the musical theatre realm. With credits ranging from beloved classics like Les Misérables to contemporary hits like Muriel's Wedding, Simpson's versatile talent continues to enrich the world of musical theatre on an international scale. OverSixty: What memories do you have of your first time working on West Side Story – when was it and what was the experience like? Guy: “I was a rehearsal pianist for the 1983 production of West Side Story. The conductor was Dobbs Franks, who came from the US to conduct the first production of the show in 1960. So I was lucky to learn the show from him. I wasn’t in the orchestra and had tickets to watch opening night but during the afternoon of that day I received a call to play in the orchestra that night because the pianist was unwell. I’ll never forget that! Since then I have conducted three seasons of the show and learn more and more about it each time.” OverSixty: What were Bernstein’s influences and what impact did Bernstein’s score have when the musical first premiered? And why do you think it remains so recognised today? Guy: “Bernstein was influenced by many things. There is an <a href="https://www.wrti.org/arts-desk/2018-08-23/the-surprising-backstory-to-west-side-story" target="_blank" rel="noopener">excellent article by Debra Lew Harder</a> that outlines these influences. I love the combination of Jewish themes, Puerto Rican rhythm, Mexican dance music and of course American jazz. His classical roots also come in here – especially the music of Aaron Copland and George Gershwin. The genius is Bernstein's ability to blend all this into a score that tells the story so brilliantly." OverSixty: What’s your favourite moment in the music that audiences might not always notice but could listen out for? Guy: I like what is known as ‘THE BALCONY SCENE’. Most people will know it as the iconic love duet ‘TONIGHT’. In the show this scene moves between spoken dialogue (with underscoring), into the song and back into dialogue in a wonderfully cohesive way. It is so well crafted and is quite a challenge for the conductor to fit the music with the dialogue in a seamless way. I also love the scene in the bridal shop that includes the song ‘ONE HAND ONE HEART’. <img src="https://oversixtydev.blob.core.windows.net/media/2024/03/Wayne-Scott-Kermond-as-Doc.jpg" alt="" width="1280" height="720" /> Wayne Scott Kermond Wayne Scott Kermond, hailing from a rich lineage of Australian Vaudeville performers, epitomises the essence of musical theatre, comedy and cabaret. With a repertoire spanning from Anything Goes to Hairspray, including acclaimed performances in several productions of West Side Story, Kermond's versatility shines through. Additionally, he's showcased his creative prowess as the creator and star of captivating cabaret shows such as Candy Man and Jive Junkys. Beyond the stage, Kermond's talents extend to film, where he's contributed to projects like Happy Feet 1 & 2, and as a respected scriptwriter and director for various musicals, cabarets and corporate events. With accolades including a Green Room Award and Mo Award, alongside nominations for Helpmann Awards, Kermond's exceptional abilities and esteemed showbiz heritage solidify his status as an extraordinary Australian talent. OverSixty: You and Guy first worked on this musical 40 years ago, how does it feel to be coming back together on the Handa Opera version? Wayne: “I first performed in West Side Story at the old Her Majesty’s Theatre (Sydney), 40 years ago playing the youngest member of the Jets gang, ‘Baby John’, and then again in another fabulous production touring Australia / New Zealand in the mid-nineties playing Arab. And so it was lovely to be reminded by Guy on the first day of rehearsals for this season how special it is to us both, here we are, doing it again, just a little greyer." “We shared a few laughs about ‘where did that time go?’, and how ‘young’ we still look after all these years. It’s so great to work with Guy again, I think the last show we did together was Chicago, back in the late nineties. So with Guy's huge amount of expertise and experience at the helm as our Musical Director the show is in great hands. Wait till you hear the amazing Orchestra.” OverSixty: What about this musical’s story, lyrics, etc resonate with you and why do you think it keeps being seen on stage? Can it appeal to all ages? Wayne: “West Side Story is as iconic to music theatre as Swan Lake is to ballet. All great musicals such as West Side have to have a great love story; West Side certainly has that. And to add to that, also an incredible score, dynamic original choreography and a beautifully written book makes it a triple threat. That's why it stands the test of time – it's an inter-generational piece, whose story and message still stands today, which is the reason why I’m now getting the opportunity to play an adult character ‘Doc’ in this OA production 40 years later, as it will be for another artist, in another 40 years' time.” OverSixty: What’s your favourite moment in the show and why? Wayne: It is very difficult to say there is a favourite moment as there are so many. The whole journey of the show is something everyone who loves theatre should experience. The Prologue, Dance at the Gym, America, Cool, Tonight, Something's Comin, and not forgetting the Quintet powerhouse... Every part of this show is special, whether you're seeing the show for the first time or for the tenth time, it’s exhilarating, poignant and moving." “It’s especially wonderful for me to have been given the opportunity to revisit the show, after all these years later as a performer. And it’s very exciting to watch another generation of performers being given the opportunity to experience such an exceptional piece of theatre.” So, mark your calendars, Sydney-siders, because Handa Opera on Sydney Harbour is about to serve up a theatrical experience like no other. With world-class performances, breathtaking views of the harbour, and enough fireworks to make New Year's Eve jealous, this is one event you won't want to miss. So grab your tickets, grab your friends, and get ready to experience the magic of West Side Story like never before. See you at the opera! For more information and ticket sales, check out <a href="https://opera.org.au/productions/west-side-story-on-sydney-harbour/" target="_blank" rel="noopener">opera.org.au/harbour</a> All images: Supplied

Domestic Travel

Elevating tradition: La Traviata at the Sydney Opera House

Opera Australia is set to enchant audiences as it opens its highly anticipated 2024 season with the Sydney premiere of Sarah Giles’ acclaimed production of Verdi’s timeless masterpiece, La Traviata. The curtains will rise on January 2nd at the iconic Joan Sutherland Theatre in the Sydney Opera House, promising an unforgettable journey into the world of love, sacrifice and redemption. Hailed as "an absolute triumph" by The AU Review and described as "audaciously new" by InReview, this co-production by Opera Queensland, State Opera South Australia and West Australian Opera promises to deliver the quintessential glamour of La Traviata while offering a fresh, female perspective. Director Sarah Giles skilfully brings the inner turmoil of Violetta to the forefront, shedding light on the harsh realities and heartaches of her life as a courtesan. Enhancing the narrative, Charles Davis' masterful set design delves into Violetta's public and private spheres, while his costumes brilliantly capture the opulent world of lavish parties and extravagance synonymous with La Traviata. For the first time, the award-winning conductor Jessica Cottis will take the baton, leading the Opera Australia Orchestra and the celebrated Opera Australia Chorus through Verdi's emotionally stirring score. Audiences can anticipate spine-tingling renditions of iconic pieces such as the lively "Brindisi" and the achingly beautiful "Sempre libera". Taking centre stage as Violetta, Australian soprano Samantha Clarke, fresh from a string of successful debuts in prestigious venues worldwide, including Carnegie Hall and the Sydney Symphony Orchestra, is set to mesmerise audiences with her poignant portrayal. Joining her are the talented Australian-Chinese tenor Kang Wang, reprising the role of Alfredo, and New Zealand baritone Phillip Rhodes, making his Opera Australia debut as Giorgio Germont. As the season progresses, rising Australian soprano Sophie Salvesani will step into the shoes of Violetta, a role she previously captivated audiences with in 2022. Alongside her, Australian tenor Tomas Dalton returns as Alfredo, while baritone Luke Gabbedy, fresh from his acclaimed performance in OA's five-star production of the Ring Cycle in Brisbane, graces the stage as Giorgio Germont. Prepare to be swept away by the passion, drama, and timeless melodies of La Traviata, as Opera Australia invites you to experience this unforgettable journey of love and sacrifice, reimagined for a new era. Don't miss your chance to witness this exquisite production at the Sydney Opera House, from January 2nd to March 16th, 2024. For more information, <a href="https://www.sydneyoperahouse.com/opera-australia/2024-season/la-traviata" target="_blank" rel="noopener">click here</a>.

Art

"Fly high sweet Nacho": Robert Irwin shares sad loss of beloved pet

In a world often dominated by headlines of turmoil and strife, there's something oddly comforting about the internet rallying around the loss of a beloved pet chicken. Yes, you heard that right – a chicken named Nacho has captured the hearts of thousands, and her departure from this world has left a void in the Irwin family and beyond. Robert Irwin, the perpetually enthusiastic conservationist and wildlife warrior, took to Instagram to break the news of Nacho's sad passing. In a heartfelt video message, he shared the sorrowful tidings with his followers, who had grown fond of the feathery friend through their virtual interactions. “Hi guys, very sad news to report. Unfortunately, our gorgeous little chicken Nacho, who I know you all fell in love with, and we love so much, sadly passed away,” Robert lamented, his voice tinged with genuine sadness. “She was a beautiful old chook who lived a lot of great years and we’re really, really, really, really sad to lose her.” And oh, what a life Nacho must have lived! Robert reminisced about her golden years, filled with clucking adventures and pecking escapades. But, amid the sorrow, there shone a glimmer of hope as Robert introduced two new feathered friends into the Irwin fold – Waffles and Mochi. With names as delightful as their predecessor's, these plucky newcomers are sure to fill the coop with joy once more. In the world of social media condolences, the outpouring of love and support was nothing short of heartwarming. Messages of sympathy flooded Robert's feed, with followers expressing their condolences for the loss of Nacho while warmly welcoming Waffles and Mochi into the fold. "Fly high, sweet Nacho," one commenter bid farewell, echoing the sentiments of many who had come to adore the quirky chicken. There were also words of encouragement and delight for the newest additions to the Irwin menagerie. "Waffles and Mochi are adorable, and I also love their fluffy feet!" exclaimed one enthusiastic follower, proving that even in times of loss, there's always room for a little bit of joy. <blockquote class="instagram-media" style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/reel/C4YEoIOill7/?utm_source=ig_embed&utm_campaign=loading" data-instgrm-version="14"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"> </div> </div> </div> <div style="padding: 19% 0;"> </div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"> </div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <div style="padding: 12.5% 0;"> </div> <div style="display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;"> <div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);"> </div> <div style="background-color: #f4f4f4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;"> </div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);"> </div> </div> <div style="margin-left: 8px;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;"> </div> <div style="width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg);"> </div> </div> <div style="margin-left: auto;"> <div style="width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);"> </div> <div style="background-color: #f4f4f4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);"> </div> <div style="width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);"> </div> </div> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;"> </div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" href="https://www.instagram.com/reel/C4YEoIOill7/?utm_source=ig_embed&utm_campaign=loading" target="_blank" rel="noopener">A post shared by Robert Irwin (@robertirwinphotography)</a> </div> </blockquote> This isn't the first time the Irwins have shared their grief over the loss of a beloved animal companion. Just a couple of years ago, they bid farewell to their cherished echidna, marking the passing of a creature who had been a part of their family for an impressive 38 years. In a world where bad news often seems to dominate the headlines, the simple story of a chicken named Nacho reminds us of the power of love and connection – even in the most unexpected of places. So here's to you, Nacho; may your wings carry you to chicken heaven, where the sun always shines, and the corn is always plentiful. Images: Instagram

Family & Pets

"Unfair" parking fines could soon be a thing of the past

In recent years, road users in one Australian state have found themselves at the receiving end of unwelcome surprises in their mailboxes. An experimental parking fine process, initiated with the aim of streamlining administrative procedures, has instead garnered significant backlash from unsuspecting motorists. However, relief seems to be on the horizon as the New South Wales Government steps in to rectify the situation. The issue revolves around the introduction of ticketless parking fines, a system that was implemented with the intention of simplifying the issuance of penalties for parking violations. Under this scheme, parking officers could send details of fines directly to Revenue NSW, which would then dispatch infringement notices either by post or through the Service NSW app. However, what was meant to be a simple and streamlined modernisation effort has led to a surge in revenue from fines and a subsequent erosion of trust in the system. Concerns about the fairness and transparency of ticketless fines have been mounting, prompting action from the NSW government. Reports indicate that Finance Minister Courtney Houssos has written to all 128 local councils in the state, urging them to halt further adoption of the ticketless parking fine system. Instead, councils have been instructed to revert to traditional ticketing methods and ensure that drivers are promptly made aware of fines at the time of the offence. The move comes in response to a range of issues highlighted by critics of the ticketless system. One major concern is the lack of immediate notification, which diminishes the deterrent effect of fines and makes it difficult for motorists to contest them effectively. Without receiving timely notification, drivers may struggle to gather evidence or address issues such as inadequate signage, hidden signs, or other circumstances that could warrant a review of the fine. Organisations like the National Roads and Motorists' Association (NRMA) have been vocal opponents of the ticketless scheme, labelling it as "unfair" and criticising its impact on transparency. According to NRMA spokesperson Peter Khoury, the system reduces the ability of drivers to contest fines, thereby undermining their rights and contributing to a loss of community trust in the administration of fines. The NSW government's intervention signals a recognition of these concerns and a commitment to restoring confidence in the fines system. By prioritising immediate notification for drivers, authorities aim to address the shortcomings of the ticketless parking fine process. The decision to reverse the experimental system comes amid staggering revenue figures, with nearly $140 million generated from ticketless fines in 2023 alone. While the financial gains may be substantial, they come at the expense of public trust and fairness, prompting a much-needed course correction. As Minister Houssos asserts, providing immediate notification to drivers is not only the right thing to do but also a crucial step towards rebuilding community trust. By ensuring that drivers are promptly informed of fines and have the opportunity to contest them, authorities can strike a balance between effective enforcement and procedural fairness in managing parking violations. As road users await the reinstatement of traditional ticketing methods, they can take solace in the prospect of a fairer and more transparent fines system in the future. Images: City of Sydney

Legal

Altitude sickness is typically mild but can sometimes turn very serious − a high-altitude medicine physician explains how to safely prepare

<a href="https://theconversation.com/profiles/brian-strickland-1506270">Brian Strickland</a>, <a href="https://theconversation.com/institutions/university-of-colorado-anschutz-medical-campus-4838">University of Colorado Anschutz Medical Campus</a> Equipped with the latest gear and a thirst for adventure, mountaineers embrace the perils that come with conquering the world’s highest peaks. Yet, even those who tread more cautiously at high altitude are not immune from the health hazards waiting in the thin air above. Altitude sickness, which most commonly refers to <a href="https://medlineplus.gov/ency/article/000133.htm">acute mountain sickness</a>, <a href="https://doi.org/10.1016/j.pcad.2010.02.003">presents a significant challenge</a> to those traveling to and adventuring in high-altitude destinations. Its symptoms can range from <a href="https://doi.org/10.1089/ham.2017.0164">mildly annoying to incapacitating</a> and, in some cases, may progress to more <a href="https://doi.org/10.1183/16000617.0096-2016">life-threatening illnesses</a>. While <a href="https://doi.org/10.18111/9789284424023">interest in high-altitude tourism is rapidly growing</a>, general awareness and understanding about the hazards of visiting these locations <a href="https://doi.org/10.1089/ham.2022.0083">remains low</a>. The more travelers know, the better they can prepare for and enjoy their journey. As an <a href="https://som.cuanschutz.edu/Profiles/Faculty/Profile/36740">emergency physician specializing in high-altitude illnesses</a>, I work to improve health care in remote and mountainous locations around the world. I’m invested in finding ways to allow people from all backgrounds to experience the magic of the mountains in an enjoyable and meaningful way. <h2>The science behind altitude sickness</h2> Altitude sickness is rare in locations lower than 8,200 feet (2,500 meters); however, <a href="https://www.ncbi.nlm.nih.gov/books/NBK430716/">it becomes very common</a> when ascending above this elevation. In fact, it affects about <a href="https://wwwnc.cdc.gov/travel/yellowbook/2024/environmental-hazards-risks/high-elevation-travel-and-altitude-illness">25% of visitors to the mountains of Colorado</a>, where I conduct most of my research. The risk rapidly increases with higher ascents. Above 9,800 feet (3,000 meters), up to <a href="https://www.ncbi.nlm.nih.gov/books/NBK430716/">75% of travelers</a> may develop symptoms. Symptoms of altitude sickness are usually mild and consist of <a href="https://doi.org/10.1089/ham.2017.0164">headache, dizziness, nausea, fatigue and insomnia</a>. They usually <a href="https://doi.org/10.1016/j.rceng.2019.12.009">resolve after one to two days</a>, as long as travelers stop their ascent, and the symptoms quickly resolve with descent. When travelers do not properly acclimatize, they can be susceptible to life-threatening altitude illnesses, such as <a href="https://doi.org/10.1016/j.resp.2007.05.002">high-altitude pulmonary edema</a> or <a href="https://doi.org/10.1089/1527029041352054">high-altitude cerebral edema</a>. These conditions are characterized by fluid accumulation within the tissues of the lungs and brain, respectively, and are the <a href="https://wwwnc.cdc.gov/travel/yellowbook/2024/environmental-hazards-risks/high-elevation-travel-and-altitude-illness">most severe forms of altitude sickness</a>. Altitude sickness symptoms are thought to be caused by <a href="https://doi.org/10.1093%2Fbjaceaccp%2Fmks047">increased pressure surrounding the brain</a>, which results from the failure of the body to acclimatize to higher elevations. As people enter into an environment with lower air pressure and, therefore, <a href="https://doi.org/10.1001/jamanetworkopen.2023.18036">lower oxygen content</a>, their <a href="https://doi.org/10.1093%2Fbjaceaccp%2Fmks047">breathing rate increases</a> in order to compensate. This causes an increase in the amount of <a href="https://doi.org/10.1016/s1357-2725(03)00050-5">oxygen in the blood as well as decreased CO₂ levels</a>, which then increases blood pH. As a result, the <a href="https://doi.org/10.1093%2Fbjaceaccp%2Fmks047">kidneys compensate</a> by removing a chemical called bicarbonate from the blood into the urine. This process makes people urinate more and helps correct the acid and alkaline content of the blood to a more normal level. <figure><iframe src="https://www.youtube.com/embed/iv1vQPIdX_k?wmode=transparent&start=0" width="440" height="260" frameborder="0" allowfullscreen="allowfullscreen"></iframe><figcaption>Tips for preventing or reducing the risk of altitude sickness.</figcaption></figure> <h2>The importance of gradual ascent</h2> High-altitude medicine experts and other physicians <a href="https://doi.org/10.1016/s0140-6736(76)91677-9">have known for decades</a> that <a href="https://doi.org/10.1089/ham.2010.1006">taking time to slowly ascend is the best way</a> to prevent the development of altitude sickness. This strategy gives the body time to complete its natural physiologic responses to the changes in air pressure and oxygen content. In fact, spending just <a href="https://doi.org/10.1089/ham.2010.1006">one night at a moderate elevation</a>, such as Denver, Colorado, which is at 5,280 feet (1,600 meters), has been shown to <a href="https://doi.org/10.7326/0003-4819-118-8-199304150-00003">significantly reduce the likelihood of developing symptoms</a>. People who skip this step and travel directly to high elevations are <a href="https://doi.org/10.1093/jtm/taad011">up to four times more likely</a> to develop altitude sickness symptoms. When going to elevations greater than 11,000 feet, multiple days of acclimatization are necessary. Experts generally recommend ascending <a href="https://doi.org/10.1089/ham.2010.1006">no more than 1,500 feet per day</a> once the threshold of 8,200 feet of elevation has been crossed. Workers at high altitude, such as <a href="https://doi.org/10.1089/ham.2020.0004">porters in the Nepali Himalaya</a>, are at <a href="https://doi.org/10.1016/j.wem.2018.06.002">particular risk of altitude-related illness</a>. These workers often do not adhere to acclimatization recommendations in order to maximize earnings during tourist seasons; as a result, they are more likely to experience <a href="https://www.cdc.gov/travel/yellowbook/2024/environmental-hazards-risks/high-elevation-travel-and-altitude-illness">severe forms of altitude sickness</a>. <h2>Effective medications</h2> For more than 40 years, <a href="https://doi.org/10.1056/nejm196810172791601">a medicine called acetazolamide</a> has been used to <a href="https://medlineplus.gov/druginfo/meds/a682756.html">prevent the development of altitude sickness</a> and to treat its symptoms. Acetazolamide is <a href="https://www.ncbi.nlm.nih.gov/books/NBK557838/">commonly used as a diuretic</a> and for the <a href="https://www.nei.nih.gov/learn-about-eye-health/eye-conditions-and-diseases/glaucoma">treatment of glaucoma</a>, a condition that causes increased pressure within the eye. If started <a href="https://doi.org/10.1378/chest.09-2445">two days prior</a> to going up to a high elevation, acetazolamide can <a href="https://doi.org/10.1378/chest.09-2445">prevent symptoms of acute illness</a> by speeding up the acclimatization process. Nonetheless, it does not negate the recommendations to ascend slowly, and it is <a href="https://doi.org/10.1016/j.wem.2019.04.006">routinely recommended only</a> when people cannot slowly ascend or for people who have a history of severe altitude sickness symptoms even with slow ascent. Other medications, including ibuprofen, have <a href="https://doi.org/10.1016/j.wem.2012.08.001">shown some effectiveness</a> in treating acute mountain sickness, although <a href="https://doi.org/10.1016/j.amjmed.2018.10.021">not as well as acetazolamide</a>. A <a href="https://pubmed.ncbi.nlm.nih.gov/2028586/">steroid medication called dexamethasone</a> is effective in both treating and preventing symptoms, but it does not improve acclimatization. It is <a href="https://doi.org/10.1016/j.wem.2019.04.006">recommended only when acetazolamide is not effective</a> or cannot be taken. Additionally, it is important to <a href="https://wwwnc.cdc.gov/travel/page/travel-to-high-altitudes">avoid alcohol during the first few days at higher altitudes</a>, as it impairs the body’s ability to acclimatize. <h2>Unproven therapies and remedies are common</h2> As high-altitude tourism becomes increasingly popular, multiple commercial products and remedies have emerged. Most of them are not effective or provide no evidence to suggest they work as advertised. Other options have mixed evidence, making them difficult to recommend. Medications such as <a href="https://doi.org/10.1089/ham.2007.1037">aspirin</a>, <a href="https://doi.org/10.1183/13993003.01355-2017">inhaled steroids</a> and <a href="https://doi.org/10.1089/ham.2011.0007">sildenafil</a> have been proposed as possible preventive agents for altitude sickness, but on the whole they have not been found to be effective. <a href="https://doi.org/10.1093/qjmed/hcp026">Supplements and antioxidants have no proven benefit</a> in preventing or treating altitude sickness symptoms. Both normal and high-altitude exercise are popular ways to prepare for high elevations, especially among athletes. However, beyond <a href="https://doi.org/10.1097/jes.0b013e31825eaa33">certain pre-acclimatization strategies</a>, such as brief sojourns to high altitude, <a href="https://doi.org/10.1016/j.tmaid.2013.12.002">physical fitness and training is of little benefit</a>. <a href="https://missouripoisoncenter.org/canned-oxygen-is-it-good-for-you">Canned oxygen</a> has also exploded in popularity with travelers. While <a href="https://doi.org/10.1016/0140-6736(90)93240-p">continuously administered medical oxygen</a> in a health care setting can alleviate altitude sickness symptoms, portable oxygen cans <a href="https://doi.org/10.1016/j.wem.2019.04.006">contain very little oxygen gas</a>, casting doubt on their effectiveness. Some high-altitude adventure travelers sleep in <a href="https://doi.org/10.2165/00007256-200131040-00002">specialized tents</a> that simulate increased elevation by lowering the quantity of available oxygen in ambient air. The lower oxygen levels within the tent are thought to accelerate the acclimatization process, but the tents aren’t able to decrease barometric pressure. This is an important part of the high-altitude environment that induces acclimatization. Without modifying ambient air pressure, these <a href="https://doi.org/10.1016/j.wem.2014.04.004">tents may take multiple weeks</a> to be effective. Natural medicines, such as <a href="https://doi.org/10.1580/08-weme-br-247.1">gingko</a> and <a href="https://doi.org/10.1186/s40794-019-0095-7">coca leaves</a>, are touted as natural altitude sickness treatments, but few studies have been done on them. The modest benefits and significant side effects of these options makes their use <a href="https://doi.org/10.1016/j.wem.2019.04.006">difficult to recommend</a>. <a href="https://pubmed.ncbi.nlm.nih.gov/8469948/">Staying hydrated</a> is very important at high altitudes due to fluid losses from increased urination, dry air and increased physical exertion. <a href="https://doi.org/10.1186%2Fs12889-018-6252-5">Dehydration symptoms</a> can also mimic those of altitude sickness. But there is <a href="https://doi.org/10.1580/1080-6032(2006)17%5B215:AMSIOF%5D2.0.CO;2">little evidence that consuming excessive amounts of water</a> can prevent or treat altitude sickness. The mountains have something for visitors of all interests and expertise and can offer truly life-changing experiences. While there are health risks associated with travel at higher elevations, these can be lessened by making basic preparations and taking time to slowly ascend.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/222057/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/brian-strickland-1506270">Brian Strickland</a>, Senior Instructor in Emergency Medicine, <a href="https://theconversation.com/institutions/university-of-colorado-anschutz-medical-campus-4838">University of Colorado Anschutz Medical Campus</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/altitude-sickness-is-typically-mild-but-can-sometimes-turn-very-serious-a-high-altitude-medicine-physician-explains-how-to-safely-prepare-222057">original article</a>.

Travel Trouble

Worried about price gouging? For banks, there’s a simple solution

<a href="https://theconversation.com/profiles/peter-martin-682709">Peter Martin</a>, <a href="https://theconversation.com/institutions/crawford-school-of-public-policy-australian-national-university-3292">Crawford School of Public Policy, Australian National University</a> Does it feel like you’re being charged more for all sorts of things these days, from <a href="https://theconversation.com/supermarkets-airlines-and-power-companies-are-charging-exploitative-prices-despite-reaping-record-profits-222755#:%7E:text=According%20to%20the%20inquiry%2C%20the,dairy%20products%20and%20breakfast%20cereals.&text=Farmers%20recently%20accused%20supermarkets%20of%20making%20too%20much%20profit%20from%20their%20crops.">groceries</a> to <a href="https://theconversation.com/see-when-australias-biggest-banks-stopped-paying-proper-interest-on-your-savings-and-what-you-can-do-about-it-200265">banking</a>? Turns out, you’re right. While we might be more likely to remember prices that go up than prices that go down, the very best evidence – assembled by Australia’s <a href="https://treasury.gov.au/sites/default/files/2023-11/competition-review-mergers-background-note.pdf">Treasury</a>, the federal government’s lead economic adviser – says your suspicions are right. We really are being charged more than we used to be two decades ago. Coupled with the latest profit reports from Australia’s biggest supermarkets and banks, including Tuesday’s half-year results from Coles, it suggests we are contributing more to company profits than we used to. <h2>Climbing price markups</h2> The Treasury estimates show in the 13 years between 2003-04 and 2016-17, the average price markup – the difference between the cost of a product and its selling price – across all Australian industries climbed 6%. That’s extra profit, taken from your wallet, going to the people selling you things. Those Treasury estimates are contained in a background paper prepared for the competition <a href="https://treasury.gov.au/review/competition-review-2023">inquiry</a> being undertaken by a panel including Productivity Commission chair Danielle Wood, former Competition and Consumer Commission chief Rod Sims, and business leader David Gonski. At the same time, the average share of each industry held by its biggest four firms edged up from 41% to 43%. Profit margins are also higher here than in more competitive markets overseas. This is true in banking, where the big four have taken over St George, BankWest, and the Bank of Melbourne – and are about to take over <a href="https://www.accc.gov.au/media-release/australian-competition-tribunal-authorises-anz%E2%80%99s-proposed-acquisition-of-suncorp-bank">Suncorp</a>. It’s also true in supermarkets, where the big two, Woolworths and Coles, have taken over or seen off Franklins, Bi-Lo and Safeway. <h2>Bigger profit margins than overseas</h2> Coles supermarkets reported earnings <a href="https://www.investopedia.com/terms/e/ebitda.asp#:%7E:text=EBITDA%2C%20or%20earnings%20before%20interest,generated%20by%20the%20company's%20operations.">before adjustments</a> of <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02777616-3A637432">A$1.73 billion</a> on sales of $19.778 billion in the half year to December – a profit margin of 8.7%. Last week, Woolworths supermarkets reported earnings of <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02774826-2A1506104">$2.45 billion</a> on sales of $25.648 billion – a margin of 9.6%. By way of comparison, the dominant UK supermarket group, Sainsbury’s, has a profit margin of <a href="https://stockanalysis.com/quote/lon/SBRY/statistics/">6.13%</a>. In banking, the Commonwealth Bank has just reported a return on equity (profit as a proportion of shareholders’ funds) of <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02772167-2A1504649">13.8%</a>. National Australia Bank reported <a href="https://www.nab.com.au/content/dam/nab/documents/reports/corporate/2023-full-year-results.pdf">12.9%</a>. While on a par with the big banks overseas, those recent returns are a good deal higher than CommBank’s <a href="https://www.commbank.com.au/content/dam/commbank-assets/about-us/2021-08/2021-annual-report_spreads.pdf">11.5%</a> and NAB’s <a href="https://www.nab.com.au/content/dam/nab/documents/reports/corporate/2021-full-year-results-management-discussion-and-analysis.pdf">10.7%</a> reported two years ago. <h2>Little hope for groceries</h2> For supermarkets, there’s not a lot the government can do, apart from launching an <a href="https://www.accc.gov.au/inquiries-and-consultations/supermarkets-inquiry-2024-25">inquiry</a>, and perhaps giving Australian authorities the power to <a href="https://www.afr.com/policy/economy/break-up-firms-that-abuse-market-power-says-former-competition-tsar-20230709-p5dmtq">break up</a> firms that abuse their market power. But Prime Minister Anthony Albanese has said he isn’t keen on giving Australian authorities the sort of powers available to authorities in the United States and the United Kingdom, saying (incongruously) Australia is “<a href="https://www.pm.gov.au/media/radio-interview-abc-radio-brisbane-mornings">not the old Soviet Union</a>”. And doing anything short of that would be unlikely to have much effect. Australia’s two supermarket giants have invested a fortune in high-tech <a href="https://theconversation.com/coles-and-woolworths-are-moving-to-robot-warehouses-and-on-demand-labour-as-home-deliveries-soar-166556">warehouses and distribution systems</a>, which new rivals would be hard-pressed to match. <h2>Hope for more competitive banking</h2> But for banks it’s altogether different. Richard Denniss of the Australia Institute has come up with the idea, and it’s a beauty. It’s for the government to provide a low-cost banking service – expanding on services it already offers. The costs would be so low, other banks might decide to add features and resell them in the same way as resellers sell <a href="https://www.whistleout.com.au/MobilePhones/Guides/Telstra-network-coverage-vs-ALDI-Woolworths-Belong-Boost">mobile phone</a> and <a href="https://www.nbnco.com.au/residential/service-providers">NBN</a> services. The primary function of any bank is to provide a numbered account into which Australians can deposit and withdraw funds. The Australian Tax Office does this already, at an incredibly low cost. The tax office gives every working Australian a <a href="https://www.ato.gov.au/individuals-and-families/tax-file-number">tax file number</a>. Employers deposit money into these accounts, and – should the tax office owe a refund – taxpayers withdraw them. Some taxpayers ensure their tax is <a href="https://www.ato.gov.au/businesses-and-organisations/international-tax-for-business/in-detail/income/refund-of-over-withheld-withholding-how-to-apply">overpaid</a>, so they withdraw later. Denniss describes it as a bank account with the world’s clumsiest interface. <h2>The government could offer bank loans</h2> It wouldn’t be much of a stretch from improving that interface to offering government loans. In fact, government loans are already provided in some circumstances: such as to retirees with home equity through the <a href="https://www.dss.gov.au/our-responsibilities/seniors/benefits-payments/home-equity-access-scheme">home equity access scheme</a>, and to Centrelink recipients through <a href="https://www.servicesaustralia.gov.au/centrelink-online-account-help-apply-for-advance-payment">advance payments</a>. It woudn’t be much more of stretch to provide loans more broadly, at an incredibly low administrative cost. The government already lends against the <a href="https://www.servicesaustralia.gov.au/who-can-get-loan-under-home-equity-access-scheme">value of homes</a>. Back in the days when the federal government owned the <a href="https://www.commbank.com.au/about-us/our-company/history.html">Commonwealth Bank</a>, it had to cover the high costs of running bricks and mortar branches. Freed from those costs, the government could now offer a low-cost, technology-enabled basic banking service that would tempt us away from the big four banks – unless they offered better value. Of course it would cost money, although a lot of it has already been spent setting up the system of tax file numbers and accounts. And of course the banks would hate the idea. That would be the point. But doing what we can to stop Australians being overcharged is important, not only for wage earners but also for businesses. The <a href="https://treasury.gov.au/review/competition-review-2023">competition inquiry</a> the government has launched is a good start. It shouldn’t be frightened about where it might lead.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/223821/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/peter-martin-682709">Peter Martin</a>, Visiting Fellow, <a href="https://theconversation.com/institutions/crawford-school-of-public-policy-australian-national-university-3292">Crawford School of Public Policy, Australian National University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/worried-about-price-gouging-for-banks-theres-a-simple-solution-223821">original article</a>.

Money & Banking

"Pretty brutal": Peter Garrett slams Taylor Swift for price gouging tickets

Peter Garrett has taken aim at Taylor Swift, calling out her extrationate ticket prices for a place at the Eras Tour. The Midnight Oil frontman joined 107.1 SAFM’s Bec & Soda radio show on Friday when he was informed that he was co-host Mark “Soda” Soderstrom’s favourite artist, or in other words, “his Taylor Swift.” Garrett didn't take too kindly to the comparison, and launched into a rant about the price of Swift's concert tickets. “I’m not price gouging like Taylor, to be blunt,” he began. The radio hosts reminisced about attending a Midnight Oil concert in 1985 when tickets were just $15.90, compared to Swifts forking out hundreds of dollars for the highly anticipated Eras Tour. Tickets for Swift’s Australian tour ranged from $79.90 for G-reserve tickets to $379.90 for A-reserve ticket, while also offering fans multiple VIP packages, reaching an eye-watering $1249.90 for a single ticket. Some diehard fans were quick to complain about the lack of added value in the packages, which included premium seats with add-ons such as a tote bags, collectable pins, stickers and postcards. Garrett continued, “I wouldn’t begrudge anyone’s success, that’s the first thing to say." "She’s obviously touching a chord with masses of people, particularly people of a certain age group who have experienced growing up at a certain time, and what she’s singing and talking about is really ringing true with them.” However, he also said that “the dollar end of it having looked at it from a distance, having been in this business forever, is pretty brutal.” Garrett continued to share his disapproval of Swift's Australian domination, complaining about how five of her albums dominated the ARIA charts, booting Aussie artists off the ladder. “She is so pervasive, she has become such a phenomenon, that she is displacing artists left right and centre. In our ARIA top 100 chart – that’s the Australian record industry chart – I think at one point in the last week or two, we only had three Australian artists in that top 100,” Garrett said. “Not good enough! And that’s not me crying about it, I’ve had an incredible run. But I think about the younger artists coming through and it’s extremely hard for them now.” Image credits: Getty Images

Money & Banking

The secret sauce of Coles’ and Woolworths’ profits: high-tech surveillance and control

<a href="https://theconversation.com/profiles/lauren-kate-kelly-1262424">Lauren Kate Kelly</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> Coles and Woolworths, the supermarket chains that together control <a href="https://www.abc.net.au/news/2024-02-20/woolworths-coles-supermarket-tactics-grocery-four-corners/103405054">almost two-thirds</a> of the Australian grocery market, are facing unprecedented scrutiny. One recent inquiry, commissioned by the Australian Council of Trade Unions and led by former Australian Consumer and Competition Commission chair Allan Fels, found the pair engaged in unfair pricing practices; an ongoing <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Supermarket_Prices/SupermarketPrices">Senate inquiry into food prices</a> is looking at how these practices are linked to inflation; and the ACCC has just begun <a href="https://www.accc.gov.au/inquiries-and-consultations/supermarkets-inquiry-2024-25">a government-directed inquiry</a> into potentially anti-competitive behaviour in Australia’s supermarkets. Earlier this week, the two companies also came under the gaze of the <a href="https://www.abc.net.au/news/2024-02-19/super-power-the-cost-of-living-with-coles-and-woolworths/103486508">ABC current affairs program Four Corners</a>. Their respective chief executives each gave somewhat prickly interviews, and Woolworths chief Brad Banducci <a href="https://www.abc.net.au/news/2024-02-21/woolworths-ceo-brad-banducci-retirement-four-corners/103493418">announced his retirement</a> two days after the program aired. A focus on the power of the supermarket duopoly is long overdue. However, one aspect of how Coles and Woolworths exercise their power has received relatively little attention: a growing high-tech infrastructure of surveillance and control that pervades retail stores, warehouses, delivery systems and beyond. <h2>Every customer a potential thief</h2> As the largest private-sector employers and providers of essential household goods, the supermarkets play an outsized role in public life. Indeed, they are such familiar places that technological developments there may fly under the radar of public attention. Coles and Woolworths are both implementing technologies that treat the supermarket as a “problem space” in which workers are controlled, customers are tracked and profits boosted. For example, in response to a purported spike in shoplifting, a raft of customer surveillance measures have been introduced that treat every customer as a potential thief. This includes <a href="https://www.news.com.au/lifestyle/food/eat/coles-introducing-new-technology-which-will-track-shoppers-every-move/news-story/86ea8d330f76df87f2235eeda4d1136e">ceiling cameras</a> which assign a digital ID to individuals and track them through the store, and <a href="https://www.thenewdaily.com.au/finance/consumer/2023/08/16/smart-gate-technology">“smart” exit gates</a> that remain closed until a purchase is made. Some customers have reported being “<a href="https://7news.com.au/lifestyle/coles-supermarketshoppers-dramatic-checkout-experience-goes-viral-i-was-trapped-c-12977760">trapped</a>” by the gate despite paying for their items, causing significant embarrassment. At least one Woolworths store has <a href="https://www.news.com.au/finance/business/woolies-in-wetherill-park-fitted-with-500-tiny-cameras-to-monitor-stock-levels/news-story/585de8c741ae9f520adcc4005f2a736a">installed 500 mini cameras</a> on product shelves. The cameras monitor real-time stock levels, and Woolworths says customers captured in photos will be silhouetted for privacy. A Woolworths spokesperson <a href="https://www.smh.com.au/national/nsw/up-to-70-cameras-watch-you-buy-groceries-what-happens-to-that-footage-20230819-p5dxtp.html">explained</a> the shelf cameras were part of “a number of initiatives, both covert and overt, to minimise instances of retail crime”. It is unclear whether the cameras are for inventory management, surveillance, or both. Workers themselves are being fitted with body-worn cameras and wearable alarms. Such measures may protect against customer aggression, which is a <a href="https://www.abc.net.au/news/2023-11-22/retail-union-staff-abuse-cost-of-living-christmas/103117014">serious problem facing workers</a>. Biometric data collected this way could also be used to discipline staff in what scholars Karen Levy and Solon Barocas refer to as “<a href="https://ijoc.org/index.php/ijoc/article/view/7041">refractive surveillance</a>” – a process whereby surveillance measures intended for one group can also impact another. <h2>Predicting crime</h2> At the same time as the supermarkets ramp up the amount of data they collect on staff and shoppers, they are also investing in data-driven “crime intelligence” software. Both supermarkets have <a href="https://www.smartcompany.com.au/industries/information-technology/grocery-chains-surveillance-tech-auror/">partnered with New Zealand start-up Auror</a>, which shares a name with the magic police from the Harry Potter books and claims it can predict crime before it happens. Coles also recently began a partnership with Palantir, a global data-driven surveillance company that takes its name from magical crystal balls in The Lord of the Rings. These heavy-handed measures seek to make self-service checkouts more secure without increasing staff numbers. This leads to something of a vicious cycle, as under-staffing, self-checkouts, and high prices are often <a href="https://www.aap.com.au/news/retail-workers-facing-increased-violence-and-abuse/">causes of customer aggression</a> to begin with. Many staff are similarly frustrated by <a href="https://www.theguardian.com/business/2023/jun/05/coles-woolworths-court-accused-of-underpaying-workers">historical wage theft by the supermarkets</a> that totals hundreds of millions of dollars. <h2>From community employment to gig work</h2> Both supermarkets have brought the gig economy squarely <a href="https://theconversation.com/coles-uber-eats-deal-brings-the-gig-economy-inside-the-traditional-workplace-204353">inside the traditional workplace</a>. Uber and Doordash drivers are now part of the infrastructure of home delivery, in an attempt to push last-mile delivery costs onto gig workers. The precarious working conditions of the gig economy are well known. Customers may not be aware, however, that Coles recently increased Uber Eats and Doordash prices by at least 10%, and will <a href="https://7news.com.au/lifestyle/shoppers-slam-coles-over-major-change-to-half-price-buys-that-will-affect-millions-c-12860556">no longer match in-store promotions</a>. Drivers have been instructed to dispose of the shopping receipt and should no longer place it in the customer’s bag at drop-off. In addition to higher prices, customers also pay service and delivery fees for the convenience of on-demand delivery. Despite the price increases to customers, drivers I have interviewed in my ongoing research report they are earning less and less through the apps, often well below Australia’s minimum wage. Viewed as a whole, Coles’ and Woolworths’ high-tech measures paint a picture of surveillance and control that exerts pressures on both customers and workers. While issues of market competition, price gouging, and power asymmetries with suppliers must be scrutinised, issues of worker and customer surveillance are the other side of the same coin – and they too must be reckoned with.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/224076/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/lauren-kate-kelly-1262424">Lauren Kate Kelly</a>, PhD Candidate, ARC Centre of Excellence for Automated Decision-Making and Society, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-secret-sauce-of-coles-and-woolworths-profits-high-tech-surveillance-and-control-224076">original article</a>.

Money & Banking

Mission: Impossible Sydney mansion sells for eye-watering price

One of Sydney's most iconic properties, known as the Boomerang in Elizabeth Bay, has sold for $80 million. The mansion is featured in the second instalment in the Mission: Impossible franchise, with the 2000 movie starring Tom Cruise being set and filmed in Sydney. It was the first house to officially sell for above $1 million in 1978, before setting another record in 2002 when it fetched $20.7 million. Now, multiple sources have confirmed it has been snapped up by a purchaser, originally from Asia, for four times what it last sold for. The property has long been rated as one of Sydney’s Top 50 homes, and has been in the name of Katrina Fox, the daughter of Melbourne-based billionaire trucking magnate Lindsay Fox, since 2005. The impressive home was put up for sale by Ray White in 2017 with hopes of selling for $60 million and then again with Brad Pillinger of Pillinger for $80 million in 2021 — the last agent to have it listed. Pillinger couldn’t be contacted ahead of publication, but other sources have confirmed the property has sold for the $80m asking price, while speculation from other sources that the result was $105 million have been dismissed. Boomerang sits on 4233 square metres of waterfront land, and features 25 rooms including a private cinema modelled on the State Theatre. Image credits: realestate.com.au / Paramount Pictures

Real Estate

Burial plot up for sale for $100,000

It turns out Australia's housing crisis extends beyond the grave, as it's now equally expensive to die in Sydney as it is to live. A graveyard in Sydney has wait lines longer than that of an Eastern Suburbs rental property, with plots at the exclusive Waverley Cemetery now up for sale for up to $100,000. Eyebrows were raised online when the plot at the cemetery was advertised for sale on Facebook Marketplace, with the ad reading that the plot is “used – like new” and is available “in perpetuity”. To sweeten the deal, the burial site’s owner states it has “ocean views” and is in a “quiet neighbourhood,” which is no doubt what one must take into consideration your forever home. Other plots in the same cemetery are also up for sale for a lesser $50,000 and $70,000. Talking to <a title="9now.nine.com.au" href="https://9now.nine.com.au/a-current-affair/sydneys-cemetery-crisis-exposed-as-100k-grave-listed-on-facebook-marketplace/fc2311a8-3591-4625-84f2-340de78d9f98" target="_blank" rel="noopener">A Current Affair</a>, Ben Kelly from the Australasian Cemeteries and Crematoria Association, said cost of living pressures, or perhaps cost of dying pressures, were a factor even in the graveyard industry, given the rising cost of cemetery maintenance. “Waverley Cemetery is a beautiful, historic cemetery with extremely limited capacity left,” Mr Kelly said. “As the population grows these cemeteries are filling up and they are creating new ones but they are further and further away. “So when the spots do come available they are obviously of a premium.” A place in Waverley Cemetery has long been highly sought after, with the heritage listed site boasting impressive Victorian and Edwardian monuments and memorials, as well as ocean views that are... to die for. While there are definitely some people prepared to fork out the expensive sum for their prime spot in the ground, others weren't so sure. “It sounds disgraceful to be honest,” one passer-by told ACA, when told of the price of a plot at the graveyard. “I think that’s ridiculous”. Competition to get into Waverley Cemetery is so fierce that new plots with perpetual rights are no longer available, with the graveyard instead offering renewable internment rights. This allows for the burial of human rights for a minimum initial term of 25 years which then has to be renewed, and even then, there's an extensive waitlist. The extortionate prices after reflected in a 2020 report by the NSW Government, which found some of Sydney’s largest and most well-known public cemeteries were in there “final years” of being able to accommodate new burials and will likely be full by 2032. Image credits: Facebook / A Current Affair

Money & Banking

Why prices are so high – 8 ways retail pricing algorithms gouge consumers

<a href="https://theconversation.com/profiles/david-tuffley-13731">David Tuffley</a>, <a href="https://theconversation.com/institutions/griffith-university-828">Griffith University</a> The just-released report of the inquiry into <a href="https://pricegouginginquiry.actu.org.au/">price gouging and unfair pricing</a> conducted by Allan Fels for the Australian Council of Trades Unions does more than identify the likely offenders. It finds the biggest are supermarkets, banks, airlines and electricity companies. It’s not enough to know their tricks. Fels wants to give the Australian Competition and Consumer Commission more power to investigate and more power to prohibit mergers. But it helps to know how they try to trick us, and how technology has enabled them to get better at it. After reading the report, I’ve identified eight key maneuvers. <h2>1. Asymmetric price movements</h2> Otherwise known as <a href="https://www.jstor.org/stable/25593733">Rocket and Feather</a>, this is where businesses push up prices quickly when costs rise, but cut them slowly or late after costs fall. It seems to happen for <a href="https://www.sciencedirect.com/science/article/abs/pii/S0140988323002074">petrol</a> and <a href="https://www.sciencedirect.com/science/article/abs/pii/S105905601730240X">mortgage rates</a>, and the Fels inquiry was presented with evidence suggesting it happens in supermarkets. Brendan O’Keeffe from NSW Farmers told the inquiry wholesale lamb prices had been falling for six months before six Woolworths announced a cut in the prices of lamb it was selling as a “<a href="https://pricegouginginquiry.actu.org.au/wp-content/uploads/2024/02/InquiryIntoPriceGouging_Report_web.pdf">Christmas gift</a>”. <h2>2. Punishment for loyal customers</h2> A <a href="https://theconversation.com/simple-fixes-could-help-save-australian-consumers-from-up-to-3-6-billion-in-loyalty-taxes-119978">loyalty tax</a> is what happens when a business imposes higher charges on customers who have been with it for a long time, on the assumption that they won’t move. The Australian Securities and Investments Commission has alleged a big <a href="https://theconversation.com/how-qantas-might-have-done-all-australians-a-favour-by-making-refunds-so-hard-to-get-213346">insurer</a> does it, setting premiums not only on the basis of risk, but also on the basis of what a computer model tells them about the likelihood of each customer tolerating a price hike. The insurer disputes the claim. It’s often done by offering discounts or new products to new customers and leaving existing customers on old or discontinued products. It happens a lot in the <a href="https://www.finder.com.au/utilities-loyalty-costing-australians-billions-2024">electricity industry</a>. The plans look good at first, and then less good as providers bank on customers not making the effort to shop around. Loyalty taxes appear to be less common among mobile phone providers. Australian laws make it easy to switch <a href="https://www.reviews.org/au/mobile/how-to-switch-mobile-carriers-and-keep-your-number/">and keep your number</a>. <h2>3. Loyalty schemes that provide little value</h2> Fels says loyalty schemes can be a “low-cost means of retaining and exploiting consumers by providing them with low-value rewards of dubious benefit”. Their purpose is to lock in (or at least bias) customers to choices already made. Examples include airline frequent flyer points, cafe cards that give you your tenth coffee free, and supermarket points programs. The purpose is to lock in (or at least bias) consumers to products already chosen. The <a href="https://www.accc.gov.au/consumers/advertising-and-promotions/customer-loyalty-schemes">Australian Competition and Consumer Commission</a> has found many require users to spend a lot of money or time to earn enough points for a reward. Others allow points to expire or rules to change without notice or offer rewards that are not worth the effort to redeem. They also enable businesses to collect data on spending habits, preferences, locations, and personal information that can be used to construct customer profiles that allow them to target advertising and offers and high prices to some customers and not others. <h2>4. Drip pricing that hides true costs</h2> The Competition and Consumer Commission describes <a href="https://pricegouginginquiry.actu.org.au/wp-content/uploads/2024/02/InquiryIntoPriceGouging_Report_web.pdf">drip pricing</a> as “when a price is advertised at the beginning of an online purchase, but then extra fees and charges (such as booking and service fees) are gradually added during the purchase process”. The extras can add up quickly and make final bills much higher than expected. Airlines are among the best-known users of the strategy. They often offer initially attractive base fares, but then add charges for baggage, seat selection, in-flight meals and other extras. <h2>5. Confusion pricing</h2> Related to drip pricing is <a href="https://www.x-mol.net/paper/article/1402386414932836352">confusion pricing</a> where a provider offers a range of plans, discounts and fees so complex they are overwhelming. Financial products like insurance have convoluted fee structures, as do electricity providers. Supermarkets do it by bombarding shoppers with “specials” and “sales”. When prices change frequently and without notice, it adds to the confusion. <h2>6. Algorithmic pricing</h2> <a href="https://pricegouginginquiry.actu.org.au/wp-content/uploads/2024/02/InquiryIntoPriceGouging_Report_web.pdf">Algorithmic pricing</a> is the practice of using algorithms to set prices automatically taking into account competitor responses, which is something akin to computers talking to each other. When computers get together in this way they can <a href="https://www.x-mol.net/paper/article/1402386414932836352">act as it they are colluding</a> even if the humans involved in running the businesses never talk to each other. It can act even more this way when multiple competitors use the same third-party pricing algorithm, effectively allowing a single company to influence prices. <h2>7. Price discrimination</h2> Price discrimination involves charging different customers different prices for the same product, setting each price in accordance with how much each customer is prepared to pay. Banks do it when they offer better rates to customers likely to leave them, electricity companies do it when they offer better prices for business customers than households, and medical specialists do it when they offer vastly different prices for the same service to consumers with different incomes. It is made easier by digital technology and data collection. While it can make prices lower for some customers, it can make prices much more expensive to customers in a hurry or in urgent need of something. <h2>8. Excuse-flation</h2> <a href="https://www.bloomberg.com/news/articles/2023-03-09/how-excuseflation-is-keeping-prices-and-corporate-profits-high">Excuse-flation</a> is where general inflation provides “cover” for businesses to raise prices without justification, blaming nothing other than general inflation. It means that in times of general high inflation businesses can increase their prices even if their costs haven’t increased by as much. On Thursday Reserve Bank Governor <a href="https://www.afr.com/policy/economy/inflation-is-cover-for-pricing-gouging-rba-boss-says-20240215-p5f58d">Michele Bullock</a> seemed to confirm that she though some firms were doing this saying that when inflation had been brought back to the Bank’s target, it would be "much more difficult, I think, for firms to use high inflation as cover for this sort of putting up their prices." <h2>A political solution is needed</h2> Ultimately, our own vigilance won’t be enough. We will need political help. The government’s recently announced <a href="https://treasury.gov.au/review/competition-review-2023">competition review</a> might be a step in this direction. The legislative changes should police business practices and prioritise fairness. Only then can we create a marketplace where ethics and competition align, ensuring both business prosperity and consumer wellbeing. This isn’t just about economics, it’s about building a fairer, more sustainable Australia.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/223310/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/david-tuffley-13731">David Tuffley</a>, Senior Lecturer in Applied Ethics & CyberSecurity, <a href="https://theconversation.com/institutions/griffith-university-828">Griffith University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/why-prices-are-so-high-8-ways-retail-pricing-algorithms-gouge-consumers-223310">original article</a>.

Money & Banking

Pink denied entry to Sydney hotspot

Global superstar Pink, known for her chart-topping hits and gravity-defying aerial stunts, faced an unexpected hurdle during her recent visit to a Sydney hotspot. Reports have emerged detailing how the 44-year-old singer, with her entourage of eight, was turned away at the door of the Manly Skiff Club on Monday evening, sending waves of disbelief through the entertainment world. Eyewitness Mark Eymes recounted the cringe-worthy encounter to <a href="https://manlyobserver.com.au/surf-and-turf-how-manly-snubbed-both-pnk-and-a-kardashian-this-week/" target="_blank" rel="noopener">The Manly Observer</a>, highlighting Pink's valiant yet futile attempts to gain entry. "I overheard her saying that she had a booking, but when they asked her to provide her ID, she said she didn’t have any on her," Eymes disclosed, echoing the sentiments of many who witnessed the debacle unfold. Despite Pink's earnest explanation that she had already secured her booking with a deposit, the club's staunch adherence to the Registered Clubs Act 1976, mandating the presentation of identification for temporary membership, left the pop icon out in the cold harbour breeze. "Next thing, I saw Pink and her group walking away. They just turfed her out," Eymes recounted, painting a picture of celebrity rejection that would make even the most stoic of us cringe. In a valiant effort to come to Pink's rescue, Eymes, akin to a knight in a polo shirt, attempted to summon the Skiff Club directors and floor manager to rectify the situation. Alas, his efforts were in vain, as Pink and her posse were unceremoniously ushered away, leaving behind a cloud of disappointment and a faint echo of "Get the Party Started". However, amid the chaos and the flustered apologies from the Skiff Club's Secretary Manager, Matt Hazell, Pink maintained her composure, displaying a level of grace and decorum belying her superstar status. Witnesses attested that not once did she resort to diva antics, despite the palpable sting of rejection. "Not once did she throw her weight around. She was really pleasant despite being a little upset that she couldn’t come in," Eymes reported. As Pink continues her Summer Carnival stadium tour, captivating audiences with her electrifying performances and trademark aerial acrobatics, one can't help but wonder if this unfortunate incident will serve as inspiration for her next chart-topping hit. Will we soon find ourselves belting out lyrics about the perils of forgetting one's ID at the club? Only time will tell. Images: Instagram / Manly Skiff Club

Travel Trouble

Supermarkets, airlines and power companies are charging ‘exploitative’ prices despite reaping record profits

<a href="https://theconversation.com/profiles/sanjoy-paul-1141384">Sanjoy Paul</a>, <a href="https://theconversation.com/institutions/university-of-technology-sydney-936">University of Technology Sydney</a> Australians have been hit by large rises in grocery, energy, transport, child and aged care prices, only adding to other cost of living pressures. While extreme weather and supply delays have contributed to the increases, an inquiry into what’s causing the hikes has confirmed what commentators and consumers suspected - many sectors are resorting to dodgy price practices and confusing pricing. Headed by the former Australian Consumer and Competition Commission (ACCC) boss, Allan Fels, on behalf of the ACTU, the inquiry found inflation, questionable pricing practices, a lack of price transparency and regulations, a lack of market competition, supply chain problems and unrestricted price setting by retailers are to blame for fuelling the increases. The inquiry, which released its <a href="https://www.actu.org.au/wp-content/uploads/2024/02/InquiryIntoPriceGouging_Report_web9-1.pdf">final report</a> on Wednesday, is one of four examining price rises. The other three are being undertaken by a Senate committee, the Queensland government and the ACCC, which has been given extra powers by the government. <h2>Prices vs inflation</h2> The inflation rate in Australia peaked at <a href="https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release">7.8%</a> in December 2022 and has been gradually dropping since then. While the inquiry found higher prices contributed to inflation, it reported that businesses claimed it was inflation that caused price rises - making it a chicken-or-egg kind of problem. However, many businesses made enormous <a href="https://theconversation.com/amid-allegations-of-price-gouging-its-time-for-big-supermarkets-to-come-clean-on-how-they-price-their-products-219316">profits</a> in 2022-23, which the inquiry said contributed to rising prices and inflation. In most cases, post-pandemic profit margins were much higher than before the pandemic. <h2>How prices are set</h2> Business pricing strategies had a big impact on product prices. In Australia, businesses often provided partial and misleading pricing information which differed from the actual price. For example, supermarkets were “<a href="https://www.afr.com/politics/federal/accc-warns-supermarkets-about-discount-claims-20240114-p5ex1s">discounting</a>” products by raising prices beforehand. These practices helped raise prices and were “exploitative”, the inquiry found. A lack of transparent pricing information caused a poor understanding by consumers of how prices were set. This was significantly worsened by a lack of competition. While market concentration was a major issue, the inquiry found prices in Australia are way higher than in many other less competitive markets. Large price increases occurred across many sectors: AVIATION While it is free to set any price for airfares, Australia’s largest and highest profile aviation company, Qantas, has been <a href="https://www.thenewdaily.com.au/life/2023/12/28/qantas-deceptive-conduct-accc">accused</a> of price gouging since the pandemic. According to the inquiry report, Qantas made a profit of $1.7 billion in 2023 - 208% higher than in 2019. At the same time, its reputation has been badly damaged by unreliable timetables, lost baggage and so-called <a href="https://www.9news.com.au/national/qantas-files-legal-defence-refutes-accc-case-and-ghost-flight-claims/9a6296c9-9238-4053-9f36-cc3cbf1f8a55">“ghost” flights</a> (selling tickets for a flight that’s been cancelled or doesn’t exist). Despite its huge profits and poorer service, Qantas passed on extra expenses to consumers in the form of higher airfares, the inquiry found. BANKING The banking industry has a long history of being tardy in passing on the Reserve Bank’s cash rate cuts to consumers. However, when the reserve raised the cash rates, banks immediately increased their standard variable rates and passed them on to customers. This practice keeps the bank’s profit margin higher. According to the inquiry report, the major banks’ average profit margins have been higher since May 2022 than in the 15 years before the pandemic. For 2022-23, the four big Australian banks’ profit margins were 35.5%, compared to an average of 32.4% from 2005 to 2020. CHILDCARE Australian households spent a good portion of their income on childcare, and for many of them, it was <a href="https://www.vu.edu.au/sites/default/files/mitchell-institute-assessing-childcare-affordability-in-Australia.pdf">unaffordable</a>. In Australia, the lack of availability and difficulty in switching services makes it even harder for working parents to find alternative options. This indicates parents are forced to pay more if the service providers raise prices. The inquiry found the childcare sector increased fees by 20% to 32% from 2018 to 2022. Accordingly, Australian households’ out-of-pocket expenses for childcare increased more than the rate of wage growth. For-profit childcare businesses have higher margins than not-for-profit centres. ELECTRICITY In recent years, electricity price increases have impacted all Australian households. The inquiry found both wholesale and retail electricity pricing strategies were responsible for these increased prices. It reported that wholesale price increases were mainly responsible for an estimated 9% to 20% increase in electricity bills in 2022-23. The report noted the “price bidding system” was largely responsible for increasing wholesale electricity prices. The inquiry was critical of the profit margin of AGL, a leading electricity retailer: <blockquote> It would seem that AGL needs to explain why consumers are paying $60.10/MWh more than seems to be justified by cost differentials. That is, for every consumer bill of $1,000 there is an apparent excess to be explained of $205.61 relative to prices charged to large business customers and not accounted for by genuine cost differences. </blockquote> SUPERMARKETS Supermarket prices have received the most attention recently with the main providers being accused of price gouging. As has occurred in other sectors, profit margins were well above pre-COVID levels. In 2023, the margin was more than 3.5% compared to less than 3% in 2017 and 2018. In Australia, <a href="https://www.smh.com.au/politics/federal/not-happy-little-vegemites-food-prices-rising-faster-than-inflation-20230522-p5da9w.html">food prices</a> also increased well above the inflation rate. According to the inquiry, the price increases for groceries between March 2021 and September 2023 varied between 19.2% and 27.3% for different categories, including cheese, bread, milk, eggs, dairy products and breakfast cereals. Farmers recently <a href="https://www.news.com.au/finance/business/retail/aussie-farmer-shipping-beautiful-melons-to-japan-rather-than-deal-with-coles-and-woolworths/news-story/bd685cd91f934f31c02c764097f496ae">accused</a> supermarkets of making too much profit from their crops. This was backed by the inquiry, which found the disproportionate market power held by supermarkets and food processors was of significant concern. The report noted that supermarkets increased prices when there was a shortage or cost increase, but the opposite did not happen easily when supplies were plentiful and prices were cheaper. <h2>Issues common to all sectors</h2> Among the issues common to all sectors were weak competition, a lack of price transparency, the difficulty consumers face switching between suppliers and providers, a lack of pricing policies and a lack of consumer awareness. While the price rises imposed by service providers and retailers were <a href="https://www.accc.gov.au/business/pricing/setting-prices-whats-allowed">not unlawful</a>, the increases in all sectors were significant and were hurting everyday Australians. <h2>Fels’ recommendations</h2> Many of the recommendations were sector-specific, but the one that applied to all areas related to the lack of regulation and pricing policies. The ACCC should be empowered to investigate, monitor and regulate prices for the child and aged care, banking, grocery and food sectors, the inquiry found. This was necessary to ensure businesses used fair and transparent pricing. A review of all existing policies was also recommended. For example, the government should use the current aviation review to remove international and domestic restrictions on competition. It was important aviation stakeholders, such as airlines and airports, were involved in the process. The report suggested the grocery <a href="https://www.accc.gov.au/business/industry-codes/food-and-grocery-code-of-conduct">code of conduct</a> should be mandatory for the food and grocery sector, and a price register for farmers should be created. This should be a government priority to protect farmers from unfair pricing by major supermarkets and food processors. <h2>Change is needed</h2> The current pricing practices for all business sectors must improve for greater transparency and to protect Australian consumers from unfair pricing. The inquiry report’s findings and recommendations are helpful in ensuring fair and transparent pricing policies and improving the current regulations for price settings. Implementing the recommendations will improve fair and transparent pricing practices and may help Australians get relief from the cost of living pressure in future.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/222755/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/sanjoy-paul-1141384">Sanjoy Paul</a>, Associate Professor, UTS Business School, <a href="https://theconversation.com/institutions/university-of-technology-sydney-936">University of Technology Sydney</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/supermarkets-airlines-and-power-companies-are-charging-exploitative-prices-despite-reaping-record-profits-222755">original article</a>.

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