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Enhancing Food Security <strong>and</strong> Physical Activity <strong>for</strong> Māori, Pacific <strong>and</strong> Low-income PeoplesDiscounts were implemented when r<strong>and</strong>omised participants scanned theirpersonalised card at the checkout during the study intervention period. 1,104supermarket customers were r<strong>and</strong>omised to one of four intervention arms: (1) tailorednutrition education, (2) price discounts, (3) a combination of discounts <strong>and</strong> education,or (4) a control group (no intervention). To our knowledge this is the only trial to dateto evaluate the effects of removal of GST on consumer shopping behaviour in a reallifesetting. The trial was completed in February 2009 <strong>and</strong> data analysis is currentlyunderway. Results are expected later this year.While SHOP examines strategies to improve population diet in general, <strong>and</strong> saturatedfat in particular, findings in relation to the impact of the price discount intervention onconsumer purchasing behaviour will nonetheless be in<strong>for</strong>mative regarding thepotential effectiveness of economic instruments to address <strong>food</strong> in<strong>security</strong>.Proposed Intervention Two: Smart Card discounts on <strong>food</strong>purchasesThe implication of the above discussion is that the proposed removal of GST on Food,or on ‘healthy nutritious <strong>food</strong>s’, such as fruit <strong>and</strong> vegetables, has significant problemsin terms of tax revenue losses, <strong>and</strong> in not directing resources to those householdsmost likely to be affected by <strong>food</strong> in<strong>security</strong>. Can the second proposed intervention dobetter on these criteria? The key magnitudes are the size of the proposed discount,<strong>and</strong> the size of the ‘target population’ who would be eligible <strong>for</strong> the proposed Smartcard. We pose below a set of questions about the coverage <strong>and</strong> targeting of a ‘SmartCard’, giving what seem plausible answers. More detailed research would be requiredshould the proposed intervention be taken further.Question One: What <strong>food</strong>stuffs should be covered?On nutritional <strong>and</strong> distributional grounds, not all <strong>food</strong>stuffs <strong>and</strong> non-alcoholicbeverages should be covered. It would seem undesirable to subsidise restaurantmeals <strong>and</strong> ready-to-eat <strong>food</strong>s, <strong>and</strong> non-milk beverages. Nor would it seem desirableto subsidise all meats, or grocery items in general. One possible conclusion is that anysubsidy should be confined to the fruit <strong>and</strong> vegetables sub-group, including frozen ordried fruit <strong>and</strong> vegetables, <strong>and</strong> also canned <strong>and</strong> bottled vegetables <strong>and</strong> fruit. It wouldbe generally well understood, by stores <strong>and</strong> the public, which items are fruit <strong>and</strong>vegetables l . Possible queries would be whether canned <strong>and</strong> bottled fruit should beincluded, whether ‘raw’ nuts should be added though not strictly part of the fruit <strong>and</strong>vegetables sub-group, <strong>and</strong> whether it is desirable to include ‘starchy’ root crops suchas potatoes, kumara, taro <strong>and</strong> yams. It seems simplest, administratively, to include allthese.Another option is to include other <strong>food</strong> items, such as milk, <strong>and</strong> cereals. Someoverseas programmes include such items. For instance, the Healthy Start programmein the UK provides low-income pregnant women or women with children under fourwith vouchers of GBP3.00 per week <strong>for</strong> purchase of milk, fresh fruit, fresh vegetables<strong>and</strong> infant <strong>for</strong>mula milk. As discussed earlier in this chapter, a good part of ‘<strong>food</strong>in<strong>security</strong>’ relates to consumption of ‘staples’ such as milk <strong>and</strong> cerealsl However the SHOP research team have found it not quite so simple. A number of items were difficultto classify, such as stir fry vegetable with sauces, strawberries with chocolate dips, fruit juice with lessthan 100 percent juice, etc. This was a major reason <strong>for</strong> the decision to use a nutrient profiling system inthe trial.21

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