'The data is not there': Key senator sinks cashless debit card
The much-extended cashless welfare card trial is set to finish at the end of the year after a key crossbench senator sank the government's bid to make it permanent.
Independent senator Rex Patrick revealed on Wednesday night that after trying the cashless debit card for himself and speaking with many people in areas where it is used, he decided that it was not proven to achieve the government's purposes of making sure welfare recipients spent their money wisely.
"The difficulty for me is that the government has not made out its case," he told the Senate. "When I try and balance up everything that I’ve seen, unfortunately the data is not there that supports the concept that the card achieves what it is intended to achieve. It is on that basis that I will not be supporting this legislation."
Senator Rex Patrick has been using one of the cashless debit cards the government wants to permanently use for people on welfare in certain locations.Credit:Dominic Lorrimer
The scheme quarantines 80 per cent of people's welfare payments into an account they can only spend at certain shops and can't use for alcohol, gambling or to get cash. It's been on trial since early 2016 in South Australia's Ceduna region, in the East Kimberley and the Goldfields in Western Australia, and Bundaberg and Hervey Bay in Queensland. The trial was supposed to last only 12 months but is now due to finish on December 31.
The government now wants to make these sites permanent and move people on a different income management program in the Northern Territory and Cape York onto the cashless debit card. It had the backing of the two One Nation senators but needed one more crossbench vote to pass the legislation.
It had its hopes pinned on Senator Patrick, who would not reveal his postion on the legislation before speaking in the Senate.
However, earlier in the day he criticised the government's failure to provide empirical data - not just anecdotes - on whether it had actually reduced alcoholism, drug use or gambling.
"Only anecdotal evidence is available on that and the government, if this goes down, that's where I think the blame can be laid, at them not doing their job properly over the last four years," he told The Sydney Morning Herald and The Age.
Social Services Minister Anne Ruston offered all senators the opportunity to try the card in a bid to convince them to support the legislation, but Senator Patrick was the only taker.
He also spent several days in Ceduna in his home state of South Australia, and the Northern Territory speaking with people who use the card, community leaders and other residents.
"There's a tiredness amongst the communities about trials and it may be the time to either just get off it or recognise that it is there permanently," Senator Patrick said. He has concerns the government hasn't set up sufficient support services in communities or guaranteed to continue existing ones, such as sobering-up units, community supports and rehabilitation programs.
Centre Alliance's Stirling Griff also says the government hasn't delivered the "high degree of support services" initially promised. He's supportive of the trials - noting a number of communities want the card - but not of making it permanent and says the legislation as it stands is not acceptable.
Senator Ruston was asked for comment on the level of services provided.
Senator Patrick took aim at people who had contacted his office to campaign against the program in a rude way, saying there had been so many aggressive phone calls he'd had to get police help to ensure his staff's safety. He said they had not affected his decision.
Independent senator Jacqui Lambie said although she's backed the cashless debit cards in the past, she no longer believes the government is prepared to do everything it should to make it work. "I'm washing my hands of this policy," she said.
Labor and the Greens argue the card is punitive and racist, because it has been imposed on primarily Indigenous communities.
Last week, government backbencher Bridget Archer told the lower house she was unhappy with the cashless debit card and wouldn't back its expansion beyond the existing sites. She abstained from the House of Representatives vote.
The legislation will go to a Senate vote late on Wednesday night, with Thursday the final sitting day for the year.
Katina Curtis is a political reporter for The Sydney Morning Herald and The Age, based at Parliament House in Canberra.