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National

East Kimberley leaders call for federal investigation into impact of Cashless Debit Card's removal

The cashless debit card was put in place by the former federal Coalition government. (ABC News: Michael Franchi)

As federal politicians fight over the end of a controversial income management scheme, outback leaders have called for a rigorous investigation into how its withdrawal has affected vulnerable Indigenous people.

The cashless debit card (CDC) was trialled for six years in the East Kimberley, among other places across Australia, with the main aim of improving the lives of disadvantaged First Nations families.

The vast outback region in northern Western Australia has high rates of poverty, and ongoing intergenerational trauma and disadvantage remain major challenges for policy makers.

The card quarantined 80 per cent of a person's welfare payments, which could not be used for alcohol, gambling or cash withdrawals and was a signature policy of the former federal Coalition government.

The now-Labor government philosophically opposes compulsory income management in most circumstances and it scrapped the card in October, arguing taxpayer funds were better spent on support programs for at-risk people.

Local leaders in the East Kimberley say the removal of the card has coincided with a surge in alcohol-fuelled violence and anti-social behaviour, but it remains unclear whether other factors have contributed.

Kununurra grapples with high rates of crime, domestic violence and poverty. (ABC News: Michael Franchi)

Wyndham East Kimberley Shire president David Menzel said frontline workers and Indigenous agencies had raised concerns with him about the abrupt national policy change.

"Disruption to people's way of life, quite a demand on food for kids, there's been some increased sales of high-alcohol content drinks," he said.

In a statement the federal Liberal Member for Durack, Melissa Price, said there was "no denying" an increase in anti-social behaviour in the region since the card's removal.

"Women are now back gathering in large groups in local parks gambling, domestic and family violence incidents are up, less food is being bought in the community and school children are going hungry," she said.

WA Crime statistics show in Kununurra overall crime and domestic violence offences increased but did not spike in the months after the scheme ended.

However, in October alone there were 154 assaults, a record according to online statistics available for the past decade.

WA Police and the WA Country Health Service did not answer questions from the ABC about the potential effects being felt by local front-line workers such nurses and police.

Social Services Minister Amanda Rishworth told federal parliament in February that an increase in anti-social behaviour in Kununurra was the result of people being dislocated following record-breaking floods in the West Kimberley.

She refuted suggestions from Ms Price that it was due to her government scrapping the CDC.

David Menzel wants to know more about how the removal of the card affected vulnerable residents in his shire. (ABC Kimberley: Ted O'Connor)

Cr Menzel said the federal government should properly examine the impacts of the card's removal to guide future policy.

"The important thing is we do have a bit of a look at it … this government was philosophically opposed to it, [so] there's probably not a lot of motivation there to spend any time reviewing the impacts of coming off that system," he said.

"[It is] absolutely a loss if we don't capture that information."

Card plagued by lack of data

The card's opponents criticised the former Coalition government for failing to produce strong evidence the scheme improved the lives of disadvantaged families.

An auditor-general report found last year the Department of Social Services's approach to monitoring and evaluation of the card was inadequate.

"It was therefore difficult to conclude if the CDC trial was effective in achieving its objective of reducing social harm,' the report said.

The card was intended to curb problem drinking and child neglect in Kununurra. (ABC News: Ted O'Connor)

Cr Menzel said the lack of clear data created a vacuum for politicians to fill with polarised views on whether the income management tool was effective.

"We know there were a couple of attempts at looking at the system while it was in place and that wasn't definitive enough to provide a strong case yes or no," he said.

"So it was fair to say each political party took their philosophical view point and held to that."

Advocate says card helped people manage money

Jean O'Reeri says the card helped welfare recipients in her community save money. (ABC Kimberley: Ted O'Connor)

Jean O'Reeri is a community advocate in the town of Wyndham, about 100 kilometres north of Kununurra, and she also wants the federal government to look closely at how families have coped since the card's removal.

The Wilinggin woman said the CDC helped vulnerable people with low financial literacy.

"[It helped them] manage their money better … budgeting … you've got to budget for how much money you spend on food you know, and taking your kids out," she said.

"Some people think they've got money, they can just spend it and they've got nothing left for the next week.

"I mean it's good to bring out these policies and reforms but we need to look at the in-depth situation in each community."

Government looks to boost services

This week the federal government announced millions of dollars for local Indigenous groups in Kununurra to train and employ people in tourism and hospitality, as part of its broader plan to address social issues at former CDC trial sites.

Census data shows high rates of unemployment among Indigenous people in Kununurra despite chronic worker shortages in tourism, agriculture and hospitality.

Ms Rishworth did not address questions from the ABC about the impact of the card's removal in the East Kimberley or whether it would be subject to detailed examination.

Amanda Rishworth says the card was a simplistic solution to complex problems. (ABC News: Ian Cutmore)

She said the federal government was supporting the community with funding for programs and services.

"The Cashless Debit Card program was a simplistic solution that did not address the complex intergenerational issues that exist in some of these communities," she said.

"These are issues that cannot be solved overnight, they require governments to work together with communities on place-based solutions."

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