Senate debates

Wednesday, 4 December 2019

Statements by Senators

Welfare Reform

1:41 pm

Photo of Matt O'SullivanMatt O'Sullivan (WA, Liberal Party) Share this | | Hansard source

I rise to inform the Senate about a recent fact-finding trip I undertook across the WA border to the South Australian town of Ceduna. The reason that I ventured to Ceduna was to observe the operation of the cashless debit card, which has been in operation in that region for longer than it has been in any of the other trial regions. In fact it has been operating since March 2016. I was intimately and perhaps uniquely involved in its rollout through my position at Generation One, as part of the Minderoo Foundation. First, I'd like to thank Rowan Ramsey, the member for Grey, for helping to facilitate the visit. His electorate is vast and sparsely populated, like much of Western Australia, with traditional rural industries dominating. He has been a strong advocate for this government's reform in the welfare sector. That is because he sees the benefits firsthand every day in communities across his electorate. I'm very glad to report that by and large the community of Ceduna supports the cashless debit card. They support its continued operations, and many even support its expanded rollout. This in part would help to reduce the stigma surrounding the card, as the more common it becomes, the less those on it will be stigmatised.

While in Ceduna I met with a wide range of stakeholders, seeking honest and robust feedback about all facets of the CDC rollout, as well as comment about the CDP and wraparound services and commentary from on-the-ground welfare advocates. I was also lucky enough to secure meetings with health professionals, retailers and leaders of the Ceduna Aboriginal Corporation. I met with representatives of the Ceduna District Council, who I'd like to thank for making the time to host me in their chambers. I met with the CEO of the Yalata Anangu Aboriginal Corporation, with the Red Cross and with Save the Children. I'd like to extend a special thanks to Paul Ronalds, the CEO of Save the Children, for taking the time to come to Ceduna to meet with me. Such is Paul's dedication and enthusiasm for his role that, when he heard I was meeting with Save the Children in Ceduna, he hopped on a plane and then on a much smaller plane to join me and his team for that meeting. Paul, your dedication is obvious, and I appreciate your taking the time to come. I look forward to working with you in the future on your many programs around Australia and, indeed, Western Australia.

Another person I want to single out for special mention is Wayne Miller. Wayne is the CEO of the Ceduna Aboriginal Corporation, and I must say that the organisation could not ask for a better leader. They couldn't find a better one if they tried, in my opinion. Wayne is only a young fella, but he's leading his community, and they are no doubt better off for it. I worked with Wayne during the rollout of the cashless debit card some years ago and, despite some pushback from the community, he and the other community leaders worked up a plan, they stuck with that plan and that plan is now paying dividends, not just in Ceduna but in the adjoining far west communities. So tribute must also be paid to the leadership groups of these communities of Koonibba, Yalata, Scotdesco and Oak Valley.

It's been a while since I've been to Ceduna, but the transformation between my visits was certainly noticeable. And it's not just me saying the town has changed since the introduction of the card. One theme that I heard consistently throughout my visit was that over the last three years the town truly has transformed. Retailers told me that thefts were down markedly since the introduction of the card. Anecdotally, alcohol related emergency department presentations are reducing and presentations to sobering-up shelters have increased. While this last point might sound counterintuitive, what it tells me is that more residents want to get on the straight and narrow and turn their lives around.

I'm not going to put the cashless debit card up on a pedestal and claim that it's responsible for the totality of the changes throughout Ceduna. The wraparound services that were put in place when the card was rolled out are no doubt contributing as well. But everyone that I spoke to, even those who had objections to the card, admitted that it was having an impact. If nothing else, they could see it as a circuit breaker that allows the support services to take effect.

Is the CDC a silver bullet? Of course it's not, and no-one is suggesting that it is. Sadly, there are occasions where problem drinkers and drug users are able to fund their habits through extraordinary cash payments, such as insurance payouts and royalties, and through cash being brought into the town by visiting itinerants. There's also evidence of people circumventing the card by buying goods, such as whitegoods, electronics or computer products, and selling them cheaply for cash. Some people are giving their card to shoppers and asking them for cash in return, often far less than what the shopper spent. While this is unfortunate, in practice, people who are doing this are effectively paying an on-the-spot fine for their actions—the difference between the cost and the sale price of the goods. Those that I spoke to do not believe that these actions are in fact widespread, and there will always, sadly, be people who will do anything they can to sidestep these laws by finding a way to drink or take illicit drugs. This is why the wraparound services are critical, because they're helping, or at least can help, people deal with their addictions and, importantly, see people move off welfare and into work.

There is also a new CDP provider in Ceduna. The local Aboriginal corporations of Ceduna, Scotdesco, Yalata, Oak Valley and Koonibba have combined to form the Far West Aboriginal Community Leadership Group. This group owns 60 per cent of the new CDP provider, called EyrePlus. The other 40 per cent is owned by PeoplePlus, an organisation with experience in the sector. This arrangement means that local people are in control of the CDP provider, allowing local knowledge and connections to be leveraged and, further, that profits from the program stay in the region, compounding the economic growth opportunities.

I was very pleased to hear that, in the six months that EyrePlus have been in operation, they've placed 67 local people into jobs, and 54 of these people are still employed. This is an absolutely fantastic outcome. CDP providers and, in fact, Indigenous corporations across Australia could take note of this ownership model and the fantastic achievement record.

After visiting Ceduna, I'm optimistic about the future of the town and the prospect of the cashless debit card being rolled out into other vulnerable communities across Australia. In Ceduna, I was told that, if the cashless debit card were to be rolled back, the town would be in a terrible place. Thankfully, this government has no plan to roll back such a successful measure. While there is no doubt that there can be improvements, I will look forward to working with the technology providers on mechanisms such as item-level blocking. This program and the associated wraparound services in Ceduna are doing exactly what they were designed to do.

Finally, I take this opportunity, which will likely be my final speech in the Senate this year, to wish everyone a very merry Christmas and the happiest of times with family and friends. May you all have a wonderful break and return safely home for your holidays, rested and ready for a terrific new decade.