Monday, September 12, 2011

Absurd response to income management

The following is an Australian editorial about income management. It largely argues against the practice of allocating 50-70 percent of a benefit to a payment card, on the basis it restricts freedom and impinges on dignity.

A PROPOSAL by the federal government to manage welfare recipients' income has some merit if it is aimed at protecting children.

But any intervention - that most inflammatory of words - into the lives of people and denial of their basic human rights must be treated with great circumspection.

Income management, which is on trial in the highly cosmopolitan Bankstown region of western Sydney, involves apportioning between 50 and 70 per cent of a person's welfare payment to their BasicsCard.


The percentage is determined by Centrelink public servants on a case-by-case basis and the card can be used only in approved outlets such as supermarkets, department stores and motoring retailers. The card cannot be used for alcohol, tobacco or gambling.

It may seem hard to argue against an initiative that diverts money from the pub or the betting shop to the weekly food, clothing and medical budget. But income management impinges on people's right to make their own choices. It also risks stigmatising sections of our society.

The Howard government no doubt had its heart in the right place when it introduced its intervention policy into Aboriginal communities in the Northern Territory.

How can protecting women and children from the brutal legacy of drug and alcohol abuse be a bad thing? Well, nominally, it can't.

But the reality is that such interference has an Orwellian aspect that must be questioned. The government and its hired help - the public service - assume the right to tell people how to live their lives.

Eradication of dignity, independence and freedom belongs in a totalitarian state, and even the suggestion of a move in this direction must be subject to rigorous scrutiny and debate.

While some in the Northern Territory have praised the intervention policy - now being sustained by the Gillard government - others have been implacably opposed to what they see as a denial of liberty.

Supporters argue that lives have been saved or greatly improved by intervention.

But while governments must do everything possible to educate and even regulate so that vulnerable members of society are protected, they must not trample people's rights to shape their own destiny.

There are many examples in Australia of a nanny state and most, such as anti-smoking legislation, helmets for cyclists, compulsory seat belt wearing and blood alcohol limits enjoy the support of the sensible majority.

But if income management threatens our democratic foundations its implementation must be such that it in no way encroaches on Australian ideals.


Note that it begins by saying intervention is the most imflammatory word. Absolutely. State intervention is something to be limited as much as possible. But has the writer forgotten what pays for benefits? Massive intervention by way of taxation.

So how come it is OK to intervene in the lives of working people but not in the lives of the non-working people they support?

Then he or she invokes Nanny State. Well really. The welfare state is the nth degree expression of Nanny State. If the prospect of income managment puts off some of the not-so-needy that would represent a reduction in Nanny State. Not an extention.

"Eradication of dignity, independence and freedom belongs in a totalitarian state..."

The eradication of these things is the very result of a sprawling benefit system that sees one in seven or eight people living off the state; dosed up and addicted to hand-outs; caught in debt traps, and having to live cheek by jowl with people they are afraid of.

The editorial arguments are pompous and fickle.

It is morally defensible to income manage all beneficiaries.

But that still doesn't get to the crux of the problem of having ridiculous numbers of people treating benefits like a legitimate alternative to work or reliance on each other.

4 comments:

Kiwiwit said...

Yes, I'd like the dignity, independence and freedom to spend my hard earned income as I see fit.

Mort said...

The intervention has worked. Ask any Dr working in NT, or the cops at he frontline. the violence has decreased in frequency.The children are no longer as malnourished. Adults have some functional reserve now when it comes to combating illness. The kids are starting to get to school more frequently, as the parents aren't inebriated every waking minute of every day.

Beyond that, you are absolutely correct about normal citizens having their pay-packets forcibly expunged from, to have the money spent on things they themselves wouldn't necessarily spend it on.
I personally wouldn't support any money being spent on detention centres, instead the money would be spent on tickets on flights back to a nation of the same religion as the queue jumper. It would be way cheaper, and would sort out the boat people issue inside of 1 month. I also object to immigrants access to welfare inside their first 20 years of residency. Quite frankly, they haven't built up enough credit to warrant access. Australia is screaming out out for workers in the outback, make the immigrants mover there if they want to live in Australia, and can't find or create an income in the city.

FreeKiwi said...

I do it. I have my teenage children use a debit card and I have access to their statements. I feel the same is needed for parents who are required by the state to transfer money between them, ie child support. I know of parents forced to pay $1,000+ per month currently, with no way to track if the money is spent on their child (clearly it isnt because most of the money is actually alimony to the ex). Give the parents a joint account and they can both see where the money is spent.

Anonymous said...

The eradication of these things is the very result of a sprawling benefit system that sees one in seven or eight people living off the state

one in seven -- well in NZ it is more like six out of seven!, or even 9/10.

the 10% of productive Kiwis pay for the food, housing, education, heathcare, etc etc for all the rest!

Just face facts: stop welfare