Question Time

Income Management

The Hon. T.A. FRANKS (14:50): I seek leave to make an explanation before directing a question to the Minister for Employment, Higher Education and Skills, representing the Premier, on the topic of the Forrest report and income management.

Leave granted.

The Hon. T.A. FRANKS: On 1 August a federal government review of Indigenous training and employment was undertaken and delivered by Andrew Forrest. It called for the introduction of a healthy welfare card to dictate how up to 100 per cent of welfare payments should be spent for Australians who are of working age and in receipt of welfare. This card, in its recommendations, specifically prohibits the purchase of alcohol, cigarettes and gambling.

The recommendation was described by ACOSS on the day as of concern and as an unwelcome 'return to the 1930s'. That concern and caution was echoed by the federal Leader of the Opposition, Bill Shorten, who in an ABC radio interview that day stated:

Well, later this morning I'm going down to Alcoa near Geelong, where hundreds of men and women who have worked hard their whole lives are losing their jobs. I don't think these people need income management and cash management. I think it's a one size fits all approach that underestimates people.

I am not sure whether or not Bill Shorten headed off to Alcoa and then took the workers to the bar to shout them a beer, but I am sure his words that morning were of more comfort than the Premier's round at the Old Spot late last year, particularly when the Premier's words a fortnight on in response to the proposals put forward in the Forrest report were reported in The Australian of 15 August 2014 as, 'There is some fine detail that needs to be worked through, but we want to offer the broadest possible support for this package.'

He went on to say that the review needed to be adopted in full, with bipartisan support, and said that his government would now turn to lobbying opposition leader Bill Shorten to find common ground. He stated that he would also ask the state's Commissioner for Aboriginal Engagement to talk to regional communities. My questions to the minister and the Premier are:

1. Why did he not ask the commissioner to undertake those consultations before and not after so enthusiastically endorsing the full Forrest report?

2. What consultations did cabinet undertake before coming to their decision of support?

3. Did the cabinet consider the 2012 commonwealth Parliamentary Library's research paper, 'Is income management working?', which states that there was 'an absence of evidence relating to the effectiveness or otherwise' of income management programs?

4. Were any community groups or NGOs consulted by the cabinet? For example, was SIMPla (Stop Income Management in Playford) invited to put their perspectives to the cabinet or was it only Mr Forrest who was invited to put his position?

5. Has the Premier since lobbied his colleague the federal opposition leader Bill Shorten on this issue?

6. Will school raffles, charity fund raisers and so on be prohibited under a healthy welfare card?

7. Finally, when the good men and women currently working at Holdens, who, of course, are set to lose their jobs in 2018, head down to the Old Spot Hotel, will the Premier be insisting that they refrain from buying beer and in fact have to order water or a softie at the bar? Will they not be allowed to buy a ticket in the meat raffle or will the Premier head down to the Old Spot for one last round on the government's corporate card?

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (14:54): I thank the member for her questions and am happy to pass those questions on to the Premier in another place and bring back a response. I know what the Premier does want: he wants to address the shocking disadvantage that continues to occur with our Indigenous Australians. I know that he is very keen to explore ways to overcome that disadvantage.

In relation to income management, we know that it is one of the commonwealth government's initiatives to address disadvantage and ensure that income support payments are spent in the best interests of children, families and individuals, and this was reflected in further work of the Forrest report.

We recognise that income management has the potential, as an early intervention measure, to help increase financial stability, reduce problematic spending or financial exploitation and thereby strengthen and preserve families. We know that it is also being currently trialled in a number of places, and we certainly watch with great interest to see the outcome from those trials. I understand that the Premier has asked for further consultation to occur, but I do not have those details with me here, so will pass those detailed questions on to the Premier and bring back a response.