Limiting Purchasing Choice !

Aldous Huxley predicted in his book that in 1984 our lives would be controlled by a " Big Brother " appointed by the government.   That date came and went without incident, but today we are nearer the scenario described in " Animal Farm ",    Some are more equal than others !

We seem to be on the cusp of seeing a cashless welfare card displacing the practices of putting money in people's bank accounts.  The government despairs that too many people simply waste the largesse the government provides on alcohol, tobacco and gambling and in many cases this results in both domestic violence and their dependents living in poverty.

The results from trials of this system are promising.  The statistics show that in rural test areas where the cashless card applied there was a sharp decrease in alcohol sales and police responded to fewer callouts of a domestic violence nature.  These trial were carried out in Bundaberg and  Hervey Bay in Queensland,  Ceduna in South Australia and Western Australia's Kimberley region.  Significantly, all had a significant indigenous population.

The operational function is fairly simple.  This cashless card can only be used in nominated stores where it will not be accepted for the purchase of alcohol, tobacco or for any form of gambling. It can be used for domestic outgoings such as rent, electricity and gas, but the balance in the account can not be converted into a cash withdrawal.

This outcome has the government thinking of applying the system to all forms of welfare and obviously it would be resented by the vast majority of recipients who handle their benefits wisely. Its application would also distort the integrity of the market place because many shops would be excluded from the supply chain and only selected big stores with scanning equipment in place would be nominated as supply points.

This type of goods policing is specially applicable to both Coles and Woolworths.  All their merchandise passes through a scanner at point of sale and the computer can be programmed to reject a wide variety of items that fail this welfare test.  Exclusion of welfare spending from cafes and the general shopping diaspora would seriously disadvantage retail shopping centres.

This cashless card idea might be better suited for application on a more limited basis.  An alcoholic or a person addicted to drugs might request that card as a way of curbing their spending habits, but applying it to all forms of welfare would be a slap in the face for the vast number of people who manage their money well.

It also opens the door to a sharper approach to lifestyle management.  We are constantly urged to avoid sugary soda drinks that expand waistlines.  It would be tempting to exclude such fare from purchase with cashless welfare cards on a public health basis but that is just the type of intrusion that once started can be endless.

The government might be wise to avoid applying the cashless welfare card to all forms of welfare. It might be better selectively applied where spending is out of control, resulting in repeat police attention to respond to domestic violence and child protection.

What is really at issue here is " ownership " of money distributed by act of parliament.  At this point spending it is at the discretion of the recipient.  The cashless welfare card brings those decisions back under government control !