Thanks for sharing :) I can't cope with Facebook but for those of you who can - I have heard it can get things like this moving faster. So if you agree a NIC & Code of Ethics is important for our country - can you share via Facebook if you are a user please?
The Cashless Welfare Card - was introduced as a trial into mostly Indigenous Communities (without too much consultation I might add!) in March 2016 it was seen by those who came up with the idea (Andrew Forrest) as a way of decreasing alcohol use and violence in Indigenous communities and making sure welfare payments were used to house, feed & clothe recipients and their families rather than being 'blown' on alcohol https://en.wikipedia.org/wiki/Cashless_Welfare_Card
The decision to use a private company to roll out the trial was controversial at the time and remains so. The company chosen WITHOUT a TENDER PROCESS to EXTEND the trial (something that appears commonplace within our LNP Federal Government - WHY? Is a question we MUST have answered by an NIC/ICAC enquiry!) was Indue.
Questions about WHY Indue was chosen have been asked and accusations of cronyism were made in 2017 (the lack of transparency makes this inevitable!) https://theaimn.com/lnp-welfare-card-true-facts-exposed-corruption-disguised-philanthropy/
At the Senate enquiry last year a letter was sent to the Senate by Indue to say that Larry Anthony was no longer with Indue:
"PO Box 523, Toowong QLD 4066
phone +61 7 3258 4222 fax +61 7 3258 4211
email indue@indue.com.au web indue.com.au
ABN 97 087 822 464
Committee Secretary
Senate Community Affairs Legislation Committee
PO Box 6100
Parliament House
Canberra ACT 2600
By email: community.affairs.sen@aph.gov.au
9 August 2018
Senate Enquiry – Social Services Legislation Amendment (Cashless Debit Card Trial Expansion) Bill 2018
Dear Committee Secretary,
Thank you for the opportunity to respond to submissions received by the Committee which contain comments about Indue Ltd.
The purpose of our letter is to provide the Committee with information about Indue Ltd, its background and services and to clarify or correct a number of statements made in submissions to the Committee regarding Indue to ensure that the correct facts are on the record.
About Indue Ltd
Indue Ltd ABN 97 087 822 464 (“Indue”) is an Authorised Deposit-taking Institution (ADI) that is regulated by the Australian Prudential Regulation Authority.
Indue has over 40 years’ experience in the payment industry and is a licensed member of the major payment schemes operating in Australia including eftpos, BPAY, NPP (New Payments Platform), Visa, Mastercard and the various low value payment clearing streams operated by AusPayNet. Indue holds an Australian Financial Services Licence (AFSL) and is a reporting entity pursuant to the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) legislation.
Indue was established to provide payments processing and settlement services to the credit union/mutual bank industry across the various payment streams. Indue continue to provide this important role.
Indue’s Ownership Structure
Indue Ltd is a public, unlisted company 100% owned by 18 Australian financial institutions, predominantly mutuals, each of which is an Authorised Deposit Taking Institution (ADI). Indue has always been 100% owned by Australian financial institutions.
Social Services Legislation Amendment (Cashless Debit Card Trial Expansion) Bill 2018
Submission 107
Page 2 of 2
Indue’s Dealings with Larry Anthony and Related Companies
Various submissions to the Committee infer that the Hon. Larry Anthony and/or a company beneficially associated with him currently have (or previously had) an ownership interest in Indue. This is completely false. At no time has Larry Anthony or any associated companies owned shares in Indue Ltd.
Some submissions referenced that Larry Anthony is a current member of the Indue Board. This is not true. Larry Anthony was a Director of Indue and was Deputy Chairman for a period of time. Larry Anthony’s tenure as a Director of Indue concluded in October 2013. Indue does not have any current relationship with Larry Anthony or any company related to him.
Indue’s Role in the Functional Design of the Cashless Debit Card Program The Commonwealth Government leveraged Indue’s extensive payments knowledge and experience to assist in the technical design of how the Cashless Debit Card Program works within Australia’s payments system.
Some submissions infer that Indue imposes conditions on cardholders or applies settings on the card or deposit account product. Indue is not a decision making body in respect of the functional design of the Cashless Debit Card. All functional design decisions or decisions about particular individual limits are made by the Commonwealth Government.
Failure Rate of Card Transactions
Some submissions have made claims that the Program has experienced unusually high failure rates of attempted transactions by cardholders in the first few months of launch in the Goldfields region. The failure rate of transactions performed at non-restricted merchants where there were sufficient funds, the card was activated and a correct PIN was entered, was less than 0.1% during the first 3 months. This is well within industry norms across the banking sector for card-based transactions.
Conclusion I trust the above information is useful in your understanding of Indue and the role it plays both in the banking and payments industry and its role in the Cashless Debit Card. Thank you again for the opportunity to make a submission to the Committee and we are happy to provide additional clarifications if required.
Yours sincerely,
Dave Hemingway
Group Executive – Product & Marketing Social Services Legislation Amendment (Cashless Debit Card Trial Expansion) Bill 2018
Submission 107"
However this year on the Bloomberg web-site Larry Anthony is still listed as a Board Member so they will need to UPDATE them: https://www.bloomberg.com/profile/company/0366263D:AU
Lat year the trial was extended to the Goldfields in Western Australia https://www.abc.net.au/news/2018-05-15/cashless-welfare-card-causes-horrible-financial-stress-users-say/9738954
https://www.abc.net.au/news/2018-07-27/the-mental-toll-of-the-cashless-welfare-card/10026614
and now Bundaberg and Hervey Bay in Queensland where Carers & Disability Support pensioners have been added DESPITE the Govt saying it was for under 36s only: https://7news.com.au/news/social/centrelink-cashless-debit-card-opponents-face-off-against-morrison-government-c-425262
I note that despite the trial being incomplete Nationals MP Keith Pitt, whose electorate of Hinkler includes Bundaberg and Hervey Bay, says the program should be rolled out nationally.
"You would have to determine the appropriate cohort, but all the evidence at the moment indicates its positive," he said
I guess this was said in the context of: "Official data show the number of people receiving youth allowance in Bundaberg and Hervey Bay fell by 9.2 per cent last financial year, compared with 5 per cent nationwide"
But as a parent of a young person I can tell you that it's onerous to apply for Youth Allowance and that many parents likely just opt to financially support their children for longer instead as I did despite only being on a median income - so the drop in young people on YA would more likely be due to these factors I suggest - RATHER than the Indue Card!
Other issues include the ridiculousness of what you can and can't buy: https://thenewdaily.com.au/news/state/qld/2018/09/21/cashless-welfare-card-luxury-brands/
People can now 'get off' the cashless Welfare Card but will have to 'prove' they can manage. https://probonoaustralia.com.au/news/2019/08/government-shakes-up-process-to-get-off-the-cashless-welfare-card/
So because there is a fraction of people on Centrelink payments who have alcohol, gambling and drug addictions - ALL those on pensions and any form of Centrelink benefit are considered to be the same?
Shouldn't the onus be on the GOVERNMENT to show WHY you are not capable of managing your OWN affairs?
Why do Governments USE this kind of stuff against people when the MAJORITY of 'quiet Australians' that the PM alludes to - do NONE of these things?
And when will WE say that Politicians have to carry cashless expense cards that WE get to decide what limits and items THEY are allowed to spend OUR money on?