=46ROM WELFARE TO EXPLOITATION

The following article wa' published in "The Guardian", newspaper
of the Communist Party of Australia in its issue of Wednesday,
5th April 2000. Contact address: 65 Campbell Street, Surry Hills.
Sydney, 2010 Australia. Phone: (612) 9212 6855 Fax: (612) 9281 5795.
Email: <[EMAIL PROTECTED]>
Webpage: http://www.cpa.org.au
Subscription rates on request.

******************************

>From welfare to exploitation

Privatisation of the entire welfare system underpins plans
announced last week by the Howard Government. The ultimate aim is
to have just about everyone 16 years and over who receive a
welfare payment of any kind - from disabled pensioners to sole
parents and the unemployed - forced into work-for-the-dole
training and cheap labour schemes. At the same time welfare
payments are to be restructured in a mainstreaming exercise that
will result in payments being reduced.

by Marcus Browning

The Government's approach, as outlined in a report released last
week, is to present its draconian plan as caring for the
individual while in practice demonising people on social security
and unemployment payments as shiftless and lazy. All that is
needed is for the Government to provide the cattle prod of
coercion.

In the report the hype of the Government's "mutual obligation" is
exposed once and for all as a one-way street for employers to
exploit cheap labour and for the Government to cut welfare
spending to the bone.

The three-part report says as much in its guiding principles
which include "expecting people on income support to help
themselves and contribute to society". This is the alternative to
"providing a passive safety net".

The report states early on that "Australia is now in its sixth
year of strong economic growth" but doesn't say who are the
beneficiaries of this growth i.e. super profits for the big
corporations.

A lot of soft language is packed like cotton wool around the
cruel and ruthless goals of the report, such as - "Central to our
vision for the future is a belief that the nation's support
system must be judged by its capacity to help people access
opportunities for economic and social participation ..."

Noble words. Further down the track it talks of "reducing
reliance on long-term income support". This should be considered
in the context of Employment Services Minister Tony Abbott's
interpretation. "If you are offered a job you have got to take
=E4it", Abbott said last week.

"For people on the dole there is no alternative to taking the job
that's offered. Otherwise, unemployment is no longer a matter of
inability to find work, but a question of lifestyle choice."

These are what Abbott calls "job snobs" who won't take "McJobs";
as such the cattle prod will be used to force them into low paid,
part-time/casual work and off the unemployment roll.

Corporate welfare

On the other hand the Government finds nothing wrong with
corporate welfare.

There is a supplement payment as part of the work-for-the-dole
scheme of $20 per fortnight, a pittance meant to compensate
workers for the cost of travelling or relocating to a job he/she
has been forced into by the scheme.

The report proposes that the supplement be offered to potential
employers by workers "to contribute to the person's wage to
provide an added financial incentive to employers to hire them".

The report goes on to state the bleeding obvious: "People who
receive 90 percent of their income from government cash benefits
are clearly financially reliant on income support."

But what does this mean? That they have chosen a "lifestyle"
of struggling to get by, week in week out, on social security
payments?

The document is styled as a motherhood statement. It sets down
undeniable facts, such as that the long-term unemployed need
jobs, and that the youth should have access to training and be in
the workforce.

It offers no concrete solutions - such as a program to create
more real jobs - because the Government's policies are geared
in the opposite direction of increasing corporate profits and cutting
government spending.

The report is shot through with the language of private
enterprise and privatisation: "social partnerships between
governments, businesses and communities"; "service delivery";
"one to one service"; "personalised assistance"; "customer
service".

Mainstreaming

It is intended that eventually all categories of pension payments
will be eliminated and a one-fits-all payment be created, a form
of mainstreaming.

Hence a statement such as "a person's payment type determines
=E4their payment rate", is linked to an "underlying assumption" that
"many women receive payments that assume domestic responsibility
and dependency".

These "different entitlements and obligations attaching to one
category or another can give rise to unintended behavioural
incentives".

That's the cotton wool around the welfare bludger insinuation
which follows: "For example, people may attempt to qualify for
payments that provide a better level of income and/or better
support services (for example Disability Support Pension rather
than unemployment payments)."

Or sly parents may be living apart so that they can both receive
poverty-level payments instead of living together on a single
poverty-level payment: "Lone parents may face a significant
financial disincentive to re-partnering with someone who is also
on income support or in low paid work."

The answer? "The most radical approach to reform would be to do
away with the current income support categories and have one
integrated payment structure ..."

Such a move would need to be done by stealth: "Moving towards an
integrated payment would require integration of pensions and
allowances, which is likely to be difficult to achieve quickly."

Lower payments

The result of these changes to the overall welfare operation will
be lower payments all round. The report's welfare bashing
alongside its claptrap about "incentives" and "participation"
come together seamlessly with the description of the current
arrangements:

"The provision of income to people who are looking for work, who
have disabilities or are caring for others can reduce the
financial imperative to get income from paid work.

"The more generous that assistance relative to income from work
and the fewer requirements placed on recipients, the more likely
it is that people will remain on income support for long periods.

"The impact of income tests for various payments, their
interaction with the tax system and loss of other benefits can
lead to a situation where there is little increase in disposable
income when moving from income support to work or increasing
hours of work."

On the bright side the report says there are those who will take
low wage and insecure work in poor conditions simply because it
makes them feel good.

"Some people will still accept a job where there are few
=E4immediate financial gains in the expectation that there earnings
from work will increase over time and because they enjoy the
social participation and status attached to working."

People on the Disability Support Pension (DSP) apparently suffer
not only from their disability but also from a disincentive
because of "unique features of the DSP" which "discourage
recipients from working".

Never mind that the main eligibility criteria for the DSP is
severe impairments which are assessed as causing an inability to
work or undertake education or training.

The Government's "vision" is to create a pool of unemployed
workers and pensioners who employers will be able to exploit and
discard at will. It is the end of government responsibility and
the imposition of corporate diktat on society's most venerable
citizens.

END
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