Centrelink exposes remote customers to fraud: study 

ABC Radio - AM - Friday, June  2, 2000  8:28 

COMPERE: The Howard Government has been told that its
social security agency, Centrelink, is exposing its customers
in remote Australian communities to both fraud and
exploitation.

An Australian National University study has condemned
Centrelink's practice of sending cheques to recipients in
remote areas, rather than electronically transferring
payments. The study's author, Neil Westbury, told Eleanor
Hall it's an escalating problem the Federal Government
should be doing more to address.

ELEANOR HALL: You have no bank account where the
government can deposit your social security funds. So
instead, Centrelink sends you a fortnightly cheque. But, with
no bank or even a bank agency in town, what do you do
with a cheque?

Well, according to Neil Westbury who has been researching
just this question in indigenous communities in the Northern
Territory, you�re forced to rely on a 19th century power
game where the local taxi driver, store or pub cashes your
cheque. And there are often strings attached, like requiring
that you spend your money at their store.

NEIL WESTBURY: Now in some circumstances, some
unscrupulous traders charge fees for providing that service
or, because there's low levels of financial literacy among
many Aboriginal people, they�re not really aware of how
much they�ve actually spent over the fortnight. And the only
real way to resolve it is to ensure that Aboriginal people in
fact get access to the same sort of banking services as
everyone else can access.

ELEANOR HALL: Reserve Bank figures on the exodus of
banks from the bush show that branches are still closing at
the rate of more than a dozen a month. The banks say
they�ll replace the branches with bank agencies, but what's
particularly worrying for remote communities where
agencies were all the banks, provided in the first place is
that even bank agencies have been cut back from over
8,000 to close to 6,000 over the last decade.

Centrelink is acutely aware of the predicament this places
the organisation in. And it was Centrelink's Alice Springs
office in partnership with the Aboriginal and Torres Strait
Islander Commission that paid for Neil Westbury's study.

COMPERE: Eleanor Hall reporting. 

 � 2000 Australian Broadcasting Corporation
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