Retail alcohol block ‘feasible’

SUPERMARKETS have told Andrew Forrest it is technically possible to block spending on alcohol, gambling and cigarettes.

SUPERMARKETS have told Andrew Forrest it is technically possible to block spending on alcohol, gambling and cigarettes through a new “cashless welfare card’’.

As revealed in The Australian yesterday, the Forrest report recommends the Abbott government replace cash welfare benefits with a Healthy Welfare Card, which could be spent only on essentials such as groceries, rent, clothing and power bills. Aged pensioners and war veterans would continue to get cash through Centrelink.

The debit card, issued by a bank or building society of their choice, could not be used to withdraw cash, and would be programmed to block the sale of alcohol, gift cards, pornography, gambling and “other illicit services’’. Although cigarettes are not named in the report, it is understood the ban would extend to tobacco.

“More and more we are becoming a cashless society and this is the way we should manage welfare payments,’’ the report says. “Cash from government quickly converts to illegal drugs and alcohol abuse, particularly widespread amongst Australia’s youth.’’ The report says eftpos has assured Mr Forrest it can adjust its scheme rules to make the card function with supermarket giants Coles, Woolworths and IGA, as well as the Commonwealth, Westpac, ANZ and National Australia banks. The cards would be redeemed at any Australian store or online e-tailer that accepts Visa and Mastercard with eftpos payment facility — with the exception of alcohol and gaming outlets.

“This will enable welfare recipients to purchase the goods and services required to maintain healthy lifestyles, yet block those goods and services — such as alcohol, drugs and gambling — that damage healthy, family wellbeing and ability to enter or return to work,’’ the report says.

“Communities … are desperate to stop the incoming tide of drugs and alcohol enabled by untied welfare cash. This new system presents an opportunity to potentially remove the hundreds of millions of dollars from the market that provides the lifeblood of organised crime.’’

A spokesman for Woolworths confirmed the retailer — which owns Big W discount stores and BWS and Dan Murphy’s liquor outlets — had discussed the plan with Mr Forrest. He said the company did not have a view on whether a card should be introduced, but “if we got asked to do so, that would be technically feasible’’.

The Forrest report proposes hefty on-the-spot fines for retailers who let people withdraw cash or buy alcohol with the cards — of $2000 for every $100 misspent. It suggests the cards could use the same technology as corporate credit cards, which block access to gambling outlets.

It reveals that policing experts warned Mr Forrest that organised crime networks will “attempt to subvert the new system’’.

“Additional police and support services may be temporarily needed as the card removes the ability to support long-term alcoholism and drug addiction through cash purchases,’’ the report says. “It will be important to provide adequate support for individuals needing to adjust to the new arrangements.”