Concern over payout system

Press, 2 December 1987, Page 9

Concern over payout system

Mugging old people may become a profitable pastime should the Social Welfare Department revert to paying superannuitants by cheque, according to the Canterbury Aged People’s Welfare Council.

“I see a considerable opportunity for unpleasant people to recognise that on those days (superannuation payment days), grabbing bags is much better than on other days,” said the council’s acting secretary manager, Mr Norman Webb.

People could “knock over three old ladies each fortnight” and live comfortably on the $7OO they collected, he said. Mr Webb’s concerns result from recent statements made by the Minis-

ter of Social Welfare, Dr Cullen.

Dr Cullen told Parliament that the Postßank closings in rural areas had made it necessary to look at alternatives for delivering benefits to some beneficiaries.

“In this regard, a number of options are being considered including payment by way of D.S.W. cheque,” he said.

Dr Cullen also said longer term options of introducing “smart cards” or making payments through pharmacies were being considered. The Aged People’s Council has written to the Director-General of Social Welfare to express its concerns about the possibility of cheques being mailed.

Mr Webb said that five years ago the department had to “coerce and browbeat” people into having their benefits directcredited because cheques were going missing in the mail.

“It doesn’t take much cleverness to know that cheques will be arriving on Tuesdays,” he said. Single superannuitants received about $270 a fortnight. If they did not get their cheque stolen in the mail they still had to find somewhere to cash it.

Mr Webb said they might take their cheque to the grocery store to buy $2O of groceries.

Assuming the store was willing to cash the cheque they would be wandering

around with $250 in their bags, he said. “Again what an incredible risk. It would be worth while grabbing their bags and giving them a push.”

Mr Webb said he was also concerned about the possibility of “smart cards” being introduced. "Someone is going to have to go to a lot of trouble to teach a 70 year old how to use plastic money.” “We are not suggesting that old people can’t be taught — but we are suggesting some are going to have a lot of trouble grasping this very revolutionary, to them, concept,” said Mr Webb.

There would also be problems with the limited number of outlets at

which the “smart cards” could be used and with keeping track of the money they had spent, he said.

Dr Cullen told Parliament that although 45 per cent of beneficiaries had payments direct-credited to Postßank accounts, it was a "gross exaggeration” to say that 45 per cent of the department’s clients were affected by 432 post offices closing.

Many had accounts at branches that were not closing.

The department is expected to make a statement on how it intends to distribute benefits to those affected by Postßank closings about the middle of January.