The Federal Government has pledged $45,000 in emergency relief and financial counselling for Aboriginal people in remote parts of Western Australia.
This follows the revelation in The Australian newspaper that a businessman in the Goldfields town of Laverton has been lending Indigenous people money and charging them an interest rate of 33 per cent.
Families and Indigenous Affairs Minister Jenny Macklin says the emergency relief will help people’s immediate needs in times of crisis.
“There will be an extra $20,000 made available to emergency relief providers,” Ms Macklin said.
“People coming into Laverton who are desperately in need of additional cash or who need resources for food, other essentials, they’ll be able to go to the emergency relief agencies and get some extra help.”
Ms Macklin says the Government is also providing $25,000 for extra financial counselling.
“One of the difficulties we have is people haven’t had access to enough financial counselling to help them learn how to manage their own money,” she said.
“The third initiative, which is being introduced in the next fortnight, is that Centrelink are going to offer people the capacity to get their Centrelink payments paid weekly instead of fortnightly, to help them better manage their money.”
The department is also encouraging Aboriginal people who have borrowed money, to cancel their bank cards and change their pin numbers.
“We want to make sure that Aboriginal people in this area have access to their Centrelink payments themselves, and they’re not paying outrageous interest rates to people who obviously then leave Aboriginal people in dire financial circumstances,” Ms Macklin said.
“I want to provide protection to people who need that protection.”
Ms Macklin says it is up to individuals to decide if they default on their loans, and describes legal issues around lending arrangements in the area as “extremely sensitive”.
“It is very clear that there are serious issues going on in this area,” she said.
“We definitely want to make sure that people are able to control their own money, that they have financial counselling to give them the skills to do that, to pay them more frequently so that they can manage their money more easily, and if people need emergency relief that there are more funds available in the region.”
Ms Macklin says that the current situation demonstrates the need for ongoing financial counselling services, Centrelink services, and reputable credit facilities in the Laverton-Kalgoorlie area.
“These are the services that Australians in these remote areas really need, and I think this Laverton example has really brought home that point very strongly,” she said.
Ms Macklin says although it has emerged the department knew about this problem a year ago, she was only informed of it when it was made public.