Propaganda

Social security privatisation and income management profiteering

The cashless debit card (CDC), is about more than ‘helping social security recipients that are alcoholics, and, or drug and gambling addicts to get help’, narrative. Depending on which trial, or experiment that your postcode is in and if you’re on a disability payment, or a carer payment, or one of a long list of trigger and restrictable payments (listed at the end of this article), that includes the stillbirth payment, you will be put on the CDC.

This is about the privatisation of government services via taxpayer funded infrastructure, set up by private operator, Indue Ltd (Indue). It’s been set up to open up billions of dollars worth of income management, for the financial and commercial sectors. Income management has now become a product to sell. Whether that be from vendors charging fees to access their goods or services, or from the banks charging inward banking fees and overdraft fees. The Indue terms and conditions for the CDC absolves itself of hidden fees: ‘We are not responsible for any fees imposed by third parties.’

There is a litany of stories from those on the CDC about it not working at places where it is meant to and the fees involved, fees for rent transfers, fees for shopping at Coles, fees and defaults of up to $26 because Indue hasn’t paid loans on time. Despite all of this there is much more to come on the CDC agenda.

The ‘Cashless Debit Card Technology Report, in 2017 by Andrew Forrest’s Minderoo Foundation, and its working group of senior executives from the banking and retail sectors, have set out a blueprint for the government. It includes the CDC becoming a multi-issuer card opening it up for the banks to issue cards, for commercial tie-ins with reward partners such as AFL and supermarkets for loyalty schemes; CDC’s with commercial branding on it; CDC training rolled into the Responsible Service of Alcohol; and the monetisation of the data relating to the CDC; if there’s a buck to be made, it’s been thought of.  

It is also of note that the CDC is uncannily similar to a program in America, called SNAP, (Supplemental Nutrition Assistance Program). It began as food-stamps for those on low incomes or on welfare. The food-stamps were eventually replaced with a debit card system called EBT, (Electronic Benefit Transfer), which is provided by private contractors under the guise of saving the government money with the printing costs. As an EBT vendor, Walmart in particular benefits greatly from the program with a guaranteed income stream worth 18% of the whole SNAP program, or $US 13 billion. It’s in their best interests if the amount on the card is raised and they provide lobbyists to keep tabs on any looming cuts to it.

I’m in no way ignoring that some communities don’t have real problems with alcohol, drugs, crime and violence in their towns that needs urgent attention. The purpose of this article is to create more detail and awareness than has been reported to date. Too much of the media reportage has been more about Liberal and Liberal National Party spruiking perceived benefits of the CDC in a seemingly attempt to manufacture the consent of the community rather than detailed analysis. Is a plastic card issued by a private company is really the answer? There are other initiatives in place such as justice reinvestment that is working and transforming towns such as Bourke, involving the whole community without government or private company intervention. More about that in the conclusion of this article.    

Indue Ltd is not a bank

It’s a payment transfer business. If you Google https://binlists.com/ for more details about the BIN (Bank Identification Number) for the CDC, which is: 438875. You will see that the card is issued by Mbna America Bank in Australia. If you look up the same number for more details via https://www.bindb.com you will see that strangely, Indue Ltd is listed as the issuing bank.

Screenshot (51)

Is Indue sending millions of dollars worth of social security payments out to an American bank and back to Australia again? This may explain why Indue are exempt from the Anti-money Laundering and Counter-Terrorism Financing Act.

Some background

The cashless debit card (CDC) is Andrew Forrest’s version of the BasicsCard, which started out in the Northern Territory (NT) in Indigenous communities. He also wants to replace the BasicsCard which is an EFTPOS card for income management in some Indigenous communities with the CDC. The BasicsCard doesn’t quarantine money like the CDC and it can only be used to buy approved items. The CDC trials arose from the government accepting a key recommendation from Andrew Forrest’s 2014 review – ‘Indigenous Jobs and Training: Creating Parity’.

To start the CDC trials the government had to first get around Social Security Laws. These laws were designed to protect social security recipients from third parties taking payment from them without their consent. They did this by making changes to the Social Security (Administration) Act 1999 inside of the CDC legislation with the: ‘Social Security Legislation Amendment (Debit Card Trial) Bill 2015’.

Those on the CDC receive 20% of their payment into their own bank account, while the other 80% is transferred to private operator, Indue, making it the legal property of Indue. It’s also important to know that because Indue is not a bank, they don’t have to answer to anyone, they’re also not signatories to the Centrelink Code of Operation or the ePayments code.

John Howard also had to make changes within the Social Security (Administration) Act 1999, for the NT Intervention to occur, more about this and the origin of income management in Australia, here.

The plan by the Liberal and the National Party has always been for the CDC to be rolled out nationally for those of working age, it’s articulated very clearly in both of Andrew Forrest’s  reviews. Billions of dollars can potentially become the property of Indue or the banks to dole out to social security recipients. His 2017 report also makes it very clear that government subsidies for businesses is expected for further implementation of the CDC. The Nationals also voted in August last year for every Australian under 35 years on a Parenting payment, Newstart Allowance and Youth Allowance to be put on the CDC.    

The National Party connection and their privatisation push with SERCO 

The CDC contract was won by Indue back in 2009. The Federal President of the National Party, and former Liberal National Party MP, Larry Anthony, helped set Indue up and was Deputy Chairman of their board until 2013. He also runs SAS Consulting Group (SAS), a political lobbying group that is registered with the federal government, Indue was listed as one its clients. Indue strangely disappeared off of the government register in August last year. SAS has amongst others, another private operator, Serco as one its clients. Serco won a pilot contract from the government in October 2017 to answer Centrelink phones as a solution for long waiting times. No doubt the 1,200 jobs cut from the Department of Human Services (DHS), in the 2017 budget made the situation worse, as well as the 1,300 that were culled in the 2018 budget. When you do the math, was it intentional? As of April this year, the government has now outsourced 2,750 DHS jobs to Serco. These connections and contracts needs to be investigated much further.  

How much are the CDC contracts worth?

The original contract awarded to Indue was worth $11 million over 3-years, it ballooned out to over $25 million. The CDC trials were originally slated to cost $18.9 million  At that time 1,850 were in the trials, so the cost was reported as being $10,000 per participant. In September 2017 after going through all of the tenders and contracts associated with the CDC, not just Indue ones, I calculated the amount to be over $60 million, meaning that the cost per participant was actually closer to $13,000.  

In September last year after the Senate came back after the Malcolm Turnbull spill and Parliament was shut down, Senator Fifield and his advisers represented the government in the Senate regarding the CDC expansion to Hinkler. The reason that I mention this is because Fifield up until that point had, had nothing to do with the CDC trials or policies, and it only added to the lack of transparency surrounding the costs involved. They claimed that the costs per participant was getting lower and was projected to be around $2,000 per person for the new trial, and that the oft quoted $10,000 per person was a running cost. When questioned further about the total cost for the new trial and the ones so far, they hid behind commercial-in-confidence, confidential tender processes and contracts not signed yet. They also said that they would release the Goldfield figures in full after 4-years or in 2022, well after the trials are due to finish. What was also revealed was that a cost-benefit analysis for the CDC was never considered, but that one was being done internally and that they don’t know when it will be finished. The government also doesn’t know what the profits are of the companies involved in the CDC trials.

Inadequate support services

Very little money has been set aside for services that are offered to communities to entice them onto the card. Using a recent example, the projected CDC cost of $2k per person in Hinkler amounts to $13.4 million, yet only $1 million has been set aside for support services. It is unclear how much money has been awarded to stakeholders or services that Indue has chosen to assist it with the CDC but there is one in particular that has been noted by people in Hinkler. David Batt of the Liberal National Party, is the State Member for Bundaberg. He is also the Chairman of Impact Community Services, which is a shopfront for those needing assistance with setting up the CDC, and a job services provider. I’m not suggesting that he has done anything wrong, just wondering what other indirect connections without tender processes are going on that are associated with the CDC.    

The CDC trials

The CDC began as trials in the disadvantaged and remote areas of Ceduna, in South Australia, and the East Kimberley, in West Australia in 2016. Anyone of working age and receiving the Newstart Allowance, Disability Support Pension, Parenting Payments, Carers Payment, and Youth Allowance, in these locations were forced onto the card. Nobody has really questioned why those on disability or carer payments need income management. Danny Ulrich, from Kalgoorlie, cares for his disabled 18-year-old brother, he doesn’t know why he has been given a CDC if it was designed to target alcohol-related behaviour.

“As a carer we’ve been put in with everyone else and put on the card,” Mr Ulrich said.

The trials have since been rolled out to the Goldfields in West Australia in 2018 and to Hinkler in Queensland this year. The differences with the latest trial being that it went ahead despite many in the community opposing it with many peaceful rallies and calling for the money to instead be spent on education, training and jobs. There is a big difference between politicians and stakeholders wanting the CDC for the community, and what the whole community wants.

The Hinkler trial is only for those aged 35 years and under who receive Newstart Allowance, Youth Allowance (Job seeker), Parenting Payment (Single) or Parenting Payment (Partnered). Top-up income payments that people receive while under-employed have also been included in the Hinkler trial. Under-employment is a growing problem in Australia.

The numbers of those on the CDC in each region have increased with each trial. Ceduna began with around 800, East Kimberley with around 1,300, the Goldfields with around 3,600 and around 6,000 people in Hervey and Bundaberg (Hinkler). The original amount of those to be put on the CDC the trials was 10,000 it is now 15,000.

Trials that never end, assisted with a cherry-picked report

The 3-part Orima Report was commissioned by the government and is being used by the government, to not only extend draconian, income management measures, but also to quantify its success in the Senate and by Liberal and National Party politicians spruiking the CDC to the media and other communities. Social and political researcher, Eva Cox sums up the report perfectly in a Facebook post, on The Say No Seven page :   

“The whole data set of interviews, quantitative and qualitative, are very poorly designed and not likely to be valid data collection instruments. I’d fail any of my research students that produced such dubious instruments.”   

The reports includes a lot of spin, asks respondents for their ‘perceptions’ at times, and includes retrospective responses, for questionnaires. The Say No Seven page, has been following all three of the reports closely, they crunched the numbers at the start of this month, when the final Orima report was released. An example cam be found on page forty-six:

“At Wave 2, as was the case in Wave 1, around 4-in-10 non-participants (on average across the two Trial sites) perceived that there had been a reduction in drinking in their community since the CDCT commenced.”

This approach means that you focus on the minority of responses, rather than the majority of responses. 6-in-10 not perceiving any reduction in drinking around town. It reads a lot differently than the latter.

Another example used a lot and also quoted in the Minderoo Foundation report from 2017, is: ‘For card users at 12 months: 41% of drinkers said they were drinking less; 48% of drug users said they were using drugs less; and 48% of gamblers said they were gambling less.’ Again making the reader or listener focus on the minority of responses.

Independent analysis of the report by qualified researchers, found many serious flaws within the report. The Auditor General Grant Hehir, also wasn’t convinced due to the lack of analysis, monitoring and evaluation of the trial. He also found that there was a failure to properly measure baseline data (data collected at the beginning or before a research project to compare with data collected during and after), making it hard to know what impact the trial had really had. Doctor Elise Klein, Janet Hunt, Senator Rachel Siewert, ACOSS and so many others have made submission after submission to the government, about the negative responses from people on the CDC relating to increased financial hardship, and flow-on social effects, only to be ignored.

The CDC narrative changes

A baseline report for the Goldfields trial was finally released in February this year but it’s commencement is vague, it says that it’s from ‘around the time of the introduction of the CDC.’ The report found “levels of substance misuse were reported by many respondents to have reduced, and alcohol-related, anti-social behaviour and crime had also decreased”. The report also said: “However, there is some uncertainty as to whether these impacts were a direct consequence of the CDC [cashless debit card] or were linked with concurrent policing and alcohol management interventions.”

The report was by the Future of Employment and Skills Research Centre which is a research centre in the University of Adelaide. This is curious in that the CDC has been legislated to provide income support for those with alleged drug, alcohol and gambling problems, not for being unemployed. The narrative has shifted in recent months with the Minister for Social Services, Paul Fletcher announcing in a presser that the CDCT trial “…is being expanded to address unemployment.”

This completely changes what the Indue card policy was designed for, and what the government originally presented to the Senate. It’s also unclear how a minister can just announce a change in legislation like this. Below was the original goals of the CDC trials. To change it to be about unemployment makes you wonder what is the point of trials? To make it more palatable for the Senate to pass the legislation and for the public to accept over time?   

124PC  Objects

              The objects of this Part are to trial cashless welfare arrangements so as to:

                (a) reduce the amount of certain restrictable payments available to be spent on alcoholic beverages, gambling and illegal drugs; and

                (b) determine whether such a reduction decreases violence or harm in trial areas; and

                (c) determine whether such arrangements are more effective when community bodies are involved; and

                (d) encourage socially responsible behaviour.

It also means that all research and data collected by the government to date is redundant and that at the very least new legislation needs to be drawn up with what the government’s true objectives are.

Whole of community consent for the trials questioned, and paid community panels  

Claims by the government that the trial communities wanted it have fallen apart under questioning during debates in the Senate. In February last year Labor Senator Doug Cameron, asked Liberal Senator Concetta Fierravanti-Wells, about the 86 organisations and stakeholders that were involved in the consultation process for the Goldfields expansion. It turned out that only 5 out of the 86 were positive about the CDC. Those that were positive about the CDC being introduced in their communities were given anonymity.   

IMG-6237

Every year since the CDC the government has introduced and mostly passed many amendments. Amendments such as the government establishing anonymous community panels that now include government officials in trial sites, taking it out of the hands of local councils and agencies. Paid community panels to determine whether those put on income management should be able to access more cash from their bank accounts than the 20% allocated by Indue. This also happened in the NT during the Intervention. Another one was the addition of one word, ‘was’ meaning that if you used to live in a trial area but have moved you could still be put on the card. Seemingly to stop people moving from a trial area to a non-trial one, or a welfare migration, control measure. Because the trials are rolled out by postcode it also captures those that don’t have drug, alcohol or gambling problems or are even in need of income support assistance. If you want to opt out of the CDC trial process is extremely difficult.

The latest amendment and trial expansion

Just last week the government passed another amendment in the Senate to extend all of the current trials till June 2020. Those in Ceduna will have been on the CDC for 4-years by this time. The Labor Party has also introduced an amendment that has been legislated and is now law, providing some hope for those that don’t need income support as a way to opt out off of the CD program. CDC recipients in all trial sites can exit the scheme from July this year if they’re able to demonstrate “reasonable and responsible management” of their financial affairs. Their amendment also makes the community panels more accountable for their decisions as to why someone can not be exempt from the CDC. They must provide a documented explanation.

The fear for many though is that if the government wins the federal election that they will not only repeal this legislation, but will expand and extend the trials everywhere. The government has also given an additional $70.8 million for the extension of the trials.

IMG-5989 People self-harming and suiciding due to the CDC

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Besides the information from the screenshot above there isn’t a lot of data relating to self-harm and suicides relating to the CDC. There was recently an ‘Inquest into the 13 Deaths of Children and Young Persons in the Kimberley Region’, and a coroners report that has a CDC recommendation that hasn’t been reported properly. Preceding Recommendation 22 the report states:

‘An evaluation of the Cashless Debit Card trial is outside the scope of the Inquest as is any recommendation that suggests a compulsion. The following recommendation is made, to be considered in parallel with, and not in substitution of, any relevant trial or program already in place, or planned.’

Followed by: Recommendation 22 – ‘That consideration be given to extending an offer of a voluntary cashless debit card program to include the entire Kimberley Region.’    

The Minderoo Foundation reported the recommendation as a reason to roll out the CDC across the Kimberley, no mention of consideration or it being voluntary. As the coroner stated the CDC trial was outside of the scope of the inquiry. Until we have one for the CDC trials we will never know how many people have self-harmed or suicided. One death or someone hurting themselves over a government policy is too many.

In conclusion

The social security and welfare of Australian’s doesn’t belong in the hands of private companies. Anyone of us can slip and fall into hardship, this is what it’s there for. There are other programs to explore that address alcohol and drug problems like in Iceland for example, where teenagers in the 1980’s and 1990’s had a huge problem with alcohol and drugs that could be tailored to fit certain communities in Australia. Unemployment could also be incorporated with the approach below.

  • They brought in curfews for teens under 16 being out at night with parents helping to patrol the streets to make sure that it happened.
  • Parents signed a pledge to not allow their kids to drink alcohol and to create more family time with them.
  • Kids are kept occupied with the government giving families a $500 voucher for after school activities.
  • Surveys are filled in by teens every year measuring different aspects of their lives such as their relations to their peers, family life, substance abuse and how they feel. A report is then created for each community within 2-months for their schools so that they can work out solutions within each community.
  • They also got politicians onside with the science with Reyjkavic spending over $100 million each year on youth activities.        

This model is now run across 35 cities in Europe and has been credited with bringing Iceland musical and sporting success.

Then there are justice reinvestment programs that I mentioned in the introduction where instead of money being spent on prisons, and law and order policies, the money is instead reinvested into the communities. The Australian Human Rights Commission has called it a “powerful crime prevention strategy.” The Senate Legal and Constitutional Affairs Committee recommended 5-years ago for the Commonwealth to “adopt a leadership role” to support justice reinvestment projects and that it should fund a trial.

In the NSW town of Bourke, the Maranguka project is credited with cutting major offences by 18% and domestic violence and drug offences by 40%, and with school attendance up. This could work in communities such as Kalgoorlie, but for these projects to work they require involving the whole of the community, and the police. Brad Hazzard, the current NSW health minister, said in a Bourke meeting after marvelling at their success:

“I still shake my head in wonder as to why so much state and federal resources are coming into regional towns and not achieving the outcomes we want.”

Many people receiving social security assistance are already living in poverty, cutting them off from cash is not the answer. Let it be voluntary across the board, don’t let our capitalist society turn poverty and welfare into another money making scheme for the private sector, or to be used as a pork-barreling strategy for nonprofits in our communities. Do surveys, get to the core of the problems in each community, provide services that work, seriously look at ways to create jobs and for other ways for people to contribute back to their communities, if they’re able to do so. It’s also well overdue to  trial a universal basic income in Australia.    

These are the trigger payments that can land you on the card:

  • ABSTUDY that includes an amount identified as living allowance,
  • austudy payment,
  • benefit PP (partnered),
  • BVA, so long as the recipient has not   reached pension age,
  • carer payment,
  • disability support pension,
  • newstart allowance,
  • PgA (other than non-benefit allowance),
  • partner allowance,
  • pension PP (single),
  • sickness allowance,
  • special benefit,
  • widow allowance,
  • widow B pension,
  • wife pension,
  • youth allowance.

Here are the restrictable payments:

Many thanks to all of the sourced researchers, publications and artists involved in this article.

 

       

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Australia, we need to have an urgent chat about surveillance technology and the race for marginal votes

We live in a time where often it’s only a handful of seats that can win an election, instead of election campaigns focusing on ideas and policies, the focus is now on influencing voters to win marginal seats. Data mining and surveillance tools that were created for war zones before being picked up by the advertising industry, are now in use against civilians. Privacy laws and regulations haven’t kept up with the pace of technology, and too many people are willing to exploit these loopholes. Business models that involve data mining like Cambridge Analytica and i360 can’t exist without tech giants such as Google, Facebook, and Palantir.

Everyone is scraping, selling and analysing our data it’s now about influencing our behaviour, predicting what we will do next. The co-founder of Palantir, Peter Thiel, wasn’t joking when he named his company after the Lord of The Rings stone that is ‘far seeing’. Technocrats take advantage of the fact that most of us aren’t technologically minded, especially the politicians that they pitch their technology too. This is the main-game now to try to see into the future with predictive technology, including predicting crime. In this article I will provide background about the tech giants and how they adopt each others technologies, how data is being used against marginal voters with the debut of i360 software in Australia, and what looms on the horizon. Firstly we will take a look at  Palantir and its ties and similarities to Facebook.       

What is Palantir and how is it connected to Facebook?

Peter Thiel co-founded PayPal and sold it to eBay in 2002. He took advantage of a post-9/11 world and created a company that used PayPal’s fraud-recognition software to stop terrorist attacks. This company became Palantir and was founded in 2003. Thiel provided the seed money for Facebook in 2004 and joined Facebook’s board, he is still on the board today. Mark Zuckerberg was only 19-years old at the time, Thiel soon became a mentor and friend. Zuckerberg bragged at the time about how he was able to collect data willingly from people, he called them “dumb f***s”.             

Initially the only investor of Palantir was Thiel but in 2005 the CIA’s venture arm In-Q-Tel, also became an investor. The CIA was the only customer of Palantir for the next three-years. They had the best engineers working for the company as they tested and evaluated their data mining software to predict terror attacks. Word soon got around and before long they were getting contracts from intelligence agencies, military units, and eventually police departments. Police departments in America were interested in using the technology for its ability to analyse big data to predict crime.  

Predictive crime technology goes mainstream, including in Australia

Palantir secretly began using the population of New Orleans to test its predictive crime technology in 2012 by offering its services for free. In return they were given free data relating to public records, court filings, licenses, addresses, phone numbers, social media, and non-criminal data to train its software to forecast crime. Palantir’s prediction model also used an intelligence technique called social network analysis (SNA), which looks for connections between people, places, cars, weapons, addresses, social media posts and any data stored in databases.

This information is analysed and used to predict if people are most likely to be the victim of a crime, or to commit a crime based on their connection to known victims or criminals. It’s frighteningly close to the TV series ‘Person of Interest’, there are so many things that can go wrong here:

  • A culture in law enforcement of guilt by association.
  • The profiling of citizens being analysed by an algorithm with no human oversight.
  • Privacy issues.

There is no clear evidence of predictive technology reducing crime in New Orleans. Despite this it led to more contracts for Palantir, including foreign ones and with the Australian government. There are twenty-four patents relating to Palantir in Australia, the latest tender was signed last year, it’s worth $7.5 million and ends in June 2021. The Australian Criminal Intelligence Commission (ACIC) and different partner agencies use Palantir’s Fusion software, ACICs different partner agencies include: the Australian Federal Police, the Australian Tax Office, the Department of Immigration and Border Protection, and the Department of Human Services.

Home Affairs Department becomes an intelligence hub    

Two bills were introduced in February this year, the Identity-Matching Services Bill and the Australian Passports Amendment Bill. The first bill authorises the Minister for Home Affairs, Peter Dutton, and his department to match photos against identities of citizens in various agencies without a warrant. Media reports about it say that the government was basing this bill on an FBI model, but where did they get their model from? Palantir.

Home Affairs is now a huge data collection hub akin to Palantir and it will continue to grow as it collects information, each time a user makes a request for their identity-matching services. For example, say a bank supplies CCTV footage and data with a request, the footage and all of the data associated with the request will be hoovered up into the hub. The reasons for Home Affairs using this information are very broad, and include: criminal intelligence gathering and profiling, community safety (an example is a person acting suspiciously in a crowded, public space), road safety, and the policing of activist communities and protests. The second bill allows Foreign Minister, Julie Bishop to direct the automation of sharing passport data for the purposes of national security, meaning no human oversight, just algorithms talking to each other.

Palantir patents ‘crime forecasting’ tech    

Palantir is renowned for its secrecy, the only way to tease out what they’re up to is to keep tabs on their patents. The most recent patent that was granted was in December last year and it relates to ‘crime forecasting’ technology, to help police “to know when and where crimes are most likely to occur in the future.” Another patent pending involves the data mining and analysis of billions and trillions, or petabytes, of records. For context one petabyte equates to 58,292 movies or 13.3 years of HDTV content. These could be bank transaction logs, call data records, computer network access logs, email messages of corporations or other high-volume data. 

The last patent pending involves household behaviour predictive software that analyses past behaviour in an effort to predict future behaviour. Examples detailed in the patent include obtaining data about household incomes, the number of cars belonging to a household, and your household bills. There are similarities here with Facebook’s ‘Loyalty Prediction’ tool and their ‘Household Audience’ tool. These tools allow you to target entire families in the household.  This week the Intercept obtained a confidential document that claims that Facebook is promoting their ‘Loyalty Prediction’ ad service tool. It’s meant to assist advertisers chasing users that are on the verge of disengaging with brands. The Facebook business model has always been about data collection but now it’s moving into territory where it is feeding data into a machine learning program called ‘FBLearner Flow’. Algorithms predicting behaviour aren’t foolproof and because companies are paying for these predictions, there’s a financial incentive to make sure that the predictions are correct. There is concern that Facebook could engineer results.  

Facebook has been experimenting on its users for years, their mood experiment in 2014 proved that it could change people’s emotions dependent on the content shown to them. It would be tempting to employ this method to change people’s minds about disengaging with brands. GQ reported that Google has an application for a patent in the same realm regarding an algorithm to determine a user’s mood from a “plurality of data sources”; or big data. This technology is basically social engineering and it could be used to sway voters. Next we will take a quick look at the Cambridge Analytica debacle and then on to the debut of i360 software in the South Australian election.    

The Cambridge Analytica debacle wasn’t really a data breach  

In 2014 when Cambridge Analytica data mined Facebook there was a way that anyone could do it using one of Facebook’s own tools. Facebook had a ‘Reverse search tool’ which enabled users to search for people on Facebook just by using a phone number or email address to find their profile. The feature was ‘opt out’ for users and could only be turned off in the privacy settings. You could potentially feed the tool a list of phone numbers or email addresses that could have been taken from data breaches, online leaks, or even electoral rolls. It was only this month after being warned for years by developers of the potential for using the tool to data mine, that they finally shut it down.

When Facebook learned about what Alexsandr Kogan was doing for Cambridge Analytica in 2015 they actually paid him to do consultancy work. He was also asked to explain his technique for Cambridge Analytica, and to give talks to Facebook staff about behavioural psychology. Another method that app developers like Kogan used to scrape Facebook data, is by writing code inside their apps to capture your data. It was a Palantir employee that gave Cambridge Analytica the idea to use an app to data mine Facebook. Many are extremely sceptical of Zuckerberg telling Congress recently that he is unaware of what Palantir does and if Palantir itself has ever scraped data from Facebook.  

i360 makes it debut for the South Australian election

The South Australian (SA) Liberals lost the election in 2014 because they didn’t win enough seats to form government. The leader of the party, Steven Marshall, and the SA Liberal State director Sascha Meldrum, looked to America for solutions. In 2016 they purchased a product license for i360 software, it costs around $25,000 per month. They worked together with i360 to customise the software to include Australia’s compulsory and preferential voting system. They began using i360 in 2017 giving them a headstart in targeting marginal seats for the March 2018 election. Dozens of staff and volunteers including Victorian opposition leader Matthew Guy, had a dry run using i360 in the field at the SA election. i360 has been credited for the SA win. The Victorian Liberals have been using it for a while, Queensland is about to sign up and the NSW Liberals, and the Federal government are thinking about it.

What is i360?

i360 was created by Michael Palmer in 2009 with a team of nine data scientists with PhDs behind him. It started out as a database to help Republican’s catch up with Obama’s successful use of data during his 2008 campaign. In 2011 the Koch brothers helped out by merging i360 with their non-profit organisation, Freedom Partners. Millions and millions have been pumped into it by themselves and their rich, conservative allies ever since. Making it non-profit means that they can hide who the donors are as well as the money trail. i360 is no longer just a database, they offer a suite of cutting edge tools, including analysis and predictive technology for political campaigning. i360 is primarily funded by the Koch brothers. If you haven’t heard of the Koch brothers, they’re billionaires that fly under the political radar and have made a fossil fuel, fortune. Their company Koch Industries, owns and operates a massive network of oil and gas pipelines, and they make a wide range of products that include: chemicals, jet fuel, plastics, and synthetic fertilisers. They have been funding climate change denialism, to protect their interests through foundations, institutes and front groups for years including an institute in Australia, the Institute of Public Affairs. More in this link and this link, if you’d like to learn more about that. Next we will look at how i360 works, their technology will sound a little familiar.

How does i360 work?

i360 has a multi-pronged approach that involves apps, technology, analytics, predictive analysis, as well as data science, digital marketing and advertising. Over the years they’ve amassed trillions of data points on hundreds of millions of Americans. They use thousands of unique pieces of data and combine data, analytics and predictive modelling for election campaigning. Facebook and Google Adwords work alongside i360, and are their featured digital partners.

i360 predictive technology

Advanced predictive modeling enables i360 software to test the effectiveness of thousands of political ads before using them. They use segment models that go above and beyond demographics, they include issues such as whether you want to ‘cut immigration numbers’ or are in favour of ‘raising the minimum wage’. These models can also help them to predict which issue that people care about the most. Knowing these details about people enables them to tailor their ads specifically for you, they personalise the style and tone of the ad, even the aesthetics and colours. These models get updated with new data and refreshed every night. This business model has much in common with Cambridge Analytica.

i360 tracks your online movements  

According to the i360 website they have partnered with a number of ‘mobile ID matching’ services instead of using traditional cookies to track your online movements. Cookies are a small piece of data sent from website’s that you browse back to your computer to help identify you so that they can advertise to you. This works for desktop and laptop computers but isn’t good for tracking your movements on mobile devices and for tracking your activities within apps that you visit. They claim to use ‘mobile device IDs’ which are used to identify you via your mobile devices and the apps that you visit. And then there is ‘direct matching’, which matches up apps that you visit while being signed into Facebook or Google enabling you to be found on multiple devices. According to their website this service is 100% accurate, no doubt because they’re partners with Facebook and Google. In fact the technology just sounds like a jargon laden version of the ad-tracking tools that Facebook already offers. More on this below.

Facebook and Google tracks you too

The Facebook like button has a small piece of code that tracks you as well as the Facebook share button when sharing online content, and then there’s Facebook Pixel. You only need to visit a page that has one of these buttons or Pixel code attached to it for it to collect data about you. What is Facebook Pixel, you may be asking? Pixel allows you to track user movements offline with: “A piece of code for your website that lets you measure, optimise and build audiences for your ad campaigns.” It tracks your activities and reports it back to Facebook and the code doesn’t expire like traditional cookies do. Advertisers can track what users are doing offline even if they don’t have a Facebook account, it’s called ‘shadow profiling’. Google does this too, even if you don’t have a Gmail account you only need to communicate with a Gmail address for one to be created.

Asher Wolf has recently written about how the Australian Bureau of Statistics (ABS) with an unnamed telco, did an experiment in 2016 to track people by using their mobile devices. It turned out that the telco was Telstra, the ABS said that their reasoning for the experiment was to estimate temporary populations, and to assist policy makers. It’s not too far of a stretch to assume that this data has been entered into Palantir’s Fusion software, and you have to wonder what else the ABS and the government have been secretly up to in the last couple of years since.

The ABS promptly released a statement claiming that the data that they used was non-identifiable, this argument is wrong. Technology has advanced far enough that it can re-identify anonymous people’s data.

i360 uses set top box data to tailor ads 

i360 has a TV targeting service which offers personalised TV ads that can be shown on any channel or program being watched. They’ve partnered with D2 Media (the image below is their business model), and it’s available in America through Dish Satellite TV, or Direct TV. These services and set top boxes are also available in Australia. In 2015 Dish TV partnered up with Freeview as its manufacturer, and it’s of note that Foxtel is currently in the process of transferring its cable service over to satellite. Are there plans afoot for this in Australia in the near future, or are they already in place?

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Political party’s, volunteers, contractors and representatives, exempt from Privacy Act

The last time that there was a Privacy Act review was ten-years ago. It lasted more than two-years and recommended hundred’s of reforms. Many Australians don’t realise that registered political parties are specifically excluded from the definition of ‘organisation’, so they’re exempt from the Privacy Act. Also exempt from it are political representatives (MPs, and local government councillors), volunteers for political parties, and contractors and subcontractors of political parties. One of the recommendations was for the exemption to be removed. Both major parties ignored the recommendation. In light of recent events with Cambridge Analytica and Facebook I think it’s time to remove the exemption. If political campaigning is no longer a public process and is done in private,  being exempt from the Privacy Act is no longer acceptable.

The Liberal Party database and i360 combine   

i360 has been specifically formulated to sync and capture data from the Liberal Party’s database, Feedback. Feedback is operated by Parakeelia Pty Ltd which provides the party with the software for their data to be entered into. It’s owned by the Liberal Party. Feedback consists of data obtained from door knocking, phone calls, visits to MP offices, email responses, online and call surveys, census data, and social media data. This data combined with their software enables you to pinpoint swinging voters and marginal seats like never before. Similar to Google maps you can click on a location and it will pull up everything that you need to know about a person, including a script to read to them. Volunteers can make calls from home and door-knockers are saved time by the app providing directions to the next targeted voter to win over. The apps save time door knocking and calling, as you only target voters that you need to. 

Parakeelia transfers money back to the Liberal Party, how is i360 being paid for?

In 2016 it was revealed that Liberal MPs had been paying $2,500 each to Parakeelia out of their software allowance for its services. Labor MPs also paid about the same for their database Campaign Central which isn’t owned by the party, it’s run by third-party provider Magenta Linas. Parakeelia started to transfer money from the company back to the party in 2010. In 2010 it was $12,100 with amounts continuing to rise with a 2016 transfer of $915,000. This made Parakeelia the party’s biggest donor for that financial year. There were concerns by Labor and the Greens that money was essentially being laundered through Parakeelia to boost Liberal coffers. However a limited-scope review by the National Audit Office in the same year, found that Parakeelia was not in breach of any electoral or parliamentary rules. University of Queensland Law Professor, Graeme Orr thinks that Parakeelia presents problems “deeper than strict legalities.”

“You have a question of a business built on taxpayers funds returning money to a political party: that’s problematic in a way we haven’t seen before,” he said. He thinks that these issues would be avoided if they chose their IT provider through a tender.

Unfortunately I couldn’t find any information after these financial years save for a vague tax return from 2016-17. We know that i360 costs at least $25,000 a month, who paid for the SA Liberals to use it and how are the financially struggling Victorian Liberals paying for it? If tax payers are, than that would be all shades of wrong and would take us  further into unchartered territory.

New entitlement rule changes opens up electoral budgets for software purchases

Following on from software allowances, late last year, new regulations for entitlement spending were quietly introduced by Special Minister for State, Mathias Cormann. Instead of receiving a $2,500 software allowance, for the first time MPs can now spend some of their electoral budget on software and services. These services include: robocalls, SMS and survey services, ‘subject to the limit of your office budget’.

Are taxpayers paying for themselves to be politically targeted?

How the NationBuilder platform compliments i360 software

i360 software needs a platform as well as a database to work. In early 2015 Indaily obtained documents that outlined how the SA Liberals were going to start training MPs and staff to use NationBuilder. NationBuilder is software that brings together services like WordPress, Mailchimp and PayPal on to the same platform. It imports things like the details of interactions with an MPs office from the Feedback database and builds profiles on people by syncing this with social media. NationBuilder also creates websites with donation platforms and provides content management. The documents describe the platform as “an electronic program where we can import emails and build profiles on voters” and how “it will track what people are liking, what they’re commenting on and add all of this information to their individual profiles.”  

“Anyone who leaves a comment on Steven’s website is sucked in by NationBuilder, and a profile is created for them.”

NationBuilder has been used by Labor and some of the Greens for the last few years or so, according to the NationBuilder website it’s used in Australia by a number of parties. NationBuilder is used by politicians of all stripes around the world, President Trump used it for his election campaign and it was the platform that was used by both sides of the Brexit campaign.

Strange misinformation campaigns during elections, becoming the norm

To look at all of this in totality I’ll briefly explain a disinformation campaign that was also in play during the SA election. An early voting website that appeared to be from the SA Electoral Commission (ECSA), was actually authorised by the Liberal State Director. The authorisation line was at the bottom of the website in a light font. There was also a range of ads distributed to mailboxes and posted on social media making out that they were from the ECSA. It is unclear who was behind all of it exactly. The website and flyers requested personal details from those that were targeted. Three-weeks before the election after receiving complaints, the ECSA said:

“South Australians are advised that, if they provide personal details in response to these flyers or via the website, these have not come to ECSA.”

“ECSA advises that you should exercise extreme caution when releasing your personal information.”    

These are tactics that are designed to deceive you and to slyly take your data, Republicans have been doing it in America for years. Every vote counts and every dirty tactic that is available is in use in Australia now. Anything that you see online like email surveys, or in your mailbox that asks for your details, be very wary.          

Study about social media’s impact on elections, partly funded by a Koch Foundation

Facebook has recently announced a commission of researchers to study social media’s impact on elections to appease the groundswell that is building against their influence in elections. They will be given unprecedented access to Facebook data. Financing for this is coming from foundations including from one of the Koch brothers, the Charles Koch Foundation. There is understandably major concern about this, they’re known for not being the type of donors that just donate and step away, they like to be involved.

Facial recognition technology, and new tools on the horizon

Despite all of the recent privacy controversy Facebook wants to be able to run facial recognition scans without your consent. Legislators in America are still considering a change to the Biometric Information Privacy Act (BIPA). For years Facebook has fought a lawsuit regarding the handling of biometric data like fingerprints or facial recognition profiles. The plaintiffs argue that Facebook’s photo-tagging system violates the law because photos that are uploaded in this way are done so without consent. It’s of note that even if you aren’t tagged in a photo, their tech can find you. Facebook wants these consent protections neutered. Free access to pictures for years including Facebook owned Instagram, has no doubt sped facial recognition technology along.

Facebook has a new tech patent to determine social class, seriously, more hereThey also have patents relating to eye activity, and the tracking of your relatives. And Google has a new tool out that will no doubt be shared and tweaked for further use in political campaigning. It’s called Plus Codes and it pinpoints locations extremely accurately. Google wanted to address the problem of high-density slums in India where just 30% have accurate locations for their addresses. There is a general election in India next year.

There is so much more that is already here and coming soon: the tracking of your car, listening to your phone calls, looking inside your house and the use of AI that studies CCTV footage to predict crime before it happens.

Is there hope?

Yes, Sir Tim Berners-Lee is working on a project called Solid. He’s working on a solution of separating apps from the data that they produce. An app built using Solid architecture would ask users where they want to store their data, ownership of your data and access to all of the data that you create. He believes that rather than our data being locked up with a company, we should have the choice of who to share or not share our data with. Who knows what innovations we could come up with ourselves and within our communities?

In conclusion

Government’s entering the surveillance game alongside Palantir is chilling to say the least. Decisions based on algorithms without our consent and with no human oversight is a dangerous path to go down. A lot of predictive technology promise governments the world but most of it is largely unproven. The current Privacy Act doesn’t protect us as it should, this isn’t Facebook being dodgy with their user terms, default options and making it impossible to opt out of things, it’s our own government. Election wise its hardly democratic or ethical to target and influence voters secretly using their own data, perhaps even charging taxpayers to do so. The misinformation tactics also need urgent addressing it’s bad enough that our data is being used to manipulate us, to misinform us at the same time for a vote is cruel and immoral.

Many thanks to all that have helped contribute to this article.

 

The standard that you walk past…

Income management isn’t new in Australia, what is new, is the current government’s ideological push to enforce neoliberal policies on an unsuspecting Australia. In 2007, Professor Helen Hughes, wrote ‘Lands of Shame: Aboriginal and Torres Strait “homelands” in Transition.’ A few months before it was published, Hughes gave it to the Office of Indigenous Policy Coordination (OIPC), the department responsible for indigenous policies. The Minister for Indigenous Affairs was Mal Brough.

The book was published by conservative think tank, the Centre for Independent Studies (CIS). It’s final chapter, reads like a blueprint for what occurs in the Northern Territory (NT) in June 2007. It calls for the closure of Indigenous communities in the Northern Territory (NT); a health audit of all children; the appointment of administrators; private home ownership; and the abolition of communal title customary law; the permit system and Community Development Employment Projects (CDEP). The book was also highly critical of policies relating to self-determination and land rights, branding them failed socialist experiments.   

The use of a book, research or reports produced by a think tank, or a foundation, for government policies isn’t a new tactic. The Ronald Reagan policies from 1980’s, were mostly from the Heritage Foundation, which has been heavily financed for years by the conservative elite, and the likes of the Koch brothers.      

Before we go any further, I need to provide some background, and a timeline of events. The Howard government, received many detailed reports about the escalating violence in Indigenous communities, but they were never actioned. With thanks to Chris Graham (current owner of New Matilda), Crikey and Michael Brull, for their succinct research over the last decade relating to the Intervention.

So many reports, not enough action

Indigenous academic, Boni Robertson, completed many detailed reports throughout the nineties. Robertson also led an inquiry in 1999, that actually involved Indigenous Australians, with fifty-senior women representing their communities in Queensland (QLD). In 1999, a shocking report about Indigenous violence, was released by Doctor Paul Memmott. The report was suppressed from the media and the public by the Justice Minister, Amanda Vanstone for eighteen months. By the time that the media got wind of it, it was old news and nobody really cared.

All of these reports and inquiries, warned of the numerous problems in Indigenous communities. The causes of family violence stem from a failure of government to provide adequate services, education and housing infrastructure. It’s also a failure from both sides of the political spectrum to acknowledge Indigenous culture and their relationship with the land. Neo-colonialism is still a problem in Australia, despite the fact that Indigenous Australians are the oldest known civilisation on earth.  They’ve hundreds of languages and their map of Australia is made up of many nations, not a handful of states. Wanting them to assimilate into a monolingual, mono-cultural society is one thing, the reality is another.       

In 2002, the Central Aboriginal Congress prepared a paper showing how the number of indigenous women being treated for domestic assault had more than doubled since 1999. A year later Howard staged a ‘roundtable summit’ of Indigenous leaders to address family violence. This achieved nothing.

An election was approaching in 2006, and for the government and the media, Indigenous violence was a popular topic. At one point, ABC Lateline had filed seventeen stories about it in just eight nights. Crown Prosecutor Nanette Rogers, was on the show in May that year and spoke of her experience with violence against children, including sexual violence in remote communities. What Rogers spoke about was exactly what Dr Memmott had detailed in his suppressed report, seven years earlier.

The media heats up

Minister Brough appeared on Lateline the next day and told the host, Tony Jones that: “Everybody in those communities knows who runs the pedophile rings.”

Jones: “You just said something that astonishes me. You said pedophile rings. What evidence is there of that?”

Brough said that there was “considerable evidence” but provided none. Claire Martin, the NT’s Labor Chief Minister, called on him to provide evidence of the allegation, he said nothing. Five weeks later on June the 21st 2006, Lateline had an anonymous male, former youth worker on their program. He backed up what Brough said:

“It’s true. I’ve been told by a number of people of men getting young girls and keeping them as sex slaves.”

The youth worker, claimed that he was once based in Mutitjulu, working in a joint community project for the NT and federal governments. The Mutitjulu community are the legal custodians of Uluru, or Ayers Rock.

His identity was hidden with his face shadowed and a digitised voice, and he cried as he detailed how he’d made repeated statements and reports to police about sexual violence, in Mutitjulu. He said that he’d withdrawn the reports after being threatened by men in the community, and that he feared for his life. He also said that young indigenous children were being held against their will, and that other kids were being given petrol to sniff in exchange for sex with senior indigenous men.

The next day, Martin announced that her NT government would hold a major inquiry into violence against children in Indigenous communities. Also on that day, Brough finally responded to calls for evidence of his accusations. He released a press statement, saying that information had been passed onto NT police, and that he’d been advised that “for legal and confidentiality reasons, I am unable to disclose detail.”

Questions asked too late, the damage is done

A few weeks later, the National Indigenous Times reported that the youth worker crying about his experience in Mutitjulu on Lateline wasn’t a youth worker at all. He was actually, Gregory Andrews an assistant secretary at the OIPC, and an adviser to Brough. He advised Brough about violence and sexual abuse in remote communities. Later it was revealed in parliament, that Andrews had never made a single report to police about women or children. He also misled a federal senate inquiry into petrol sniffing in 2006 and lied about living in Mutitjulu, he had never even set foot there.

All of Andrew’s allegations were thoroughly investigated and dismissed by the NT police. And the Australian Crime Commission, spent eighteen-months and millions of dollars, and also concluded that there was no organised paedophilia in Indigenous communities. 

Martin’s inquiry reported back to her in August 2006. The inquiry’s final report: Little Children are Sacred, was handed to the NT government, in April 2007. It was impressive and was more than 300-pages-long, with ninety-one recommendations. The authors, Pat Anderson and Rex Wild, didn’t have an easy job, but they said that they were:

“impressed with the willingness of people to discuss the issue of child sexual abuse, even though it was acknowledged as a difficult subject to talk about. At many meetings, both men and women expressed a desire to continue discussions about this issue and what they could do in their community about it. It was a frequent comment that up until now, nobody had come to sit down and talk with them about these types of issues. It would seem both timely and appropriate to build on this good will, enthusiasm and energy by a continued engagement in dialogue and assisting communities to develop their own child safety and protection plans.”

But before the Martin government could respond to the report and without any consultation with her, or even his own cabinet. Howard and Brough used the report as a catalyst to launch their Northern Territory Emergency Response (NTER), or the Intervention.

The Intervention

The Intervention relied heavily on shock tactics. Naomi Klein has covered these extensively in her book about disaster capitalism. It favours a multi-pronged, speedy attack, this helps to create cover to introduce unsavoury or neoliberal policies. The Intervention ticks all of the boxes.

The NT and the Australian Federal Police, were sent into remote Indigenous communities, and the army and business managers were installed into Indigenous communities. Signs were put up declaring bans on pornography and alcohol in towns. It was framed as a “national emergency” and while everyone was distracted, and with a senate majority, the federal government was free to pursue its agenda. NTER (Northern Territory Emergency Response), was a $587 million package of measures, and laws regarding human rights, had to be changed or suspended, to get the new legislation through, these included:

Racial Discrimination Act 1975.

Aboriginal Land Rights (Northern Territory) Act 1976.

Native Title Act 1993(Cth).

Northern Territory Self-Government Act and related legislation.

Social Security Act 1991.

IncomeTax Assessment Act 1993.

As a result of the new legislation, regulations were introduced to ban access to alcohol, tobacco, pornographic material, and gambling services. Land was compulsorily acquired by the government in seventy Indigenous communities, this was to ensure that there were no interruptions by traditional owners. An income management scheme was introduced, the BasicsCard, which was actually born out of an Indigenous innovation.

The FOODCard was introduced by the Arnhem Land Progress Aboriginal Corporation (ALPA) in 2004, the idea came about after community consultations. The main differences between the two cards are that one had community consultations, while the other did not. The terms and conditions for the FOODCard are available in Yolngu Matha and English for example, while the BasicsCard is in English only.

The other key difference is that the ALPA one is voluntary and you can set for yourself how much money to quarantine, whereas the government one is compulsory, and quarantines 50%-80% of income. The FOODCard was rolled out in 2007, but by then the BasicsCard had taken over.

Neoliberal ideology

The government waited a month until it introduced its last measure, abolishing a program called Community Development Employment Projects (CDEP). The CDEP was one of the programs that was working, it allowed communities to pool all of their unemployment benefits together. This was then paid out as a direct wage for local jobs within the community, or within the CDEP organisations.

Participants were counted by the Australian Bureau of Statistics as employed, even though the funds originated from unemployment benefits. A form of self-government, and a good solution for unemployment that empowered many communities, especially remote ones.

Communities were also sent pamphlets from Centrelink, explaining that they now had to do something in return for their Centrelink money. The pamphlet also said that they had to call them with their contact details, or their payments might be stopped.  

Dr David Scrimgeour, told the Public Health Association of Australia conference in September, that year that:

‘Most of the recommendations … have been implemented by the Commonwealth Government in the NT under the guise of protecting children, despite the fact that the recommendations are not based on evidence, but on neo-liberal ideology.’

He also said that the think-tank, CIS, that published Helen Hughes’ book, received ‘significant support from large corporations, particularly mining companies, and has close links with the Government and the media, particularly the Murdoch-owned newspaper The Australian.’

Reports ignored or used as political tools

So what does income management look like in the NT, ten years after the Intervention? The authors of the Little Children are Sacred report have both said that the report’s recommendations were ignored and that it was used as a political tool to push for an Intervention. Wild said this year that:

“One of the threshold items of the report is that community consultation is needed to be able to best implement the report and that clearly didn’t happen.”

Since the Intervention, report after report gets written about socio-economic disadvantage, and the negative aspects felt by those on income management, only to be ignored. They all have a common theme, that there is no evidence of value behind income management programs, and that they didn’t change behaviours. Is it the government’s place to modify human behaviour with financial measures?  

There is one report though that has been listened to, it was commissioned by the Abbott government and reviewed by mining billionaire, Andrew Forrest. It was released in 2014: Creating Parity – the Forrest Review. Forrest and his Minderoo Foundation, want a new card called the “Healthy Welfare Card” to replace the BasicsCard. It would apply to all working age Australians, around 2.5 million Australians, if you exempt pensioners and veterans. This is consistent with Abbott’s view in his book Battlelines.   

Following the BasicsCard money

The BasicsCard started out as store card’s from merchants such as Coles and Woolworths; by direct deduction of funds set up by a merchant; or by Centrelink making a credit card or cheque payment. This was too cumbersome, so in 2008 the federal government started the process of procurement for an open tender of the card. Five tender applications were received and the winner was Indue Ltd.

Indue started out as Creditlink, it changed its name in 2006 a year after Larry Anthony, former Liberal National Party MP became chairman of its board. Anthony was the chairman of Indue until 2013, and he’s been the Federal President of the National Party since 2015. Indue’s win was publically announced in December 2009, the original contract was worth just over $11 million for three-years, it ballooned out to over $25 million.

I’ve gone through the tenders and contracts relating to the card, there are thirteen in total to date. Out of those, seven of the contracts are limited, so none of the finer details are available for the public.

Open Tender, Contract Total:      

$31,138,574.50 million

Limited Tender, Contract Total:   

$29,064,436.16 million 

Total: $60,203,010.66  

Cashless welfare card cost, blow-out

The ‘cashless welfare card’ trials were originally slated to cost taxpayers $18.9 million. 

According to the government tender, the original contract for Indue was worth $7,859,509 million, (media reports round it up to $8 million), it’s now at $13,035,581.16 million.

That’s just the Indue part, if we add the remaining $10.9 million for the other contracts involved in the income management program, we get a total of $23,935,581.16.

There’s 1,850 participants in the trial which began last year, so the cost of the card works out to be $12,938.15 per person.

Using the maximum Newstart allowance of a single person as an example, which is $535.60 per fortnight; they would receive $13,925.60 for the year. Add the Indue layer and the total is $26,863.75 per person.

A lot of money provided by taxpayers for behaviour change, and of course a nice profit for Indue, especially if it rolls out to millions of Australians. The millions of dollars flying about without any oversight, and the political connections are a grave cause for concern.

Income management rolls out nationally

In 2012, the Gillard government extended income management nationally, and for another ten-years. In the House of Representatives during the debate about the ‘Stronger Futures Legislation’, Senator Nigel Scullion, Country Liberal Party member, said this:

There is a fundamental thread through most of the feedback we get when we talk about consultation. When we get to most communities any observer would say that Aboriginal people more generally hate the intervention. They do not like it, it invades their rights and they feel discriminated against.”

He still voted with the Gillard government. NTER was renamed, Stronger Futures. He went on to become the leader of the Nationals in the Senate, and Minister for Indigenous Affairs in 2013, and he still holds these positions.  

Since the Intervention, the model has expanded from remote communities in the NT to the Kimberley region and Perth in WA; Cape York; all of the NT and selected areas of ‘disadvantage’. The areas that are deemed as disadvantaged are: Logan in QLD, Bankstown in New South Wales (NSW), Shepparton in Victoria and Playford in SA.

Six different income management measures:

  1. Participation/Parenting – NT only, when the government deems you ‘at risk’ if you’ve been on a welfare for a certain amount of time.
  2. Vulnerable welfare – When you’re referred to income management by a Centrelink social worker.
  3. Child protection income management – NT and some parts of WA, a child protection officer refers you to income management.
  4. Cape York measure – People there are put on income management, if they engage in    dysfunctional behaviour.
  5. Place based income management – For people living in five targeted communities that have been referred for income management.
  6. Supporting people at risk – People are referred for income management by certain state and territory agencies.

As of 25th March 2016, there were 26,508 on income management programs, 20,941 of those were indigenous.

Trial sites, and another report

The three-part Orima Report is being used by the government, to not only extend draconian, income management measures, but also to quantify its success. Social and political researcher, Eva Cox sums up the report perfectly in a Facebook post, on The Say No Seven page :   

“The whole data set of interviews, quantitative and qualitative, are very poorly designed and not likely to be valid data collection instruments. I’d fail any of my research students that produced such dubious instruments.”   

The reports includes a lot of spin, asks respondents for their ‘perceptions’ at times, and includes retrospective responses, for questionnaires. The Say No Seven page, has been following all three of the reports closely, they crunched the numbers at the start of this month, when the final Orima report was released. An example cam be found on page forty-six:

“At Wave 2, as was the case in Wave 1, around four-in-ten non-participants (on average across the two Trial sites) perceived that there had been a reduction in drinking in their community since the CDCT commenced.”

This approach means that the reader focuses on the minority of responses, rather than the majority of responses. Six-in-ten not perceiving any reduction in drinking around town. It reads a lot differently than the latter.

Other places rumoured to be put on the card trial are Hervey Bay and Bundaberg in QLD. One peaceful rally against the card in Hervey Bay involved armed police, with protest organiser Kathryn Wilkes saying:

“There were eight of us women aged between 40 and 60 … We were very peaceful.

“They’re afraid of a bunch of sick women on the (disability support pension).

“If you pushed me over I’d end up in hospital. Most of us couldn’t fight our way out of a paper bag.”

This heavy-handed approach is all too familiar…

Star chambers and regrets

Which leads me to the anonymous, paid community panels that determine whether those put on income management should be able to access more cash from their bank accounts. Meddling in communities like this isn’t new, it’s been happening in indigenous ones for years. Turning communities against one another is surely not the role of the government. It also allows them to neatly deflect any accountability for the program.  

The BasicsCard can also make life harder for those already living in poverty, in that you’re restricted from buying second-hand items with cash, or something cheap online. It also means that things like how you pay your electricity bills for example, is decided by Centrelink, so no more payment plans. That’s what income management is, it’s not about just being put on a card as such.       

Two trial sites were chosen to trial the BasicsCard card for one-year in 2016, one in Ceduna South Australia, and one in WA’s Kimberley region. The trials were extended indefinitely this year, before the trials had even finished, and before the final Orima report was released just this month.

One of four indigenous leaders from WA that originally supported the scheme has since withdrawn his support for the card. Lawford Benning, chair of the MG Corporation, says he feels “used” by the Human Services minister, Alan Tudge. He met regularly with Tudge ahead of the cards introduction over a year ago, and helped drum up support for it. He said that services that were promised in return were not provided until seven-months later, and that what was finally offered was no good.

“I’m not running away from the fact that I was supporting this. But now I’m disappointed and I owe it to my people to speak up,” Benning said. “Every person I’ve spoken with said they don’t want this thing here.”

When Benning heard that the card was going to be permanent and about the roll out of the card at other sites:

“I said hang on, it sounds like you’re trying to get a rubber stamp on something already under way, in an attempt to legitimise something the community doesn’t support.”

“I said to him ‘your minister isn’t showing respect to us’. Prior to introducing the card Tudge was flying here every second weekend to meet with us. As soon as we signed up, we’ve never seen him again.”

Take a drug-test or no welfare for new recipients                        

The latest legislation currently before the parliament, involves a two-year drug-testing trial for 5,000 people in Bankstown (NSW), Logan (QLD), and Mandurah (WA). If it passes, new recipients of the Newstart and Youth allowance have to agree to be tested, in order to receive their allowances. If they refuse a random drug-test, their payments will be cancelled. If they test positively they will be placed on the BasicsCard program, with 80% of their income support going onto the Indue card and 20% of their allowance paid into their usual bank account. Twenty-five days later they get tested again and if they test positively again, they will be referred to a privately contracted medical professional.     

There is no evidence that mandatory drug-testing will work on civilians despite what Social Services minister, Christian Porter says, this ABC fact-check puts that to rest.

‘Experts say that, rather than lots of evidence, there is no evidence, here or overseas, to show that mandatory testing will help unemployed drug addicts receive treatment and find jobs.’

The City of Mandurah has accused the Turnbull government of using dodgy data to justify being chosen for the drug-testing trial. City chief executive, Mark Newman wrote:

“One statistic used is that there has been an increase in people having temporary incapacity exemptions due to a drug dependency diagnosis rose by 300% from June 2015 to 2016.”

“The number of people concerned was a rise from 5 to 20 out of a total number of 4,199 people in Mandurah on either Newstart or Youth Allowance benefits as at March 2017.”

The standard that you walk past is the standard that you accept

To summarise, this is about neo-liberal paternalism, and human rights being exploited for financial gain, under the guise of philanthropy. The Intervention, and other recent punitive measures (including robo-debt) imposed on us, wouldn’t fly if we had a charter of human rights. We need one desperately. Indigenous Australians need treaty, the right to self-determine, and a voice in politics, similar to what New Zealand has. Because if we don’t fight for our human rights, we won’t recognise this country in a few years time.

Statistics wise, Indigenous incarceration is sky-high, Indigenous youth suicide rates have risen by 500% since 2007-2011.

All that these measures are creating is a subclass of stigmatised Australians. At a time when many countries are talking about universal-basic-income or UBI, we’re still caught up in “dole-bludger” discussions. The reality is there is less paid work out there, and that this trend will continue.

Punishing our most vulnerable and those looking for work as though they’re criminals, with drug-testing, just isn’t Australian. We don’t need to follow America with a welfare system that’s littered with “food stamp” programs, and other neo-liberal ideologies. I believe the abolished CDEP is also a model worth looking at again and not just for indigenous employment. Work-for-the-dole is just labour exploitation, and most of it is pointless when there aren’t any jobs to be found, in the first place.           

And on a final note, remember the fake youth worker? He’s still been around as a public servant, and even landed a cushy job with the Abbott government in 2014 as the country’s first ‘Threatened Species Commissioner’.

Many thanks to all of the sourced researchers, publications and artists involved in this article.

 

US polling firm connected with Cambridge Analytica, working in Australia

I was reading an article by The Guardian yesterday morning, about a company associated with American Republicans polling Australians, for their views about same-sex marriage. The Republican-linked element of the story piqued my interest, bear with me, I will come back to the polling. I looked up the name of the company, WPA Intelligence, there wasn’t much about them, until I happened across a Medium article titled ‘WPA Opinion Research Announces Name Change to WPA Intelligence.’ It was written in April this year by Chris Wilson, he was the director of research and analytics for the presidential campaign of Ted Cruz. He took leave from WPA Opinion Research for the role and worked closely with Cambridge Analytica (CA) throughout the campaign, he received more than US$1 million for his work during the campaign. He is well known as a Republican, political strategist and pollster, and regularly appears on Fox News.

Much has been learned about Donald Trump and Jared Kushner’s use of micro-targeting and data, but not so much about the inroads made during the Cruz campaign.

The Cruz campaign hired CA to assist it with data collection, it surveyed 150,000 households across America and scored them on five personality traits, known as OCEAN:

Openness (how open are you to new experiences)

Conscientiousness (how much of a perfectionist are you?)

Extroversion (how sociable are you?)

Agreeableness (how considerate and cooperative are you?)

Neuroticism (are you easily upset?)

The Cruz campaign amended the CA template by renaming some psychological categories, and adding subcategories to the list such as ‘stoic traditionalist’ and ‘true believer.’ It also did field surveys in key states to finesse their predictive model. The Cruz algorithm was then applied to an ‘enhanced voter file.’ These files can contain as many as 50,000 data points, collected from voting records, popular websites like Facebook, magazine subscriptions, car ownership and what food and clothing that voters like.  

Another tactic employed by the campaign was geo-fencing, this allows you to send targeted messages to a city block or a building. For example, the Republican Jewish Coalition was meeting at the Ventian Hotel in Las Vegas, so they sent out web-based ads that could only be seen from inside the hotel complex. The ads emphasised Cruz’s faithfulness to Israel. They also had a Cruz Crew mobile app for supporters to download, with points and prizes, once they handed over access to their contact lists.   

CA also made behavioural psychologists readily available for advice, as ads were being scripted and had their staff embedded in the Cruz headquarters. When Cruz dropped out and ceded to Trump, CA joined Trump’s campaign, with a data set they named ‘Alamo’. The campaign not only utilised all of the strategies above and invested millions of dollars into social media. Facebook, Google and YouTube representatives were sent to their headquarters, liaising with CA staff, they were given the VIP treatment and guided as to how to effectively use their platforms. One of the campaign’s digital leaders, Theresa Wong, believes that they couldn’t have won the election without Facebook.  Robert Mercer, who started out backing Cruz, also joined the campaign and was Trump’s biggest donor. He has a US$10 million stake in CA and provided the financial backing for Breitbart news. More details are in the first link at the end of this article.            

CA were in Australia in March this year, and they met with Liberal party officials for a dinner and attended an ADMA (Association for Data-driven Marketing and Advertising), data analytics conference.

“Senior Liberals will be talking to Mr Nix and the Cambridge Analytica team while they’re out here in Australia, and will be interested to talk with them about their capacities and what they’re offering people in the Australian political system,” said Tony Nutt, party’s federal director.  

The Liberal Party federal director, Tony Nutt resigned from his position in April this year, on the eve of a report that investigated last year’s dismal Liberal party election campaign.

Returning to the push-polling by WPA Intelligence, it asked seven questions. The first question is about whether you have a favourable or unfavourable view of Prime Minister, Malcolm Turnbull. The second one asks if you intend to vote in the postal survey and the third one asks whether you support or oppose, don’t plan on voting or are unsure about your vote. It then provides two statements:

“Denying some people the option to marry is discriminatory and creates a second class of citizens”; and

“Legalising same-sex marriage may lead to negative consequences such as radical gay sex education being taught in school, threats to freedom of speech and freedom of religion.”

After hearing these it asks again if you support or oppose same-sex marriage. The poll finishes with questions about your age and sex for verification purposes. It sounds as though the same-sex postal survey is being used as a message-testing tool, to help gather data about Australians. The data insights from the poll can then be used to better tailor messages to voters, in the future. Should a foreign country be meddling in the democracy of other countries? Is it not akin to Russian meddling in the American elections? And should CA or other foreign companies be profiting from elections in other countries?

How much was WPA Intelligence paid for this work and what is the overall strategy of the federal government, and their foreign partners? I hope that taxpayers aren’t paying to be manipulated by our own government. I’ll finish this with some insights about the recent Kenyan elections that CA and many other players were involved in.

President Uhuru Kenyatta, hired CA to help him win the Kenyan election, he won the election in a landslide, but Kenya’s Supreme Court has since nullified the results due to fraud. I’m not inferring that CA was behind this, they were paid US$6 million for their services, a small drop in the ocean compared with the US$1 billion spent overall on the election. It was the most expensive in Kenya’s history, and now it has to be held again. The court found problems with the transmission and the tallying of votes. Some paper votes weren’t recorded at all. Missing forms were submitted after the election, without watermarks or serial numbers, meaning that they were probably fake.  

GeoPoll found that ninety-percent of Kenyan’s also encountered false news reports on platforms such as Facebook, WhatsApp and Telegram. Facebook even had to take out a full page ad in a Kenyan newspaper offering tips to spot fake news. Nobody knows who was behind the fake news, but it’s thought to be a foreign company because it described a Raila Odinga presidency (the opposition leader), as apocalyptic in a sophisticated video ad. Again, I’m not inferring that CA was behind this either, but the modus operandi does sound familiar. The apocalyptic style of messaging is favoured by the likes of Steve Bannon, David Bossie, Robert Mercer and Citizens United. More detail can be found in number four of my series below.              

Below are links that provide much more detail about CA and things such as dark posts on Facebook. These are tailored, micro-targeted posts that only you can see, and much more. I will be coming back to this series, once I finish my piece about income management imposed on Australians.    

https://melmacpolitics.com/2017/03/31/cambridge-analytica-arrives-in-australia/

https://melmacpolitics.com/2017/04/28/series-what-is-propaganda-in-2017-and-how-did-we-get-here-1/

https://melmacpolitics.com/2017/04/30/jared-kushner-facebook-and-hacking-propaganda-in-2017-and-how-we-got-here-2/

https://melmacpolitics.com/2017/05/10/us-propaganda-100-years-ago-and-how-the-media-was-influenced-3/

https://melmacpolitics.com/2017/05/17/kochtopus-and-getting-to-know-some-more-players-4/

https://melmacpolitics.com/2017/06/13/how-history-communism-and-tax-exempt-foundations-have-led-us-here-5/

Many thanks to all of the sourced researchers, publications and artists involved in this article and in my series.