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Working the System
31 March 2005

Australia — ROBERT Farley's life is full of planned sacrifices, or life shortages as he likes to call them. His $127.59 electricity bill is due so new pots for his overgrown plants will have to wait. A ticket to a play means no new clothes. And the $100 needed to fix the broken clothes dryer in his Department of Housing home has been put off until winter.

Farley, confined to a wheelchair after contracting polio when he was 16, says anyone who thinks life is easy on a disability pension is kidding themselves.

"The idea of someone bludging on the pension is crazy, we are not hoarding away money so we can do wonderful things in the future," says Farley, 59. "We would rather be working because the reasons for working [such as self-esteem, fulfilment and development] are the reasons for living."

Farley is an anomaly among the growing army of people signing up for the disability support pension. This articulate man with an associate diploma in human resource management and a passion for the theatre has survived almost all his adult life on the pension.

But most of those now applying for this pension are middle-aged single men and women who have held down jobs in the past. With few skills, they find themselves squeezed out of an increasingly competitive and modern workplace and on to welfare. Official figures reveal most will remain there - abandoned by workplaces and families who have traditionally cared for them.

It's a growing and increasingly expensive problem, costing taxpayers $8 billion annually. The number of disabled pensioners is ballooning towards 750,000, hiding Australia's true unemployment rate. With more than 74,000 joining the ranks each year, the federal Government wants to stem the tide, limit the pension to the genuinely disabled and get people with suspected bad backs and muscle injuries back to work.

The attraction of the DSP over the dole is obvious - it pays more and the benefits are better. Disabled pensioners get about $40 a week more than those on the dole. There is no obligation for pensioners to find a job and they don't suffer financial penalties if theydon't. And they receive the valuable Pensioner Concession Card. All up, it creates an incentive to seek the pension rather than the dole.

Cabinet yesterday considered a submission from a special interdepartmental committee to overhaul the DSP -- including forcing pensioners to face a panel of experts to assess whether they still deserve the payment or should be looking for work. And tougher changes are looming once the Government gains control of the Senate in July. At present applicants must prove to doctors their medical condition precludes them from working 30 hours a week for two years to qualify for the DSP. Under proposed changes, this could be cut to 15 hours.

"We have 300 people a day going on to the DSP and we need to make sure the disability support pension is preserved for those who most deserve it, and not for people who are going to try and park themselves on to it until they are 65 and [can] claim the age pension," Workforce Participation Minister Peter Dutton says.

Australian National University Professor of Economics Bob Gregory says the changes proposed so far are just "nibbling at the edges". Gregory, who has studied the official figures, explains 74,000 people are pouring on to the DSP every year but only 48,000 are leaving. Half of those shift to the old age pension and another quarter die, leaving about one quarter who leave after finding work, improving their financial situation, or for other reasons.

"So we are talking about a group of people who are very solidly dependent on welfare; in fact, one of the main reasons for leaving is death," Gregory says. "If we are going to make big inroads into solving this problem, we have to do something very dramatic or else all we're going to do is move them on to unemployment benefits or the streets."

That's a scary scenario for disability groups, who instead are trying to convince the Government that a big injection of funds is needed to retrain disabled people -- many of whom have long-term and special needs -- and provide them with extensive support services to find and keep jobs.

"Visually impaired people need special computer software, deaf people need other things, and people in wheelchairs need special transport and workplaces with ramps," says Heidi Forrest, president of People With Disabilities Australia. Many disabled people "want to contribute to the economy, want to pay taxes", she says. "But it's about reforming the system so people with disabilities have opportunities."

A recent government pilot project with 671 pensioners who signed up with the privatised Job Network has been hailed as a success. Half of them found jobs or education after nine months. But whether that can be expanded to help hundreds of thousands is unclear.

Figures show about 40 per cent of disabled pensioners have musculo-skeletal problems. Another 25 per cent have psychological and psychiatric conditions. These figures fuel speculation that some recipients are simply unskilled jobless with bad backs or depression. Another 7per cent have cancers and 8 per cent of men and 4 per cent of women have heart problems. Less than 1 per cent have a disability they were born with.

"It's really a very interesting problem," Gregory says. "Thirty years ago there were lots of jobs out there and people with cancer, heart disease and psychological problems could get a job and cope. There were two reasons for this. You had a lot of unskilled factory jobs and, secondly, we looked after people in the workplace, people with disabilities were given a job and then looked after by their workmates.

"The effect of economic reform has been to essentially clean all of these people out. So we have moved a lot of our welfare out of the workplaces and on to the state because the Government has created an environment where workplaces have to be competitive."

The situation is unjust, says Peter Saunders, director of social research at the Centre for Independent Studies. Long-term unemployed people struggle on the dole while others in similar situations are getting a better deal on the DSP, he says. And it's unfair for pensioners with severe disabilities who may now have to continually prove their need is genuine.

"It's completely unfair and I don't understand why disability groups are not more supportive of reforms because it would mean more money could be poured into helping those legitimately there," Saunders says.

Farley was employed for five years -- a time he describes as "lovely". Working up to 15 hours a week, he earned between $250 and $375 checking standards of group homes and hostels for the NSW Ombudsman. "It was lovely. It was great [for my] self-esteem, you felt as though you played a successful role," he says, adding that he had to leave because of health problems associated with being confined to a wheelchair.

"Basically wear and tear on the body from sitting down for 40 years does that to you," he says. He is unsure whether other bosses would be as flexible and understanding as the Ombudsman's office, which gave him a taxi allowance to travel around to the centres.

"That was a pretty unique situation."

After paying the rent, Farley is left with$360 a fortnight, which doesn't leave much for luxuries. He says disabled people would rather be working but believes the Government must remove financial barriers and provide support services.

Just turning up to an office each day would be expensive, he says. He lives in Raymond Terrace, a small town outside Newcastle in NSW where buses with wheelchair access are rare and taxis are the only reliable option. Even with a $66 fortnightly government transport allowance, the number of trips he can afford is limited.

"If someone rang up and asked me over for a cup of coffee, I would have to work out how many taxi rides I could afford that fortnight and how many bills were coming in."

Leaving Newcastle would mean finding another specially modified home and a new support network.

Also Raymond Terrace locals consider his volunteer work valuable. He has written and performed in a play about how personality is more important than disability, volunteers at the Community Care Centre, and runs theatre and writing workshops. "I come pretty cheap, I work for the cost of transport, morning tea and some finger buns."

He remains cautiously optimistic about what the Government's proposed changes might mean for him. "I think life's OK, withstanding major depression," he says with a laugh.

Source The Australian, 31 March 2005 - Trudy Harris
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