The Tribune

By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

SOCIAL Services Minister Melanie Griffin said yesterday that the government expects to implement the initial phase of its conditional cash transfer system – a prepaid debit card – by the end of November.

Although she could not give a specific timetable for the Christie administration’s social safety net reform, Mrs Griffin said the cash transfer programme would be in operation within several months.

The new debit card, officials told The Tribune, is designed to curb abuse of the food coupon system which is now in place to assist needy families.

“By the end of November,” Mrs Griffin said, “the use of a prepaid card instead of the food coupon (should be in use). Then as we move forward, we would be able to bring in place (the conditional cash transfer system) because we know that with Value Added Tax (coming on stream) and other concerns that people (have), that Social Services will be there and must be there to provide the social safety net for that.”

The Christie administration intends to implement VAT on January 1, 2015.

The Department of Social Services has a budget of $40m to spend on various social assistance programmes along with operational costs.

The conditional cash transfer system would make it mandatory for students whose parents have signed onto the programme to maintain a certain grade point average along with a near perfect attendance record. If the student is performing below average in core courses, a mandatory remedial class must be taken.

“We see where right away we are impacting directly the educational problems of the poor family. It tells us that we are on the right track,” Mrs Griffin said.

“Secondly, there is also a health condition that is a part of the programme and here again the lifestyle of the child. (The Ministry of) Health has identified that childhood obesity is a problem in our country and so we know that it leads, of course, to diabetes and other noncommunicable diseases.

“So we are able to address that by putting in place a healthy lifestyle programme where children must be guided by a health liaison officer. We are impacting and moving in the right direction with regard to that programme.”

In July, Mrs Griffin said the conditional cash transfer system was a proactive approach in the lead up to VAT implementation with a view to combating any possible negative implications on the poor. At that time she said the government intended to pilot the debit cards by the end of July or early August.

The minister has told reporters that VAT implementation would mostly affect the poor. In June, she suggested that the government might have to look at adjusting its proposed 7.5 per cent VAT rate to offset negative implications on the poor before VAT takes effect.