The West Australian Government has been accused of trying to bribe remote communities into signing up to a trial of the cashless welfare card.

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The WA communities of Kununurra, Wyndham and Ceduna in South Australia have agreed to a 12-month trial of the welfare card.

But the Shire of Halls Creek, almost 3,000 kilometres north of Perth, is refusing to participate.

It believes the card is discriminatory and there are better ways to curb alcohol, drugs and violence.

Shire chief executive Rodger Kerr-Newell met WA's Regional Development Minister Terry Redman last week.

"The issue that Minister Redman raised [with us] was that the behaviour of the shire in rejecting the card was linked to the state's ambitions to reform services in remote communities, and if we weren't part of one, we ran the danger of not being part of the other," Mr Kerr-Newell said.

"[My] understanding was if we were not part of a wider federal package it would have negative financial impact on the shire."

The State Government is conducting a major review of the way it spends money on services and infrastructure in remote communities.

Mr Kerr-Newell said the prospect that Halls Creek could miss out on state funding if it rejected the federal card was not raised in any discussions.

He said councillors debated the issue again yesterday before voting unanimously to uphold its stance.

"We all want to fix the issues in Halls Creek, but no-one can see how the debit card was going to make any difference," he said.

"We are arguably one of the most financially disadvantaged shires in the country and we have an appalling track record of deprivation here.

"For six councillors to stand up and say 'we'll take the risk of no extra money' is like the mice standing up to the lion."

Mr Redman stood by his comments, saying it made sense that communities who embraced reforms like the welfare card would be given priority for new programs and funding down the track.

"I've put $150 million on the table to say we're prepared to invest in change," Mr Redman said.

"I think it's fair to say if you're bringing new money to the table, we get the right to work out how it gets spent.

"This isn't putting a gun to anyone's head.

"Wherever we go and all the people we talk to, they say the status quo is unacceptable.

"We're saying we're prepared to invest in that change in communities that want to be a part of it.

"The point I made to the council is if you don't want to be a part of change and a part of reform, then we'll look for communities that do.

"It's not that we're taking money away from Halls Creek or any other community, but we will be supporting investment into communities that are supportive of the reform process."

'We're getting blackmailed here'

Long time Halls Creek resident Millie Hills said the community was open to reform, but it had to be on the community's terms.

"They're bribing the mob in Kununurra and we're getting blackmailed here," she said.

"We're angry that we're having to miss out on funding when we are as a community trying to do stuff to rectify the problem.

"We are ready for a change for the better, but we don't want to go backwards before we go forwards.

"We haven't even got a dry-out centre here, people have got to be sent to Broome, Kununurra or Wyndham.

"When you're pregnant you have to go away to have a baby.

Long time Halls Creek resident Millie Hills is furious at the WA Government. ( ABC Rural: Tom Edwards )

"It's so not fair — put some services into these towns so we can keep families together."

The Greens' spokeswoman for Indigenous issues, senator Rachel Siewert, labelled the Government's actions as "totally inappropriate".

"I think the Government is trying to bribe communities for better services by saying take the welfare card, have your income quarantined, and communities are saying we don't want to be treated like that," she said.

"For the Government to link [funding] to the welfare card — which is punitive — is totally inappropriate.

"It's not what they do in other communities so why would they be doing it in Aboriginal communities?"

The shire has accepted an offer from Federal Liberal MP Melissa Parke to convene a roundtable discussion with state and federal representatives.

Mr Kerr-Newell said the shire still wanted to work with government.

"You never stop talking or the problem gets worse," he said.

"The councillors want to leave the door open — we all need to find a solution here."