The human services minister, Alan Tudge, has rejected claims that the automated debt recovery system is creating a “climate of fear” among welfare recipients.

Tudge said critics of the scheme, including Australia’s peak community sector body, the Australian Council of Social Service, had a “philosophical objection” to making sure welfare recipients comply with their obligations.

“These statements are being made by people like the unions and [Acoss] who, frankly, have a philosophical objection to doing widespread compliance checks,” Tudge told ABC radio.

“We think this is a critical part of our overall system to ensure that there is integrity in welfare payments.”

A Senate inquiry into the “robo-debt” scheme heard on Wednesday that the system was not only lumping vulnerable Australians with inaccurate debts, but was also undermining confidence in public administration and scaring individuals away from the social security system.

That evidence was given by Acoss and the ACT council of social service.

Acoss has repeatedly agreed that those who have been overpaid by Centrelink should pay the money back, but that the debt recovery process must be fair and humane.

The Senate inquiry again heard that the automated system had sent 6,600 initial letters to wrong or old addresses, an error that would have seen debts raised against individuals without giving them the chance to respond.

That flaw was partly caused by Centrelink’s reliance on its own, often outdated records to find people’s addresses, even where they hadn’t claimed welfare for years.

Tudge acknowledged the error, but said it had since been fixed by refinements to the system. Those refinements include using registered mail and cross-checking addresses with the electoral roll.

“I’ve admitted to that and we’ve fixed that system. And that was because people hadn’t updated their address on the Centrelink files,” Tudge said.

“We’re now sending the letters by registered mail, so we’re assured that the person has picked up that letter. But the essential methodology ... is the same.”



Tudge said much of the criticism of the system was based on misinformation. He said two-thirds of the cases discussed in the media involved individuals who still ended up owing money to Centrelink.

He said one-third of the cases had nothing to do with the automated system, which began in July.

Meanwhile, Centrelink staff have pledged to strike after protracted pay negotiations again broke down. The community and public sector union said Centrelink, Medicare, and Child Support workers would begin rolling strikes from 17 March.

The union warned “significant further action” could be expected in coming months if the department of human services did not move “towards a fair and reasonable settlement”.

The department has seen 4,776 full-time jobs lost since 2010-11. The union says poor policy decisions and funding cuts have seen the department descend into dysfunction.

It flagged industrial action last month, but the department took it to the Fair Work Commission, arguing the strikes were unlawful because they were linked to the controversy over the automated debt-recovery system, not enterprise bargaining.

Both sides promised to hold further talks, but the union says they have since broken down. The union says its core demands are still not being met.

“What’s being pushed by DHS bosses still strips away essential rights and conditions, particularly the family-friendly rights that allow a mum to balance her work with caring for her family,” national secretary, Nadine Flood, said.



“There are 34,000 hardworking Medicare, Centrelink and Child Support staff who’ve gone well over three years without a pay rise as they’ve fought for a new enterprise agreement,” she said.

But the department said the strikes would not change its position.

One of its general managers, Hank Jongen, said the department’s most recent offer had been strong.

“In its most recent offer, the department commits to maintaining virtually all existing staff entitlements, including all its family friendly entitlements, and giving its staff a pay rise that is both affordable and in line with community standards,” Jongen said.

“The department is disappointed that the CPSU has initiated industrial action while we continue to bargain before the Fair Work Commission,” he said. “Industrial action will not change the department’s position.”