THE cashless welfare card championed by mining billionaire Andrew “Twiggy” Forrest” has done nothing to reduce methamphetamine use and instead backfired by leading to a crime surge, prostitution and rorting, WA’s leading Aboriginal health group warns.

Aboriginal Health Council of WA chairwoman Michelle Nelson-Cox said no drop in meth use had been seen in the East Kimberley, one of two sites in Australia where the Turnbull Government has been trialling the initiative for the past year. She also said the card was still being used as a currency for drugs.

“What we have seen since that policy was implemented in that particular region is an increase around elder abuse and trade-off with other alternatives — for example, taxi drivers are trading the cards for cash exchange,” Ms Nelson-Cox told a Federal inquiry into the meth epidemic.

“We have also seen a rapid increase in crime and prostitution.”

In March, the Federal Government hailed the trial in the East Kimberley and Ceduna in South Australia a “success”. In this month’s Budget, funding to expand the trial was announced, with the card to be rolled out in two more locations.

Play Video But there are fears it could drive them to crime. But there are fears it could drive them to crime.

Kalgoorlie has been touted as a possible new trial site.

Ms Nelson-Cox claimed the review of the trial was a “sterile consultation with a minority” with the views of card recipients and those at the grassroots who opposed the scheme not canvassed.

“The cry for help shouldn’t be going back to the old native welfare days ... (the Government’s) not adequately investing in effective programs, resources or facilities. If they have a drug issue they should be able to go into rehab in their local region,” she told The Sunday Times.

Ms Nelson-Cox also did not believe the cashless card was making any significant change to the extent of alcohol abuse in the East Kimberley.

Play Video According to figures from the ATO people living in the 6210 postcode received more than $15million in welfare payments in the 2014-2015 financial year. According to figures from the ATO people living in the 6210 postcode received more than $15million in welfare payments in the 2014-2015 financial year.

A spokeswoman for Mr Forrest’s Minderoo Foundation said the independent review had established a clear “proof of concept”.

“The aim of more responsible delivery of welfare is to help our most vulnerable citizens and using parliamentary privilege to trumpet unsubstantiated anecdotes and ignore independent evaluation does nothing to help people,” she said.

Human Services Minister Alan Tudge said the trial evaluation was “immensely positive”, with a quarter of surveyed participants reporting they were binge drinking and using illicit drugs less.

“The card is not a panacea for all community problems, but the evaluation indicates that it is helping reduce alcohol and drug consumption and gambling ... AHCWA are quick to criticise, but offer no solution to the crisis engulfing these places,” he said.