The Mayor of Alice Springs is warning of the consequences of scrapping the cashless welfare card.

The card prevented up to 80 per cent of welfare money from being used on alcohol and gambling.

Alice Springs Mayor Matt Paterson told Ben Fordham the decision is a political one.

“This is not going to put Alice Springs in a good position.

“It’s chaos at the moment. Public drunkenness and domestic violence is rising.

“Removing the cashless debit card will make it increase again. We’re all very worried about it at the moment.

“This generation of kids are going to be put behind the eight ball because they’re going to be living in even worse conditions than what they’re faced with now.”

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Image: Getty