The commencement of a ‘modest’ drug testing trial for 5,000 new welfare recipients, whereby Newstart and Youth Allowance recipients who test positive to drugs will be placed on the Cashless Debit Card for their welfare payments, be subjected to further tests and possibly referral for treatment, is a recipe for increased marginalisation and presents a real risk of further unintended and negative consequences.
Charles Henderson, Acting EO of Harm Reduction Victoria states, “People who are unemployed and may have used drugs or battle co-morbid mental health and drug dependency conditions will experience barriers and limited options. This will do little to support job placement, but it will increase misery, marginalisation and disconnect people further.”
The most significant published criticism has been an article by Colin Mangham, the director of research for the Drug Prevention Network of Canada, in the online-only Journal of Global Drug Policy and Practice (JGDPP), which is said to be "posing as open-access, peer-reviewed scientific journal"    In the article Mangham claims that "the published evaluations and especially reports in the popular media overstate findings, downplay or ignore negative findings, report meaningless findings and overall, give an impression the facility is successful, when in fact the research clearly shows a lack of program impact and success."  He also claimed that interviews with area treatment centres revealed no referrals from Insite, and that police presence was deliberately bolstered in the area.  Based on this article, Tony Clement told an August 2007 meeting of the Canadian Medical Association that his belief that Insite should close had been reaffirmed. Clement stated that "there has been more research done, and some of it has been questioning of the research that has already taken place and questioning of the methodology of those associated with Insite."  The Journal of Global Drug Policy and Practice that Clement was referring to is run by the Drug Free America Foundation , and received much of its initial funding in a $ million grant from a . Department of Justice agency now under investigation for corruption.