Schey initially served as one of four Free Trade members for the Electoral district of Redfern in the New South Wales Legislative Assembly.

[2] He was not a strong supporter of free trade and had disagreements with the leader Sir Henry Parkes.

[2] He was returned to the Legislative Assembly 5 months later, narrowly winning the Redfern by election in July.

Schey was an engine behind the 1896 creation of a Government funded co-operative farm, established to assist men and their families who were victims of sickness and unemployment.

Schey took so much interest in the co-operative training farm that the area became favourably known as Scheyville from 1907 onwards.