27 May 2009 Media Statement

Bennett won’t guarantee funding for over 800 groups

Paula Bennett is refusing to guarantee funding for over 800 community and voluntary sector groups who expected automatic increases in tomorrow’s Budget, says Labour’s Social Development spokesperson Annette King.

“Under the Pathway to Partnership programme NGOs providing vital social services in a contractual arrangement with the previous Labour Government were to receive up to 20 per cent increases in baseline funding tomorrow.

“This was part of a four year pathway to fully-fund the sector by 2011/12.

“Paula Bennett has made it clear she doesn’t believe in fully-funding these NGOs, claiming if it is possible to get them to do the job with less, then that’s what the Government will do,” says Annette King.

“The $40 million crisis fund she has set up is for one-off purposes only, if organisations can convince yet-to-be-established regional committees that they are in dire straits.

“Many organisations planned on the continued funding and have taken on extra staff in expectation that Paula Bennett would honour that promise to provide them with the Pathway to Partnership funding.

“She is not doing that – it’s a con and NGOs will soon see just how big the con is. Paula Bennett is reviewing Pathway to Partnership and has thrown the sector into uncertainty with no ability to plan ahead.

“This is the last thing groups which are struggling to cope with increased demands on their services and reduced funding from private donors need at this time,” says Annette King.

ENDS

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