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CFA/CYPFA merger costs face blowout: Labour

Labour
2000 web siteThe merger of CYPFA and the Community Funding Agency, already slated to cost $2.3 million, could blow out by up to another $4 million on management salaries alone, according to documents obtained by Labour social welfare spokesperson Steve Maharey.

The papers represent blueprint and consultation documents as well as submissions from staff relating to the merger of CYPFA and the CFA, due to take place at the end of the year.

Staff at both organisations have raised serious concerns about the nature of the latest restructuring, Mr Maharey said today.

"Staff are rightly worried that that none of the changes proposed will result in more people being employed on the frontline, or more time for staff for to be able to carry out their core job of looking after at risk children and their families.

"Instead the documents indicate staff will be forced to spend more time behind their desks trying to deal with the bureaucratic demands of a more centralised organisation.

"Staff are critical of more large salaries to managers that will soak up as much as $2 million in the Auckland area and another $2 million for managers in other parts of the country. They are very critical of money going into managers travelling all around the country and they are critical of having to spend less time with families and more time entering information into an unwieldy computer system.

"Staff are also critical of the fact that $5 million was held over from last year's budget despite the organisation being under enormous pressure to deliver a better quality service to the public.

"There is concern also that key activities such as payroll and accounts will be moved from the regions to Wellington. There is no reason for doing this and it will create problems in areas were job losses have already been damaging to the community.

"This is alarming information to be revealed.

"It is the fourth restructuring in seven years for this organisation when it is clear that none of the meddling is going to lead to better results.

"A question has to be asked as to why the Government is doing this? If it isn't going to improve service on the frontline we once again have a government throwing money away on restructuring for restructuring's sake," Mr Maharey said.

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