Carmel Sepuloni
Social Development Spokesperson

16 September 2015

Nats flaky funding putting NGOs at risk

National’s short term funding of NGOs has been rightfully slammed by the Productivity Commission, says Social Development spokesperson Carmel Sepuloni.

“National’s community investment strategy has seen NGOs struggling with significant financial uncertainty, putting them on annual funding reviews instead of longer term contracts.

“Even the Productivity Commission report argues that short term contracts ‘increase costs and reduce service integration, innovation, investment, and the ability of providers to retain staff and premises.’

“This year we’ve already seen the collapse of major organisations like Relationships Aotearoa and South Canterbury Violence Intervention Project. It’s clear the sector needs better support from the Ministry.

“Our NGOs do vital work in our communities. We need to be giving them the security they need to focus on their job, not spend all their time worrying how to stay afloat and pay their staff.

“The Government needs to reform the way it handles these contracts to give our social service providers the security to do the work that is needed for the people who rely on them,” says Carmel Sepuloni.

ENDS

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