Media Release
For immediate release
20 May 2009

Government’s support package welcomed by social services sector

A $40 million fund to support critical social services for New Zealanders during the economic downturn will help struggling families and communities get the support they need during the economic downturn.

The Government announced today that it was setting up a $40 million Community Response Fund to support community social service organisations.

In her announcement, the Minister for Social Development Paula Bennett outlined that the Community Response Fund, which would be available from 1 July 2009, would consolidate unallocated funding from the Pathways to Partnership programme with an additional $20 million.

Ros Rice, Executive Officer of the New Zealand Council of Social Services (NZCOSS), said the announcement was heartening at a time when social services were facing increased demand and reduced funding, due to the pressures being faced by the philanthropic sector and sponsorship sources.

“Any financial support that helps sustain Sector organisations will be welcomed. There has been very little expectation that any additional money would be available to the Sector in the interim so today’s announcement is meaningful.

“It is also pleasing that the Minister has today confirmed the money allocated to the Pathways to Partnership initiative last year, will be staying in the Sector,” Ros said.

Ric Odom, Chief Executive of YMCA said sector organisations were absolutely aware that the country is in an unprecedented economic situation.

“Sector organisations are not only coping with increased demand for services, many are also facing the impact of reduced funding from philanthropy and business.

“Government funding is just one part of the financial picture for most Sector organisations, so when the business and philanthropic sectors are facing financial pressure, our organisations also feel the pain with reduced funding,” Ric said.

Tim Burns, Executive Director of Volunteering New Zealand said the Community Response Fund recognised the importance and value of the Sector in delivering social outcomes in a recession.

“Economic outcomes are important for New Zealand’s future but they will be meaningless without functioning individuals, families and communities.

“New Zealanders must be in a strong position to take advantage of the opportunities that occur in an economic upswing. That will only happen with effective community-based support.

“If we don’t address social equality and social development issues now when our social fabric is being stretched to the maximum we will be paying for it for generations to come,” Tim said.

Tina Reid, Executive Director of the New Zealand Federation of Voluntary Welfare Organisations said the Sector, particularly those working in social services, is looking forward to getting more detail on how the Fund would actually operate.

“Umbrella organisations, like ComVoices, are looking forward to ongoing engagement with the Government around the Fund’s details and future engagement with the Sector.

“There are still significant ongoing issues about the levels of funding and support for Sector organisations, and the fragmented nature of Government contracting that still need to be addressed in the longer term,” Tina said.

Robyn Scott, Executive Director of Philanthropy New Zealand said the Government had engaged with umbrella Sector organisations in the lead up to the 2009 Budget, the first time the Sector had been brought in at the front end of the process.

“It is a pleasing development that Government is beginning to engage with the Sector and recognise the added value that organisations can provide in the policy decision-making process.

“Although the Community and Voluntary Sector in New Zealand is huge ¬– the same size as the construction industry – our networks are strong and we have long established models of working together to deliver successful, value-based results.

“We will be looking for this level of engagement to be maintained and formalised for the future,” Robyn said.

ENDS

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