Govt to give $40m in Budget to social services

The upcoming budget will include up to $40 million next year to assist social service agencies during the economic downturn, but the Government will "reshape" plans to fully fund the agencies, Social Development Minister Paula Bennett said today.

The Government would establish the Community Response Fund to support community and voluntary sector organisations, she said in notes for a speech at the fund's launch in Auckland today.

Social service agencies were having more pressure placed on them due to the recession with more demand for services and shrinking sources of funding.

The fund would exist for two years to assist non-government agencies.

"This is short-term crisis funding. It's not a permanent top-up," Ms Bennett said.

"This fund will be targeted at those groups facing increased demand for services, or severe financial difficulty due to the recession,"

"Applicants to the fund will have to provide critical services to families, children, young and older people and meet a range of criteria."

Regional panels with community representation would approve applications.

"Different communities will have different needs and we want to support them through these tough times," Ms Bennett said.

The last government promised a "Pathway to Partnership (P2P)" programme to fully fund essential social services by 2011 at an eventual cost of $193 million a year, but the incoming government is rethinking this.

The new fund will use money from the P2P fund and an additional $20 million to give the Government and the sector time to sort out long term funding issues.

"I want to confirm that the Government will be maintaining the P2P funding for community and voluntary sector organisations, but we will be reshaping the mode."

Maintaining funding for the sector when other areas of government spending were being "severely curtailed" was a major win, she said.

"There has also been much debate about the 100 per cent funding model. Whilst some NGOs have been grateful to receive extra funding so have not questioned the funding model, the truth is that P2P does not fund innovation, and it raises questions about what 100 per cent funding means, 100 per cent of what exactly?"

The programme was being "reshaped" so it could get agencies through the recession and there was no guarantee the additional money would give the best value for money.

"However, we will not be charging off making changes unilaterally - let me assure you that we will work alongside the sector over the next 18 months or so to reshape the model".

- NZPA