Late grant keeps health camps open

The Princess of Wales camp at Rotorua will be redeveloped. Photo / Rotorua Daily Post

Children's health camps have been thrown a $1.5 million lifeline that will keep all camps open - but at the cost of dipping into their reserves for another $3.5 million.

Social Development Minister Paula Bennett raised her ministry's grant to the camps yesterday from $12.6 million to $14.1 million for the financial year starting this month.

Health camps chief executive Fiona Inkpen said all seven camps would now stay open and a $2 million redevelopment of the Princess of Wales camp at Rotorua would start in September.

The organisation said last October that it would have to close its camp at Roxburgh in Otago, and camps at either Rotorua or Otaki, unless its grant was raised by $5 million.

Dr Inkpen said the $1.5 million was "a good step in the right direction" and gave the organisation confidence to draw on its reserves to cover the rest of the deficit.

"Most importantly, the process has built close working relationships with the minister. She has personally taken a real interest and made a commitment to ensuring that we are sustainable in the future," Dr Inkpen said.

"We are drawing down reserves. The minister has given the board enough confidence that they can do developments needed. The board will spend $3.5 million this year."

The health camps are among New Zealand's oldest social services, dating back to 1919. They were originally funded by health stamps, but funding from the stamps dwindled from $158,000 in 1996 to $35,000 in 2007, rising only slightly to $48,000 last year.

They are now almost totally funded by the Social Development Ministry to provide an integrated programme of five weeks in camp, followed by community mentoring, for about 2700 vulnerable children and their families.

But the trust which now runs the organisation, Te Puna Whaiora, says its ministry grant has fallen well behind what it needs to maintain and redevelop the camps.

It has supplemented the grant with reserves built up by the sale of part of its Pakuranga site in Auckland for a net $13 million profit five years ago. But last year it refused to run down remaining reserves of $7 million because it meant losing about $1.5 million through a drop in share values.

"We may well make a loss, but the board is committed to keeping the camps open, as is the Government, so I guess both sides have had to take some losses," Dr Inkpen said.

FOR THE CHILDREN
* Health camps started in 1919 to aid malnourished children.
* First permanent camp established at Otaki in 1932.
* Now seven camps at Whangarei, Pakuranga, Rotorua, Gisborne, Otaki, Christchurch and Roxburgh.
* Children and their families spend five weeks in camp and follow up with mentors in their home areas.