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Rotorua's Jackie Evans is "devastated" a programme that helped a family member with mental illness to succeed is being forced to close.
Te Whare Hauora o Ngongotaha's mental health service will close on June 30 after the Lakes District Health Board decided not to renew its contract.
Other contracts that won't be up for renewal include the peer support services offered by Mana Mental Health and community support services to mental health clients from Te Runanga o Ngati Pikiao Health Service.
Mrs Evans said her relative was more confident and better able to relate to others as a result of the day programme offered in Ngongotaha.
"She had been attending for three years and one of the benefits was that tangatawhaiora [people seeking wellness] are able to do NCEA certified courses which has led to paid employment for her.
"I am truly dismayed to hear that they are closing after it has been so successful for so many students," Mrs Evans said.
Te Whare Hauora o Ngongotaha mental health service general manager Rob Beckett was concerned for the future of the service's 15 clients.
"The [clients] were in shock when we told them the news ... We've had advocacy agents come in and explain to them what their rights are and how they can express what they are feeling."
The board issued a statement saying it had been in discussion with Te Whare Hauora o Ngongotaha for some time regarding delivery of services to meet the board's expectations and strategic direction.
"If they want to see how our programme is working, they need to come out and see it in action, which they've never done," Mr Beckett said.
The health board said there was a plan in place for those attending the day programme in Ngongotaha.
"The needs of the 15 existing clients are paramount. They will be assessed by Lakes Mental Health Needs Assessment Service Co-ordination (NASC) staff who will co-ordinate access to alternative or substitute programmes."
Board planning and funding general manager Mary Smith said priority of resources was an ongoing necessity.
"Mental health funding is ring-fenced so funding will remain within the mental health sector. While these were difficult decisions to make, they were necessary to provide adequate service coverage across the age range. Lakes DHB is confident other mental health services in the district will provide appropriate alternative support for affected clients."