Surf Lifesaving: Lack of confidence in leaders

Graham Cullen. Photo / Mark McKeown

Surf Life Saving New Zealand, in the grip of its worst financial slump in modern history, is facing another upheaval after a vote of no confidence from northern clubs was passed against board chairman Graeme Cullen this week.

The vote, taken at a meeting on Thursday, was a consequence of SLSNZ's parlous financial position after a landmark restructuring (known as Project Groundswell) helped pitch the organisation into financial difficulties.

Groundswell was touted to save $1 million a year and to provide the structure into the next century - but planned staff cuts have turned into extended numbers; with many additions being at the "fat" end of the salary scale. Before Groundswell, there were 37 paid staff - supposed to reduce to 33 or fewer. There are now 45.

Herald on Sunday inquiries have revealed Groundswell was not the only pressure on SLSNZ coffers. The nationwide roadshow to celebrate the organisation's centenary this year cost $600,000 with little of the envisaged revenue to pay for it eventuating. There was also $80,000-$100,000 spent to relocate the national championships after the Christchurch earthquakes.

The extent of SLSNZ's loss is understood to be at least $1.2 million, severely depleting the organisation's reserves.

While investments coming due will give SLSNZ $800,000 to pay accounts, it is understood from lifesaving sources that the organisation still needs $500,000-$1 million to pay debts. Some sources believe the level of indebtedness is greater.

SLSNZ chairman Graeme Cullen, not present at the vote of no confidence, said the northern region made up only a quarter of SLSNZ's clubs and voting strength.

"However, it is clearly a significant matter and we are taking it seriously," he said.

There is no suggestion that key services, like lifeguards on beaches, are in danger from the financial shortfall because of the strong volunteer component in surf clubs which make up the SLSNZ.

The national body has appointed a new interim chief executive, Pat Waite, the former president of the New Zealand Institute of Chartered Accountants.

Two CEOs have left SLSNZ during Project Groundswell's implementation - first Geoff Barry in 2009 and then, in the last few weeks, former board member turned CEO, Grant Florence.

It's understood Barry was approached to be CEO again, even in an interim capacity, but turned it down because it was felt it would be a two to three year effort to get the organisation back on a satisfactory financial footing.

Cullen said: "The end of our financial year is not yet here but the loss could be $1.2 million. We are not insolvent. The appointment of the interim CEO is part of the process of confirming our financial position and then taking steps to close whatever gaps there are."

It is not yet known if a special annual general meeting will be held to address the vote of no confidence.