Centres for vulnerable children facing axe
Charity Stand, which has used up reserves, cites fiscal hardship
Tsocial issues he proposed closure of two villages used to help heal traumatised children comes after the organisation gave staff pay rises last year.
Children’s charity Stand is proposing to close two of its villages in Otaki and Roxburgh in June. These provide a residential trauma-focused treatment programme for children aged 5 to 12 who need support to recover from trauma.
If the proposal to close proceeds, 63 jobs will be lost across both regions and 380 children a year will miss out on the programme.
The organisation would continue to operate its Intensive Family Wraparound Services in the central and southern regions as well as five other villages around the country.
The charity assists about 3500 children a year who are referred to them.
Stand chief executive Dr Fiona Inkpen said financial pressure had mounted as they had not had a funding increase since 2009. They had been meeting shortfalls with their own reserves.
Then last year pressures increased as 450 staff were given a pay rise. The largest pay rise went to social workers to stop the outflow of experienced people.
“Pay rises were a priority for us to retain our specialist staff who support some of the country’s most vulnerable children and families, but who’ve been among the lowest paid in the sector,” said Inkpen.
“Stand has been able to topup Government funding for many years with prudent financial management and the sale of unused land.
“Unfortunately our reserves are now used up and we have made the difficult decision to consult with staff and the PSA about closing two of our villages.”
Inkpen said they would be working with Oranga Tamariki and the Ministry of Education to rebuild services.
Stand gets $14.4 million from Oranga Tamariki for their social services and $2.1m from the Ministry of Education for their education services. They have a $3m shortfall with $1m coming from operating costs and the other $2m being attributed to the pay rises.
Minister for Children Tracey Martin told Stand the funding required could not be secured at this time because of restrictions on the Government budget and that the responsibility for purchasing services from providers sat with Oranga Tamariki.
“Stand has been an iconic service and I was disappointed to learn of this situation when I became minister.
“I am working with Oranga