Covid wage repayments sought from Rugby Southland

Rugby Southland is among other provincial unions in New Zealand being asked to return their Covid wage subsidies to the Ministry of Social Development.

The ministry is not seeking the $266,958 Rugby Southland received under the subsidy, but a part of the $583,206 that was paid to Stags Promotions Ltd, a company wholly owned by the regional union and under which rugby players fall.

MSD group general manager for client service support George Van Ooyen said the ministry had asked for repayment because it did “not consider the provincial unions were eligible for some of the wage subsidy payments they received” in July 2023.

“We are seeking partial repayment on that basis.”

This week, a New Zealand Rugby spokesperson said it was aware that MSD had made a formal request of provincial unions for repayment relating to certain player wages.

Rugby Southland chief executive Steve Mitchell said the matter was still under contention and discussion with NZ Rugby (NZR) and the ministry.

“The findings are yet to be determined.” Mitchell said the provincial union had been given advice from MSD and NZR “that we were eligible to apply”. “I don’t want to make any further comments until the time it is settled. It’s out of individual hands, it’s a collective thing between all provincial unions and NZR”, he said.

NZ Rugby itself had received a total of $7.8 million in Covid wage payments from the ministry in four tranches.

An NZ Rugby spokesperson said “NZR is supporting our provincial unions as they consider their options.

“We will not make any further comment at this stage, other than to note there is no suggestion that these wage subsidy payments were obtained fraudulently.”

When asked about what advise Rugby Southland was given and by when it was expected to return the wages, Van Ooyen said the ministry was unable to answer specific questions during the process of engaging with NZ Rugby and the provincial unions, including Southland, “as part of its normal recovery process”.

“Our decision to seek partial repayment of some of the wage subsidy payments has been through MSD’s review process, at the request of NZR, and the Ministry’s decision was confirmed.

“There is no suggestion that these wage subsidy payments were obtained fraudulently.”