Source: First Union
FIRST Union Southern Regional Secretary, Paul Watson, says the end of funding for important Building Financial Capability (BFC) programmes delivered by organisations like the Christchurch Budget Service Trust will leave a major hole in local communities, as specialised budgeting services face closure following the non-renewal of BFC contracts by the Ministry of Social Development (MSD) under the National Government.
Mr Watson says budgeting services like Christchurch Budget Service Trust, Dunedin Budget Services, Timaru Budget Services and North Canterbury Budget Services offer specialised BFC support to their local areas for both working people and those unemployed, providing vital financial support to those struggling to find work, facing hardship in the current economic climate, or grappling with the exploitative “gig economy” like Uber drivers. He understands that for each of these services, BFC funding has been withdrawn.
“It’s tempting to think that the Government has cut funding for the ambulance at the bottom of the cliff, but the truth is that budgeting services can stop people falling over the edge in the first place,” said Mr Watson.
“Budgeting organisations like the Christchurch Budget Service Trust also provide crucial services for migrant workers and refugees, and we’re very concerned that any replacement service will lack both the specialised knowledge and relationships required to work with vulnerable communities like these.”
Budget services who deliver BFC programmes were invited to make proposals for continued funding from MSD in September last year, and it was originally indicated that successful applicants would be notified by the 30th of March. Mr Watson says no confirmed list of successful organisations who will deliver BFC services has been publicly notified, and with client work under the next round of contracts commencing from July 1st, organisations like the Christchurch Budget Service Trust lack clarity on where clients should now be directed.
Mr Watson said the Christchurch Budget Service Trust have already vacated their premises following a “shambolic” tender process and are currently offering a reduced service at the Hornby Community Centre using CBST’s unfunded reserves. It was widely understood that organisations like the Salvation Army and Anglican City Mission may be awarded these contracts in future, but Mr Watson cautioned that expertise and neutrality could be lost in this case.
“We need a neutral and non-religious service to continue delivering BFC programmes that aren’t “one-size-fits-all” and can provide assistance to the diverse communities they represent,” said Mr Watson.
“I am critical of the Government’s aim of buffering ‘wrap-around’ services rather than considering the actual needs of our communities and the reality that budgeting services with financial expertise are serving not just those at crisis point but those who may be approaching it even while in work.”
“Due to this Government’s decisions, one type of BFC service could now cater for everyone, and that would represent a huge loss of financial support throughout the South Island that could and should still be avoided.”
FIRST Union has been a financial supporter of the Christchurch Budget Service Trust and its prior inception for around 3 years, and Mr Watson said he greatly valued the budgeting support provided to many union members in that time.
Mr Watson said it was not too late for the Government to acknowledge that the loss of financial budgeting assistance and support in Southern communities would be a bad thing, and to provide certainty and reassurance to specialised budgeting services and their clients about future funding pathways.
Government funding for budgeting services has been reduced from 132 providers to 88; a drop of 33%. Mr Watson said service access wait times are already high, with some people waiting more than four weeks for their first appointment, and the decision to reduce BFC funding was born of ideology and a desire to cut costs to mitigate the Government’s “irresponsible” personal tax cuts rather than a reflection of budgeting services’ successful work in communities around the country.
