25 Feb 2009

Voluntary sector raise funding fears

9:41 pm on 25 February 2009

The non-profit sector is concerned about a lack of any Government commitment to its continued funding at precisely the time that demand for its services is increasing.

Federation of Voluntary and Welfare Organisations chairman Tony Mayow says the sector will play a significant role in managing the effects of the recession on those hardest hit, but how it will continue to be funded is an extreme concern.

Mr Mayow says rising demand for its services comes at the same time as some donors begin to cut back their financial support.

Community and Voluntary Sector Minister Tariana Turia says she has expressed those concerns to Finance Minister Bill English.

Ms Turia says a detailed review is under way, and the picture will be clearer afterwards.

But Labour's social development spokesperson, Annette King, says the sector needs certainty at a time when its services are going to be needed more than ever.

Federation of Family Budgeting Services chief executive Raewyn Fox says reports coming in for around the country suggest requests for help are up 50%.

Ms Fox says a new trend is that older people and those on higher incomes are seeking help as they lose their jobs or their hours are reduced.

Family budget services had about 30,000 new clients last year.