Loss of contract 'gut-wrenching'

Frazer Barton.
Frazer Barton.
Presbyterian Support Services will have to ''further sharpen'' its operations as it continues to face tough financial times, its board corporate and finance committee chairman Ray Macleod says.

At PSO's annual meeting last night, the decision by the Southern District Health Board to end the $5.5 million home-based services contract late last year and award it to Access, Healthcare NZ and the Australian-owned Royal District Nursing Service, dominated reports.

Outgoing board chairman Frazer Barton said being told PSO had missed out on the contract not on price or quality of service, but on basis of sustainability, when the service had been going for 20 years and PSO for 107 years was ''frankly gut-wrenching''.

So was the claim of a lack of innovation when every time a change had been suggested it was like ''knocking our heads against a brick wall''.

The board chose not to pursue a long drawn-out court battle over the decision but it meant dismantling the structure for home-based services, he said.

''It has not affected our ongoing financial viability. We are here for the long haul.''

Mr Macleod said it had been a challenging year due to the health board decision, which he believed was ''ill-considered'' and ''poorly managed''.

Frazer Barton.
Frazer Barton.
PSO would have posted a $239,000 deficit this year but it was offset by one-off surplus funds from discontinued operations, which left an operating surplus of $82,000.

However, for the coming year PSO had no buffer or offset and with resources such as donations and bequests declining, the organisation would have to ''further sharpen'' its operations, he said.

''We remain a major figure in providing social services in the region.''

Chief executive Gillian Bremner said it was a painful process letting the service go as it affected 400 staff and 1400 clients.

''But there are plenty of other opportunities we can explore.''

Government funding continued to fall ''well short'' of what it cost to provide services, Mrs Bremner said.

Guest speaker University of Otago law professor Mark Henaghan congratulated PSO for not continuing the legal fight over the loss of contract.

''You did exactly what a community group should do, put the customer first.''

He urged PSO to resist the trend of becoming ''corporate'' to compete but to continue with its advocacy, which was crucial to making change.

''Persistence and love will get you everywhere.''

rebecca.fox@odt.co.nz

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