Group should be commended

An organisation helping and feeding scores of vulnerable people for slightly more than half the salary of the local health board chief should be commended for excellent budgeting, and not have its funding chopped, Alliance Party co-leader Kay Murray says.

Ms Murray, who is not in Parliament, was reacting to the possible closure of Dunedin's Advisory and Support Centre Otago (Asco), after it lost Otago District Health Board funding of about $145,000 a year to run its activity centre, effective in June.

It has also lost about $90,000 Ministry of Social Development funding, the two comprising about 85% of its funds.

The Stafford St centre provides activities and support for the mentally ill and mildly intellectually disabled.

"An organisation that manages to operate five days a week and provide services, including meals, for 50 to 60 marginalised people for not much more than a cabinet minister's basic salary and only little over half [boards' chief executive Brian Rousseau's] salary should be commended for its amazing organisational and budgeting skills, not closed down," Ms Murray said.

Mr Rousseau, the Otago and Southland District Health Boards' chief executive, earned between $470,000 and $480,000 in the 2009 financial year.

A minister inside Cabinet's base salary is $243,700.

"It is indeed an attack on society's most vulnerable. The group least able to kick up a fuss or offer any real resistance is being attacked and to save but a few thousand dollars," Ms Murray said.

Mental Health Commission chairman Dr Peter McGeorge said losing community mental health providers was a potential risk.

Last week, the ODHB said it had to prioritise funding to the greatest need, and some of Asco's services were available from other providers.

Also, the Ministry of Social Development's decision not to roll over its funding played a part.

Dr McGeorge said the tight funding environment made it possible small service providers would be forced out.

Losing mental health infrastructure was a risk district health boards should consider, he said.

The move potentially put pressure on in-patient services, which was not good for either the clinical services, or people affected by mental illness.

Former Asco chairman and mental health campaigner Jim Crowe said Asco was valuable as it accepted those without a firm mental health diagnosis, which other services usually did not.

Asco appealed to some who, while they might have a mental illness, may not want to be associated with a strongly-tagged mental health service.

The move was "cost-shifting".

A price would be paid in the criminal justice system and acute mental health admissions, he said.

Asco deputy chairman Graham Hambleton said Asco was in negotiation with a not-for-profit organisation to keep the centre open.

eileen.goodwin@odt.co.nz

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