Otago Museum staff are likely to stop authenticating historic treasures brought in by members of the public if a funding dispute with a government department is not settled by the end of the month.
Under the Protected Objects Act, the museum is required to promptly authenticate all artefacts brought to it by the public.
The Ministry for Culture and Heritage pays the museum an annual sum to do so, but the museum has long insisted that the payments are inadequate.
The ministry used to pay $7000 a year, but cut this to $500 annually during the July 1, 2003-June 30, 2005, period, partly out of concern that more funds should be paid to the Auckland Museum to recompense it for extra authentication work.
The ministry recently paid $7000 to the Otago Museum for the financial year ending on June 30 this year.
In a letter sent to the then ministry chief executive, Martin Matthews, in late August, Otago Museum chief executive Shimrath Paul accepted the offered $7000 for the June 30 financial year, but rejected a proposed contract offering this rate for a further three years.
It would be "irresponsible" for the museum to accept the rest of the deal, he said in the letter, which was tabled at an Otago Museum Trust Board meeting last week.
If a mutually acceptable contract for the future was not established before October 31, museum staff would be told to "cease processing" under the Act.
The Otago Museum was seeking $15,000 a year, as well as a consumer price index adjustment, for the next three financial years.
He noted that Mr Matthews was leaving the culture ministry.
He became chief executive for the Ministry of Transport late last month.
"I am most disappointed that you have not seen your way clear forward to resolving this matter fairly and equitably over the last five years that it has been on the table, as I am sure it must disappoint you to leave such a significant matter unresolved," Mr Paul said.
