St John's Anglican Church at Waikouaiti, which celebrated its 150th anniversary last month, has had its priest "terminated", leaving the parish without a priest.
Late last month, the Bishop of Dunedin, the Rt Rev George Connor, wrote to the Rev David Crooke informing him his licence as a priest for Waikouaiti would be terminated from January 31.
No consultation with the parish or the priest appears to have taken place before the letter was sent.
Bishop Connor declined to comment when contacted.
"I am on holiday," he said.
Mr Crooke, who is set to receive only a half-stipend from his Northeast Valley parish, St Matthew's, would not comment on the decision but said consultation would be held to discuss future placements for East and North Otago parishes.
"But I am not aware of those details," he said.
Calls to the Otago-Southland Anglican Diocese were referred to the church's Auckland-based media officer, Lloyd Ashton.
The part-time Waikouaiti position was not guaranteed in perpetuity and Mr Crooke "would have understood that when he took the position", Mr Ashton said.
A meeting between representatives of the bishop and priest was likely once the bishop returned from annual leave.
No discussion on Mr Crooke's successor, if any, had been made, he said.
Several parish members said an ongoing dispute between the Dunedin Diocesan Trust Board and the parish over $750,000 of trust funds was behind the decision.
Several trust funds were set up by whaler-turned-farmer Johnny Jones in 1860.
The issue of whether the funds can be used outside Waikouaiti and, if so, for what purpose, formed a High Court action against the board by churchwarden and St John's lay minister Elizabeth Inglis on behalf of St John's.
The stipend for the priest's parish work was paid using interest derived from the trust funds, but the diocese argued the funds should be used for the wider benefit of the church - not just Waikouaiti, which has about 30 regular worshippers.
A judgement by the High Court released on December 1 found "the funds are intended for the support of clergy whose major focus is Waikouaiti . . . but that does not limit their outreach from Waikouaiti".
However, one parishioner, who declined to be named, said the latest move could enable the cash-strapped diocese "to get their hands on the funds".
"They have been after it for years."
