Funding for several Clutha community projects, estimated at more than $1 million, has been lost with the scrapping of a government scheme, prompting Clutha's mayor to comment that many groups have no other ways to achieve their dreams.
The Enterprising Communities scheme was axed by Finance Minister Bill English in last month's Budget as he tries to reduce costs in the tight economic conditions.
But Clutha Mayor Juno Hayes said that was a "major body blow" for Clutha groups at a time when many were trying to improve their communities with new projects and services.
The fund was unusual because it targeted projects in partnership with community groups, helping them to become employers.
The Catlins Historical Society had used the scheme to help pay for its museum curator and other groups in South Otago either had or hoped to get similar funding.
Mr Hayes said the Government decision left many groups with no other funding options and the same groups might be further hamstrung by Local Government Minister Rodney Hyde, who wanted councils to limit their activities.
"Working with and encouraging communities to develop business opportunities is unlikely to be an activity local authorities will be able to support.
"So, not only is Government removing funding support for community enterprise, it is preventing local government from doing so."
At a time when unemployment was rising, Mr Hayes said the Government was weakening the ability of the local government sector to respond to increasing local need.
"By withdrawing the only government/community investment partnership in enterprise and employment outcomes, Government has removed a strategic investment in the development of long-term sustainable projects," Mr Hayes said.
Community lifeline
• Enterprising Communities funds salaries and other costs associated with two key Clutha projects. -Catlins Historical Society: $103,000 (for three years until 2010).
• Enterprise Clutha: $103,090 for a labour market strategy (18 months until end of 2010).
Other groups interested in Enterprising Communities funding include. -Clutha Recreation Centre Inc.
• Kaitangata and Districts Promotions.
• Tourism Catlins.
• Clutha Gold Trail Trust.
• Lakes Waihola-Waipori Wetlands Society.
• South Otago Museum.
