Balclutha's Employment Plus training scheme is in financial trouble again, despite the Government returning most of the funding it planned to strip from programmes nationwide.
Tertiary Education Minister Pete Hodgson confirmed it would boost the Training Opportunities Programme (Tops) coffers by $7.6 million, but Salvation Army Tops national manager George Borthwick said that was only about "three-quarters" of the money originally taken off the programme for 2009.
In Balclutha's case, the original funding cut would have taken about half its money, virtually sealing its fate, Mr Borthwick said.
Employment Plus has filed an appeal against all the planned funding cuts which would remove, on average, 15% of all money for next year.
The Tertiary Education Commission will consider that appeal when it meets on November 3 and a final decision is expected then.
The Balclutha scheme's long-term future has been on a knife-edge for nearly two years.
Tops managers first proposed closing it in February 2007 but a strong showing of support from businesses, local government and others convinced managers to change their minds but subject the scheme to regular financial and performance reviews.
Mr Borthwick said the Government originally planned to reduce the training spots at Balclutha from 16 to eight.
If approved, this would almost certainly see the centre closed.
"We just couldn't operate, quite frankly. There comes a time when you reach the point of no return."
But he was heartened to hear the Government had decided to "return" $7.6 million.
Exactly what that meant nationwide was yet to be decided and the impact in Balclutha and other places was still uncertain.
The Tops programme offers unemployed people over 18 the chance to gain skills to help them find a job.
Mr Hodgson said the Tops budget had been reduced in May's budget because of low unemployment levels and because some programmes were not of "sufficient quality".
"However, there are early signs that the labour market is now weakening so this increase in funding maintains the current level of training in 2009. We are living in reasonably fast moving times and it is important that the Government's response to change is nimble."
