I.H.C. may have to reduce services

Press, 12 November 1977, Page 6

I.H.C. may have to reduce services

Auckland Many branches of the New Zealand Society for the Intellectually Handicapped are almost bankrupt and face the possibility of having to close some of their services, according to the retiring president of the Auckland branch, Mr J. G. S. Reid.

Mr Reid said in his annual report that he believed a lack of Government subsidy reviews for three years was having a serious effect on the society as a whole. "We believe that we have been disadvantaged over the past three years where there has been no review of the level of subsidies in a time of acknowledged rampant inflation,” he said. "The result is that many* branches are facing insolv-i ency and without further relief and a restoration of) relativities to the levels of a* few years ago, they will have to seriously consider thej closing down of some existing services.” Mr Reid said yesterday s the cash crisis centred on the I level of the Perdien allowance —a Social Welfare Department subsidy for the day-to-day running of hostels—and; the level of the Government subsidy for the capital cost of building hostels. The Perdien allowance was last reviewed in 1974 and, at .$24.50, per child per week, “just about covered our

| Inflation and rising costs 'now meant the required (weekly sum for keeping a child was $6O. This had particularly serious implications for branches in rural areas where children had to be looked after 24 hours a day. In metropolitan centre's, many of the children could stay at home overnight and parents bore much of the cost of supporting them. The subsidy on capital costs had also fallen behind, i said Mr Reid. This, too, was last fixed in 1974 and was then set at the ratio of $BOOO per hostel bed. It had not been reviewed since and was now only two thirds of the sum required. “It means that for a $300,000 building, for example parents have to find $lOO,OOO and in current circumstances, that is virtually impossible." Mr Reid said the society was pressing for a review of both subsidies immediately and it wanted annual revisions to keep pace with inflation or hostel services would have to be closed. “It is now a possibility which we have to discuss,

however abhorrent. But I de not accept that the Government will allow it to happen.” The society had presented its claims to the Social Welfare Department and was now - waiting for its response. The Canterbury branch of the society was not insolvent but it would face problems similar to those in many other centres unless there was more Government assistance, said the president (Dr R. T. M, Caseley). Although running costs were rising rapidly. Government payments were out of step. The society was still receiving the same amount of money—s3.so a day, for caring for children under the age of 15 in junior houses or family homes—as it did in 1974. There were also problems in maintaining pre-school and special care centres. Dr Caseley said. “The Government pays 75 per cent of the salaries for staff but because of increases in costs and wages we will have difficulties without compensatory increases in donations or money available.”