Surf Life Saving suffers in recession`

News Release

11 February 2009

Surf Life Saving suffers in recession
 

Surf Life Saving is experiencing increasingly difficult financial pressures as a direct result of the current economic climate. Funds from community trusts, gaming grants and public donations make up 33% per cent of its income and each of these areas is in decline.  It is ‘unprecedented’ in recent times to have multiple sources cut back at the same time which is affecting some of the core services Surf Life Saving provide. 

Surf Life Saving New Zealand receives no direct funding from central government for its lifesaving services. It’s also in a unique position having no government contracts for services or charge back agreements – unlike other rescue/emergency services.  Many other charities that provide core community services often have service provision contracts through government agencies, meaning their core services can be maintained when charitable giving is under pressure – Surf Life Saving does not have that luxury.

Gaming trusts such as The Lion Foundation, are a prime example of how significantly reduced gaming grants directly effect a community organisation such as Surf Life Saving.  Increased government compliance costs and changes from previous government have resulted in reduced machine numbers – therefore resulting in significantly less funds for distribution. 

“Three years ago The Lion Foundation’s donations to community groups totaled $59m – this year it is budgeting for $36m.  And they are just one of many gaming trusts. This has an extremely detrimental flow-on effect to organisations such as Surf Life Saving,” said Geoff Barry CEO Surf Life Saving New Zealand.  

“The cumulative effect of community trusts such as ASB Trust announcing reduced funding available, and several other community trusts putting a freeze on their grants, combined with a drop in charitable donations from the public – are presenting serious issues for Sur Life Saving.  We will not be able to sustain the current level of services and programmes without considering a serious retrench of the likes of public education programmes we provide. It will be similar for many other organisations too.” said Barry.

In a 12-month period Surf Life Saving’s income has historically been $3m gaming income, $1m from community trusts and $1.5m from donations which on average in the past have equated to more than a third of Surf Life Saving’s income.  It is predicted that in 2009 this will be halved. 

Surf Life Saving expects approximately a 20% drop in total income for 2009 - which ultimately means drowning prevention programmes will have to be reduced.

“Essential services being at the whim and ability of the public to support it is extremely challenging – it’s a little bit unrealistic, so the idea of sustainable funding, particularly baseline funding, should be looked at from the government sector.” said Barry.

- ends -

© Scoop Media