Hon Karen Chhour
Minister for Children

“I am committed to putting the safety of children in Oranga Tamariki’s care ahead of the security of the businesses run by providers,” Children’s Minister Karen Chhour says.

“Under the last Labour Government, Oranga Tamariki was allowing providers who were under-delivering on their contracts to keep unused funding, they were funding services that weren’t core business, and they were duplicating services in various parts of New Zealand.

“I expect Oranga Tamariki to take a more rigorous approach to contracting that will ensure the $500 million worth of services it funds each year, gets to where it will have the greatest impact.

“A small group of providers have built up significant bank balances by under-delivering services. This is going to stop. Taxpayers expect this money to go to children’s care, not providers’ bank accounts.

“Some of the very large providers around the country, like Family Start, are national organisations still receiving millions of dollars. More than $30 million dollars of taxpayer funding, in the case of Family Start.

“If the last Government had taken the same approach to contracting, at least $132 million more could have gone to children, rather than letting some providers build up their bank balances.

“If funding has been withdrawn from a provider, it’s because they are either under-delivering the services that children and young people need, or other providers are better placed to deliver those services, or it’s just not core business. It’s as simple as that.

“Media reports about ‘cuts’ to frontline services are incorrect. We are using the same amount of taxpayer money in a better way, by transferring funding from organisations that are under-delivering, to organisations and services that can deliver.

“Oranga Tamariki is putting the safety of children in its care ahead of the security of the businesses run by providers.

“Oranga Tamariki will now only pay up to 70% of the maximum value of a contract until the services have been provided in full. Providers need to get used to the idea they’re only going to be paid for the services that are provided to children and young people in need.”

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