Disability sector faces funding shortfall

Disability service providers are about to be hit very hard by the Holidays Act and the Government must urgently address the issue, says National's Disability spokesperson Sandra Goudie.

She says cash-strapped providers, such as IHC, will be hit very hard by the provisions in the act which force them to pay, in some cases, three times for many public holidays.

"These providers will face huge funding shortfalls as a result of this legislation.

"This extra cost is not provided for in their existing government funding," says Ms Goudie.

"During submissions on the bill it was made quite clear by one provider that this would leave them with a shortfall of $12 million. Is the Government going to make up this shortfall?

"Labour seems to have forgotten about the impact on the disability sector in the drafting of this legislation.

"It is already hard enough for these service providers to fulfil their obligations without being lumbered with extra huge costs.

"Without an increase in funding, disability providers may have no choice but to cut staff and services. That would be a tragedy for people who rely on them.

"Labour is quick to talk about protecting vulnerable workers. The Holidays Act could see the most vulnerable in the community end up paying the price for bad legislation," says Ms Goudie.

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