OT asked to explain on contracts
Chief Children’s Commissioner Claire Achmad is voicing her concern that hundreds of Oranga Tamariki (OT) ontracts for work with vulnerable children have come to end with no clarity over whether they will continue.
“These are organisations who are trusted by their communities. They are doing vital work every day and in many instances there are clear evaluations of the work that shows they are preventing harm in the lives of children,” Achmad said.
She said she had “significant concerns about the current cuts and discontinuations to Oranga Tamariki partnered services”. The contracts with the Children’s Ministry range from counselling, youth programmes, support for vulnerable families, sexual violence prevention, aspects of foster care funding and support for young people leaving care.
Achmad wanted to see documented evidence to show how these decisions are being made. “I want assurance that the rights and best interests of children and young people have been the key factor in the decision-making, and that they will not be left without the services and supports they rely on. I am yet to see that evidence.”
OT said it was prioritising statutory services, and there were services in place to safely move children from one provider to another.
What is going on?
The Press first reported on the funding issue at the end of June, as the contracts with OT finished.
Hours before the long Matariki weekend, in which the contract end date fell, generic emails were sent to providers either telling them their contracts would not be renewed, or saying their contracts would be renewed, but without any details of funding levels.
Two weeks later, most of the providers who had been told their services were still wanted by OT did not yet have clarity over what the new contracts would look like. Providers received an email from Oranga Tamariki mid-July saying new agreements were expected to be “in place” by the end of July. Providers generally have to go back and forth with the ministry and its board before the contracts can be signed.
Recently, it is understood OT backtracked on its intention to fund some of those services. In the midst of this, OT confirmed 419 jobs would be cut.
War of words
Children’s Minister Karen Chhour released a statement on Wednesday saying OT was “finally taking financial control of its funding for external service providers”. “I have pushed the OT senior management team to look for every opportunity to focus its funding on the care and protection of the children it is responsible for. “For too many years OT has been the cash cow for community service providers who say they will provide services, and then don’t.”
Every provider that The Press has spoken to was incensed over the “cash cow” description. Jane Zintl, chief executive of Ara Taiohi, a peak body that represents groups that work with young people, described the cash cow comment as “shocking for so many people in our sector”. “Nobody gets involved in youth development or community work for the money. Everybody gets involved because they really want to make a difference in the lives of young people.
“They make the most out of the money that they are given, because every cent needs to be used for the purposes with which it's obtained. To somehow imply that the community sector, that is grossly under resourced, is in any way taking advantage of this massive cash cow is really insulting.”
Shortly before Chhour’s statement, OT deputy chief executive (communities & investment) Darrin Haimona released a lengthy statement on the ministry’s contracted provider funding review coming to “an end”. Haimona said in March, OThad its annual review of its contracted provider funding “to ensure our investment is being used in the way it was intended”.
Providers told The Press negotiations for new contracts usually begin months before they end, with contracts finalised around May. Some providers said they had received only a generic email in March, and another days before the contracts ended.
“First of all, OT cannot fund everything,” Haimona said. “Our top priority is to ensure that our core business is funded first and foremost on children and families who come to our attention. So far, we have recovered $22m from the last financial year and we expect this to increase as we continue to work with remaining providers over their underspend.”
He said they went “line by line through each of services we fund with providers and making decisions about the performance and effectiveness of that service and the demand for it”. Haimona also singled out a provider which had spoken publicly about their concern over potential cuts to the Family Start programme.
“With regard to Family Start generally, and from our own analysis, given overall low utilisation of these services (71%) and marginal cost-benefit ratio, we will be reviewing this programme later in the year with the aim of repurposing it to achieve better outcomes for children in care.”
Haimona said for the 2024 year, they contracted $577m with 554 providers – in the 2025 financial year to date, “we have committed 94% of our budget and have initiated contracting for a minimum of $438m with 480 providers to deliver a range of social and statutory services”.
Last week, frontline care providers said they were being forced to reconsider their staff, many of who are social workers, youth workers and counsellors, and services as uncertainty about OT funding continued.
Multiple people broke down while talking to The Press, with the uncertainty or reduction in funding meaning they may have to cut staff or even consider shutting down the organisation’s future.
On Thursday, Chhour introduced new performance measures on OT in an effort to ensure “greater transparency and accountability”. “New Zealanders are deeply concerned at Oranga Tamariki’s performance and so am I,” she said. “Too many children in the care of their family, or their caregivers, die every year in this country. It is a national disgrace.”