Budget tighten-up axes jobs scheme

Hamish Loomans, 20, (L) - pictured with workmate Tony Milne, 18 - was helped by Enterprising Communities to get through the paperwork for his apprenticeship. Photo / Sarah Ivey

A subsidy scheme that has financed more than 200 projects to create local jobs around the country has been axed.

The Ministry of Social Development's Enterprising Communities scheme, budgeted at $10.5 million a year by the former Labour Government, was axed as part of a "reprioritisation" of the ministry's spending in last week's Budget.

All 80 current projects will keep their funding under existing contracts, but no further money will be approved.

The Government says it has to make tough decisions because of the economic climate, but the people who run the schemes are disappointed.

Otorohanga Mayor Dale Williams, who chairs the national Mayor's Taskforce for Jobs, said Otorohanga's apprentice support scheme was one of six local projects which mayors saw as models that could be set up nationally to promote youth employment, but all had only short-term funding from either the ministry's regional commissioners or Enterprising Communities.

"It's disappointing that it's being axed. It's been the catalyst for facilitating a whole lot of projects around the country that are very worthwhile," he said.

"The most important thing for the Mayors' Taskforce is who is going to pick up those projects and carry them on beyond the facilitation period."

Greenways Trust development co-ordinator Ian Guthrie said Enterprising Communities was "a massive leg-up" for his trust's venture into the firewood business to provide work for its disabled clients.

He said the trust would "persevere in one form or another" with the business but the firewood business was suffering in the recession.

Waikato River Trails chief executive Kelvin Hainsworth said his trust had several sponsors, including Mighty River Power and Taskforce Green, but depended on Enterprising Communities to pay for a construction supervisor and training for the Taskforce Green workers.

The trust has opened 30km of trails from Atiamuri to the Whakamaru Dam and around Arapuni village and aims to complete 100km in from Atiamuri to Horohoro.

It seems likely to find replacement funding, as it has had a visit from a Tourism Ministry official scouting possible routes for Prime Minister John Key's $50 million cycleways project.

But Maori Tourism Council chairman John Barrett said scrapping Enterprising Communities would bring a halt to his council's plans to develop tourism promotion projects in the council's 11 regions under a 2006 memorandum of understanding with the Ministry of Social Development.

And Prison Fellowship director Basil Wakelin said the $50,000 a year from Enterprising Communities was vital for plans to set up a scheme for communities to mentor people released from jail.

The fellowship plans a national roadshow this year to encourage local churches to join the scheme, but Mr Wakelin said it needed money to train volunteers.

Social Development Minister Paula Bennett said the Government was having to make hard choices.

"The money that went into Enterprising Communities hasn't delivered the employment outcomes hoped for," she said.

* Enterprising Communities

An apprentice support scheme in Otorohanga which has helped that district to achieve zero unemployment of people under age 25 since November 2006 and a 75 per cent drop in youth crime.

A firewood business which employs intellectually disabled people through the Greenways Trust in Dargaville.

A series of biking and walking trails being built along the Waikato River.

Maori tourism promotion projects in Tauranga, Rotorua, Hawkes Bay and Wellington.

A national Prison Fellowship project to help local communities mentor ex-prisoners.

A trust at Maramarua south of Auckland which employs unemployed people growing native plants.HELPING HAND: Hamish Loomans, 20, (left) - pictured with workmate Tony Milne, 18 - is a dyslexic automotive apprentice at Excelsior Nissan in Otorohanga who was helped by Enterprising Communities to get through the paperwork for his apprenticeship.