Tina Reid: It is vital to keep communities healthy

The current economic recession provides as many opportunities for our social infrastructure as it does challenges. It is an opportunity for all of us to focus on our priorities.

If we want to be a healthy and wealthy country we need to focus on keeping our communities productive and future-proofing our communities.

In early February, Prime Minister John Key announced $483.7 million of spending initiatives in the areas of state housing, roading and education. The building and construction industry celebrated.

The transport spending alone is enough to rescue about 400 jobs, and regional economies are tipped for a boost as the majority of subcontractors and suppliers will be locally based.

But if the National-led Government is serious about delivering "a comprehensive plan to tackle the issues that matter to New Zealanders" then their policies and funding initiatives must include social services as a key component in New Zealand's infrastructure.

Infrastructure needs to be about more than buildings and transport. It also needs to focus on developing social infrastructure, in partnership with non-government funders and the social services organisations in our communities.

This money is well spent. As the National Party rightly pointed out before the election, Tangata Whenua, community and voluntary groups in New Zealand return between $3 and $5 worth of services for every $1 they receive in funding.

The efficiency of most organisations dwarfs some of our major businesses. They know how to run on the smell of an oily rag. The services provided by these organisations are staffed by up to a 90 per cent volunteer workforce, and are crucial and save taxpayers billions of dollars in what would otherwise be government-provided services.

These organisations are experts in community development and understand the complex issues that come with the provision of social services and community activities. They know what it means for you and your family. They are not hampered by huge bureaucracy in delivering services that will work.

In fact, the non-profit sector in New Zealand contributes about $3.64 billion to our gross domestic product (GDP) and is the same size as the construction industry.

But our social infrastructure is also under significant pressure. New Zealand's billion-dollar philanthropic sector helps fuel a huge number of social services and community projects around the country.

Decreasing returns on investment income is impacting heavily on many organisations. Several philanthropic trusts report that their ability to make grants is down this year compared with last.

Combined with the reduction in corporate sponsorship this decline puts extra pressure on non-profit social service organisations who rely on multiple funding streams to deliver core services.

This is at the same time as increased demand for services during the downturn. Multiple agencies, from organisations providing food, shelter, budgeting advice and support for families under stress, are all noting the increased demand. But they are also facing a shortfall in volunteer resource and funding.

It is clear the Government's ability to meet this shortage will only be so much. Finance Minister Bill English is busy preparing us all for the worst come Budget day.

Organisations in the sector are already thinking about how they can work together.

The sector is made up of thousands of community-led and self-determined organisations covering the spectrum of community life, including such activities as arts, sports, environment, emergency management, education, housing, health and social services.

These are funded by equally diverse sources of funding - subscriptions, donations, sponsorships, private trusts, lottery and gambling trusts, as well as government funds.

The processes and priorities for determining government funding are continually changing, causing uncertainty and major problems for planning for the provision of many essential services in our communities.

The sector needs to be a key point of consultation every step of the way as the Government develops a framework for working our way through a time of increased hardship and need because they can't do it alone. Nobody would dream of creating a business plan without involving businesses, and the non-profit sector should be the same.

That is why there was a sector-initiated recession forum in Wellington recently. It involved Government and representatives from the philanthropic and community and voluntary sectors.

The message was clear - government and non-government funders need to work in collaboration to act together in our collective interest.

Sector organisations are ready and willing to address issues about working more closely together, and demonstrating effectiveness and the need to work with others and New Zealand communities to achieve this.

Like the period following the Great Depression, things will never be quite the same again. The way we operate and think will be changed, whether we like it or not.

There is therefore an opportunity to rethink how we build our social capital in this country and the role of every New Zealander in achieving that.

* Tina Reid is executive director of the NZ Federation of Voluntary Welfare Organisations and a key member of ComVoices, a coalition of Tangata Whenua, community and voluntary organisations.