A world renowned agency that has helped refugees to settle in New Zealand for 36 years will be dissolved today and handed over to the Red Cross.
Refugee Services Aotearoa, which has 112 staff and hundreds of volunteers, has become a victim of tighter charitable and Government funding for social services, particularly the end this year of the Community Response Fund which kept many agencies going through the recession.
Last year it received the biggest single grant from the fund of $500,000, a significant part of its $4.3 million annual budget.
Red Cross has agreed to take over all staff from Monday except for three from Refugee Services' head office, including outgoing chief executive Heather Hayden.
"It has become more and more difficult for us to get the funding that we need to deliver a high-quality service from donations," she said.