Mayor weighs funding lifeline

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Otorohanga has been thrown a lifeline that could save its youth programmes - but its mayor says he is not sure if he should "sell his soul" by accepting it.

The Waikato farming district, which achieved zero youth unemployment through most of the recession, refused to enter a tender this week for new youth services contracts because an official told mayor Dale Williams that he did not have enough unemployed young people to get funded.

After the Herald reported this yesterday, Work and Income national commissioner Carl Crafar rang Mr Williams and told him he could get more funding under the new system.

"He said the minister is giving you a week's extension to put a tender in," Mr Williams said.

But Mr Williams, who chairs the national Mayors Taskforce for Jobs, said he replied: "What about all the other mayors feeling vulnerable in their communities?"

"[Mr Crafar] said, 'no, no, no, this is between you and us'. I said, 'I don't know that I like that'."

"Within the current tender there is up to $70,000 earmarked for youth services in Otorohanga," Mr Crafar said in a statement.

A spokesman said the figure was based on 31 youngsters aged 16 or 17 who were not in employment, education or training, and on assumptions about how many would achieve the goals, required for full funding, of going back into education to achieve NCEA level 2 and not going on a benefit within three months of turning 18. The tender documents showed 14 youths aged 15 to 17 left school in 2009, and 17 in 2010, without NCEA level 2.

The spokesman said Otorohanga received $54,000 for its existing youth transitions contract, plus $75,000 for its apprenticeship support. The ministry had agreed to keep paying the $75,000, so the district stood to gain up to $16,000. But Mr Williams said Mr Crafar told him there was no guarantee that Otorohanga would win the tender for its area.

Mr Williams said he wanted to consult with his community, and with other mayors.

"I am not prepared to take a hurried phone call from a bureaucrat under pressure from the minister and sell my soul on the strength of that," he said.