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The Rugby Union has slapped the handbrake on its spending to try to shave a further $2.6 million from its bills as the effects of the global economic meltdown are felt this season.
While the NZRU has reserves of $55 million, it remains anxious about the future and has worked through plans to trim nearly $1 million from its costs. The remaining $1.6 million savings will come from:
* A salary freeze on all NZRU staff salaries.
*Reduced spending on age-group camps, assembly costs and development programmes.
*A reduction in television match officials in the national championship.
*A cut in All Black costs.
All Black manager Darren Shand is still working through ways for the All Black costs to be trimmed but cutting television match officials during the extended NPC will save the NZRU about $220,000 this season.
The budget changes announced yesterday will largely be aimed at the costs of running professional rugby and chief executive Steve Tew said the measures would mean some hardship.
"That is regrettable and comes at a professional, and in some cases, personal, cost to those involved," he said. "But these decisions have not been taken lightly.
"The situation we face is the same as any other organisation in this country, and, in fact, globally. We have to cut our cloth to fit and that means having to make hard decisions."
The Union had tried to avoid hitting community rugby spending or provincial rugby funding as those levels of the game were vital for the sport's future.
Revenues were under pressure, Tew admitted, but the NZRU had a healthy balance sheet and would announce a small profit this year although it was not blind to the pressures on the wider rugby community and the provinces.
The NZRU and players' association had agreed to extend the bulk of their collective agreement until the end of the year with some amendments to promote players' work and study opportunities.
Signing former All Black Luke McAlister to 2012 was a great result and the selectors and NZRU were encouraged that several other senior players had indicated they also wanted to return to New Zealand.
Meanwhile, Tew said there had been no agreement on whether the All Blacks would play the Wallabies at Tokyo or Denver later this year en route to their games in Europe. A decision was likely to be made when officials met in Dubai early next month.
