THE federal government has reversed its decision to slash funding to YMCA Katherine that would have forced the organisation to close its doors after June 30.
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In March, chief executive officer Jim Vivian announced that YMCA Katherine had lost more than $1.1 million in funding through the government’s Indigenous Advancement Strategy program and said the “catastrophic” axing - which represented more than an 80 per cent cut - would render it unviable.
“It effectively shuts down the whole show,” he told the Katherine Times last month.
“It will be catastrophic if we have to close.”
Under the original funding announcement, YMCA Katherine would have received $250,000 over three years, instead of the $1.41m it currently operates on.
Amid community fury at the cut, Indigenous Affairs Minister Nigel Scullion rescinded the decision late last month and reinstated full funding of $470,000 per year until the end of the 2016-17 financial year.
Mr Vivian praised Senator Scullion’s decision and said it would allow YMCA Katherine to continue operating its critical youth services in the region.
“You’re virtually crucifying kids [with the original decision],” Mr Vivian said on March 30.
“That’s pretty strong words but it was putting kids at risk.
“It now gives us another 2 years to really get our ducks in a row.”
He added that the goal over the next two years was for the organisation to create a profitable commercial arm that would nullify any future funding cuts.
“It is critical we get another arm to our business that is user pays, and is a commercial arm to our business, to offset the possibility of the withdrawal of any government funding in the future,” he said.
“We’re doing all these things for the community but you can’t keep doing it on a wing and a prayer; there’s got to be profitability built in.”
The YMCA Katherine boss thanked Member for Katherine Willem Westra van Holthe for his “fantastic” assistance in liaising with the federal government after the funding cut was originally announced.
Mr Westra van Holthe said he had contacted Senator Scullion to outline the devastating impact the closure of YMCA Katherine would have on the community.
“I’m just delighted that the full funding has been reinstated to the YMCA,” he said.
“As soon as the [YMCA] informed me that there was a problem with their funding for the next few years, I contacted Senator Scullion and, on the back of that contact, he gave an undertaking the problem would be fixed.
“The YMCA does some absolutely fantastic work it would have been a crying shame to see their funding slashed in that way.”
A spokesperson for Senator Scullion denied the funding backflip was due to community pressure.
“Every effort has been made through the IAS grant funding round to ensure effective frontline services that deliver on outcomes are maintained,” the spokesperson said.
“The department is currently negotiating with YMCA Katherine and other providers to ensure youth services are continued across the Northern Territory.”
