Reprieve for cash-strapped Christchurch centre

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Christchurch's creative arts space for people with disabilities and mental health problems has been given a last-minute reprieve by the Government.

Floyds Creative Arts was facing closure last month after a government demand to raise $120,000 by the end of February or its Ministry of Health and Social Development contracts would not be renewed.

About 2500 people are on Floyds' books and up to 1000 people a week use its services. Many have disabilities or mental health problems.

The recession meant community funding for Floyds dropped by up to 40 per cent over the past year. It was turned down for a $50,000 Christchurch City Council community grant in November.

Despite failing to raise the required amount, Social Development Minister Paula Bennett has stepped in to save Floyds from closing.

The minister confirmed that she had extended Floyds' social development funding for another year.

"I was impressed by the strong community support for Floyds and likewise by the commitment to the community from Floyds," she said.

"They have a responsibility to sort out their finances in that time [12 months] and I trust them to do that."

Floyds director Bernard Cherry said he was relieved by the minister's decision.

"There was a commitment by the people of Christchurch, they really got behind us," he said.

"They let people know Floyds was important to them and that got back to the minister."

With government backing, other community funding groups would likely come back on board, he said.

"Funding is still tenuous, but I think we are going to be OK."

- © Fairfax NZ News