The Canterbury District Health Board was today informed that the Newell House Trust is going to be shut down on 28 May 2010 due to lack of funding.

Carolyn Gullery, CDHB's General Manager Planning and Funding, said that the notification has come as a shock as the service always proved to be productive.

Newell House is a provider of planned respite i. e., four beds for the women who are severely affected by mental illness including their children. CDHB had an agreement with Newell House for two beds, wherein the other two were to be provided and funded as a fee for service through the Psychiatric Emergency Service and Carer Support.

CDHB’s contract with Newell House is valid for next 3 years which also includes the annual adjustment of prices.

"At no time during the current contract period has the DHB been made aware of any concerns regarding funding levels", Ms. Gullery said.

She also pointed out that despite being in contact with it last month; Newell’s Chairperson did not indicate the scenario.

CDHB is now seeking alternative services by approaching other providers of planned respite in order to continue with the service for the needy.