Hipango Harete; Davis KelvinHARETE HIPANGO (National): Thank you Mr Chair. Minister it's noted that in terms of investing in children and young people under the Estimates here there's an increase of some $65.475 million taking it up to a total budget of $1462000. It's also noted Minister that there's a decrease in the capital expenditure from $83 million to $48.6 million. Minister you'll be well versed with the fact that it's just been reported before this committee in the Estimates report that in relation to youth justice facilities you spoke about the potential of intergenerational effects of incarcerating youth and the abuse that has historically occurred in youth justice facilities. You expressed concern about the potential for those same patterns of incarceration and abuse to reoccur. Minister you've committed in recent weeks for an additional two youth justice residences to be built. That's in addition to the five that are there. Noting the decrease in capital expenditure as I said from $83 million to $48.6 million how is that going to be funded under this Estimate vote?Further to that Minister there is a concern that is noted in terms of the partner-provided services. The purchasing power of Oranga Tamariki for partner-provided services—there's been an increase in that but it's also noted that there's been a specific decrease in certain parts of social service providers. Could the Minister give clarity around who those social service providers are in terms of the decrease in the Budget?Hon KELVIN DAVIS (Minister for Children): OK. First of all just to correct the member's assertion Oranga Tamariki hasn't committed to building two youth justice residences. So for example in South Auckland there is Korowai Manaaki. It is a youth justice residence. It has probably five units which—I don't like the term unit" because it sounds very prisonesque; they're more like dormitories. What we are suggesting is that we build another dormitory there or dormitorylike block or unit at a current youth justice residence. Now the issue here is that regardless of the age of a young person entering a youth justice residence or regarding the needs—the needs—more importantly of a young person entering a youth justice residence there is no continuum of care. In other words it is a one-size-fits-all situation for those young people.What we are saying is in particular now that 17- and 18-year-olds are residing in youth justice residences we need to make sure first of all that the physical facilities are appropriate for those young people but more importantly that the model of care is more important for those young people. Regardless of their age or their needs there needs to be a continuum of care. Some have lower needs; some have higher needs. So all Oranga Tamariki is saying is that there will be another dormitory-like unit built probably at Korowai Manaaki and that will probably cater to have 20 beds in it and another facility in the South Island probably in Christchurch which would have 10 beds. They are there to cater for the higher level needs of young people. So I just need to clarify: Oranga Tamariki is not building new youth justice residences. Oranga Tamariki is looking to build two dormitory-like units in already existing youth justice residences."