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	Why the Catholic Church Is Making People Redundant By Amy Noonan Adelaide Now May 1, 2010 http://www.adelaidenow.com.au/news/south-australia/why-the-catholic-church-is-making-people-redundant/story-e6frea83-1225860820097 ADELAIDE'S Catholic Archdiocese is in financial crisis and has sacked staff and ruled out hiring new employees in a bid to save $3 million. In a letter to the clergy and pastoral directors, Archbishop Philip Wilson said 13 people were made redundant, five had their hours cut to part-time and six were redeployed into other Catholic agencies. Twelve who quit over the past eight months would not be replaced, he wrote. The positions ranged from managers to project officers and administration staff. There is also a freeze on new employment. "These decisions . . . will save the diocese approximately $3 million per year," Archbishop Wilson said. "Our only course of action is to reduce our salary bill. Salaries, together with interest payments, make up 80 per cent of the total budget." A Catholic Church spokeswoman said the Archdiocese's income came from incorporated body - the Catholic Church Endowment Society Inc - interests from deposits in the church's treasury, the Catholic Development Fund, a small number of properties that have a rental income such as the SA Water building and a small number of donations and bequests that do not go direct to causes or parishes. Start of sidebar. Skip to end of sidebar. End of sidebar. Return to start of sidebar. Monsignor David Cappo said the financial crisis was not caused by compensation payouts to sexual abuse victims."No, it's nothing to do with that. It's simply to do with the salaries bill exceeding our income," he said. Archbishop Wilson also denied the cost of the church's $100 million Victoria Square building, leased to SA Water, was the cause. "The answer is definitely no. The Victoria Square building is currently in a small net cash surplus position and will, in the longer term, provide a significant return on our investment. "It is part of our future focus on financial stability for the next generation." Monsignor Cappo, also the State Government's Social Inclusion Commissioner, said while the church was asset rich, few buildings across Adelaide could be sold off. "The majority of our assets are churches, presbyteries and schools and it is difficult to use these assets differently," Monsignor Cappo said. Nor were Catholic businesses such as Southern Cross nursing homes or the Calvary Catholic Hospital funding the Archdiocese. Monsignor Cappo said there would be further budget cuts in future and a tax on parishes could not be ruled out.
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