Southland regional development agency Great South confirmed this week it had decided to cancel the 2025 ILT Kidzone Festival.
Great South chief executive Chami Abeysinghe said the decision had not been taken lightly and she hoped other proposed funding cuts would not affect future events in the region.
"Kidzone has been an incredible event for Southland, loved by thousands of families and supported by an amazing network of volunteers and community groups," Mrs Abeysinghe said.
"Our principal funders, Invercargill Licensing Trust [ILT], ILT Foundation and Community Trust South, have continued to show unwavering commitment to this festival; however, overall financial and operational costs continue to increase. This has led to the decision to pause and explore viable options to continue the event."
Mrs Abeysinghe said the decision was not directly related to the proposed $200,000 cut in funding the Invercargill City Council had included in its annual plan. The plan is still under consultation.
"It was a series of events that led us to the need for refocusing some projects."
Last year, other funding for the organisation was cut, which forced it to restructure the whole business.
She emphasised Great South would continue to seek a suitable organisation to take on the event’s management — which it had run for 19 years — given the scale and complexity of the festival, which last year cost more than $300,000 to run.
No other event was expected to be cancelled or paused this year, but that could change depending on the council’s funding decisions, she said.
In its draft annual plan, the council proposed a 10% funding cut for Great South and ILT Stadium Southland as part of its aim to keep the rates down.
It is understood the council gives $700,000 to the stadium and about $1.9 million annually to Great South.
