A Message from the President

	RNZRSA National President John Campbell

Before I provide my first formal message to you all, I would like to express the deepest appreciation on your behalf, to the retiring President, David Cox.

David leaves a legacy of dedicated service and quality leadership that is clearly recognised across the whole membership of the RNZRSA. We are fortunate to have had David’s stewardship over the past 11 years. I look forward to having David’s wisdom and advice available to me over the next crucial period, in his new role as Immediate past President.

I would also like to express your appreciation to Colin Topp, retiring Vice President, for his long and dedicated service to RNZRSA. Colin has been a stalwart, and in his words “a proud servant” of the RNZRSA since 1946. Colin’s service sets a standard for all of us, and we are grateful indeed to Colin for his efforts on behalf of RNZRSA.

To the new NEC Team, I say – we have a challenge ahead of us, the gauntlet has been thrown down, we must pick it up and deliver.

From my part, I am proud, humbled and honoured, to have been elected the new National President. I am conscious of the distinguished line of presidents I follow; I am conscious of your expectations, and conscious of the challenges we face. I will do my utmost to meet these expectations and challenges.

Change

Change is the essence of evolution. Throughout its 88 years proud history, the RSA has evolved to meet changing circumstances. The founders of our organisation established a cornerstone from which we have moved forward. We have in the past met many challenges, and change is not new to the organisation. And so we will continue to make changes to meet the new circumstances and challenges we now face.

In the May 2004 RSA Review there were two articles concerning my background and my aspirations for the RNZRSA. My CV revealed the experience and background I bring to the role, and a paid advertisement reflected my view, on what we need to do to survive and flourish as a vital, credible and visible organisation. Well, your vote now requires me to front up, and lead the organisation through a transition period – a period of change and development.

It has been said the RNZRSA is under new management. That might be so – but it is business as usual. The way we conduct that business may be modified over the next several years – but the business we do, will not be.

We are all aware of the Independent Review, which examined our organisation, our structure, our governance, our management, our business – and how we deliver when matched against our desired outcomes. It also examined how we see ourselves being perceived by those we do business with, and by those we serve.

The review highlighted and exposed critical issues, and proposed fixes were identified. We will not let fear of change kill many of those innovative and necessary proposals. Yet at the same time, we will be cautious, measured, consultative and rational about those changes we do implement. Not all the recommendations of the review will necessarily be introduced.

We will now develop a set of goals and objectives, which will form the basis for our future development. We are determined to be credible, to be contemporary and continue to be a meaningful voice for the veteran’s community.

Our Implementation Plan will define the road map that will guide our actions and initiatives over the next several years – a period of transition, in which we will consolidate our aims for the future.

We must encourage the recruitment, the retention, and the meaningful participation of serving and the more recent ex-serving personnel and those in the wider community who value our purpose and objects. Encouragement will be the battle-cry here - some old entrenched attitudes will have to change, as new membership is our lifeblood. We are but custodians for the time – the founders saw the RSA living on well beyond them. There is still a job to be done – and there will be, for the foreseeable future.

You will see innovations in our approach to that essential issue of welfare; you will see change in the way in which we respond to issues that face us in the wider community (matters such as defence, veterans health issues, and others).

We need the continuance of a vital, large organisation with influence. Only in this way will we be able to continue to foster the concepts of Remembrance, of service to country and the community; of encouragement of our youth – and to ensure the continued well being in every sense of veterans and their dependants.

We wish to see our advocacy influence enhanced, and we will be doing our utmost to ensure government and its agencies understand us; and understand the vital role we play in the welfare assistance to veterans of this nation and their families.

Regrettably, we frequently need to stand in the shoes of government in providing some of this assistance. We need to ensure a proper understanding of the true character and significance of the RSA and its functions and role in today’s society.

There will be change – but beneficial change, carefully managed and purposefully directed. It is my true belief that the RNZRSA will grow and flourish.

Financial Snapshot

By a narrow margin, Council 2004 resolved to reduce Capitation from $8.50 plus GST per member, to $6.50 plus GST per member for the 2005 year.

As a result, RNZRSA faces a most significant challenge to continue to provide the level of service demanded by the Associations – but with a significantly reduced income stream.

That this reduction is to bite at the time we are introducing change makes it even more challenging. Change does come at a cost – but it will have downstream benefits. To some degree now, our change actions may be directed by fiscal imperatives, as much as organisational and best practices imperatives.

The council decision sees the income stream reduced by some 25%. In round dollar terms, based on 2004 membership, this reduces the RNZRSA income by some $275,000.

I would therefore like to outline some of the impact considerations facing NEC. The 2004 Budget saw RNZRSA total expenditure in the order of $1.1million. This expenditure related to normal operating expenditure, and did not relate to Trust expenditure. Within this sum, there were three major expenditure groupings, namely;

(a) Expenditure on the RSA Review $368,000.

(b) Expenditure on fixed cost items $550,000

© Expenditure on variable and discretionary items $180,000

The fixed cost Items include, among others; insurance, rates, legal costs, accounting and audit costs, body corporate costs, salaries, security, superannuation, telephone etc.

The variable cost items include, among others; National Executive costs, the Independent Review, membership, Poppy Day and ANZAC Day promotions, web site development etc.

So, the cold facts of life are, that at the reduced capitation level, next year RNZRSA will have $820,000 capitation Income, as opposed to the current $1,100,000 figure.

If we continue to fund the Review at the current level ($368,000) then the RNZRSA will be left with Capitation income of around $450,000 to fund its operating activities. These activities currently cost $ 820,000. This of course represents a reduction of around 45%!

NEC therefore has some very hard financial decisions to make.

You have set your new President and the National Executive Committee a daunting challenge and task indeed.

The RSA Review

At present, in round terms, slightly over 1/3 or 33% of your capitation is spent on the RSA Review.

Currently we distribute around 400,000 copies of the Review on an annual basis. Each Review costs around $1.16. So on these figures, it costs around $4.65 each year, for each of the approximate 100,000 members who receive the Review. At the new capitation rate of $6.50, this means, that if the structure, cost and distribution of the Review remain as is, around 70% of your capitation goes into maintaining the Review.

I think it important now, to put some issues related to the RSA Review into perspective. We hear constant and continual comment on the major cost saving impact that would accrue from reducing the distributed numbers – but please note this:

(a) Commercial reality is that normally as unit numbers decrease, so do unit prices increase.

(b) We receive an income of $100,000 per annum for Review advertising (thus subsidising the cost of the Review down to the $1.16 per copy price). At the moment, circulation figures are attractive enough to attract such advertising. If circulation drops significantly, so perhaps will the incentive for people to pay for advertising.

(c) Distribution costs as a whole represent 45% only of the total Review cost. If we were able to make a very challenging reduction of costs in this area (say 30%) this would reduce the cost per copy of the Review down to $1.02.

So, at a reduced circulation (from the present approximate 100,000 per edition) to say 80,000 per edition, the RSA Review would still cost around $320,000 per year – or 40% of your capitation. When considering any such possible reduction, we should also be aware of the possible postage cost increases resulting from a re-negotiation of our bulk postage arrangements based on around 100,000 copies per edition.

On my best approximate Presidential model (taking into account all cost saving proposals mooted to date, such as bulk delivery to Associations, further culling of numbers distributed etc) I see Review in its present structure and format eating up at least 40% of your capitation fees.

I also think it worthy of note, that if say only 80,000 members received the Review, on the present arrangements, they would in effect be being subsidised by the other 46,000 members. All members pay capitation at the same rate, so members, who received $4.65 worth of Review, would be “advantaged” in a subsidy sense by those who did not receive the Review.

If this situation remains, RNZRSA management, Head Office costs, NEC costs, essential variable costs, advocacy costs etc, must be managed within a budget of around $530,000 per annum, which is a reduction on present actual costs of some $300,000.

Clearly something must give.

The RSA Review and its future are another major challenge ahead of this NEC.

Summary

There are some significant challenges ahead. I have mentioned but two above - the financial situation and the RSA Review. Other major challenges and issues are - implementing the McIver and Moloney Report; recruiting and membership, strengthening our advocacy efforts on behalf of veterans in the health and welfare areas; assisting some of our smaller Associations and Branches in their battle for survival; and maintaining the voice of the RNZRSA at national level on matters vital to us as an organisation.

As President I will tell you that your National Executive Committee is committed to these issues – there will be some difficulties along the way, but over the next two to three years significant progress will be made.

Appreciation of Support and Congratulations

I would wish to express my sincere appreciation to all those individuals, Associations and Branches who have sent messages of support and congratulations to me on my election to the Office of National President. I am endeavouring to respond individually to all such correspondence - but this may take some time, as the numbers of letters etc I have received overwhelms me.
It is clear from the correspondence I have received, that there is a considerable expectation for some change - and an expectation that we move forward with such change with determination. I have published a Message in this edition of the Review with some thoughts on this issue.
I thank you all for your support and congratulations - and look forward to meeting with many of you in your home locations over the next 12 months.

John Campbell

National President