[Greens-Media] Hanson-Young: Diversifying childcare sector requires Capital Grants Fund

[Clark, Gemma (Sen S. Hanson-Young)]

Thursday 11 December 2008

Diversifying childcare sector requires Capital Grants Fund

Greens Senator Sarah Hanson-Young says that yesterday's statement from
Education Minister Julia Gillard has raised considerably more questions
about the future of hundreds of ABC Learning centres.

Yesterday it was announced that 55 ABC Learning centres would close from
December 31 this year, with another 241 to be propped up until March 31
2009 by with $34 million of Government money, despite them being
considered unviable under the current business model.

"Parents and workers at hundreds of centres now face yet more
uncertainty into 2009 in light of this statement," said Senator
Hanson-Young.

"For thousands of families and workers, yesterday's announcement was
simply deferring any real news. Instead of wondering, 'what will happen
on December 31?', now they're asking themselves, 'what will happen on
March 31?'"

Senator Hanson-Young said the Government must ensure that ABC Learning
centres were not going to be purchased en masse by another giant
corporate entity.

"What is the Education Minister doing to guarantee that all centres
being sold - either those in the group of 241 unviable centres, or the
700-odd being sold by the receiver - are not simply going to be snapped
up by another ABC Learning lookalike?

"This situation, where an essential service delivering the care of our
youngest children has been put in jeopardy, must never be able to happen
again."

Senator Hanson-Young said that the Government must seriously consider
the Greens' proposal of a Capital Grants Fund to enable non-profit
service providers to take on endangered ABC Learning centres.

"The Education Minister has said she wants to 'diversify' the sector.
Well, a Capital Grants Fund to give non-profit childcare providers the
opportunity to step up and acquire and operate these purpose-built
facilities must be on the table.

"What will the Minister do to communicate with service providers, who
have the know-how and are willing to take over these failed ABC Learning
centres, with some assistance?"

"Fixing childcare in Australia needs a sustainable, long-term approach,
rather than throwing millions of dollars into propping-up unviable
centres without an evident contingency plan."

Media contact: Gemma Clark on 0427 604 760