[Greens-Media] Plan B must be revealed for ABC Learning

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

Thursday 6 November 2008

Plan B must be revealed for ABC Learning

Greens Senator Sarah Hanson-Young says there can be no further delay in
informing Australian parents and childcare workers about how contingency
plans flagged by the Federal Government will be rolled out, following
today's collapse of ABC Learning Centres.

ABC Learning, which runs 1200 childcare centres in Australia and New
Zealand, appointed administrators today after months of financial
troubles.

"The biggest player in Australian childcare has just folded, with the
possibility of now taking 100,000 long daycare places with it," said
Senator Hanson-Young.

"Despite reassurances that centres will remain open, it's clear the
company's in bad shape. Parents need to know where their children can go
if the doors can't stay open.
 
"The thousands of workers employed by ABC Learning also need to know
what their futures hold."

Senator Hanson-Young said the fact that ABC Learning received 44 per
cent of its revenue from the Federal Government was a sign that the
not-for-profit childcare sector needed more government support.

"This huge company was propped up by Australian taxpayers, with nearly
half of its revenue coming from government subsidies," she said.

"That money could have been invested into community-based,
not-for-profit childcare centres, which would not have run the risk of
corporate collapse like ABC Learning.

"The care and learning of our children is far too important to be
treated purely as a money-making venture.

"The silver lining of ABC Learning's demise could be that, with help
from the Federal Government, some of the centres could be returned to
the community sector." 

Senator Hanson-Young said that the ABC example showed that childcare was
an important issue needing immediate attention.

"Last year we had more babies born in Australia than ever before, a
significant number of whom will require formal childcare before the age
of five years," she said.

"The Greens recognise childcare as an essential social service, and will
continue to fight for high-quality, affordable, accessible childcare for
Australian families."

Media contact: Gemma Clark on 0427 604 760