Close monitoring of ABC Learning Essential - Mirabella

14-October-2008

The Rudd Government should be closely monitoring the financial security of ABC Learning Centres to provide certainty for the many thousands of Australian families who rely on the childcare provider, Shadow Minister for Childcare Sophie Mirabella said today.

“ABC Learning, a publicly listed company, has now not traded on the stock exchange for close to 2 months. That’s very concerning, especially given some of the issues that have been raised in the past and the current market volatility,” Mrs Mirabella said.

“When you have one major company that controls up to a third of the long-day care market, and the Government is providing more than $1 million a day to that company via taxpayer-funded subsidies, it’s crucial that some form of oversight is taking place in these circumstances.”

Mrs Mirabella said she was concerned by the “deafening silence” from the Government on ABC Learning.

“ABC Learning Centres care for over 100,000 young children every day – yet the Parliamentary Secretary for Childcare Maxine McKew and the Minister for Families& Community Services Jenny Macklin both have not said a word since the company stopped trading.”

“I am not suggesting that they should interfere in any ASIC investigation or comment on the financial structure of the Company. But I sincerely hope they have been monitoring the situation closely and can assure Australian parents that they have some sort of contingency plan should the company falter.”

“That’s not being alarmist – that’s common sense when the company has already flagged that it would have to declare a pre-tax loss of $437 million, and had its share price fall from a high of $8.80 to just 57 cents at the trading halt.”

Mrs Mirabella called on the Government to reassure Australian families who rely on the care provided at ABC Learning Centres.

“The global economic crisis should really put us on alert to situations like the current one with ABC Learning. The Government needs to be vigilant to ensure that thousands of families do not suddenly find themselves without childcare.”