Rudd Government ignores concerns of local Bundaberg Childcare Operators

02-October-2009

The concerns expressed by local Bundaberg Childcare operators this week regarding the failure of some parents to pay their fees despite claiming the Government rebate had been raised with the Rudd Government back in May by Shadow Minister for Early Childhood Education and Childcare Sophie Mirabella, local MP Paul Neville said today.

 Mrs Mirabella lodged questions in Parliament in May regarding the practice of parents jumping from Centre to Centre without paying their fees. 

 “The response I got from Minister Gillard was quite frankly not good enough.  She has basically said that under the legislation all a parent has to do to be eligible for the Government rebate is to have “incurred a liability” – it doesn’t matter if they don’t actually pay their fees,” Mrs Mirabella said. 

 “The local Early Years assistant Director Kristy Ramsay was quite right when she said this is a big problem in the industry.  I’ve had the same feedback form other providers and that’s why I raised it with the Minister.  It’s a pity the Government doesn’t want to do anything about it.”

 Local MP Paul Neville said he was concerned that local operators might be forced to close if the practice continues to grow.

 “Local childcare providers work very hard and the profit margins are very slim – if parents don’t pay their fees, then the future of the service is placed in jeopardy.  Most local parents do the right thing, but those who don’t put the service at risk,” Mr Neville said.

 “The Coalition will continue to pursue this with the Rudd Government to ensure that this fraudulent practice is does not continue.”

 Mrs Mirabella said she welcomed the local suggestion of some form of “register” for parents who have outstanding fees.

 “It’s an idea that certainly has merit.  With the Childcare Management System (CCMS) all details are now lodged electronically.  If someone has a previous debt, then that information could easily be stored on their record so that when they approach a new childcare provider they know about the previous failure to pay.”

 “That could stop the process of floating from Centre to Centre leaving debts behind. It also means the Government would be able to cross-reference that information with recipients of the child care rebate to find out whether they had fraudulently claimed the rebate.”

 “It’s just not good enough that the Rudd Government is prepared to dish out taxpayer funds without any accountability and leave childcare operators with the responsibility of being debt collectors.”