Govt secrecy and spin covers ABC sale delay

13-March-2009

The Federal Government must lift the veil of secrecy and reveal the facts behind the delayed sale of the 241 ABC Learning Centres, Shadow Minister for Early Childhood Education and Childcare Sophie Mirabella said today.

“The Minister has today agreed to the Court-appointed Receiver’s (PPB) request for an extra 6 weeks to finalise the sale of ABC Centres. It is time Australian families had the facts about what is going on. This process has been shrouded in secrecy from day one.”

“All we get from the Minister is carefully scripted spin to mask the Government’s inaction and lack of a plan for the childcare industry.”

“While the Government says that no additional funds above the $58 million already allocated will be required, the fact is any unused funds were going to be returned to the Commonwealth on the 31st March. So this 6 week delay does cost taxpayers.”

Mrs Mirabella said that the Government’s Childcare Taskforce Chairman Michael Manthorpe had told Senate Estimates just 2 weeks ago on the 25th February that the Receivers would meet the March 31 deadline: (hansard below)

PAYNE: So we can come back to that. In terms of that key date for so many people—31 March—is it still the expectation that the sale processes for these 241 centres will be completed by then?

Mr Manthorpe: Yes. Mr Parbery and Mr Bryant are on track.

PAYNE: Can you advise us whether there is any concern that any of the 241 centres will not be sold as part of this current process?

Mr Manthorpe: I would prefer not to speculate about that, Senator, halfway through the sale process. I can say that there is certainly strong interest at the non-binding offer stage in all of the centres. There have been entities interested in all of the centres at the non-binding stage.

Mrs Mirabella said she was also deeply concerned by the admission today by PPB that not all 241 Centres may be sold in this process – even with the new deadline of May 15.

“I have called on the Government to reveal their contingency plans and it appears they simply haven’t got any. This really isn’t good enough.”

“Despite having four Departmental staff working closely with the Receivers on a daily basis, and providing taxpayer funds to keep these Centres open, the Government has not given any meaningful feedback to concerned parents and the public. And the advice given to Senate Estimates just 2 weeks ago now appears to have been just plain wrong.”

“Today’s revelation that the ABC situation will be further delayed by 6 weeks once again raises more questions than answers. Concerned parents have a right to know what is going on and the Government should come clean,” Mrs Mirabella concluded.