Bidders pull out of ABC Centre sales

26-February-2009

A growing number of bidders for 241 ABC Centres have pulled out at the final-offer stage which closed yesterday, Shadow Minister for Early Childhood Education and Childcare Sophie Mirabella said today.

Mrs Mirabella said there had been strong interest at the non-binding offer stage, but this has “all but dissipated” and she called on the Government to outline its contingency plan should some of these Centres fail to sell.

“My office is getting calls each day from potential buyers who have pulled out at the final offer stage.”

“There are reports in a Queensland newspaper this morning that bidders for 2 local Centres in Bundaberg have pulled out at the final stage – the concerning thing is that both bidders had expressed interest in purchasing multiple Centres and now they have pulled out.”

“These potential buyers, C & K Childcare and YMCA Bundaberg, cite the same reason I’ve been hearing over and over – lack of vital information from the Receiver. The Receivers PPB have refused to disclose relevant commercial information like lease details, room sizes, license transfer arrangements and details of staff entitlement.

“No commercial enterprise would take up a contract without such vital details. It’s not surprising that many are faltering at the last step. There’s a lot of frustration with the way the Receivers have handled this process – and the Government, by its silence, is obviously sanctioning the Receivers actions.”

“This is either sheer incompetence or part of a wider agenda to drive private operators away.”

Mrs Mirabella said the Receivers’ handling of the situation could in fact mean that some of the 241 Centres would be closed.

“Parents in these Centres have every right to be concerned that the Receivers have driven away buyers and the Government has let them do it. Now it seems the Government has no contingency plans beyond March 31.”

“In answer to a question yesterday in Senate Estimates by Liberal Senator Marise Payne about what will happen to any unsold Centres after March 31st, the Chairman of the Government’s Taskforce, Michael Manthorpe basically had no answer.”

Mrs Mirabella called on Deputy Prime Minister Julia Gillard to reveal exactly what will occur if Centres remain unsold after March 31.

“Over $34 million in taxpayer funding has been spent to keep these Centres operational since December, and the whole process has been shrouded in a veil of secrecy,” Mrs Mirabella said.

“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 provided no answers to the public.”

“The Government needs to urgently reassure parents that there is a contingency plan for beyond March 31,” Mrs Mirabella concluded.