Government negligent on ABC childcare licences

14-January-2009

Thousands of families could lose their local Childcare Centre in a licensing bungle over closing ABC Centres which the Government should have anticipated, Shadow Minister for Early Childhood Education and Childcare Sophie Mirabella said today.

“Minister Gillard famously said that many of the ABC Centres deemed unviable by the Receivers could be effectively run under another model. Now it appears that those Centres might be forced to close because the Receivers of ABC will not transfer the licence to the next operator,” Mrs Mirabella said.

“If the Government is genuine in wanting Centres to remain open, why are they sitting back and letting Centres close when there are willing buyers? It’s either sheer incompetence or the Government doesn’t want privately run centres for ideological reasons.”

Mrs Mirabella said she had been approached by the landlord of an ABC Centre that closed at the end of December who has a willing buyer but has been unable to offer a continuing service for parents because ABC had refused to transfer the licence for those premises.

“New operators face up to 6 months wait for a licence, which is totally unnecessary. It’s standard industry practice to transfer the licence to an incoming proprietor as it is linked to the premises.”

“This is a basic issue that the Government knew about. Why haven’t they acted in the community interest and demanded of the Receivers that the licences are handed over as ABC Centres close? It appears to many parents that the Government wants these Centres to close.”

Mrs Mirabella said it was crucial that the Government ensure the transfer of licences in the 249 Centres that are currently being reviewed.

“Parents at these Centres can’t be expected to find alternative care for up to 6 months while a new operator waits for licence. If that’s the way it will work then potential buyers ought to know, and it will certainly affect the viability of those Centres.”

“The Government needs to ensure a seamless transfer in cases where there is a potential buyer. And the landlords at the Centres that closed before Christmas should be able to get another provider in straight away to keep the service up to local parents. Parents shouldn’t be forced to a different Centre because of Government negligence in handling the issue of licences.”

Mrs Mirabella said it was time for the Government to come clean and let the industry and the public know exactly how closely they are working with the different Receivers and how the whole process for expressions of interest will be managed over the coming months.

“The Government has failed to answer some basic and vital questions:

• What exactly is the criteria for assessing expressions of interest?

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  Are applications assessed solely on the basis of maximising the financial position, or will community needs be considered?

• What role does the government have in the EOI process – given they are providing and extra $34 million to keep these Centres operating until March?”

Mrs Mirabella said there was growing frustration and anger within the childcare industry over the ongoing uncertainty and the lack of communication between the Receivers and potential buyers and landlords of ABC Centres.

“It’s a disgrace that local individuals and organisations wanting to be involved in finding a solution continue to be arrogantly disregarded. Upset parents want their Centres kept open, and there are local organisations interested in running them – but they are getting nowhere because no one has bothered to contact them at all.”

“Now we have the case of licences, which should be easily transferred, being withheld. It’s really getting beyond a joke.”

“March is not that far away – the Government needs to step up to the plate and finally show some leadership. They obviously don’t have a contingency plan, as they promised, but they should have some idea of how the Expression of Interest process will be conducted,” Mrs Mirabella concluded.