December too late for ABC parents and staff

11-November-2008

The Government’s lack of a clear contingency plan for the future of ABC Childcare Centres could mean the further decline of the financial situation before the Government announces their long-term plan in December, Sophie Mirabella MP, Shadow Minister for Early Childhood Education and Childcare said today.

“I welcome Minister Gillard’s announcement of a new “Expressions of Interest” process for those in the childcare sector who may be considering purchasing one or some of the existing ABC Centres, but the fact is that parents and staff need reassurance now on what the Government’s long-term plan is,” Mrs Mirabella said.

“The Minister told the House several weeks ago that she had a Taskforce examining and working on a contingency plan. Where is the plan?,” Mrs Mirabella said.

“Surely, the plan isn’t just putting forward $22 million to keep unprofitable Centres afloat and telling parents and staff to stay put and wait for the new year,” Mrs Mirabella said.

Mrs Mirabella said the Government had indicated it would announce “further plans” in mid-December.

“Mid-December is 10 days before Christmas. It’s 2 weeks before the Government’s $22 million package expires on December 31. Does the Minister seriously think that gives parents time to plan for alternative care or staff time to find another job in the new year?”

“There’s evidence the ongoing uncertainty is affecting staffing levels and it will no doubt have an effect on attendance levels too – as parents make alternative plans rather than risk waiting until mid-December.”

Mrs Mirabella said the Minister had fuelled speculation and uncertainty by outlining that initial advice suggested up to 400 Centres were currently unprofitable.

“The Minister had to back-pedal today and admit that the Centres may in fact be profitable under another service provider. But the fact remains that she has raised the level of uncertainty in all 1040 Centres.”

“While the Coalition supports the $22 million funding to keep Centres open and provide security for worried parents, Ms Gillard needs to make good on her promise that the Government has a contingency plan - and let Australian parents know exactly what it is.”

“This situation has not come from out of the blue. There were indications 9 months ago that the company was in serious trouble, they ceased trading on the stock exchange in August, and the Government is not going to announce its contingency plan until December. This is just not good enough.”