CHILDCARE COSTS TO SOAR UNDER RUDD GOVERNMENT

01-September-2009

An Independent Economic Analysis has found that the Rudd Labor Government’s childcare shake-up will add significantly more to the cost of childcare than parents are being told, Shadow Minister for Early Childhood Education and Childcare Sophie Mirabella said today.

 “The consultation process is a farce because parents and providers are not being given the full details of the Government’s agenda. Now we have an independent economic analysis, commissioned by Childcare Queensland, finding that costs in that state will rise by over $13 a day – not the “few dollars” the Minister has tried to assert,” Mrs Mirabella said.

 “It is very clear that parents are not being told how much costs are expected to rise.  In fact, they are being misled into thinking that the rise will be minimal.  That is clearly not going to be the case.”

 “Even the Government’s published estimates on out-of-pocket costs for parents, hidden on page 37 of the Regulation Impact Statement, do not give an accurate picture – as they relate to only a fraction of the reforms.”

 Mrs Mirabella said that parents had a right to believe that there was not going to be any cost-impact because at the last election Labor promised quality reforms and that they would also “slash childcare costs for parents”. 

 “The Rudd Government has deliberately misled parents. The fact is that under Labor’s proposals, every state licensing regulation – including building and play space requirements – could be altered to impose a national standard. This has the potential to cause operating costs to absolutely skyrocket for providers, which in turn will add significantly to the cost to parents.”

 Mrs Mirabella said the Rudd Government had failed to explain:

·         Exactly what state licensing regulations will be standardised – for example, will providers have to reduce child numbers in order to comply with new space requirements?  Will maximum group numbers be imposed, thereby affecting how Centres operate?

·         Whether the State Governments will police and administer the new system, or a new national body.

·         How the current accreditation process will be streamlined and how standards will be assessed.

·         How the childcare industry will be able to retain qualified Early Childhood Teachers in order to meet the requirements, when conditions in the education sector draw qualified people away.

·         What timeframe providers will have to comply with the new standards.

·         What penalties will apply to providers who do not comply with new standards.

“I recently met with representatives from the Department and the Minister’s office and I couldn’t get any answers to these questions.  There are many unresolved issues – and a huge number of decisions still to be made by COAG,” Mrs Mirabella said.

 “This whole consultation process seems very dishonest. How can providers or parents provide feedback when they aren’t being given the full picture?” 

 “Parents and providers must be told how the changes will affect all additional costs.”

  “The Minister’s glib response that the Government will foot half the increased costs for parents through the childcare rebate is misleading – the fact is, the rebate is capped so once out-of-pocket expenses reach a certain level then parents will pay 100% of the cost.”

 “And on the independent modelling commissioned by Childcare Queensland, the annual increase would be in excess of $3000 dollars each year – and that’s just for 1 child.”

 “Any increase in fees at this time when we have rising unemployment and economic uncertainty will be a burden on working families.”

 “I am not sure that Minister Kate Ellis appreciates that fact.  If she did, she’d be instructing her Department to be upfront with parents and tell them the full picture on how much fees will rise. Only then can they expect honest feedback through the consultation process.”