ABC sale delay contrary to Government advice that "receivers were on track" for March 31

18-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.

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

Senator 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.

Senator 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.

“The advice given to Senate Estimates just 3 weeks ago now appears to have been just plain wrong. 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.”

“Surely the Government could see a few weeks ago that more time would be required? Why was Senate Estimates given assurances that were false? The Minister needs to explain.”

Mrs Mirabella said the revelation that the sale of ABC Centres will be further delayed by 6 weeks raises more questions than answers:

• The Receivers said that the sale of 65 Centres is currently underway – what is happening with the other 176 Centres?

• Will the sale of these 176 Centres be finalised in time for the new deadline?

• Exactly how many Centres might be forced to close, as the Receivers have now admitted some will?

• How many potential buyers dropped out at the crucial final offer stage?

• What has gone so badly wrong in the last few weeks to cause this unexpected delay?

“The Minister should stop the spin and explain exactly why this situation continues to drag and taxpayers funds continue to be used to keep Centres operational beyond their own deadline.”

“Concerned parents have a right to know what is going on and the Government should come clean,” Mrs Mirabella concluded.