Sophie Mirabella Blog of the Day - Childcare in crisis
14-January-2009
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Crucial to the future of the childcare industry is not the collapse of ABC Learning per se, but how the demise of the market giant has exposed gaping holes in both Labor's childcare plans and a widening ideological chasm between sectors of the childcare industry.
The Government has talked about the need for greater transparency (ABC's collapse has revealed a certain murkiness to the mechanisms within which the industry operates), but has steadfastly refused to make public the vacancy data they collect each week.
That's a big inconsistency. The childcare industry is crying out for some accurate data - to get a handle on exactly what and where demand is so they can better meet it. It's a simple thing. The Rudd Government collects these figures each week but has not made them public once. Why?
Perhaps it has something to do with the fact that they made an election commitment to build 260 childcare centres themselves. Yes, 260 - that's more than the number currently in doubt and being propped up by the extra $34 million the Government provided last month.
At this point, the Government has budgeted taxpayers funds of $114.5 million over the next 4 years to build just 38 new centres - more than double what they've spent to address the ABC situation so far. How much will the other 222 cost? It beggars belief that they are proceeding with this plan in the current climate where many centres (most purpose-built) are being closed down.
The Government's announcement that they would build "one stop shops" was a great headline grabber during the election campaign - but is it really good policy? Especially now?
Releasing the vacancy data and dropping their ridiculous plan to build 260 Centres are two very simple, common sense ways the Government can immediately help in the rebuilding of the childcare sector. There's a lot of merit in a national approach through COAG and in streamlining and simplifying both the reporting and the accreditation process - all of which were initiated by the former Government. We'll see how far these progress and at what pace.
There isn't space enough to go into the myriad of specific ways the Rudd Government has failed in it's handling of the ABC collapse. You can check out my media releases at www.liberal.org.au/Shadow%20Ministry/Sophie%20Mirabella
Childcare in Crisis logoNeedless to say, the off-hand attitude of the Minister and the notable absence of the Parliamentary Secretary does not auger well for a Government-led approach to reforming and improving the childcare system.
And there are serious problems in a sector-led approach, not the least of which is its ideological divisions. The childcare sector is undoubtedly in the grip of a public vs private battle reminiscent of that which was had in the education and health sectors in the 80s and 90s (and is still being waged today by a few unions and ideologues). Driven by the increasingly popular argument that childcare is now something to which universal access is a right, like health and education, the not-for-profit and private sector appear waged in a bitter war that can only hinder the future development of the industry.
The collapse of ABC has been held up as proof positive that care and profits do not mix. As the undeniable success of both the private education and health sectors in Australia have proved, that's a nonsense argument. The fact is that just like in those 2 industries, the childcare sector needs businesses willing to put up the capital and provide the services or there simply wouldn't be the places to meet demand.
The sooner both sectors of the childcare industry get over the ideology and recognise that they are both vital to the future of childcare and, moreover, the presence of one will undoubtedly hold the other to greater account and higher standards, the better for all.
The question of whether the collapse of ABC Learning has created a crisis in childcare, or whether an asymptomatic crisis in childcare claimed the market giant is a good one, albeit largely academic.
And I use the word "crisis" in the context of current public perception. It's important to remember that ABC Learning owned approximately 25% of long day care centres in Australia. They had a significant market share, and had employed an aggressive (and ultimately flawed) business model to acquire that share, but they were by no means a monopoly or even a majority stakeholder in the childcare stakes.
It's prudent to keep in mind that 75% of long day care providers, the bulk of which are small private businesses, are operating as usual outside the sphere of administrators or receivers. Indeed many are poised to assist in getting the industry through this "crisis", (If only the Government would talk with them).
Alongside these we also have a professional family day care system, after school hours care, vacation care, and a myriad of private arrangements for care.
On that note, it's also worth remembering that the biggest deliverers of 9-5 childcare in Australia are still families. An analysis of the 2006 Childcare Census numbers and the Bureau of Statistics figures show that on any given day close to 55% of 3-5 year olds are being cared for in a private family arrangement (rather than government subsidised facilities), this figure rises to more than 70% for 1-2 year olds and close to 90% for babies under 1.
The Childcare Industry is extremely important - no two ways about it. But as we examine the future of how we care for our babies and children, we must be careful to include support, education and assistance to those who daily take on the job for the love of it and are biologically hard-wired to deliver nurturing, high quality care - parents.
Sophie Mirabella was appointed Federal Shadow Minister for Early Childhood Education, Childcare, Women & Youth by Opposition Leader Malcolm Turnbull in September 2008 - less than 3 months after giving birth to her first child Alexandra. A Barrister by profession, Mrs Mirabella was elected to represent the rural north-eastern Victorian seat of Indi in 2001.