Childcare not simple as ABC

By Lia Bichel
MANY parents in the City of Greater Dandenong are facing uncertainty about childcare after ABC Learning Centres went into receivership last week.
The nation’s largest chain of childcare centres racked up almost $1 billion in debt, leaving the government to bail them out.
Federal Education Minister Julia Gillard says the government is providing $22 million in funding, and is working closely with newly appointed receivers McGrath Nichol so childcare services can continue until Christmas.
The future of the childcare centres after Christmas is uncertain. Since the collapse, media reports stated that 40 per cent of the 1000 centres nation-wide are not profitable, posing a threat to many of the 16,000 employees and 120,000 children who use the service Australia-wide. Instead, Ms Giliard announced that an Expression of Interest process has commenced and encouraged parties to register their interest in the future of the centres with the receivers.
This week, a Victorian not-for-profit childcare group has since expressed interest in buying up to 40 centres in Melbourne and eastern Victoria.
In the City of Greater Dandenong, seven of the 37 childcare services are ABC Learning Centres. Three are in Dandenong, two are in Noble Park, and two are in Springvale.
The downfall has created discussion throughout Victoria. Sam Aziz, a candidate for the Springfield Ward in the City of Casey, said the downfall was a great opportunity for Casey Council to consider taking over the centres if they were for sale.
“If these centres are managed properly, they could also be quite profitable and any income they generate could ease the rates burden for ratepayers or fund critical infrastructure projects which Casey desperately needs,” he said.
ABC Learning Centres are also under the spotlight after parent complaints over the past month.
In September, the News reported that Mr Aziz was planning to establish a lobby group to help raise the standards of childcare operators in the local area, after his wife found their son cleaning urine off the floor with a towel and bare hands at the instruction of his carer at the Berwick South ABC Learning Centre.
A News investigation last week found that former patrons also revealed their discontent with one ABC Learning Centre, and said they were not shocked by the financial crisis.
“The fees went up three times in two years,” said Raylene, who withdrew her child from ABC Learning Centres’ care eighteen months ago. Raylene said she was asked to pay four times the amount she is currently paying at another provider. Former patron Jane also told the News she withdrew her son one month ago due to expensive fees.
Officials at ABC Learning Centres said they were unable to comment about the issue, but Chris Honey of McGrath Nichol said parents should not be concerned.
“The interests of children, families, staff and their entitlements are central to our consideration in the process.”