The future of ABC Learning centres in the City of Casey is
By Lia Bichel
HUNDREDS of parents in the City of Casey are facing uncertainty over childcare after ABC Learning centres went into receivership last week.
The nation’s largest childcare centre racked up almost $1 billion in debt, leading to a temporary government bailout.
Minister of Education Julia Gillard said the government was providing $22 million in funding and was working closely with newly appointed receivers McGrath Nichol so childcare services could continue until Christmas.
The future of the childcare centres after Christmas is uncertain but Ms Gillard said parents should not assume they would close, because they might be profitable if run by someone else.
Ms Gillard has encouraged parties to register their interest in the future of the centres with the receivers.
This week, a Victorian not-for-profit childcare group expressed interest in buying up to 40 centres in Melbourne and eastern Victoria.
In the City of Casey, 36 per cent of the 66 long day childcare services are ABC Learning Centres, with 1852 of the available 4708 places belonging to the childcare giant. Four centres are in Berwick, two in Cranbourne, three in Narre Warren and 15 others dispersed throughout the municipality.
Candidate for Springfield Ward Sam Aziz 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 have been put under the spotlight over the past month after parent complaints.
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. His wife had 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 an ABC Learning centre’s 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.
Representatives of ABC Learning Centres in the City of Casey 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,” he said.
