CHILDCARE PROVIDERS IN TURMOIL MORE EVIDENCE FOR STRONGER GOVERNMENT INTERVENTION, FEE CAPS

The latest upheaval at Genius Childcare - centres closing, child health and safety breaches, staff unpaid, and parents left scrambling [1] and the emergency closures of childcare centres operated by the group Bambini [2]  — are further evidence of the need for stronger government action in Australia’s early learning system.

The Parenthood’s Georgie Dent said the issues at Genius and Bambini are glaring examples of the failure of Australia’s market-driven approach to early learning.

“Even one private provider cutting corners, shutting doors and leaving families and workers in crisis in one service is too many and it has a catastrophic impact.”

“Early childhood education is a vital service, yet it’s not treated as one. Our current system is dominated by for-profit providers who prioritise profits over the needs of children, families, and staff.

“Several expert advisory bodies including the Australian Competition and Consumer Commission and the Productivity Commission have confirmed: despite charging very high fees, for-profit providers lack the quality standards upheld by not-for-profits.

“The crises at Genius and Bambini are yet another reminder: unless the Government plays a more active role in the sector, these occurrences are only likely to increase.

“Government intervention works. We’ve seen it time and again with other essential services like Medicare, like our great public schools, like superannuation.

“Australia’s families, children and educators deserve an early learning system that is not dictated by profits which can too often come at the cost of quality and safety.

“The only way to achieve that is for the Government to remove the profit incentives that currently drive our early childhood system.

“The Child Care Subsidy model has unfortunately proven to be ineffective at this.

“Which is why we’re calling on all parties and candidates to commit to introducing childcare fee caps and directly fund early learning services.

“Without limits on what providers can charge, families are left vulnerable to skyrocketing costs, while providers cut corners on quality and staffing to maximise profits.

“Fee caps would ensure affordability for families while giving the Government greater oversight and control over the sector: this would guarantee quality, access, and fair compensation for educators.

“Relying on the model that has repeatedly failed families, children and educators is simply unacceptable.

“To ensure that all Australian families and children can access high-quality early childhood education and care, the Government must be bold and set the terms for providers,” Ms Dent said.

[1] ‘Crumbling’ childcare chain leaves parents in the lurch, staff unpaid – The Age

[2] State orders emergency closure of 56 Bambini Child Care locations – Herald Sun