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EXCERPTS
Child care giant ABC Learning Centres was trying to disprove the economic theory that market competition improved services, a court has heard.
In the Environment, Resources and Development Court yesterday, the company appealed against a decision by the Tea Tree Gully Council to approve a 46-place childcare centre 600m from its Hope Valley centre on Grand Junction Rd. Acting for ABC Learning Centres, David Cole, told the court information from social planners indicated there was no need for the Li'l Sprouts childcare centre in the area, which had already 11 centres.
He said that because the Tea Tree Gully Council had predicted a decreasing population of under four-year-olds in the area, the future supply of childcare places could outstrip demand.
This could lead to a reduction in the quality of services provided by the competing organisations, Mr Cole argued.
He asked the court to rule against Li'l Sprouts' motion to dismiss the ABC appeal.
Judge Susanne Cole asked how the service to individual children could decline from competition between the two centres. She said market forces were believed to provide better services and lower prices, and indicated ABC was trying to prove the opposite of current economic theory.
"Are we (the court) to enter community competition like that &em; isn't it for the market to sort out?" Judge Cole asked.
"How can the service to the individual child decline?"
Mr Cole said the matter should be allowed to proceed to a further hearing to argue the merits of the appeal by ABC. "We say it would be unfair, unjust and premature to dismiss the case at this stage," he said.
Acting for Li'l Sprouts, James Hilditch said the appeal should be dismissed because it was obstructive and "frivolous and vexatious".
He said ABC had not provided evidence to the court to support its claim the two centres would not be viable and had declared ABC had a "commercial competitive interest" in appealing against the council decision.
Judge Cole reserved her decision on the motion to dismiss the ABC appeal.
- reprinted from the Advertiser