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Report damns profit-driven child care in wake of ABC empire's fall

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Author: 
Chudleigh, Jane
Format: 
Article
Publication Date: 
24 Nov 2009

 

EXCERPTS

Childcare regulation should be overhauled to remove the profit-driven problems leading to the massive collapse of the ABC Learning empire, a senate committee has found.

A 12-month inquiry into child care tabled in the Senate last night recommended the formation of a new national statutory body as part of an overhaul of the multibillion-dollar industry. The report was damning of the business approach taken by ABC Learning, whose collapse last year sparked the inquiry.

"That an organisation catering for up to 25 per cent of the long-day care market should fail so rapidly following its rise to market dominance says as much about the deficiencies in childcare policy and regulation as it does about highly questionable business practices of the company," the report found.

It recommended small-scale or individual independent operators and not-for-profit and community-based organisations as the best to provide services.

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A boost to funding was also highly recommended by the senate committee, especially to services for disadvantaged children and those in rural, remote or poorer areas.

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- reprinted from the Courier-Mail