Childcare Sector In Danger Of Collapse

A new grouping of ACOSS, the ACTU, childcare unions LHMU and ASU, and the National Association of Community-Based Children’s Services have joined together for the first time to call for a ‘National Rescue Plan for Childcare’ in tomorrow’s Federal Budget.

A National Childcare Rescue Plan is urgently needed to make childcare cheaper for parents, provide quality care for children through better pay for childcare workers, and reduce waiting lists through more childcare places and new community centres.

Andrew McCallum, ACOSS President said:

"More than 800,000 children and their parents who rely on child care have been hit with a 30% rise in fees over the past two years (ABS figures) and the median cost to families for a child in long day care is now over $1800 a year.”

“A new ACOSS survey of children's services also shows waiting lists grew by nearly 40% last year. For middle and low income Australians childcare has become a lottery of trying to find a place and trying to find the money to pay fees. This is putting families under enormous strain."

Sharan Burrow, ACTU President said:

“At their current rate childcare prices are set to double during the period 2002 to 2008. Being able to afford childcare is a big problem for working families but there are also major workforce problems for childcare centres. A recent Government report warned that the whole industry is in danger of collapse unless there are pay rises to attract more childcare staff.”

“In many States childcare workers receive no more than the minimum wage of $11.80 an hour — less than $450 a week and less than $25,000 a year. Childcare staff are leaving the profession because their job prospects are so limited and yet staff continuity is crucial to the relationship needs of children.”

Jo-anne Schofield, childcare union LHMU assistant national secretary said:

“It’s outrageous that junior childcare workers are paid as little as $6 an hour while BRW estimates the personal wealth of the directors of the big private providers of childcare at up to $146 million.”

“Quality child care demands quality wages and the Federal Government should set aside extra funding in the Budget to cover the pay rises for 76,000 child care staff due from the five pay claims currently underway with hearings in Victoria starting tomorrow and in NSW later this month.”

Lynne Wannan, National Association of Community-Based Children’s Services said:

“Parents are suffering on long waiting lists because there are not enough childcare places. The Australia Institute of Health and Welfare estimates that more childcare places are needed for around 175,000 children. Almost 50,000 children need more before and after school care, 45,000 children need more long day care and occasional care is needed by 37,000 children.”

“Also, the non-profit community-run child care sector is starved of capital funding and this is holding back the setting up of new centres, especially in regional and poorer areas where private providers can’t see a profit.”

Media Contacts: Andrew McCallum c/- Anouk Ride ph 0419 626 155;
Sharan Burrow c/- Ian Wilson ph 0408 513 849;
Jo-anne Schofield ph 0425 242 684;
Lynne Wannan ph 0418 556 724

Media Conference

Childcare providers, unions & welfare groups call for 'National Childcare Rescue Plan' in tomorrow's Budget.

10.30am Monday 10 May
East Melbourne Child Care Centre
Cnr Grey and Simpson St, East Melbourne

Contacts:

  • Sharan Burrow, ACTU - c/- Ian Wilson ph 0408 513 849
  • Andrew McCallum, ACOSS - c/- Anouk Ride ph 0419 626 155
  • Jo-anne Schofield, childcare union LHMU - ph 0425 242 684
  • Lynne Wannan, National Association of Community-Based
    Children's Services - ph 0418 556 724

  • Childcare costs for parents up 30% in two years
  • Chronic staff shortages due to low wages
  • Waiting lists for places growing by 40%