Council Calls for Childcare Review

16 Jun 2008

Parramatta City Council has urged the Federal Government to review the impact of the National Competition Policy on councils and their ability to deliver affordable childcare for working families.

“Complying with the National Competition Policy is starting to cripple council’s ability to run childcare centres at neutral cost,” said the Lord Mayor of Parramatta, Cr Paul Barber.

“For the past two years Parramatta City Council childcare centres have not been breaking even. Their income needs to cover their costs and this needs to be rectified to adhere to the competition policy and to maintain good fiscal responsibility.”  

“We are stuck between a rock and a hard place, wanting to stay in the market and offer residents a quality public service and yet keeping that service sustainable.”

 “Other unseen factors, particularly Federal Government changes to the Family Child Care Benefit (CCB) Scheme, mean that families are now eligible for less of a subsidy and it is changing the nature of how they use childcare,” the Lord Mayor said.

“As a result, many parents have reduced their childcare from 5 days per week to 3 or 4 days per week which leaves childcare centres in Parramatta with a high number of single day vacancies. We now have an enduring trend of under-utilisation which impacts significantly on our ability to deliver a cost neutral result for childcare,” the Lord Mayor said.

“As utilisation rates and income decrease, our high costs in staffing and maintenance remain the same. It would make better sense if there was a way all levels of Government could increase their subsidy to parents, especially during difficult economic times,” the Lord Mayor said.  

“It is a serious financial situation and my Council has been working hard to find solutions to the sudden increase in childcare costs.  It is also imperative that councils or ratepayers are not exposed to the unnecessary risk of penalties for unfair and so-called anti-competitive trading from the private sector,” he said.

“The last thing we need is a market over-dominated by private operators. We have worked to cushion the financial burden placed on families but it’s essential that a serious effort be made to support councils in providing safe and economically sound childcare facilities,” he said.