Julia Gillard (Lalor, Australian Labor Party, Deputy Prime Minister) Share this | Hansard source

I thank the member for Kingston for her question. I know that as a representative of a young and growing community she is particularly concerned about the circumstances of childcare provision in her electorate and around the nation. Yesterday I updated the House on the government’s response to ABC Learning moving into voluntary administration last week, after which, almost immediately, a receiver was appointed by the creditors of ABC Learning. I take the opportunity to update the House today on some developments that happened yesterday.

The government’s childcare industry task force yesterday met with the receiver and was updated on the receiver’s plans. The receiver of ABC Learning is now undertaking a detailed review of the operational data of each and every ABC Learning Centre. During this period of time the government has been assisted by members of PPB, an insolvency and corporate recovery practitioners firm.

Today I can announce, as a consequence of yesterday’s discussion between the government’s childcare industry task force and the receiver, it has been agreed that government representatives, including members of PPB, the insolvency and corporate recovery practitioners, will be embedded working with the receiver in undertaking this work of a detailed review of the operational data of each and every ABC Learning Centre. Of course, this work is essential and necessary in order to determine the best way forward for all ABC centres. In some cases this may create opportunities for not-for-profit and for-profit entities to operate local childcare centres that were previously operated by ABC but were not viable under the ABC current business model.

As members of the parliament would be aware and would have seen media reports in relation to, a number of organisations have already contacted the receiver and others have contacted various arms of government with a view to expressing their interest in potentially buying or otherwise operating individual or a number of ABC Learning Centres. It is important to note that at this stage the receiver expects that most centres will continue to operate into the new year. There is currently no sale process being conducted for ABC assets. However, the receiver will need to be as well informed as possible when making decisions about the future of each centre and the care arrangements for families.

Today I can announce that an expression of interest process has commenced to ensure that the receiver has the best available range of options for considering the future operation of ABC Learning Centres. I encourage any parties, be they for profit or not for profit, to register their interest in participating in the future of ABC with the receiver. Once the review process has identified the likely future arrangements for each centre, the receiver, working with the government, will map and sort the registrations of interest against the identified local need.

In addition to the registration of interest process, the government and the receiver are continuing to consult with stakeholders with an interest in the provision of early learning and care. The Parliamentary Secretary for Early Childhood Education and Child Care, the member for Bennelong, is also in regular contact with early childhood education and care stakeholders. The member for Bennelong has been involved in discussing and consulting about the government’s reform agenda in child care and early learning. Since the election of the government, she has conducted more than 50 stakeholder meetings and visited 25 childcare centres, and quality forums have been conducted in each state and territory. Earlier today, the parliamentary secretary, the member for Bennelong, attended a forum here in Canberra with around a dozen peak national childcare organisations. This forum had been arranged as part of the government’s ongoing consultation processes in relation to its reform agenda in child care. Of course, the agenda of the forum included a discussion of the ABC Learning situation. This is a challenging situation for parents, communities, the government and the corporate parties involved. The government will continue to work closely with all stakeholders to maximise certainty and stability in the provision of childcare services because we understand how vital that is for mums and dads around this country.

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