Tony Abbott (Warringah, Liberal Party, Shadow Minister for Families, Community Services, Indigenous Affairs and the Voluntary Sector) Share this | Link to this | Hansard source

My question is to the Deputy Prime Minister. Is the government considering removing or reducing the subsidies from childcare operators who charge excessive fee increases?

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

I thank the member for his question. I have indicated that the government are sending a message to childcare operators. We want that message to be heard. We expect it to be heard. We want working families to benefit from increased CCTR. We want working families to have the pressure of childcare costs in part lifted from their shoulders by additional government investment in CCTR. Obviously, as a government we are concerned if there are any suggestions of unfair pricing practices. We are sending a very clear message about unfair pricing practices.

As I indicated to the member before in my answer to his last question, the matter has been in the media. There have been reports that have been of a contradictory nature about likely childcare price increases. We are obviously going to work with industry. We are going to see what the evidence is. But we want to send a message to childcare operators that we do not want to see unfair pricing practices.

At the same time—and I am glad the member has a new-found interest in child care—we are addressing the supply constraints in child care, which have put pressure on. They include insufficient workforce. That is why as part of our action on child care we have not only increased CCTR from 30 per cent to 50 per cent; we have taken steps to expand the childcare workforce including through fee relief for people who want to be childcare workers, new investments in childcare early educators and, of course, our proposals to expand the number of childcare centres by 260.

Tony Abbott (Warringah, Liberal Party, Shadow Minister for Families, Community Services, Indigenous Affairs and the Voluntary Sector) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order on relevance. Is she ruling out reducing the subsidy?

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The Deputy Prime Minister is responding to the question.

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

I am responding to the question and I am indicating the supply-side measures that would make a difference, including the new 260 childcare centres that the government is committed to delivering.

From an opposition with no solutions in this area when they were a government, what I anticipate is that the shadow minister opposite wants to go on some cheap fear campaign to raise concern amongst parents that either the changes in CCTR will not benefit them or for some reason their subsidy or benefits will be cut off. Such a fear campaign would be a grossly un-truth-ful act of irresponsibility. This is a government that is delivering CCTR changes and making a very simple and legitimate point, and one I am surprised is not unanimous across this House—that is: we do not want to see unfair pricing practices in child care.