Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Hansard source

Thank you very much for the question. On 24 September 2008 Minister Gillard established the childcare industry task force in her department to develop contingency plans in the event of ongoing problems at ABC Learning. The task force, immediately upon being established, contacted the ABC Learning directors about their lending syndicate, who up until 2 November were indicating that ABC Learning was aiming to trade itself out of its current financial difficulties. On 6 November ABC Learning Centres Ltd entered into voluntary administration and a receiver was appointed. Preliminary data from the receiver indicated that there were 1,040 ABC Learning childcare centres of which 40 per cent were currently unprofitable. On 7 November the minister announced that the Australian government had reached an agreement with the receiver of ABC Learning and their lending syndicate.

In order to ensure that ABC Learning childcare centres remain open and provide care until 31 December 2008, the Australian government has committed up to $22 million in conditional funding. The $22 million commitment represents the possible cost of supporting the continued operation of the unprofitable ABC centres for two months. The government understands that the parents and employees are anxious about the situation. That is why the government has moved to establish a dedicated task force to work with the receiver and with the banks.