Lyn Allison (Victoria, Australian Democrats) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister. Minister, in 2006 Labor made a commitment to building 260 new long day care centres in areas of need—25,000 places, 100 places per centre. Why then did the budget provide for only 38 early learning and childcare centres, with an average of 50 places per centre and, therefore, a maximum of 1,900 childcare places? Can the minister explain why the Rudd government’s childcare policy is now essentially the same as the previous government’s, which proposed 35 childcare centres? Can the minister explain what has happened to the missing 222 centres and the 22,000 places that should have been in that budget?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I thank Senator Allison for the question. The government is investing more than $2.4 billion over the next four years in comprehensive early childhood reforms to improve the quality, affordability and supply of child care for Australian parents. It is a very central part of the government’s agenda. We have made enormous commitments in this budget to progressing that agenda not just strictly in the childcare area but in the early education area, which is also very much part of the strategy for Indigenous children to ensure that they get the best start in life and have opportunities for both child care and early education in preparation for formal education. It is not only my experience but it is supported by research that Indigenous children start off at a disadvantage when they enter primary school because of the lack of support and access to learning environments before they start school.

In answer to the specific question, we have honoured our commitment to establishing up to 260 additional childcare centres across Australia by 2014. The first instalment of that was in the budget. As you quite correctly pointed out, we have made a huge first step in meeting that commitment but we have not claimed that we will get those 260 additional childcare centres by the end of the first financial year of our government. What we have said is that we are going to have a very large program of providing additional childcare centres.

We are very focused on ensuring that in areas of need we are able to build new childcare capacity. As we all know, though, the childcare industry is part of a market, and large parts of the demand for places come from the provision of services and centres by private providers. But we are committed to establishing the 260 additional childcare centres to try and pick up the areas where demand has not been met, or where need has been established and there are economic issues that need to be addressed. We are going to look at how these centres are delivered to ensure the diversity of provision and the equity of access, and that includes provisions through both new private and/or community based partners. So we are trying to ensure that we get a spread throughout the nation and also that we have a range of providers. We will be selecting providers for these new centres from those who have a track record of performance and who have a track record of affordability. Contrary to the sort of assertion made in the senator’s question, the government is committed to honouring its election promise in this area, as in all areas. The Prime Minister is very firm on that fact. These are not core and non-core promises, as was the attitude of the previous government.

The other major aspect of the government’s childcare agenda, as Senator Allison would know, is that we are increasing the childcare tax rebate from 30 per cent to 50 per cent of out-of-pocket expenses up to a limit of $7,500. This is not income tested and can now be paid quarterly, so from 1 July we will have not only a commitment to providing more places but also a very serious increase in the rebate paid for out-of-pocket expenses. (Time expired)

Lyn Allison (Victoria, Australian Democrats) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I thank the minister for his answer, but I would like clarification. I think the minister was suggesting that by 2012, which is a period of five years, we will have 38 new childcare centres. This means that in the two years after 2012 the government will have to provide 222 childcare centres in just a two-year period. Is that what the minister is saying? If so, why is it that it is possible to build 222 in a period of two years when we are going to take four years to build a mere 38?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Thank you for the supplementary question. I am a bit baffled by the question.

Rod Kemp (Victoria, Liberal Party) Share this | Link to this | Hansard source

It is not the first time.

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

It may not be the first time and I suspect that it will not be the last either, but I am trying to be helpful to the senator. The answer is that we committed to 260 additional childcare centres. They will be implemented over the period to 2014, as we said. The decision taken in this year’s—the first—budget was to provide the down payment on the first step in that process. That will be rolled out over future budgets. I will see what further information I can get for the senator in terms of how many are built per year, but clearly this is a huge capital investment—a large number of centres—and it will be introduced over the period of those years up to 2014. If I can provide any further information on how many get built each year to satisfy the senator’s supplementary question, I will get back to her. (Time expired)