Zed Seselja (ACT, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Human Services and Minister representing the Minister for Education, Senator Payne. Will the minister explain to the Senate what the Department of Education's recent Childcare and Early Learning in Summary report for the September quarter revealed about the growth in childcare fees?

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

I would like to thank the senator for his question in deference to Senator Fifield's linguistic skills. Of course, members of the chamber will recall Labor's apparently ironclad 2007 election promise, I think it was, that they would make child care more affordable. 'More affordable'—what an interesting concept! When the Department of Education's Child Care and Early Learning in Summary report for the September quarter was released earlier this month, it showed quite clearly that childcare fees had skyrocketed by 53 per cent across the six years of the Labor government. The findings of that report were confirmed by the NATSEM report released earlier this week. For an average family using long day care, that equates to $75 extra in fees per week or more than $3,500 a year.

Opposition Senators:

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! When there is silence on my left we will proceed. Senator Payne.

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

I was saying, Mr President, for families with children in full-time care, that rise works out to be more than $130 a week and $6,300 a year in additional fees. It is a damning indictment on those opposite and demonstrates their complete misunderstanding of the childcare sector. When they took office in September 2007, the average long day care fee was $5 an hour; by the time they left in September 2013, it was $7.65. Outside-school-hours care fees rose by 52 per cent during the same period. Family day care fees were up by 50 per cent and occasional care fees by 50 per cent. It is a shameful legacy. They promised 260 new childcare centres; they built 38 and then said in 2010, 'Oh, we won't build the extra 222.' You should be embarrassed. You should be ashamed of that broken promise—222 childcare centres that you just did not bother to build. (Time expired)

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Honourable senators, if you wish to debate it, the time to debate it is after the end of question time.

Zed Seselja (ACT, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I thank the minister for that excellent answer. Can the minister further explain to the Senate how increases in childcare fees have impacted on families out-of-pocket costs?

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

Again, I thank the senator for the question, because it is a very good question. I think a number of senators might be asking themselves what the real impact of these fee increases is on families' out-of-pocket expenses. As everyone in the chamber realises, the government assists families with out-of-pocket childcare expenses through the childcare rebate and the childcare benefit. Senators will also recall that, during Labor's term in office, childcare fee assistance to families did increase significantly over their last four years in government. Between 2008-09 and 2012-13 government investment in that assistance increased by 45 per cent, from $3.3 billion to $4.8 billion. But, despite that substantial increase in fee assistance, families' out-of-pocket expenses still increased by up to almost 40 per cent over that same period. It is cold, hard proof that just topping up payments on the national credit card does not work, and it makes the payments totally unsustainable. (Time expired)

Zed Seselja (ACT, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister advise the Senate what the government is doing to slow the growth in childcare fees and how this differs from previous approaches?

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

We understand that just throwing money at a problem and racking up debt on the nation's credit card does not work. After the six full years in office that they had to deal with this problem, they just sat on their hands and watched those childcare fees go through the roof. Not only did they sit on their hands; they added to the problem by dramatically increasing regulation. For instance, the ACECQA report into the regulatory burden of their NQF showed that the new regulations added an average of $145,000 per year to a long day care centre with 75 places and 15 educators.

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! Senator Payne, resume your seat. You are entitled to be heard in silence.

Opposition senators interjecting—

Senator Lines interjecting—

On my left! Senator Lines!

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

We made a promise at the last election to task the Productivity Commission with a once-in-a-generation inquiry into this sector, which would look at ways of making childcare more flexible—

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Payne, resume your seat. When there is silence on my left we will proceed. Senator Payne.

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

Thank you, Mr President. This is the problem when you have got no vision, when you had no plan and when you just tried to destroy the sector. You have nothing except this sort of response, which is completely ineffectual, because you know that you left it in a shambles. (Time expired)