ABC a simple lesson the government never learned: Community group

Nov 19 09:41am
During yesterday's meeting of creditors of ABC Learning, those assembled were told that while $31 million was owed to staff, over $900 million was owed to secured creditors including banks.

This means that the government's additional funds of $22 million are the best security for staff and parents and may be all that is keeping ABC Learning's centres open until Christmas. Beyond that is anyone's guess.

As a result, parents are concerned their children may be left without a spot next year and many are said to be already pulling out.

One industry expert hearing these reports is Carol Lymbery, CEO of Community Child Care Co-Operative NSW. She tells Sunrise that the industry saw this coming years ago but no one would listen.

"We've been talking with the Commonwealth Government for ten years on this issue of debt-funded purchases."

"We believe no more than 5% of [child care] positions should be controlled by any one entity. For ABC, there was no limit at all!"

Community child care centres, she says, operate by "focusing on what's good for the whole community - children, families and staff - tailoring their operations to meet the needs of the community."

Ms Lymbery's not-for-profit co-operative represents and supports over 1300 members in community child care centres in NSW. There are equivalent groups in other states.

As for parents in ABC or ABC-linked centres, "There's still a lot of insecurity about what's happening," she says. 

The receiver, Chris Honey of McGrathNicol, told the meeting of ABC's creditors yesterday that work on a business plan had begun aimed at keeping ABC centres open well into 2009.

Mr Honey said despite reports that 40 per cent of centres were unviable, no centres were about to close. (Indeed, acting Prime Minister Julia Gillard says that thirty days notice must be given before a centre may close.)

"Previously the company's focus has been on growth," said Mr Honey. "Our focus is 100 per cent on the operation of the company's existing facilities."

>> Go to page 2: "We had definitely seen some instances of them being predatory"

 

Were you surprised at ABC Learning's collapse?  Tell us below...

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