Reform urgently needed in childcare funding

NFAW today called on the Federal Government to refer to the Productivity Commission the question of how to improve and reform financing mechanisms for all forms of early childhood care and education, including care for school-age children of working parents.

Speaking at a hearing in Canberra of the House of Representatives Standing Committee on Employment and Workforce Participation Marie Coleman, Chair of the NFAW Social Policy Committee, said "There is a huge amount of public funding going into the area of services for the under fives (tax expenditures as well as benefits) and yet the industry is on the point of collapse, and parents are dissatisfied."

"Care programs during school holidays and before and after school are almost non-existent, and parents must face huge personal costs, or take the vacation away from paid work, which impacts on employers as well as family income. Productivity is undoubtedly affected by these problems."
"NFAW considers it important, particularly in the current economic climate, that there be a review of financing mechanisms across the board. The review should take into account the work being undertaken by COAG to develop an early learning framework, introduce consistent national frameworks for standards and strengthen the accreditation system."

"We welcome the Senate Inquiry into the provision of childcare which will be conducted by the Senate Education, Employment and Workplace Relations Committee" she added, "but this will not address design of financing mechanisms."
Professor Deborah Brennan (of the Social Policy Research Centre at the University of NSW, and an NFAW member) supported the call. "Short term action to address the problems caused by the collapse of the market dominant company, ABC Learning, is essential but it is not the only issue."

"Consideration must be given to appropriate planning for service types and geographical areas, the respective roles and overlaps in responsibilities within and between state and Commonwealth agencies, the lack of provision for staff training and development. It is vital to address these issues in a coherent way, especially in a climate of economic stringency."

"Never overlook the opportunity for root and branch policy review which is produced by a major crisis" Ms Coleman said, "we urge Government to make a referral to Productivity Commission as a matter of urgency, and so allow wide ranging input from all stakeholders."

Media inquiries: Marie Coleman 041 4483 067