Kate Ellis

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09 Dec 2009 - New Owners of ABC1 is Good News for Parents

The Hon Kate Ellis MP

Minister for Early Childhood Education, Child Care and Youth

9 December, 2009

Joint Media Release

New owners of ABC1 is good news for parents

Joint Media Release with the Hon Julia Gillard MP.

The Rudd Government has welcomed the announcement today by McGrathNicol, Receivers for ABC Learning Ltd, that a new non-profit company is the preferred purchaser for 678 of the remaining ABC1 child care centres.

GoodStart has been established by four non-profit organisations; Social Ventures Australia, Mission Australia, the Brotherhood of St Laurence and the Benevolent Society.

Together, these organisations have committed to providing the highest quality, socially inclusive, accessible and affordable early childhood education and care for Australia's children.

These aims are consistent with the Rudd Government's early child care and education agenda, and this spells more good news for Australian families.

Earlier this week the Council of Australian Governments' agreed to lift the quality of child care nationwide by implementing new compulsory national standards for child care and early childhood education services.

The unprecedented collapse of ABC Learning and its impact on thousands of Australian families highlighted the importance of a stable and diversified child care market in this nation.

To minimise disruption and uncertainty as far as possible for thousands of families and employees, the Rudd Government was quick to respond with decisive action.

The tender process for the ABC1 centres provided an opportunity for the community and not-for-profit sector to increase its representation in the market.

To support the diversification of the child care market following the collapse of the single largest provider in the nation, the Australian Government agreed to lend GoodStart $15 million over seven years to assist its acquisition of the centres. This loan is not a grant and will be paid back in full, at no cost to taxpayers.

The entry of GoodStart into the child care market will increase the not-for-profit share of the Long Day Care market from around 25 per cent to around 40 per cent, spread across many operators.

The Government welcomes GoodStart's commitment to look after existing staff currently working in these centres, and particularly those who accept continued employment with them.

All the accrued entitlements of these workers will be acknowledged by GoodStart, and their service with ABC Learning will be recognised for all purposes, including long service leave and redundancy benefits.

The Government is looking forward to working with GoodStart, along with all other Australian child care operators, as we work to improve child care and better support Australian families.


Media Contact:

media@deewr.gov.au

Non-media queries: 1300 363 079


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Kate Ellis' Electorate: Adelaide

Covering 75 sq.km, the electorate includes the Adelaide central business district, North Adelaide, the surrounding parklands and adjacent suburbs in every direction.
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