Labor is calling on Malcolm Turnbull to take a stand against the unprecedented buy-up of Outside School Hours Care (OSHC) services by for-profit overseas private equity investors.
Foreign hedge fund Bain Capital Boston already owns over 740 Camp Australia services and wants to take over another 400.
That would give it control of up to 26 per cent of services nationally, and as much as an incredible 44 per cent in Victoria.
“It’s a massive worry - services at one in four schools across the country are set to be controlled by a foreign for-profit hedge fund,” Shadow Minister for Early Childhood Education and Development, Kate Ellis, said.
“The fact that Bain Capital Boston wants to take-over almost half of all services in Victoria should be ringing alarm bells.
“Analysis shows these kind of for-profit providers lead to higher fees and lower quality.
“Bain Capital Boston would have a market share not seen since the collapse of ABC Learning. We simply shouldn’t be putting our education system, parents and our economy at that kind of risk again.
“Instead of sitting on his hands and making excuses, Malcolm Turnbull needs to step in and put Australian children before foreign rich-listers.”
Labor has written to the ACCC outlining serious concerns with the proposed merger. Labor would also give the ACCC new powers to step-in and protect the community from this kind of damaging market concentration.