12 June 2008
Media Release
Childcare fees increases above inflation
unwarranted
The LHMU the Childcare Union says any childcare fee increases above inflation
are unwarranted because of the Australian Government's unprecedented
allocation in the May budget of more than $600 million for the childcare sector.
Commenting on reports that ABC Learning will raise fees at its centres by up to 10% from 1 July,
Louise Tarrant, National Secretary of the LHMU says:
"The Federal Government would be justified in rethinking funding mechanisms for the childcare
sector if childcare operators increase fees above inflation rates.
"The existing childcare funding mechanisms are effective only as long as childcare operators remain
responsible.
"New Federal Government investment in childcare announced in the May Budget will increase
demand for childcare, improve quality and make for a stronger and more profitable sector.
"The scale of the Federal Government's investment in childcare will have unprecedented benefits for
families and for the sector. More than $600 million has been allocated for workforce development and
increased access for four year olds.
"In this context fee increases above what is necessary to cover increased costs in line with inflation are
unnecessary and could cause a major rethink of Government funding mechanisms in this sector."
Contact:
LHMU the Childcare Union
Nada Vlatko - 02 8204 3006 or 0412 257 527