Childcare fees increases unwarranted

Date: 12 June 2008

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."

For further information

Contact:	Louise Tarrant
Union:	LHMU the Childcare Union National Secretary
WWW:	http://www.lhmu.org.au/

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