The State Government is not backing down from its decision to cease leasing, owning and maintaining property for non-profit community childcare centres despite the centres’ fears they will be forced to close.
More than 30 years ago the government took on a landlord role and provided property subsidies for 33 non profit centres in areas where there were no childcare options.
In the 2016-17 state budget it was announced it would withdraw support by June 30, 2018.
The changes would mean the centres would have to negotiate new leases and maintenance, which would vary from site to site depending on who owned it.
Willetton Child Care Centre, owned by the City of Canning, is one of the 33 centres affected and president Lindsay Holland said it could mean it goes from paying $3500 in rent a year to up to $50,000.
“We’re on a nominal rent now so if we had to go onto a full rent per se it could be as high as $40,000 or $50,000 a year which would mean all of our fees would go up,” he said.
He said it would be devastating for the community because it would mean the removal of a low cost childcare option.
“Parents in childcare are hurting enough, childcare costs are high enough as it is so it would put more strain on families,” he said.
“I think it is highly appropriate because it does allow families who can’t afford to go to some of the other places a place to go to.
“It’s also a different whole psyche when you have a non-profit place.
“Any money we do have goes back into the centre, it doesn’t go to the profit of directors or shareholders or anything like that. We can charge lower fees and we try to, we try to be very mindful of how it hits the hip pocket of people.”
Mr Holland urged the State Government to reverse its decision or face a groundswell of backlash from the community.
Community Services Minister Tony Simpson wouldn’t back down though.
He said there were 1137 childcare providers in WA and it wasn’t appropriate for the State Government, as the child care regulator, to own or lease property to childcare providers.
“In addition, evidence suggests that these arrangements do not result in savings being passed on to families in the form of lower fees and that families are paying similar fees to centres which are not operating from properties managed by the department,” he said.
“These changes will provide an equal playing field across all childcare services.
“The State Government maintains its commitment to ensuring accessible and affordable childcare and will support the continued delivery of childcare services through these facilities.
“We do not anticipate any education and care centres will close.”
He said the Department of Local Government and Communities was exploring different tenure options and would work with Willetton and the City of Canning on future arrangements.
“The two-year transition period allows all stakeholders to ensure an effective transition, minimising the disruption to the children and their families,” he said.
Willetton Child Care Centre director Fiona Murray said ultimately the changes would mean less resources for the centre.
