Fed: New childcare places but costs could rise

AAP General News (Australia)
12-05-2003
Fed: New childcare places but costs could rise

CANBERRA, Dec 5 AAP - Thousands of new childcare places will be rolled out in the coming
year but parents were today warned they may have to pay higher fees to keep childcare
workers happy.

The federal government today announced it would spend $80 million on thousands of new
places which will be rolled out from January 1.

Under the four-year package, an extra 10,000 outside school hours care places will
be created along with an extra 2,500 family daycare places.

The playgroup program will be expanded by 4,000 nationwide.

Children's and Youth Affairs Minister Larry Anthony said a key issue would be finding
enough childcare workers to cater to the new places.

He said childcare workers did deserve to be paid a little more and parents may have
to cop higher fees.

"If there is a major wage hike it could actually mean a lot of services become unviable,"

Mr Anthony told reporters.

"It needs to be controlled but I think it needs to be acknowledged as well that people
have to value those working in children's services and as a result maybe in the future
fees will have to rise."

Mr Anthony said there was recognition in Cabinet that more places were needed in the
sector and childcare would receive a favourable hearing in next year's Budget.

"There's acknowledgement and recognition within the government that more places will
be required in this sector," he said.

"There is a commitment to go back in the Budget process for more places in outside
school hours care."

The 10,000 new places for after school hours care are expected to meet half the existing
unmet demand.

Labor described the package as a Band-aid solution and said it would do little to ease
the crisis in accessibility and affordability of childcare.

"Today's announcement is recognition of the problem that the Howard government created
through the establishment caps on childcare places," opposition children's spokeswoman
Jacinta Collins said.

"But its response is little more than a band-aid solution which will do little to make
childcare more affordable or ease the crisis in unmet demand."

AAP sal/sb/sjb/de

KEYWORD: CHILD LEAD

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