Victoria, April 16 – ABC Learning Centres will be shutting down their operations next month, leaving almost 300 Victorian families no choice but to move their children elsewhere.

When ABC Learning was placed in receivership with more than $1 billion in debts, it was the largest publicly listed child-care company in the world. With more than 1000 centres and 100,000 children in its care nationally, it accounted for more than 20 percent of Australia’s market for long day care.

In December, the Government announced the closure of 55 centres, half of them in Victoria. Today, receivers have announced that 19 more centres will be shut down by the 15th of May. Eight of those are in Victoria, and are caring for about 295 children. One of the receivers, Daniel Bryant of PPB, has already informed parents of their other options. PPB has identified other child care centres with a five kilometer radius.

Another eight centres are still in doubt because no viable bids were made for them. Of those eight, four are located in Victoria, and are caring for about 230 children. However, Deputy Prime Minister Julia Gillard has asked the receivers to continue trying to find ways to keep the centres open as there are no alternative care readily available near them.

To stay open, the centres will be run by more than 65 new operators. Approximately 15 percent of centres will be run by non-profit organisations. Mission Australia, a non-profit organisation, will run 29 centres, including seven in Victoria. It will operate centres in poorer areas where it already runs programs such as welfare and employment service. Spokesman Paul Andrews said Mission Australia was confident the centres could be self-sustaining within 18 months.

Sue Lines, union representative for ABC workers, said the union was disappointed its members did not know whether they would still have jobs. The receivers said 1800 staff in the 210 centres that would stay open were expected to keep their jobs or be offered work at other centres. But the jobs of up to 450 others are in doubt

Source:
theage.com.au