By Theresa Moore

Changes to funding, due to take effect at the end of April, threaten the viability of many centres providing before- and after-school care and a return to the era of “latch-key kids”.

In the May 1997 budget, the Howard government eliminated operational subsidies to out of school hours centres, replacing them with a direct payment for child-care assistance to parents. Block funding to the states for vacation care programs was also withdrawn. There was little consultation with the sector.

The government claimed these “reforms” would benefit 70,000 families and that $11 million over four years would mean 28,000 more places. The reality has been very different.

About 1400 out of school hours centres operate throughout Australia, usually on school premises, managed by voluntary committees of parents and employing trained staff. The operational subsidy goes towards staff wages which are topped up by fees (between $3 and $6 per day) and fundraising.

When the operational subsidies cease, centres will have no guaranteed income. They will be forced to increase fees, with no certainty that numbers will be maintained.

After intense lobbying by the sector, the government deferred implementation until the commencement of the second school term in 1998.

Now a decision has been made to shift assessment and administration of the child-care payment to parents from Centrelink to individual centres. This will mean an additional administrative burden for the centres and negates the business plans centres were required to draw up before the end of last year.

Each centre will now have to: ensure parents have applied for child-care assistance before starting child-care; collect increased fees from parents; calculate and administer the fee relief scheme; and do more paperwork without the safety net of the operational subsidy.

Rather than providing parents with choice and good quality care, these “reforms” will restrict choice and reduce quality. Since parents will have to fit into a complex new payment system best suited to prior bookings and a predictable pattern of care, the care available will also be much less flexible.

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