McKIDS IN THE MONEY

ABC Learning Centres, Australia’s largest operator of private child-care centres, posted a record profit of $21.4 million this week. In the year ended June 30, “sales” (should that be child care places, or the amount of the federal government Child Care Rebate?) doubled to $81.6 million, and the number of centres increased to 327 from 187 a year earlier. The company’s managing director, Eddy Groves, was reported by the Financial Review as saying that revenue grew faster than profits last year because the company was increasing the number of centres it built, rather than bought. The privatisation of child care in Australia is a fast growing – and very profitable – business. Yet the only place you read about it is in the business pages. It would be good to know more about the quality of care provided in these centres. Given that child care workers are paid so little, and the Child Care Rebate is income assessed and therefore limited, and these centres cannot charge huge fees and remain competitive, where do these huge profits come from?