Larry Anthony who until last year’s federal election was the federal government minister in charge of childcare has just been appointed to the board of the country’s largest private operator of childcare centres, ABC Learning. ABC is one of those fabulously successful companies that just keeps growing and growing. In February this year, it reported a 60 per cent increase in interim net profit for the previous half-year. That meant a profit of $15.5 million for the six months. ABC is predicting an even greater bonanza for the current fiscal year of $77.5 million. ABC controls more than 20 per cent of Australia’s long day care market and is growing fast, mainly by acquiring other centres or chains. But the best thing about the business is that its cash flow is guaranteed – by the federal government. The Childcare Subsidy, which is the federal government’s only cash assistance to parents for the cost of childcare, is paid direct to the operators. This takes a lot of the risk out of the business. According to a report in the Australian on March 17, 2005 the company expects to receive about $350 million this year in direct federal government subsidies. This, according to a report the same day on crikey.com.au by Stephen Mayne, makes it the most highly subsidised company in Australia, guaranteed a million dollars a day in taxpayers funds. Not bad. And with the former Minister on board to advise on those little technical details – not to mention, continue to grease the political wheels to ensure the system does not change in any way that might disadvantage the company – what could go wrong? Larry gets paid $40,000 a year as a board member. He would have made more if he’d joined Janet Albrechtson on that other ABC Board (which pays directors $50,000) but it will be worth keeping an eye on what stock and options package the former Minister has beebn able to negotiate for himself. These have to be reported to the Australian Stock Exchange. I will keep my eye on ABC’s reports and let you know.
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EX-MINISTER JOINS CHILD CARE GRAVY TRAIN3 comments to EX-MINISTER JOINS CHILD CARE GRAVY TRAIN |
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I think it’s absolutely sickening that a company like this can make so much profit when it pays it staff such poor money. We’re talking about the people who raise and educate our children during their most precious years – ABC could do its image a great deal of improvement if it increased staff pay rates……..
The opinion of this anti-daycare website is that tax policies such as the Childcare Subsidy unfairly subsidize families that use institutionalized child care vs. those that don’t.
It goes on to say that in light of all the negative consequences of daycare, tax policies should not create incentives that favor paid child care over parental care of children.
Maybe all the sole-parents who are forced back to work/study so they can be absent but better role models for their kids, could study to become politicians and get rid of the hopeless, discriminatory lot who are currently in power.