Kate Ellis (Adelaide, Australian Labor Party, Shadow Minister for Education) Share this | Hansard source

On this side of the House, we know that not just for years but for decades family day care has been a vital part of the support networks which Australian families rely upon in order to balance work and family. We know that there are literally hundreds of thousands of Australian families and Australian children who have received quality early childhood education and care over the decades from family day care. We stand in this matter of public importance to say that Labor will stand up against the Abbott government taking an axe to that sector by slashing their funding and the devastating consequences that that will have for the sector, for the children and for the educators who work each and every day.

Every day we come into this place we cite another example of a broken promise from this government, another example of this government saying very specifically to the Australian public before the election about what they would do if they were elected and then coming into this House after the election and doing the exact opposite. Sadly, today is no different. Just before the election Tony Abbott wrote to every single childcare centre in the nation and stated:

I am determined to help make child care more accessible and affordable for parents.

He also promised flexibility. The first two sentences of their childcare policy explains:

The Coalition believes Australian families deserve greater choice when it comes to child care.

Our child care system should be responsive to the needs of today's families and today's economy, not the five-day, 9am to 5pm working week of the last century.

Well, haven't we seen something completely different since those opposite were elected. Since those opposite were elected, we have seen over a billion dollars in cuts to our childcare sector, impacting on the affordability for each and every family relying on assistance from government.

Sadly, when it comes to the family day care sector, we have seen that the Prime Minister's budget delivered to $157 million in cuts to family day care services. There is a long list of childcare services which have already been cut back or abolished completely by this government. They have already ripped $450 million out of outside school hours care. They have already cut support to help parents complete study to get back to work. They have already completely cut the program that was in place to increase childcare places in areas where parents face lengthy waiting lists. We know they have cut all of the funding from Indigenous child and family centres. We know they have reduced the funding for the child care rebate by $105 million, that they still have plans to cut $230 million out of the means tested child care benefit and, of course, now we focus on the $157 million being stripped out a family day care services.

Let us in this place make absolutely no mistake just to match that is going to hurt sector and, importantly, hurt the parents who rely upon the services each and every day. Based on information which has been provided by the government, we now learn that the cut will mean that over 80 per cent of the family day care services are likely to have their funding cut next year because of this one cruel attack. According to the most recent figures, there are 761 family day care services around the country. This means that over 600 of them will have their funding cut from next year. We know that in Western Sydney 100 per cent of family day care services will have their funding cut next year. We also know that instead the government seems determined to make family day care more expensive, less accessible and even harder for families to choose this as their flexible form of care.

Family Day Care Australia has outlined exactly what this will mean the sector and for parents when they said that these cuts will mean that family day care fees will be estimated to increase by $35 a week just to cover this one budget cut. In fact, CEO Carla Northam said:

Costs will ultimately have to be passed on to families, most of whom are already struggling to afford childcare fees. Without this funding it will be impossible for many family day care services to remain viable.

So those opposite who, before the election, promised, directly from the Prime Minister, every childcare centre in the country they would make child care more affordable, have left just two doors open for these family day care services. They can hike their fees and slug parents $35 more per week or they can close their doors. We on this side of the House so that neither of those options are acceptable, that this government needs to get on with delivering what they said they would do not just be railroaded by the Treasury, having each and every one of their programs cut, equalling over $1 billion already.

Members and senators on both sides right around Australia would have received hundreds of letters and cards from parents urging them to stand up against these cuts, to review the proposed changes to this funding program. In most cases, we know that family day care services will be forced to increase their fees, but we also know that some are reconsidering the viability of their service. Cape York family day care at Weipa wrote to inform the government that its service was unsustainable without this funding. They stated in their media release:

Due to this impossible funding reduction the Weipa Community Care Association Management Committee—

who auspice the family day care scheme—

has determined to close the service as of 31st December.

Those opposite promised the world to parents and to the childcare sector but they are overseeing the shutting down of services. Last week I visited Awesome Family Day Care at Newington and talked with one of the educators, Helen, who told me she was really worried that her families will not be able to afford the inevitable fee hikes. Fairfield City Council says that families living in Fairfield include some of the most disadvantaged within the metropolitan area and:

Should these changes take effect in their current form and time frame, council will be required to make the difficult decision that may include significant fee increases to families, reduce support to the family day care educators and possibly even the closure of the services.

I hope those opposite feel proud about that. I hope those opposite feel proud that they promised one thing and they are doing exactly the opposite—they are cutting the vital services that all of these families rely upon. We know that family day care is a unique model of care, which allows the greater flexibility than many other sorts. Family day care does not need to be stuck in the hours nine to five. It has a flexibility that can help and match parents' working hours. In fact, when those opposite claim that they want to see increased flexibility—and we know that they are obsessed by nannies and au pairs—family day care has the capacity to deliver this increased flexibility but not if it is gutted first by the Abbott government and by the assistant minister who is consistently rolled to the point that she has now lost a billion dollars out of existing childcare programs. Isn't that something to be proud of?

We know that there is a pattern of attack from the Abbott government. Low- and middle-income families are doing the heavy lifting for this government in their unfair and heartless budget. We know that those opposite asked the Productivity Commission to completely redesign Australia's childcare system, promising all things to all people but only guaranteeing that there would be no additional money. The government simply cannot meet all of these expectations, but we know that the Productivity Commission has provided a draft report and just this week released analysis which shows that families earning as little as $40,000 you would you will solve under the PCs preferred model. This government which promised that child care would become more affordable have already cut a billion dollars, have already seen a system where $157 million being ripped out of family day car will see many services having to hike their fees by $35 a week and now they have set up a review which will is recommending changes which will see families on as little as $40,000 have their assistance cut.

It is time to end their magic pudding statements and promises and for this government to level with the Australian public. It is time for those opposite to guarantee that they will not accept any proposals that will make child care less affordable for Australian families. They have said one thing and we will now hear from those opposite that they are actually unable to do anything other than point the finger at the Labor Party—blame it on me; blame it on Labor—but a billion dollars has been cut from the program under their watch and $157 million has been cut from family day care in their budget on their watch that they must justify.

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