Outrage over childcare giveaways to lure parents

CHILDCARE centres are going to extraordinary lengths to lure parents through their doors gifting everything from gym memberships and holiday accommodation to $1000 cash.

EXCLUSIVE: Childcare centres are going to extraordinary lengths to lure parents through their doors with one centre offering families $1000 cash to enrol and the promotion being advertised on Gumtree.

123 Grow based in Logan Central in Brisbane this week admitted it had set up the promotion, contingent upon a child attending 100 hours a fortnight (four days a week), in response to the government’s new Childcare Subsidy that tailors payments to the hours used by a family.

And G8 Education — the second largest childcare provider with more than 500 centres nationally — this week distributed a survey to its parent base proposing a “package of benefits” to retain and gain more business.

The benefits proposed — in addition to basic care services — include discounts on groceries, petrol or utilities, family takeaway meals, dry cleaning services, on-site hairdressing, night-time babysitting, gym memberships, food allergy testing, child psychologists, yoga lessons, and even “cashback dollars” for free childcare days.

Childcare centres are giving away everything from gym memberships and holiday accommodation to cash to lure parents. Picture: iStock

Another three G8 centres in Queensland — Creative Garden in Southport, Arundul and Coombabah — currently have an offer of two nights free accommodation at the Gold Coast-based Paradise Resort in exchange for enrolment.

Sector advocates are outraged by the inducements and say childcare centres are forgetting their core business and misusing taxpayer dollars.

Childcare centres are resorting to the incentives in part due to declining occupancy as more people try to establish businesses in the lucrative childcare sector.

Other centres are attempting to make the most of the new childcare subsidy that pays more benefit for the longer hours a child spends at a centre each day.

The revelations follow a story last year by News Corp that revealed some centres were giving away iPads for enrolments.

Woroud Aziz, director of 123 Grow, said she didn’t see anything wrong with incentives to generate more business and had “at least 15 families” take up on her $1000 offer.

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Woroud Aziz, from 123 Grow in Logan Central. Picture: Annette Dew

“Because the government pays more benefit per hours a child attends we thought the promotion would be a good way to have people choose longer hours at the centre,” Ms Aziz said.

Emily Price, senior educator at Creative Garden, said the “staycation” promotion was a great way to “get the word out about our services”.

Jane Briggs from First Point Research and Consulting, who put together the G8 survey, said surveys of its nature cost between $10,000 and $50,000 but would not discuss the specific cost.

Owen Wareham, spokesman for The Parenthood, said it was “deeply concerning” early learning centres were directing taxpayer funding towards efforts to generate business.

“The community funds long day care, through the Childcare Subsidy … and we expect that funding will be used to provide kids with high quality early learning, not for cash back offers, free gym memberships for parents and resort holidays,” Mr Wareham said.

“It’s clear from these examples we need to ensure taxpayer funds and parent fees are not misused.”

Sam Page, CEO of Early Childhood Australia, said the inducements were “really irresponsible” and called for a ban.

“We do seem to have an oversupply issue and some services are really struggling for occupancy,” she said.

“(However) I am increasingly contemplating the fact that perhaps we need to look at different governance structures for this sector.”

An email sent out by G8 Education to parents using it’s facilities on the potential package of benefits. Picture: Supplied

Education Minister Dan Tehan said child care providers were legally obligated to accurately report the care they provide and the fees they charge so the child care subsidy can be calculated accurately.

“If the Department becomes aware of people rorting the system, they will be investigated and punished accordingly,” he said.

Labor’s early childhood spokeswoman Amanda Rishworth said parents were “right to question if enrolment inducements are really up to community standards”.

“There should be a greater level of focus from childcare centres about how they can provide the best level of care not the best benefits for increasing their enrolments,” Ms Rishworth said.

Megan O’Connell, director of the Mitchell Institute said the government needed to ensure public investment in early learning was being spent appropriately.

“There is a role for government in ensuring money is being spent on the right things,” she said.

G8 Education did not respond to News Corp Australia’s detailed requests for comment and instead CEO Gary Carroll said via email the organisation was “focused on delivering both the highest quality early childhood education and great value to families, while also looking for ways to make their lives easier”.

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