Coronavirus NSW: Cumberland Council-run childcare centres could close in two weeks
A western Sydney council has warned it will be forced to shut almost 20 childcare centres, shed 150 jobs and lose $500,000 a month unless the government provides financial assistance.
Parramatta
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Cumberland Council could be forced to temporarily shut its 17 childcare centres that serve 600 families in the next two weeks unless governments delivers extra financial support.
Last week, Prime Minister Scott Morrison said one million families would secure free childcare under its Early Childhood Education and Care Relief Package, rolled out to help households cope with the coronavirus pandemic.
The government will pay 50 per cent of the sector’s fee revenue up to the existing hourly rate cap — under the condition that services remain open and do not charge families for care.
However, because the council is not eligible to participate in the JobKeeper program, it will continue to pay staff salaries and all operating costs while faced with a 50 per cent decline in revenue.
The $130 billion Federal Government JobKeeper program provides a wage subsidy for businesses affected by the impact of coronavirus including social distancing measures restricting how companies operate.
Cumberland Mayor Steve Christou said the council would lose $500,000 a month by closing the services.
“We want to keep the centres running at all costs,’’ he said.
“However, if we don’t get some assistance from the state or federal government, we will have to suspend these services.
“As councils are not eligible to participate in the JobKeeper program, we are facing a situation where families will not pay fees and council-run centres will not receive the previous child care subsidy.”
The council wrote to Federal Treasurer Josh Frydenberg, Federal Education Minister Dan Tehan and NSW Education Minister Sarah Mitchell on Friday, requesting it join the JobKeeker program or receive immediate financial help.
Through a statement, Mr Tehan said: “The JobKeeper payment does not cover local council services, however we have heard the concerns raised about services run by local councils, and we continue to work on this issue.
“We will provide more advice as soon as possible.
“In designing the Early Childhood Education and Care Relief Package, the government listened to the concerns of the peak industry organisations for the childcare sector and received detailed information about their sector’s operations.”
Parramatta Council is considering the future of its five childcare centres at a meeting tonight.
The centres employ 82 workers, including 54 permanent staff.