Childcare should stay open so parents can work and boost the economy, says operator

Think Childcare wants to keep its centres open amid the coronavirus pandemic.

Think Childcare in a statement on March 11 noted 62 per cent of its income derives from the federal government’s child care subsidy plan. Picture: AP

Think Childcare says its centres are staying open for “hard working Australians” who will brave the workplace despite large scale economic shutdowns induced by the coronavirus pandemic.

Following Prime Minister Scott Morrison’s Wednesday morning speech in Canberra noting child care as an “essential” service, Think Childcare chief executive Mathew Edwards believes closing child care and schools would inflict greater social and economic harm.

Mr Edwards told The Australian large scale closures would likely inhibit a stronger rebound to the economy, as it would slow down the rate working families could re-enter the labour force.

“If parents need to still work, then they need to put their child somewhere,” he said.

The Sydney-based company operates 90 childcare centres across the country and services up to two million working families across the sector each day.

Mr Edwards said a sector shutdown would inevitably result in those families being pulled out of the workforce, in order to look after their children.

“What you will see is a situation where child care centres do not reopen as markets begin to come back,” he said.

“You will end up with an under supply of child care and therefore probably resulting in a reduction in work force participation.”

Medical authorities have stated on several occasions that children are less susceptible to the disease, compared to older age demographics where the virus is more potent.

Mr Edwards said daycare options are safer environments for children and families, as traditionally children outside of care are usually looked after by older non-working family members.

“You revert to aunties, uncles and grandparents, and therefore placing the elderly at more risk [of contracting the virus],” he said.

The company said it is up to parents to decide whether it is appropriate for their child to be placed into care and if potential exposure could impact the health of other family members.

According to Mr Edwards, Singapore which decided to leave school and child care open had similar infection rates to that of Hong Kong, which closed schools during its peak of the virus.

Think Childcare in a statement on March 11 noted 62 per cent of its income derives from the federal government’s child care subsidy plan.

The subsidy given to providers is determined on the amount of children actively enrolled in a specific centre.

Rival ASX-listed child care provider has noted the uncertainty of COVID-19 in combination with recent bushfires has instigated significant uncertainty in the sector’s outlook.

A G8 spokesman said government funding mechanisms are available and that the company is assessing where it may apply funding assistance to its business.

G8 which is a Gold Coast-based company has a $500m debt facility, with $395m already drawn.