Coronavirus: childcare centres split on package

Childcare providers are warning that some centres will become financially unsustainable despite the government’s $1.6bn relief package.

Australian Childcare Alliance vice-president Nesha Hutchinson says the package is a ‘lifeline’ and centres needed to remember it was in conjunction with other recent moves, such as the JobKeeper program. Picture: Supplied

Childcare providers say some centres will become fin­ancially unsustainable and may be forced to dramatically scale back services to children with special needs as the government’s $1.6bn relief package takes effect from ­Monday.

Queensland childcare centre owner Rebecca Grugan said she was facing weekly losses of $10,000 under the new package.

Ms Grugan, the managing ­director of I am Montessori, said she would open her two centres in Brisbane but would be forced to withdraw services for children, including those with special needs.

“We’ve tried to make adjustments and are talking to staff and parents,” she said.

“I’ll see how viable we can be with this new package.

“I don’t want to make a profit. I don’t think anybody should make a profit at this time. We are now at a loss because of it.”

She has told parents that part of the problem is the fact the government’s package cuts the centre’s revenue in half but not all of her staff will qualify for the government’s JobKeeper package, which means the operation will now run at a loss.

On Thursday, the government announced that almost one million families would gain access to free childcare in a package expected to cost $3bn over six months.

The package was aimed at delivering a lifeline to essential workers and protecting jobs among 13,000 providers of early childhood education.

Under the plan, early childhood centres will be paid 50 per cent of their fee revenue from Monday on a weekly basis.

Eligible staff would also gain access to JobKeeper ­payments.

Early Childhood Australia chief executive Samantha Page said many sections of the industry felt they hadn’t been consulted.

“Family daycare — they’re feeling a bit like this was very unexpected and they’re worried about how they’re going to fare,” she said.

She said there was still a lot of confusion and misunderstanding.

“Over the last few days, it’s become apparent that there’s winners and losers,” she said.

Ms Page said the package was a “lifeline” for centres that had dropping numbers.

“(For those) doing OK, they’re feeling like they’ve just lost a lot of income and are not sure what to do about it,” she said.

Ms Page said there was an online form for businesses to fill out if they thought they had special ­circumstances.

“I”m hearing some services saying they’re just going to shut. They’re not going to do it.”

Australian Childcare Alliance vice-president Nesha Hutchinson said the package was a “lifeline” and centres needed to remember it was in conjunction with other recent moves, such as the JobKeeper program.

She said the ACA had been involved in the discussions with the government about the package and although it didn’t ask for the figure of 50 per cent of services’ fee revenue or 50 per cent of the existing hourly rate cap, a line had to be drawn somewhere.

Ms Hutchinson said she had been worried about her own childcare centre in Sydney, which normally had about 32 children but now had just six. “As a result of this package, I think we will make it through,” she said.

The debate over the government’s package came as western Sydney childcare and preschool the Rose of Sharon emerged as a coronavirus hotspot at the weekend, with NSW Health revealing 25 cases connected to the centre.

Seven staff members and six children at the Stephen Street centre have been confirmed with COVID-19 and a further 11 family members and one friend have also returned positive test results.

National Centre for Immunisation Research and Surveillance director Kristine Macartney said the preliminary evidence was that children were not significant spreaders of the virus and schools and childcare centres needed to focus on the role of adults and staff.

Professor Macartney, who is a paediatrician specialising in infectious diseases and vaccinology at the University of Sydney and Children’s Hospital at Westmead, said adults were the initial source of infection in many schools and childcare centres.