Chapter 1
Introduction
Terms of reference
1.1
On the motion of Senator Hanson-Young on 25 November 2008, the Senate
referred the following matters to the Senate Education, Employment and
Workplace Relations References Committee for inquiry and report by 12 March
2009 (subsequently extended to 18 June, 17 September, 29 October and finally 23 November
2009):
-
The financial, social and industry impact of the ABC Learning collapse
on the provision of child care in Australia;
-
Alternative options and models for the provision of child care;
-
The role of governments at all levels in:
-
Funding for community, not-for-profit and independent service providers,
-
Consistent regulatory frameworks for child care across the country,
-
Licensing requirements to operate child care centres,
-
Nationally-consistent training and qualification requirements for child
care workers, and
-
The collection, evaluation and publishing of reliable, up-to-date data
on casual and permanent child care vacancies;
-
The feasibility for establishing a national authority to oversee the
child care industry in Australia; and
-
Other related matters.
Conduct of the inquiry
1.2
The committee advertised the inquiry on its website and in The
Australian. A number of relevant organisations were also notified of the
inquiry and invited to lodge submissions. Submissions were initially due by the
end of January but this date was later extended by two months.
1.3
The committee received a total of 87 submissions as listed at Appendix
1. These also appear on the committee's website which can be accessed at https://www.aph.gov.au/Senate/committee/eet_ctte/child_care/index.htm.
1.4
The committee held public hearings in Brisbane (15 July), Sydney (16
July), Melbourne (21 July), Adelaide (22 July), Perth (7 August) and Canberra
(14 August). In addition, the committee conducted a roundtable discussion in
Hobart on 20 July 2009. The committee also visited several childcare centres:
ABC Developmental Learning Brisbane Central, Lady Gowrie Battery Point
(Tasmania) and North Melbourne Children's Centre. An informal visit was also
undertaken by some committee members to Nedlands School of Early Learning in
Perth.
1.5
References in this report to the committee Hansard are to the proof
Hansard; page numbers may vary between the proof and the official Hansard
transcript.
1.6
The committee appreciates the assistance from all those who contributed
to this inquiry through preparation of written submissions, giving evidence to
the committee or hosting the committee during visits.
Background to the inquiry
1.7
Improvements required in the provision of childcare have been pointed
out to successive governments at the Commonwealth level for many years. Two
Senate committee reports in the 1990s made this point. Other reports have made
recommendations for action at the Commonwealth level. Childcare was regarded as
a matter best left to the discretion of family choice, as the need and
circumstances of family life and employment varied so widely. Moreover, complex
policy challenges are at play in the provision of formal childcare.[1]
Regulation in the form of licensing centres was considered to be a matter best
left to the states, and such assistance that the Commonwealth could offer was
most appropriately dealt with in social welfare payments and taxation rebates.
With the establishment of the National Childcare Accreditation Council (NCAC)
in the early 1990s, the Commonwealth became responsible for quality assurance
of the childcare sector but licensing remained the responsibility of state and
territory governments. This was preferable to developing a national 'system' of
childcare which would be daunting in its complexity. On 13 April 2007, COAG
undertook to develop by 2008 an intergovernmental agreement on a national
approach to quality assurance and regulations for early childhood education
which included preschools and childcare.
1.8
The main purpose of this inquiry was to look at the condition of
childcare provision with the intention of informing the current debate and
discussion on the most desirable practices to pursue as part of national
policy. The catalyst for the inquiry was the collapse of ABC Developmental
Learning Centres Pty Ltd (ABC Learning) toward the end of 2008. This is
explored in the next chapter. The committee notes the views expressed in a
number of submissions that the collapse of ABC Learning was not entirely to be
lamented.[2]
Although it has tested the improvising skills of Commonwealth agencies and
added to the burden of debt in difficult times, ABC Learning's collapse has
refocused the work that must be done to improve the equitable and high quality
provision of childcare which remains accessible and affordable to all families.
1.9
The processes of consultation to which COAG decisions have given rise
are proceeding concurrently with this inquiry, and are expected to continue for
some time. The COAG agenda, because it embraces early childhood education in
its broader sense, is far more ambitious than the committee's terms of
reference allow it to be. While the committee has heard some evidence on
integrated services which include long day care and kindergarten, there has not
been sufficient to allow the committee to make any recommendations about
changes necessary to the structure of early learning that its proponents have
long advocated. The committee notes that research, some of which is discussed
below, has strongly indicated that integrated care and early childhood
education is highly desirable. This report, however, does not extend to
examining options for its implementation.
1.10
The committee received much evidence indicating the need for improved
funding of the sector. While acknowledging the need to review the current
funding mechanisms, the committee points to the substantial investment in
childcare by the government. Recent funding initiatives along with the range of
funding mechanisms available to the childcare sector are discussed in detail in
chapter four.
Surveying the childcare sector
1.11
The childcare sector is highly diverse. There is variation across states
and territories in regard to licensing standards and levels of supervision
across categories of childcare. The various categories of childcare and models
of care which are frequently referred to in this report as well as the general
effects in the sector resulting from various policy changes are described
below. Funding models and government policy regarding childcare funding are
introduced in chapter four.
1.12
There is a strong and increasing need for childcare places. In June
2008, there were 4 664 700 women employed, of whom 1 397 500 had children under
15 years of age. Women are in the workforce, full-time or part-time, either
because of economic necessity or career fulfilment. Many women who value their
careers are prepared to make substantial payments for childcare in the
relatively short term. The National Foundation for Australian Women has told
the committee that the availability of places at childcare centres and the cost
of childcare influence the workplace participation of women.[3]
1.13
Figures from 2008 show that over 700 000 children used some form of
childcare. At specific ages, the use of childcare services is even higher; for
example, two year-olds attending some form of care represented over 70 per cent
of all two year-olds in 2005.[4]
Childcare services are now an integral part of modern life. In response to this
strong demand, the Commonwealth funds an unlimited amount of long day care,
family day care and outside school-hours care places (subject to relevant
licensing and quality assurance standards).
Childcare provision
1.14
The traditional approach to caring for children is based upon the family
unit. Parents, typically mothers, assume primary responsibility for nurturing
and caring for children in the home. However, as society changes and more women
participate in the workforce, the need for alternative ways of caring for
children also increases.
Informal care
1.15
Informal childcare is typically provided by grandparents or other
extended family members. Informal care is a very common form of childcare,
particularly for very young children, although it can be difficult to
accurately identify the rate of usage and, moreover, the rate appears to be
falling. Figures from the Australian Bureau of Statistics (ABS) indicate that
22 per cent of children aged 0-12 attended informal care in 2008 (while 15 per
cent of children were enrolled in some kind of formal childcare and a further 7
per cent attended both informal and formal childcare).[5] Informal care is generally understudied; more research is required to establish
the benefits of informal care and to identify the number of families using this
type of care. This type of care is not subject to any regulatory framework and
there is little financial help for families accessing informal care, although
for many such families there may be no associated financial costs.
Formal care
1.16
The type of service that is most commonly associated with the term
'childcare' is formal, centre-based care but the term 'formal childcare'
applies to a diverse range of services, which are generally of a high standard.
Formal care is highly regulated and accredited. These services cater for
children below school-age and up to the age of 12. In Australia, families
receive government assistance to compensate for the cost of such services
(subject to eligibility criteria). The features of various types of formal care
are discussed below.
-
Long day care: this type of childcare is generally available for
children from a short time following birth up to age 5 (or school age). Prior
to its collapse, ABC Learning offered approximately 20 per cent of all the
available long day care places and in Queensland it was closer to 30 per cent.
Centre-based care, which is the most common type of formal childcare, is
provided in licensed childcare centres. These are mostly run as profit-making
small businesses or by not-for-profit organisations and sometimes by local
governments. Centre-based long day care has been the subject of most of the
available childcare research.
-
Family day care: family day care is usually offered in the home
of a carer for a small group, typically around five children. The provision of
family day care is regulated and licensed. However, this type of care is
offered in an environment similar to the child's family home, often in the same
neighbourhood, and may be more flexible than centre-based care.
-
Outside school-hours care (including holiday care): this type of
care (abbreviated to OSHC) is commonly offered on school grounds but can be
offered in childcare centres or other community locations, particularly during
school holidays. In 2008, there were over 318 000 OSHC places available,
representing a four-fold increase on the number of places available in 1997.[6] However, the National Foundation for Australian Women informed the committee
that there are not enough OSHC services in general and few OSHC services
catering adequately for children aged eight to 12, even though government
subsidies are available for older children.[7]
For these reasons, the number of families currently using OSHC may not be truly
indicative of the level of demand for this service.
-
In-home care: this type of care is generally offered for children
with high needs but also includes nanny services, whether for one child or
several. This group is also understudied.
-
Other formal childcare services include occasional care (OCC),
which is offered for short duration and often at short notice; mobile services,
which are usually offered in rural areas for short periods; and multifunctional
indigenous children's services, which comprise a full range of family services.
1.17
The measurable categories which are summarised above are tabulated in
Table 1.1 below. However, these figures do not present a complete picture as
figures relating to informal care are not included. ABS figures for 2003
indicate that over 1.5 million children under the age of 12, or almost half
their age group, experience some kind of childcare, whether formal or informal.
In that year, a quarter of children below three years of age used formal care
arrangements and this increases to nearly three-quarters for four year-olds.[8]
Table 1.1: Approved Childcare
Places by State and Service Type
|
Service
Type |
Total |
LDC |
FDC
(a) |
OSHC
(b) |
OCC |
New South Wales |
96,648 |
25,793 |
83,052 |
1,189 |
206,682 |
Victoria |
66,210 |
16,251 |
79,109 |
613 |
162,183 |
Queensland |
85,163 |
15,600 |
83,279 |
435 |
184,477 |
Western Australia |
24,088 |
5,001 |
18,106 |
347 |
47,542 |
South Australia |
17,633 |
6,319 |
34,060 |
68 |
58,080 |
Tasmania |
4,844 |
2,692 |
8,455 |
77 |
16,068 |
Northern Territory |
3,423 |
1,229 |
4,836 |
10 |
9,498 |
ACT |
5,726 |
2,160 |
7,792 |
106 |
15,784 |
Australia |
303,735 |
75,045 |
318,689 |
2,845 |
700,314 |
(a)
FDC includes In-home Care
(b)
Includes After School Care, Before School Care and Vacation Care
Source:
Centrelink Administrative Data, March 2008, via Department of Education,
Employment and Workplace Relations, Submission 41.
Care providers
1.18
Childcare services began to emerge in Australia at the turn of the 20th
century when a small number of not-for-profit organisations offered childcare
services to needy families; economic and other circumstances drove women in
such families into the workforce, against the predominant social expectation of
that time that mothers would remain at home to care for children. Unlike
schooling, childcare was long viewed, not as a government responsibility, but
as a community responsibility.
1.19
Despite the commonly-held belief that the advent of for-profit childcare
provision is a recent development, such providers have played a role in the
sector for considerable time; in fact, a survey carried out in the 1960s showed
that services offered by for-profit childcare providers (small-scale,
home-based services) outnumbered not-for-profit childcare services.[9]
1.20
In 2001, a Brisbane-based childcare provider, ABC Learning, listed on
the stock exchange. In that same year, several other providers followed suit.
Corporate provision of childcare had commenced in Australia. There is an
important distinction to be made between the different types of private
providers. In a study investigating the quality of various childcare services,
the Australia Institute distinguished between large corporate chains and small
private providers, finding a range of systematic differences between the two. Childcare
services offered by independent private providers (with just one or a small
number of centres) more commonly exhibited similar features to the services
offered by non-profit, local government and community-based providers.
Corporate childcare providers stood out as a group on their own.[10]
1.21
Much attention has focused recently upon diversity in the sector as a
result of the collapse of ABC Learning. Many submissions called for greater
support for not-for-profit and community-based providers in the sector to
improve diversity and offer choice to families.[11]
Mention should be made here of the diminished role of local government in
providing childcare. According to the Productivity Commission figures, only in
Victoria and New South Wales do councils and municipalities continue to run
childcare centres in significant numbers, and they are under threat because of
competition for funds. Victoria stands against the trend, however, with 50 of
the 79 councils operating childcare centres offering long day care. Nearly a
third of Victoria's 1033 centres are operated in some way by local government.
The figures are higher for family day care, where 67 councils in Victoria
provide support.[12]
1.22
The committee supports diversity of operators and believes that the contribution
of not-for-profit providers in the sector should be supported and valued. The
committee notes, however, in response to calls for funding of providers and
specifically not-for-profit providers, that there are already provisions for
such funding mechanisms. The Commonwealth provides funding to childcare
providers through the Child Care Services Support Program. Furthermore,
an element of this program, Sustainability Assistance, is available in an
ongoing capacity only to not-for-profit childcare providers. These funding
measures are discussed in further detail in chapter four. Today, the sector is
made up of a variety of providers offering a wide range of services. Private
providers comprise the majority of the sector (although few corporate chains remain)
but the provision of childcare services is based upon a mixed delivery model -
childcare services are offered by both private and non-profit providers as well
as government (state, territory or local). Not-for-profit and community-based
organisations represent less than one-third of the sector and government
provides about one-fifth of all services in Australia. Marked differences in
market-share are seen across states and territories, generally reflecting the
level of 'privatisation' that took place in each state. The table below
indicates the estimated market-share held by the various types of childcare
providers.
Table 1.2: Estimated Percentages of Childcare Services by
Provider Type, 2007-08
Provider
Type |
NSW |
VIC |
QLD |
WA |
SA |
TAS |
ACT |
NT |
Community |
27.8 |
34.6 |
37 |
20.9 |
35.1 |
50.7 |
81.6 |
71.3 |
Private |
69.5 |
53.5 |
59.9 |
75.2 |
40.6 |
32.4 |
18.4 |
28.8 |
Government |
2.7 |
11.8 |
3.1 |
3.9 |
24.3 |
16.8 |
- |
n/a |
Note: Includes all Australian,
state and territory government-supported services. Community-managed services
include not-for-profit services provided or managed by a company, private
individual or non-government school. All government-managed preschools in
Victoria are managed by local government. The majority of government-managed
childcare services in SA are small occasional care programs attached to
government preschools.
Source: Productivity Commission
Draft Report, Annual Review of Regulatory Burdens on Business: Social and
economic infrastructure services, June 2009.
Purposes of care
1.23
The diversity of childcare is explained by the multiple purposes for
which childcare is used. Most is related to employment, particularly for women
in the workforce. A proportion of this is part-time, as indicated in Table 1.1
above. Some childcare has a social, recreational or educational purpose, either
for parents or children, although most care appears to be a necessity, the
result of participation in the workforce. In regard to social policy,
governments have traditionally seen childcare provision as an adjunct to
employment. As noted earlier and suggested above, the high level of informal
childcare which is used has probably deterred governments at all levels from
developing complex regulations.
Graph 1.3: Growth in Childcare Services and Places
1989-2008
![Graph of the growth in childcare services and places between 1989 and 2008](/~/media/wopapub/senate/committee/eet_ctte/completed_inquiries/2008_10/child_care/report/c01_1_gif.ashx)
Source: Centrelink
Administrative Data 1989 – 2008 via Department of Education, Employment and
Workplace Relations, Submission 41.
Childcare and early childhood education
Historical divide
1.24
In Australia, early childhood education and childcare have developed
independently and in diverging directions. Differences are seen in a range of
areas including funding, professional qualifications and status, access and
availability.
Integration of care and education
Contemporary research...highlight[s] the holistic nature of child
development and the need for [early childhood education and care] programs to
be responsive to this. Learning and care are interdependent in early childhood,
with emotional well-being supporting cognitive development...demonstrating the
need to bridge the historical gap between the traditional domains of education
and care in the early years.[13]
1.25
The traditional divide between childcare and early education is now seen
as a false one by researchers and specialists in these fields. In the 1970s, it
was identified that children’s care, education and learning were interrelated
but government policies of the time did not reflect this.[14]
The sector continues to struggle with such policies today.
1.26
The committee heard evidence regarding the need for a cohesive system
for children from birth to school.[15]
Witnesses such as the Community Child Care Co-operative NSW argued that, to be
most effective, childcare and early education should be integrated, making the
division indistinguishable to families and children.[16]
This is reflected in the use of the term 'early childhood education and care'
(ECEC).
1.27
A seminal study of children attending preschool programs in the United
Kingdom found that the integration of care and education offered the greatest
benefits to children in terms of social and cognitive development.[17]
The NSW Commission for Children and Young People informed the committee that
early education and care should be part of the schooling system because of the
importance of the beneficial effects that the early years can have for
children's long-term well-being.[18]
1.28
The disparity in skills and knowledge displayed by children when they
begin schooling is a good indicator of future academic success but the
integration of education and care can ensure a smoother transition into school
for children.[19]
Moreover, a common framework relating to children from birth to early
school-age can be a unifying tool linking various children's services.[20]
Incorporating early childhood education and care results in a more effective,
less fragmented transition from childcare and early education settings to
formal education settings.
1.29
The term ‘integrated care’ is also used to indicate the linking of a
wider range of services than childcare and education. Some stakeholders use the
term to refer to all services related to children and families including allied
health and family support services.[21]
Responsibility for childcare and
education
1.30
The Infant's Home Child Family Services has indicated that the transfer
of responsibility for ECEC to the Department of Education, Employment and
Workplace Relations (DEEWR) is a valuable first step in bridging the gap
between schooling and childcare.[22]
Moreover, this organisation pointed out that the Senate inquiry offers an opportunity
to further address this historical division. Some of the means available to
bridge the gap, such as addressing the qualification levels of carers and the
status of the sector in general, are discussed in more detail in chapter three.
1.31
Government policy is beginning to reflect the understanding that
childcare is where early childhood education begins, to the point where there
is a blurring of the boundary between preschool and kindergarten (the
nomenclature varies from state to state), as convincing educational research
has established that high-quality ECEC results in greatly improved learning
progress through primary school. It is noteworthy that in several states (and
at the Commonwealth level, as mentioned above) responsibility for early childhood
education has been transferred from children's services departments to
education departments.
So it has been very much a divide, if you like, between
preschool and child care. Certainly the sector is very keen to see the whole
current agenda about a much better coming together and integration of the whole
range of children's services.[23]
Childcare policy
1.32
While there is agreement as to the importance of developing a national
childcare policy, and equal agreement as to why this is necessary, there is a problem
with implementing good intentions. Most of the difficulty has to do with paying
the bills that new policy always generates. Childcare has been a largely
private matter for parents, supported by regular Commonwealth payments for the
purposes of subsidising care. Improvements to childcare quality, which many
agree are necessary, will at the very least, require an increase in government
subsidies in order to keep childcare affordable. The Commonwealth may also need
to consider direct intervention to support the provision of appropriate
childcare and facilities through direct funding to childcare providers.
Finally, there is the challenge of creating a 'national' or 'federal' (as
distinct from Commonwealth) authority to oversee policy development and implementation,
to plan the provision of childcare, and most importantly to enforce compliance
with regulations which now lie in uneasy demarcation between state and
Commonwealth authorities. Professors Brennan and Newberry informed the
committee that:
[t]he care and education of children below school age is an
area of intense public debate and the subject of considerable policy innovation
in Western democracies. Child care raises complex philosophical and policy
issues ranging from broad questions about the relative responsibilities of
state, market and family to technical aspects of policy design such as the
interaction of child care subsidies with income support, family payments and
taxation.[24]
1.33
As a starting point in considering the problems of childcare services
and early childhood learning, the committee notes a summary of policy
deficiencies identified in the Report of the Early Childhood Development (ECD)
Subgroup of COAG's Productivity Agenda Working Group of September 2008.[25]
The four points, in summary, were as follows.
-
We are not focused on enhancing human capital for the future.
There is no consistency or intensity in the provision of early childhood
services, especially for preventive health and quality early childhood
education. This is a serious deficiency in that the human capital gains of
strong ECD services are most evident for children at risk. There is notable
variation in outcomes for children depending on social and family backgrounds,
their remoteness of habitat, family income and other factors.
-
Parents have limited access to information. While children
are 'full of promise' in their earliest years, parents often lack information
about cognitive development milestones, and may face difficulty in knowing
where to find help. The result is that many beneficial services are not used.
-
Service complexity stresses families and wastes resources.
Changing family structures, combined with workplace pressures, are creating
stress for families. Complex, fragmented and provider-oriented (rather than
child-centred) services intensify family pressures.
-
We provide insufficient support for parental choices in
balancing work and family needs. Most government support is focussed on
childcare for working parents, yet we maintain low parental workforce
participation rates. Families face high effective marginal tax rates and a lack
of paid maternity leave.[26]
These issues are compounded by poor flexibility in childcare, including lack of
co-located pre-school and childcare centres.
1.34
Government policy has historically reflected the view that childcare was
a community responsibility, not a government responsibility. Moreover, until
fairly recently, the overwhelming majority of children were cared for at home
by parents, typically mothers. In the 1950s and '60s, this was the predominant
social expectation. There was therefore minimal demand for childcare services
outside the home. Some witnesses noted that this type of care by parents was
preferable to formal, centre-based care.[27]
Rejections of childcare
1.35
The committee notes the submissions to its inquiry from organisations
and individuals who have a principled objection to childcare.[28]
This core principle is bolstered by research which suggests harm can result
from leaving children in care.[29]
Witnesses pointed to the emotional suffering of children, particularly infants,
when deprived of immediately accessible parental affection. Evidence is also
quoted of wider social surveys of adolescents which suggest longer-term adverse
affects on personalities of young people as a consequence of the traumas of
early childcare. A witness from the 'Children Need Parents Campaign', citing
research from the United States, informed the committee that:
[t]his longitudinal study, known as the NICHD study, shows
that there is a much higher risk of depression, aggression, anxiety, even
cruelty, lack of empathy and other behavioural problems in children, depending
on the amount of time they spend in day care in particular and that these
problems persist for life. This longitudinal study has been going for 15 years.
The 15yearolds in the study have now been identified as having lower cortisol
levels, which was a previously unheard of finding. However, the study also
finds some benefits from long, early day care. It is not a biased study at all;
it is an extremely high level study—a $150 million study. There are some mild
cognitive benefits from early day care. I have to stress that the disadvantages
or the harm that I have referred to are also small, but the concern is that
these will aggregate. Whilst you may have two disruptive children in a
classroom who have spent a long time in early day care and the teacher may be
able to control the class, what is going to happen when that is 28 out of 30
children?[30]
1.36
Research from Sweden was also cited as the example of 'where we are
heading', and where it is claimed that provision of parental leave has led to
serious social problems amongst Swedish teenagers, where '[t]he mental health problems of adolescents
are horrendous'. The committee was told by Mrs Tempe Harvey that, currently,
81.3 per cent of Swedish children aged between one and five are in day care
centres and that Australia was heading down the same path.[31]
1.37
The campaign for paid parental leave, which has wide support across the
Parliament, also reflects a widespread community view that babies should be
with their mothers. The matter of infants in care was addressed for the
committee by Dr Tim Moore, from Monash University's Children's Research
Institute, who stated that children could be put at risk if parents are forced
to work and have little choice in the way of quality childcare. Dr Moore told
the committee that:
[w]ith regard to the issue of the first year of life, the
evidence certainly does suggest that we are putting kids at risk if we require
or have conditions that force parents to return to work early in the piece and
use child care when they might have little control over the quality and choice
of those options.[32]
1.38
Another aspect of the opposition to childcare – and to paid parental
leave – in a number of submissions was the seeming inequity of providing more
government financial assistance to parents who put their children in childcare
than is provided to parents who stay at home with their children.[33]
It was argued that women who sacrificed a career were entitled to compensation,
especially in view of the social good that was the consequence of this
sacrifice.[34]
Some submissions called for an overhaul of the tax system to reduce the tax
burden of the working spouse, usually the husband.[35]
1.39
An alternative view of the need for childcare was put to the committee
by a director of a childcare centre in Perth who explained the modern attitude
to care from the point of view of women.
It is so vital that women are comfortable and feel okay about
going back to work. So my first reaction, my gut reaction, to listening to
those ladies [previous witnesses] speak was that what you are doing is not
respecting the fact that women are choosing to have a break from their children
to try and be better parents and to try and have more energy. We are having
children a lot older. We are not 19 having children any more. We have had
careers. We have had money. We are educated. We are not women who are used to
staying at home. So that, by its very nature, is not conducive to having our
children at home seven days a week with us.[36]
1.40
The committee regards the complex issue of combined income and shared
taxation as one which is well beyond its terms of reference. This matter will
be addressed in chapter four. Governments must weigh the claims for entitlement
against those of need, striking a balance between offering extra support to
needy families and offering equal support to all families to access childcare.
The need for quality childcare for children of all ages is beyond question and
governments have a responsibility to ensure that it is regulated and
affordable.
1.41
A range of needs are addressed by childcare services. Mr Ian Polman, for
instance, informed the committee of his satisfaction with the standard of care
in the childcare programs that his children attended; however, he had fears of
the experience being ruined by such ideas as 'trying to ram even more education
into children at ever decreasing ages', with the result that childcare would
become too expensive for many parents, such as to create a divide between the
'haves and have nots'.[37]
Public good or industry?
1.42
A range of witnesses indicated to the committee that the childcare
sector has come to be seen as an industry and childcare as a commodity, where
parents are consumers and the market controls price and distribution.[38]
This approach takes little heed of children's needs and in fact views children
as products or units of revenue production.[39]
ABC Learning's business model has been described as 'care is a commodity rather
than community service'.[40]
In contrast, school education has long been regarded as a 'public good'.
Knowledge and skills are basic to the building and maintenance of any society.
It follows that as scientific research has established the crucial role of
early childhood learning in social and cognitive development, provision of
appropriate learning opportunities for children from the earliest age is also a
public good.
1.43
A public good is not just any 'service'. We do not speak of schools
providing 'services'. A complaint often made by childcare experts is the need
to think of childcare other than as a 'childminding service'.[41]
There is now wide acceptance that childcare involves a learning and socialising
process that provides the vital first step to life-long learning. It is
important that parents understand this process and have access to information
regarding their services to ensure their early childhood and education settings
meet the families’ expectations and needs.
Conclusion
1.44
The provision of childcare is multidimensional and childcare is a
service that is connected to many other economic and social policy
determinants. The provision of childcare is closely linked to the education
system but is also shaped by family support and allied health mechanisms.
Furthermore, childcare is important to the nation's economic wellbeing through
parents' workforce participation and productivity.
1.45
A wide range of factors must be considered within the provision of
childcare. These include the types of programs and experiences that we want to
be available to children, the various ways of funding childcare (and their
effects upon the sector), as well as the make-up of the childcare sector and
the types of providers in the sector.
1.46
This report discusses a range of issues salient to the provision,
funding, planning and oversight of childcare services. The lessons from the
growth and ultimate collapse of ABC Learning are described in chapter two.
Chapter three surveys some of the research relating to children's development
and its application in the provision of childcare together with discussion of
the need for planning. Changing funding policies of various governments are
discussed in chapter four with recommendations on future funding. Chapter five
presents issues related to the accreditation, regulation and licensing of
childcare services and proposes a new structure for a national childcare
authority.
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