Child Care Crisis
Illawarra Mercury
Friday November 21, 2008
AT least 200 Illawarra families have been caught up in child-care uncertainty as a third provider has been forced into external administration.
It was revealed yesterday that two companies which operated six Wilbur child-care centres in the region were forced into receivership due to unpaid debts to the Bank of Western Australia.The centres are up for sale in an effort by receivers to raise cash to meet outstanding loan repayments.The news followed an announcement on Tuesday that CFK Childcare Centres, which operates two centres in the Illawarra, went into voluntary administration. Receivers were appointed on Wednesday afternoon.The receivers managing ABC Learning Centres have been calling for calm after the company, which operates five centres in the region, was placed under administration earlier this month.All centres remain open with receivers trying to continue operations.Illawarra Children's Services chief executive officer Bill Feld urged parents not to panic and stay with their supplier while administrators decided whether they were viable."As the picture unfolds, and with ... an undersupply of places available at other centres, parents would be well advised to maintain their current child-care arrangements and await further advice," Mr Feld said. He said before the companies went into receivership there was an undersupply of places in the 0-2 bracket."Until recent market fireworks, the supply of places for 3-5 year-olds was generally in balance with demand, however, there continues to be an undersupply for 0-2 year-olds," he said.Cunningham MP Sharon Bird urged parents to stay calm. "We don't want to create a rush out of centres, which can only exacerbate the problem," she said."We are intervening and working with the receivers. We have put the guarantee in place until December to give some peace of mind that they are working with receivers."
© 2008 Illawarra Mercury