Tony Abbott (Warringah, Liberal Party, Shadow Minister for Families, Community Services, Indigenous Affairs and the Voluntary Sector) Share this | Link to this | Hansard source

My question is to the Deputy Prime Minister. Which of the government’s powers is she proposing to use to penalise childcare price rises such as 10 per cent by ABC Learning Centres and 13 per cent by Warringah council? Does she think that these price rises are fair and can she explain how publishing childcare prices on a government website is going to keep them down?

Julia Gillard (Lalor, Australian Labor Party, Deputy Prime Minister) Share this | Link to this | Hansard source

I thank the member for Warringah for his question. Obviously the government are a substantial player in the childcare market, and we have a range of policy levers at our disposal because we are a substantial player in the childcare market. On the supply side, the levers at the government’s disposal include our election commitment to introduce up to 260 new childcare centres. That is a significant contribution to the childcare industry and the childcare market as we know it. In terms of the locations of those centres, we are looking at establishing new centres in areas where the market is not working. One of the reasons that the market may be perceived to be not working in an area is that there are higher fees than in other locations. When we are working out who should be the providers for those new centres we are obviously going to be assessing diversity of provision and equity of access, including through new private and/or community partners. Significantly, when we are selecting the providers for these new centres, a track record of affordability will be taken into account. So it is a significant policy stream, a significant policy measure, which will make a difference for childcare centres.

On the demand side of course we have introduced, through the recent budget, an increase in the childcare tax rebate, which—as I presume the member opposite appreciates—is not income tested. So that is a significant measure on the demand side to assist working families. We are of course reviewing the regulation in the sector to ensure national consistency in quality standards and licensing. Finally, as part of this suite of policy measures, we are looking at the transparency and indeed acting on the transparency of the sector. This is actually implementing a pre-election commitment. I know that it is not fashionable amongst the Liberal Party members to implement pre-election commitments; it is fashionable to make them, to describe them as rock solid, rolled gold and all that sort of thing and then to back down on them later. The member for Warringah would probably remember all about that from the last parliament. I know it is not fashionable with the member for Warringah to make an election commitment and then actually implement it, but the government committed before the election to a major transparency measure to make sure that parents had access to information about fees, availability of places and quality standards.

I think the thing that members opposite should be reflecting on, as they show throughout this question time just how out of touch they are, is what a track record of failure it is that, after 12 years in government, they left a situation where parents looking for child care could not get ready information on fees, availability or quality. That is the situation they left after 12 years of inaction; and, as part of a suite of measures dealing with affordability, accessibility and quality, we are acting on it.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

I just indicate to the member for Warringah that the latter part of the question was asking for an opinion. It could have easily been fixed so that is why I ignored it. When somebody asks a minister whether they think something or other is fair I think that is slightly outside the standing orders.

Wilson Tuckey (O'Connor, Liberal Party) Share this | Link to this | Hansard source

Mr Tuckey interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The member for O’Connor should not go near the cognitive processes of members. I hope that he does not believe that that was an overly great reflection upon him.