Senate Education and Employment Legislation Committee, , 5:51:48 to 5:57:30
Discussion on the government's power to withdraw childcare subsidies from non-compliant providers and the immediate closure of services deemed unsafe by regulators.
Topics: Child safety, Government spending
Speakers: Senator Jess Walsh, Senator Steph Hodgins-May, Mr. Brendan Moon, Unknown Speaker, Senator Marielle Smith
>> But do you think a provider with 25 re ratio breaches in one year deserves to keep operating?
>> Um well, I think that all providers um no matter what their ownership structure um is, um need to deliver safe um quality early learning. um need to comply with the law um need to address values that have been identified. Uh and again, you know, what I can say um is that together the Commonwealth, states and territories are investing around half a billion dollars uh in keeping children safe. And from the perspective um Senator um of the Commonwealth, I mean the Commonwealth introduced laws um to enable us to cut um Commonwealth childare subsidy from providers um for the first time last year. Um we are continuing to use those powers where
it's appropriate for an organization to continue to function operate when it has had 25 breaches um ratio breaches in a year? Do you think that it's that parents would have an expectation that that service would be closed down if if there are that many breaches over such
course, it's incredibly important that providers address all of those breaches. Um, it's important that that information is made public. It's part of the transparency and accountability that we require. Uh, and that we've ensured that parents um have available to them. Uh and again, you know, for the first time, the Commonwealth um has the powers to withdraw Commonwealth Childare subsidy and we are using those powers um including withdrawing Commonwealth Childare subsidy from providers who failed to say
that. Thank you, Minister. Um can I ask has um has the department met and spoken directly to u the CEO of Little Zachs?
So Senator, we can't really disclose individual circumstances or information about individual providers. What I can say is that the department regularly speaks with each state and territory regulator both bilaterally and as a combined group in a number of forums. Uh in the last couple of years uh we've undertaken in fact it's a little bit longer than that but there's been an acceleration of something called the focus deterrence initiative uh which is led out of the states and territories where they will look at poorly performing providers across
the list of providers that have been met with?
>> Again, Senator, I'm sorry I can't talk about individual circumstances.
>> Um, Minister, you said on Four Corners that you were using powers to stop big chains expanding if they have quality issues and that you had gone after two in particular. Um, you mentioned Edge Early Learning. Which was the other
Um I I uh am unable to name the other provider uh and that is due to um the nature of the action that we are taking uh at present.
Do you understand the distress that parents are already in and how that can be exacerbated knowing that you know there's a center that is being investigated um but there is no certainty provided to families across Australia about which center that is and that process doesn't necessarily doesn't bring them what's the word like comfort not knowing simply which these centers are that are being examined for really serious potential incidents.
>> Um Senator um the reason that I'm unable to um name the service is because of the nature of the action that we are taking and it is to protect the action that we are taking.
>> What about protecting the families in the meantime?
The action that we're taking is about making sure that early learning services are safe uh and that these particular services are safe. Um in terms of families, Senator, I think it's really important um to know that um if a regulator views a service as immediately unsafe, it will be closed immediately. Um that is that is what happens um when regulators find um services that they think um are um posing an immediate threat to children as families would expect. Um so you know I can assure um families that the way in which the Commonwealth, the states and territories are working together on regulation um means that services that are immediately unsafe would be closed immediately. Um and what we are trying to do uh and what we are doing with the regulatory action that we are taking um is putting providers on notice that they stand to lose their Commonwealth childare subsidy if they don't improve their standards uh and we are driving higher standards in the sector and we are seeing that um both in the regulatory data that we have um and also in the outcomes with more services than ever moving from a working towards rating to a rating of meeting and exceeding the national quality standards.
>> Thank you, Minister. We are due to rotate now. So, I'm returning to Senator