Fed: Gov't to provide millions more to keep open ABC centres=4

AAP General News (Australia)
12-10-2008
Fed: Gov't to provide millions more to keep open ABC centres=4

Ms Gillard told reporters in Melbourne about 100 employees at the 55 centres that will
close will be made redundant.

She said the government was working to ensure they received all their entitlements
and understood employees were under a "great deal of stress and strain in the lead-up
to Christmas".

The government would make an announcement on their entitlements "shortly", she said.

Ms Gillard said while the 241 centres had been labelled unviable under the ABC Learning
business plan there was no reason the centres could not work under other owners.

"We are providing the assistance until March 31st to give us time to work with the
241 centres and we will be making arrangements as soon as we can about the future of these
centres," she said.

Many expressions of interest in the centres have been received from not for profit
groups and local governments.

Ms Gillard did not rule out small private providers running the business in the future.

But she blamed the former government for "letting the market rip".

"Here we are with the biggest provider of for profit childcare organisations in the
country moving firstly into voluntary administration then into receivership affecting
more than 1,000 centres so it's a big mess."

She said the government had worked hard to sort out the situation and ensure continuity
of care for children and provide reassurance for parents.

Ms Gillard ruled out the federal government outright buying and running the remaining centres.

AAP cb/szp/gfr/maur

KEYWORD: ABC GILLARD 4 CANBERRA (REOPENS)

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