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Response to claims about child care

Cumberland City Council has responded to claims that using an external provider to deliver its early education and child care services would compromise standards. It has also responded to claims that have been made about the cost of these services.
16 Sep 2020 - General news

Cumberland City Council has responded to claims that using an external provider to deliver its early education and child care services would compromise standards. It has also responded to claims that have been made about the cost of these services.

The comments follow the release of an Economic Statement, which details Council’s financial situation and actions to achieve at least $4.5 million in savings and reduce the cost of services by 10 per cent.

“Our Council-run child care services are losing $6.4 million each year. We don’t think it’s fair that these costs should be borne by all ratepayers so we are looking at options for an external provider, ideally the not-for-profit sector, to deliver these services.

“We’re not going to make a decision that compromises education and service standards as some Councillors have suggested.

“We recognise that as a Council we may not be best equipped or the most qualified to deliver certain services. We also have an obligation to ensure sound financial management and as such, we are currently exploring different operating models and external service providers to deliver services at our 17 early education centres.”

General Manager, Mr Hamish McNulty rejected claims Council’s child care services are turning a profit and are subject to unfair corporate overheads.

“To suggest these Centres are making a “small profit” as some groups have on social media, is false. Not one of these Centres is making a profit and we’d welcome any information that proves the contrary, provided this “profit” has been calculated in accordance with acceptable accounting standards or the local government code.

“Some groups who want to see these services continue to be managed by Council, claim unfair corporate overheads have been applied to these services. The corporate costs that apply to our child care services are consistent with Council’s 12 main service areas.

“Our financial situation is well-known; we don’t have endless cash reserves. We have a responsibility to every ratepayer in Cumberland City to ensure our services are delivered in the most cost effective way possible.

“All Councils have legal obligations to make sure we align our revenue to our expenses and to practice sound financial management. If we do not do this, we could be deemed to have been negligent in this duty.”

He said the focus now is on finding efficiencies in areas that are not Council’s core business and to have resources to spend on services, including essential services, critical works and infrastructure.

“Our Council is now talking to the market to determine the most efficient operating model for services for our early education services. Any decision that we make will be in the best interests of the entire Cumberland City community, including families who use these services.”