Cumberland City Council will temporarily suspend the operations of 17 early education and child care centres in two weeks, unless additional financial support is provided to supplement payments under the Early Childhood Education and Care Relief Package.
As part of the package announced last week, the Federal Government will pay 50 per cent of the sector’s fee revenue up to the existing hourly rate cap but under the condition that services remain open and do not charge families for care.
Council is not eligible to participate in the JobKeeper program and will continue to pay staff salaries and all operating costs while faced with a 50 per cent decline in revenue.
“As a large Council in Western Sydney, we strongly support the Federal Government providing families with assistance during these difficult times,” said Mayor Steve Christou.
“However, this plan in its current form is a devastating blow to our Council’s 17 early education and care centres and the 150 staff who provide services in these centres.
“As Councils are not eligible to participate in the JobKeeper program, we are facing a situation where families will not pay fees and Council-run centres will not receive the previous Child Care Subsidy.”
Cumberland City Council has written to the Federal Treasurer, Federal Education Minister and NSW State Education Minister, outlining its concerns. This includes:
- A 50 per cent decline in revenue for Cumberland City Council, equating to $500,000 per month.
- Council is not eligible to participate in the JobKeeper program and will continue to pay staff salaries while faced with a 50 per cent decline in revenue.
- An increased number of care applications exacerbating these adverse financial circumstances.
“We have reached out to the Federal Government and NSW Government since this announcement was made last week and all we've got is radio silence,” said Mayor Christou.
“We are very concerned that closing our Council-run centres may be the only option and that's not something we want to do. Cumberland City has many families using these facilities, with mums and dads in the area relying on these services that we provide.
"We will have no choice but to temporarily suspend these services in two weeks’ time, unless the Federal Government allows us to participate in the JobKeeper program. Alternatively, we need the Federal or State Government to provide immediate financial assistance to ensure that our Council child care services can remain viable."
Council is contacting families using these services to make them aware of its current situation and intention to temporarily suspend these services in two weeks' time.
Background:
- To view correspondence from Cumberland City Council on this matter visit: www.cumberland.nsw.gov.au/childcare-suspension