Question on Notice Child Care services Why wasn’t corrective action taken by staff with the cost overrun of Child Care services once it became apparent that it was not meeting National Competition Policy, which requires no business should enjoy competitive advantage as a result of their public sector ownership. Council was first advised of the financial problems with this service when it was reported in the 21 February 2013 Council Agenda, when it was reported that Child Care Services had an unfavourable variance $168.119. And the comments were and I quote “due to lower than expected childcare fees, which are unable to be offset by and a proportionate decrease in expenditure. This is due to the need to maintain carer-child ratios as per legislation” No comment was made of what corrective measures were going to be taken. Or seek approval for ratepayer’s funds to be utilised to make up the current shortfall. What options would be available to private providores should they be faced in a similar situation? The next report for the 31 March 2013 quarter was in the council l agenda May 2013 where it was noted that Child Care Centres now had an unfavourable forecast variance of $240.342.00 and increase over the quarter of approximately $72.000.00. the comments on this occasion quoting again “Unfavourable variance to budget expected due to lower than expected utilization (decrease in revenue) which are unable to be offset by and a proportionate decrease in expenditure.” Subsequently Wisteria Lane is in the process of being closed. Far too late and again how would a privately operated facility cope with the funding shortfall? The Councils budgeting philosophy for Child care services which are not a statutory responsibility of Local Government and therefore provided with the philosophy of covering the cost of providing the services by way if user fees (rather than from rates). Which is a National Competition Policy Requirement?
Posted on: Tue, 18 Jun 2013 02:48:31 +0000
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