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Charity takes over 570 ABC child care centres today

The Goodstart consortium will take over 570 child care centres from ABC Learning today, however some landlords are creating headaches for the Federal Government.

ABC LearningEducation Minister Julia Gillard will officially transfer 570 child care centres from ABC Learning to GoodStart today. Childcare Minister Kate Ellis yesterday said the sale of the 570 ABC Learning child care centres to Goodstart will increase the not-for-profit share of the child care market to more than a third from its one quarter currently.

The GoodStart consortium, was established with the sole purpose of buying out the failed ABC Learning child care centres by four not for profit charity groups – Social Ventures Australia, Mission Australia, the Brotherhood of St Laurence and the Benevolent Society reports The Daily Telegraph.

“The transfer of these centres closes the door on a chapter of instability in the market which was created by the unprecedented collapse of ABC Learning in 2008,” Ms Gillard said yesterday.

The Goodstart consortium is supported by a $15 million Federal Government seven-year low interest loan that the Government fully expects to be repaid.

Goodstart consortium’s chief executive Matthew Horton indicated that the takeover of the failed ABC Learning child care centres would have been impossible without the Federal Government’s support The Canberra Times reports.

”At all of our centres around the country it’s business as usual just better,” he said to the paper.

”More than 62,000 Australian families already trust ABC Learning Centres with their children every week.”

Some landlords are holding out in transferring titles over to the new Goodstart Venture, with Michael Traill, chief executive of GoodStart consortium member Social Ventures Australia, saying there have been problems with the transfer process.

“The logistics with multiple landlords have been quite complicated,”Mr Trill said yesterday in The Australian.

“There might be some who want to hold out, but we’re confident that over the ensuing months we will be able to secure virtually all the centres.”

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David Olsen

David Olsen

An undercover economist and a not so undercover geek. Politics, business and psychology nerd and anti-bandwagon jumper. Can be found on Twitter: <a href="http://www.twitter.com/DDsD">David Olsen - DDsD</a>

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