The ABC empire is in financial ruin, now along with several other organizations, leaving a lot of working mothers with doubtful options for the New Year.
It would appear that the Rudd Government will have to step in and develop yet another “rescue” plan.
But, has anyone asked: “why is this happening?”
We all know child minding is not cheap – in fact it is downright expensive - so it would seem reasonable to think that it would be relatively easy to be highly profitable in this business. What exactly is the problem?
Given the crisis the most obvious answers which come to mind are mismanagement and the high cost of borrowing money, but there is another factor that is never mentioned or even whispered about: the cost of compliance.
If you look into the rules and regulations with which a kindergarten has to comply you will quickly realise that it is in fact a very expensive business to run. Add to this the cost of insurance. (Remember that NSW is the most litigious place in the world.)
Now, I know what I have just written is politically incorrect – I hope I will not be thrown into the stocks for my efforts!
The political and bureaucratic boffins sit in their offices and dream up ever increasing rules and regulations. After all, that is their job, and they are paid fat salaries to do so. However, the effect of this is shifting sands. When you set out to create something like a Kindergarten you have one set of rules, but further down the track you find they have become more stringent.
This is all justified by the use of universal truisms (an age old NLP technique).
Don’t we want better education for our little darlings?
Don’t we want a safer environment for them?
The answer to these basic questions has to be yes.
However it all comes at a cost, a very big cost, which you the consumer directly and indirectly have to pay.
The same universal standards can be applied to many subjects.
Don’t you want a safer car?
The answer again must be yes, however I do not see everyone driving around in a top line Mercedes (supposedly the safest).
When it comes to direct and personal allocation of finances we make balanced decisions regarding how much safety we need and what we are willing to pay. Yet, returning to the kindergarten industry, we get no such choice. These are the “standards” which generate astronomical costs and that is that!
This is not just a local issue. The cost of Kindergarten is a major and significant expense to any family where the mother with a young child or two wishes to work. This drives the need for high wages, which in turn …
The macro view of this is that Australian wages rise and we become less competitive with the rest of the world which in its own way contributes to jobs ultimately going off shore.
Ever compared the wages cost of a Chinese woman with a baby to that of an Australian woman? Don’t fall for the trap of thinking that they are less capable and less productive – that is just simply arrogant thinking.
Anyway back to the ABC of matters. Isn’t it about time someone put some rational thinking back into the system?
Being the age I am there were no kindergartens or preschool yet somehow I grew up – I am now puzzled how this was achieved.
PS – no doubt I will be taken to task referring to child minding and kindergartens.
They are early child development centres, which happen to mind children … | 
