Mr MOSSFIELD (12:43 PM) —I would like to speak in this adjournment debate about the issue of child care. I think this is an important issue that the federal government seems to have forgotten. The economic facts of life for many young families, particularly low and medium income families, is that if they are to own their own family home there is a need for two incomes to assist in paying off the mortgage.

The McMahon government introduced government financial support for child care in the 1970s. Economic requirements, plus the desire of many married women to retain their employment skills to enable them to continue with their careers, have meant that the demand for community and council run child-care centres has increased considerably since that time. Parents with children in before and after school child care, and I quote directly from a circular sent from one child-care centre in my electorate, are being told:

In short, we are losing all our funding. Our only income will be through the collection of fees and fundraising. As a result, our fees will be increased dramatically. This centre has not had a fee increase for at least five years so the increase might come as a shock to some parents.

But in the same circular parents are being advised that the income that the federal government saves by not funding centres is to be allocated to fee relief for eligible families. However, this is not happening. Operators advised me that only a small number of families have registered with Centrelink for fee relief. Figures quoted are that only 18,000 out of an expected 70,000 have registered. This shortfall is causing concern, with serious problems expected during the school year as more children fall into risk due to inadequate care and supervision before and after school.

In its submission to the Senate inquiry on child care, the New South Wales government said, on pages 23 and 24 of their submission:

It is well recognised that women still maintain the primary responsibility for care given in the family, often caring for both children and older family members.

. . . . . . . . .

These women are more likely than men to reduce or leave paid employment in order to fulfil these responsibilities. The primary carer's inability to participate in paid employment may add financial pressure to other pressures experienced by carers.

The facts are that, due to government policy, child care has become too expensive for many ordinary families. This has meant that women's ability to remain in the work force has been jeopardised, and the ability of sole parents to get off the pension and their children to access quality child care have all been threatened. A number of community based before and after school centres in my electorate, such as Seven Hills West and Blacktown North, are struggling to survive. Operational subsidies for care of school-aged children and block grants to vocational care were abolished in the federal government's budget of 1997. These decisions came into effect in April this year and amount to a loss of over $10 million in New South Wales.

Many families are unable to pay the increased fees brought on by the removal of the operational subsidies. Some examples of the fees increases are that Blacktown North fees have increased by $20 to $70 a week and daily after school care rates have increased by 25 per cent to $15. Daily morning care and after school care fees have increased by $5 to $8 and $8.50 respectively, while recreational care has doubled from $10 to $20 a day.

Many centre operators are saying everything is basically on trial for the next three months. If they lose too many children, they will have to cut staff. All families will be paying different amounts depending on their income. In many cases, it is a choice for parents of whether to pay the mortgage or send their children to child care.

One of the biggest problems facing the centres is the enormous amount of paperwork administration connected with the government's new procedures. In talking to operators of community based before and after school care centres, I am told many parents are dropping out of child care because of an increase in fees. On the other hand, they are also pulling out because of confusion over how the government's new funding arrangements work.

One long day child-care centre in my electorate that I previously mentioned in this House is the Lalor Park centre. This centre previously had 60 children in it. The centre was unable to operate efficiently with the removal of the operational subsidy and closed its doors at Christmas. The Blacktown Council, to its credit, intended to reopen this centre but, due to increased fees, only a handful of children have enrolled. This is a clear indication that the Howard government's economic policy is placing child care out of the reach of ordinary Australian families. (Time expired)