Senator O'BRIEN (3:23 PM) —Given the comments from the government, I wonder why it is that the private sector, according to the government, seem to not have a problem with policy and really are saying that their only problem is this question of publicity. That is why they cannot fill their centres. That is why centres that have been built have closed or are about to close because they cannot get any people to fill their places.

Is that really what the private sector are saying is the problem? It seems to me that they have said something quite different to the Senate inquiry where the private sector has been represented regularly. Their organisations and individual centre providers have told the Senate that they want changes in policy. They have enumerated those changes, and government members of the committee know it. The private sector is critical of this government's policy on child care. For this government to dress up the problem and say that it is all a question of so-called misinformation and ignore what the private sector are saying is admitting they have no idea what they are doing in child care.

As to alleging that, as far as the opposition is concerned, it is a case of whatever it takes, let me remind the government that it is the Parliamentary Secretary to the Minister for Health and Family Services (Ms Worth) who, according to a letter that the parliamentary secretary has sent around to members and senators, has been egged on by the Minister for Family Services (Mr Warwick Smith) and is distributing misinformation—information which indicates that there is a continual growth in funding in child care. Senator Bishop has set out that there has been a reduction between 1996-97 and 1997-98 of $113 million, more than 10 per cent of funding.

Is that the candour that this government treats the electors with? Is that the candour which Ms Worth, the member for Adelaide, uses in her circular which is enclosed with the bogus chart where she says:

Enclosed is a guide to child care centres in my electorate. I have found it useful and I believe it has gone some way to counter some of the negative publicity that has had such a detrimental effect on many centres.

Warwick Smith's office has suggested that I circulate it as you may choose to do something similar.

They choose to circulate it knowing that it misrepresents the facts, and they have the gall to come in here and say we are misrepresenting the case. The facts are there in black and white. This government knows that outlays on child care fell by more than 10 per cent between 1996 and 1997.

As I said, the private sector have identified one of the key problems they have—that is, the child-care assistance measures are inadequate. They have said that the cap on child-care assistance ought to be raised. That is a consistent message from private sector child-care centre providers all around Australia. That is a consistent message from the or ganisations that represent them as well as individual proprietors, but has this government heard the message? Obviously not.

All they are telling the Australian public is that there is no problem. All they are telling the Australian public is, `It's only something to do with community based centres and local government centres. It's not a private sector problem. You can go there. There isn't a problem,' but the private sector is saying loud and clear that there is a problem. Clearly, this government is not hearing that, has not heard it and does not want to hear it because it does not intend to deal with it.

That is the problem that child care has. That is the problem that this industry has. That is the problem that parents, whether they seek community based, local government or private sector child care, are facing—that is, the measures this government have introduced have made child care unaffordable. That is driving people out of child care. That is causing underutilisation of centres both community based and private sector. That is causing them to close. If this government does not realise it, it does not deserve to be in office. A lot of mothers who have come to the committee's inquiries have told us that they are absolutely disgusted with what this government is doing to child care. They think it is time that some changes took place. If you cannot hear them, you will lose the next election. (Time expired)