Dealing with a real crisis

Forget about all that international financial turmoil business. The Rudd Government now has a real crisis to deal with. The prospect of 25 per cent of Australian kids in child care not having a place where their parents can drop them off in the morning is giving Labor nightmares. Should the worst happen and ABC Learning Centres be shut down, then the Government would be facing a dramatic drop in popularity. It might be possible to recover from the coming recession but not from the anger of all those working families.
The receivers of ABC, those nice people from McGrathNicol who are looking forward to a wonderful earn from this company collapse while saying that the "interests of children and families are central to our considerations", are well aware of the political realities. They know the federal government has no option but to provide the money to keep the kiddies with a place to be deposited so they are working, as they said in a letter to the parents yesterday, "constructively with the Group’s management, its financiers, the Australian Government and other stakeholders to determine the way forward."
"Following extensive consultation between the Group’s financiers and the Commonwealth Government, a range of measures is being put in place to ensure the stability of childcare services for ABC families," is how the letter delicately put the matter of this government bailout of a private sector failure. Translated it means that taxpayers will be kicking the receivers can for tens of millions of dollars.

Comments

Popular posts from this blog

Is Scott Morrison getting ahead of Malcolm Turnbull in the GST debate?

Prime Minister Scott Morrison under pressure as the question about knowledge of a rape gets embarrassing

Remembering that Labor only lost last time because of Bill Shorten