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Mr GEORGE (Lismore) [6.06 p.m.]: I raise some concerns expressed by preschools in my area about the change in funding that will come into effect from 1 July. I will read from a letter sent to me by The Channon Children's Centre. The letter is signed by Katrina Shields and it sums up the centre's fears and concerns:
Dear Sir,
We are a group of parents of preschool children who have children attending The Channon Children's Centre in Northern NSW. We are very concerned that proposed changes to special needs funding, partly directed through preschools, will have a big impact on the viability of our community run preschool. While we agree with the principle of directing special needs money to parents of selected children to spend as they see fit for their individual child. Our concern is that this will amount to taking away $11,000 of the preschools funding which will place the whole centre in jeopardy. We already do a lot of fundraising, working bees and voluntary work to keep the centre running. The centre was community initiated, built by parents and has been running successfully for 15 years. We have had to lower our fees recently to make it affordable for more parents to use the centre more than one day per week and to bring us in line with other centres. We know that to raise fees significantly would mean the numbers of children attending would decline significantly.
We believe that our preschool offers a richer educational experience than childcare centres and family day care (which are only available in other towns anyway) and that centres such as ours rely on the Department of Community Services funding to make up the operating expenses on top of fees and fundraising. The rural recession is hitting our town in so many ways and this just seems like another blow. How do you suggest we gather $11,000 or more to keep the centre open? Would you be willing to follow up this issue on our behalf?
That sentiment is being expressed by all preschools in my area. I should like to highlight also that these small preschools are situated in small centres and keep those communities together. If a small community preschool such as the Channon preschool has to close, the children will have to be taken into the major centre at Lismore, which is kilometres away, and families just cannot afford to do that. The preschools agree with the change in funding, but community preschools in country areas are struggling. It is time the Government realised what is happening to these preschools. I have passed on to the Minister the fears those preschools have expressed to me. Part of the problem, which was pointed out to me, was that in the new contract preschools are required to put the $6 cap on places for which they would normally charge more. The second point of the contract states:
The fee for families on incomes under $20,355 is to be no more than $6 per day where service is defined as a registered service under the Commonwealth Children's Benefits Scheme.
If the preschools comply with the requirement of the new contracts they will go broke. Those fears are being expressed not just by one preschool. I have visited most preschools within my electorate and they all express concern about future funding arrangements. Further to that, as I understand, funding top-up for special needs children will not happen until the preschool knows how many children it will have enrolled who require special needs funding.
The Channon preschool and those at Casino, Lismore, Kyogle or anywhere will not know how many children will require special needs funding until enrolments are completed next year. They will not be able to finalise the school's funding arrangements until the end of the first term. The teachers cannot be told at the end of this year whether work will be available for them next year. The preschools are totally confused about how they are to retain staff and handle these new contract problems. I asked the Minister if she could get the Department of Community Services to explain to the preschools in my electorate how they are to continue running a community-based preschool.