Inquiry Blames For-Profit Childcare for 'Deserts' and Safety Failures in NSW
A New South Wales parliamentary inquiry has delivered a damning assessment of the state's early childhood education and care (ECEC) sector, pointing to systemic weaknesses that have allowed predators to work in childcare and abuse children. The final report, published on Wednesday, also links property developers investing in lucrative "farms for children" to so-called "childcare deserts" in poorer suburbs.
The upper house inquiry, chaired by Greens MLC Abigail Boyd, found that "the proliferation of for-profit services and a lax regulatory approach" had led to predators being allowed to work in childcare. The report said private-equity-backed operators have "no place" in the sector and that the state's regulator had "failed to respond appropriately" to services with "extensive histories of non-compliance, breaches, safety incidents and persistently poor ratings."
In her foreword, Boyd described the sector as "in crisis," stating: "While the sector is entrusted with the safety, wellbeing and development of our youngest children, the evidence before this committee revealed a system under profound strain – one that is failing too many children, families and educators."
The inquiry was established in March last year and held public hearings between August and October, amid growing national concerns following an ABC Four Corners investigation and a series of high-profile arrests of childcare workers for alleged child abuse.
The report also highlighted the influence of real estate developers and investors, citing evidence from Cheyanne Carter, head of consultancy Divergent Education, who said centres were built to maximise "child per square metre" profit. "We're creating zoos, farms for children, because no-one is regulating the design of these services, and the property is so profitable," Carter told the inquiry in August. She described cases where 50 preschoolers were squeezed into a single room and said developers "don't care about design" or "supervision blind spots."
Citing Australian Competition and Consumer Commission research, the report noted that investment in childcare real estate was "attractive" due to "long-term leases and stable tenants backed by government support." It also cited figures indicating Australian couples are spending 16 per cent of their income on childcare services.
The inquiry's recommendations include introducing a policy to reduce the overall percentage of large for-profit providers in favour of not-for-profit, government-run and community-run services. The report also referenced a Guardian Australia investigation revealing that most childcare workers reported for allegations of child abuse are allowed to continue working if the claim doesn't result in a criminal conviction. At an August hearing, NSW police's child sexual abuse squad called for a national database of childcare workers with "red flags" raised that fall short of prosecution.