The shivers created by the ABC debacle are still being felt in...

The shivers created by the ABC debacle are still being felt in the early childhood sector.

It has been mentioned, but not verified that the government may consider capping the number of centres that any one corporate can own. This may account for the buy ups in the past twelve months. Some of those buy ups have been surprising, as they were a considerable distance from a capital city and their occupancy levels were low. On closer examination, most of those were 'package deals' where one owner had several centres, five were performing well and the other two were floundering, but it was all or nothing sale.

A profitable centre would look at maintaining a salary level that does not exceed 48% of sales. Those sales depend on occupancy. Occupancy levels in the first quarter of the year, in regional areas can prove to be challenging for centres, but if centres maintain a tight staff to child ratio there is no reason that they cannot be profitably managed.

So much hinges on the findings of the Commission. I have no doubt that the nanny subsidy will be introduced. The regulation changes in 2015 regarding ratios is set. A considerable effort will be required by corporate childcare to ensure that, children, families, staff and shareholders are happy.