It's a pity that the Crikey article only focused on G8. Further investigation into the board/directors of other corporate childcare operators would have also provided some interesting reading.
The appointment of the hard hitting minister Scott Morrison to the early childhood portfolio will prove to be a positive for parents, as I expect him to deliver 'flexible childcare' = subsidies for in home nannies and grandparents who care for their grandchildren. There is no doubt that, if 'flexible childcare' is introduced it will hurt the corporate sector. Additionally, having one subsidy, that is means tested will also affect the affordability into corporate childcare, as many who are receiving the 50% rebate at present may no longer be entitled to such a large rebate, making the in home nanny an attractive option for those families.
The two largest corporates GEM and AFJ follow the ABC business plan. The trough in corporate childcare is indeed deep. Will history repeat itself?
GEM Price at posting:
$3.98 Sentiment: None Disclosure: Not Held
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