Occupancy across many parts of the sector is concerning. Sector...

Occupancy across many parts of the sector is concerning. Sector being LDC (Long Day Care) FDC (Family Day Care) community based and the not for profit centres. A drop of 3.4% would be concerning.

In his report Gary Carroll has stated the following reasons:

Industry supply increases, weaker demand in select markets, select centre-specific issues.

The only one of those reasons that G8 is able to control is select centre-specific issues.

Occupancy improvement initiatives to drive occupancy improvement in FY 2017. As occupancy is the most important factor in improving profitability, it is crucial that this is addressed not through "initiatives that drive" but through the provision of quality care and community connectedness. I constantly hear "occupancy is such a seasonal thing" and yes, occupancy does improve as the year progresses, but good centres would be addressing occupancy growth constantly. As I have said previously, there is great potential in G8, but IMO management currently, lack the knowledge of the sector to deliver satisfactory balanced outcomes for all stakeholders. It is early days for Gary Carroll and although transparent timely communication is sometimes lacking, he appears to be more direct than some of those who preceded him.

"The impact of lower occupancy has been offset by price increases as well as strong cost control" G8 do manage cost control well, but the mindset of user pays through fee hikes will end on 2 July 2018. On January 9 this year Education Minister Simon Birmingham stated the planned Childcare legislation will cap fee increases and hold centres accountable for price rises. It has been documented that there will be a benchmark price, (which we already know) and a rate cap. Those centres who "jack up prices" to compensate for low occupancy without examining the quality of and improving the service they are delivering will struggle IMO.

Adverse impact relating to net LDCPDP (Long Day Care Professional Development Programme) fail to see the adverse impact. Centres submitted their applications, received their funding and spent the monies received on professional development and submitted their returns to the government. If the funding was allocated and utilised as per the guidelines there should be no adverse impact.

Jobs for Families Childcare Package, will make early education more affordable and accessible but only to those who meet the stated criteria of the Activity Test. Flexible delivery of care, for those families who will only receive 12 hours per week, how will centres deliver that care without incurring high costs? Simon Birmingham favours two six hourly sessions per week, the long day care sector will struggle to implement that effectively, without operational changes. The "fine print" of the Activity Test is yet to be released.

Chris Scott retiring, no surprises there. The millions of shares sold by his ex wife last year was the indicator, that he was on the move.

Finally, everyone regardless of their sentiment on posting has a right to contribute to this forum. I find it all a bit sad, that the posts today given the most "thumbs up" we're the ones patronising and attempting to belittle non holders.

I welcome further discussion on any of the points or opinions raised in connection with the above.

IMO & DYOR