Call for childcare centre funding certainty

Published: 17th December 2024

Queensland’s local government peak body has urged the Federal Government to provide special priority funding to regional, rural and remote councils that are struggling financially to keep local childcare facilities open. 
 
The Local Government Association of Queensland (LGAQ) called on the government to provide ongoing, allocative funding to support councils forced by market failure to deliver local childcare services.

While recognising recent initiatives under the government’s universal childcare strategy, LGAQ CEO Alison Smith said several Queensland councils competing for grants in the Community Child Care Fund (CCCF) for support in operating their childcare centres had been overlooked in the latest round of funding. 
 
She said councils in regional, rural and remote Queensland often had no choice but to run childcare facilities themselves when there was no other local operator available. However, this vital service came at great cost and often included providing housing and other incentives to attract and keep qualified childcare staff. 
 
“Councils are doing this amid a challenging financial environment with small rate bases, limited ability to raise own-sourced revenue and a high reliance on grant funding,” Ms Smith said. 
 
“The reality is that without these local councils stepping up, there would be no childcare services at all in some rural and remote areas.” 
 
Ms Smith said the call for access to long-term funding certainty for councils operating regional, rural and remote childcare centres due to market failure followed a direct request by Queensland councils in a unanimous motion at the LGAQ’s 2021 Annual Conference. 
 
“We propose this could be through the establishment of a specific, allocative round of funding under the CCCF, or as a standalone fund, in recognition of the critical nature of this service delivery,” she said. 
 
McKinlay Shire Council Mayor, Cr Janene Fegan, acknowledged the Federal Government’s desire to help families in a cost-of-living crisis. 
 
“However, there must be support for councils stepping in to run these childcare services in rural and remote towns across Queensland, because if we don’t do it, our local families go without,” she said. 
 
“Childcare is an essential service for every community. It shouldn’t just be for major centres.” 
 
The Mayor of Isaac Regional Council, Cr Kelly Vea Vea, said that where the private market failed, it was often left to regional councils to pick up critical childcare services. 
 
“The cost of doing business in regional communities usually means that many private childcare operators don’t see regional centres as viable commercial businesses,” Mayor Vea Vea said. 
 
“In our region, we pay 30 per cent above the award, provide housing subsidies and cover visa processing costs, just to attract childcare workers. 
 
“Councils should not be forced to sacrifice critical services to fund the childcare gap. We need the government’s support to help us step up and support regional communities.” 
 
Cr Tony Rayner, Mayor of Longreach Regional Council, said “While we welcome the funding opportunities we already receive, we need secure, allocative long-term financial certainty for these essential childcare services.”

For more information, please contact:
Michael Prain, LGAQ Media Executive