BIG BOX OPERATOR EYES
CANADA'S CHILD CARE
(The
following article is from
the November 16-30,
2007
issue of People's Voice, Canada's leading communist newspaper. Articles
can be reprinted free if the source is credited. Subscription rates in
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From the
Code Blue for Child Care website, http://www.buildchildcare.ca
The world's biggest child care
corporation appears to be embarking on a Canadian buying spree - a
development that threatens the future of a public, non-profit child
care system.
In recent
months a corporation called 123 Busy Beavers Learning Centres has
approached for-profit child care centers in British Columbia, Alberta
and Ontario, asking if they would be interested in selling. Despite the
home-grown name, 123 Busy Beavers is linked with huge Australian
multinational child care corporation ABC Learning Centres.
Code Blue
helped uncover information showing the close links between 123 Busy
Beavers and ABC Learning, through a child care corporation called 123
Global. It's a few short clicks from 123 Global's main page to a form
for potential sellers, including Canadians.
This major
development in the privatization of child care could seriously harm
years of work towards a universal, public, non-profit system of early
learning and child care. Big box expansion into Canada will divert
public funds into private corporations, erode regulations and quality,
increase user fees and trigger restrictive international trade rules.
Canadian
child care advocates have been monitoring Australia's experience with
for-profit care for a number of years. In 2005, CCAAC helped bring
child care advocate Lynne Wannan from Down Under on a tour highlighting
the serious problems with commercialized care. Before 1991, Australia's
child care system was 70 per cent not-for-profit. Then the government
opened up funding to the for-profit sector. Within a decade, that
proportion had flipped, with ABC now owning about 25 per cent of the
country's child care supply.
The quality,
accessibility and affordability of Australian child care, along with
the working conditions for child care workers are all significant
concerns for parents, child care workers and child care advocates.
The pace of
acquisitions appears to be rapid. The Coalition of Child Care Advocates
of British Columbia has sounded the alarm, connecting the buying spree
with a recent BC government announcement making child care capital
funding available to private companies for the first time in the
province's history. This change in public policy makes BC particularly
attractive to large multinational child care chains.
The
coalition reports that a member who is a child care operator recently
received a buyout offer from a firm connected with 123 Global. She
reports being told the sale could be completed in "as little as three
weeks."
News reports
from Calgary also suggest that some sales are pending or may already be
complete. Letters have been mailed to child care centres across Ontario
but so far there is no hard evidence that they are ready to launch
centers under their name as quickly as they are in Alberta.
The state of
Australian child care was the backdrop for Code Blue's presentation on
Bill C-303, the NDP's Early Learning and Child Care Act last May.
Bill C-303
is expected to return to the House of Commons for a decisive vote on
November 20. The bill limits expansion of for-profit child care, a move
that protects Canada from international trade disputes and ensures the
highest quality care. CUPE's brief provided warnings from Australia's
experience with for-profit care and pointed to the solid evidence
linking higher quality care with non-profit delivery.
In addition
to concerns about the proliferation of large commercial child care
centres focused on shareholder returns instead of quality,
foreign-owned child care centers create other problems under
international trade agreements.
In 2004, as
the federal government was negotiating federal-provincial child care
agreements, CUPE released a legal opinion highlighting the dangers of
for-profit expansion. Those dangers are now on our doorstep.
123 Global
is supporting an extensive child care empire in Australia, New Zealand,
the United States and the United Kingdom. It isn't too late to keep
Canada off their map.
We don't
want to see the proliferation of large commercial child care centres in
Canada that are focused on shareholder returns instead of quality. Code
Blue and its coalition partners will mobilize public opinion to stop
the expansion of for-profit child care and the foreign takeover of
child care services in Canada. All working families have a stake in
this fight.