THE HON SUSSAN LEY MP

Assistant Minister for Education

MEDIA RELEASE
10 December 2013

Ley slams Ellis over childcare union slush fund

An independent report has confirmed Labors controversial Early Years Quality Fund was a deeply flawed and inequitable policy that was used as a front to blatantly boost union membership in the childcare sector. Assistant Minister for Education Sussan Ley today released the independent Review of the EYQF, undertaken by PriceWaterhouseCoopers, which clearly shows it was never going to achieve its claimed objectives. Ms Ley said she was deeply disturbed by the findings and demanded Labor frontbencher Kate Ellis, who was Childcare Minister at the time, provide taxpayers with an explanation over this $300 million Labor deal for their union bosses. We committed before the election that we would undertake a considered and measured independent review of Labors controversial fund following complaints from the childcare sector and weve delivered, Ms Ley said. Its clear all Labor has achieved with this fund is boosting union membership and driving a clear pay-divide through the childcare industry. Labor certainly cant claim their policy was about pay equity and raising education standards when 70 per cent of long day care workers wouldnt have received one dollar. Kate Ellis was one of the Ministers in charge of this Labor fund and its time she took responsibility for this union slush fund being set up under her watch. Ms Ley said one of the first questions Ms Ellis should answer was whether it was appropriate that she signed off on 12 formal EYQF contracts on September 6 this year the day before the 2013 Federal Election and while the Government was in caretaker mode. There was a clear rush by Labor to get these deals done for their union mates before the election and now theyve left the Coalition and taxpayers to pick up the bill.

Ms Ley also called on Ms Ellis to explain why a competitive merit-based process was not conducted, rather than a first-in, first-served approach. Ms Ley said other key issues Kate Ellis needed to explain included: How operators only received two working days to submit applications, when, under Commonwealth Grant Guidelines, three to four weeks is the standard. How $300 million in funds ran out in just 13 hours and why applicants werent advised funds were exhausted until months later. Why unions were briefing operators on application requirements just days after the original policy announcement, despite the Government not releasingofficial guidelines until months later. How large operators could access up to 50% of the $300 million fund, despite representing only 19% of the sector.

The full report is available on the Department of Education website at http://docs.education.gov.au/system/files/doc/other/ministerial_review_eyqf_final_rep ort.pdf ENDS Ms Leys Media Contact: Troy Bilsborough 0427 063 150 Department Media: media@deewr.gov.au