PRESCHOOLS FUNDING

Page: 73

Mr PETER DRAPER (Tamworth) [6.09 p.m.]: Tonight I bring to the attention of the House how a 17-year freeze in funding has created a very worrying situation for community preschools across the electorate of Tamworth and, indeed, right across the State. Preschools in every local community spanning my area of the State are experiencing the same challenges—they are struggling to maintain basic service delivery because of the refusal of successive State governments to increase funding since 1989. This crisis recently sparked a string of public protests and rallies across the north-west, which were attended by concerned parents and staff from not only Tamworth but also the smaller towns in the area.

The depth of the funding crisis was impressed upon me during a visit to the Kootingal and District Preschool on 17 March, where I was taken on a tour through the school by director Michelle Cherniayeff. This centre, which operates at the rear of the War Memorial Hall in Kootingal, is considered potentially able to provide services for up to 100 children from the communities of Kootingal, Moonbi, Tintunhull, Limbri, Moore Creek, Attunga, Walcha, Dungowan and Nemingha. However, in reality, the number of children for which this preschool can safely cater is restricted to 67 per week. This is because it simply does not have the capacity to accommodate any more children due to a lack of space and insufficient funding to source essential staff and equipment.

This brings me to the point that is of most concern. This preschool received only $63,703, including GST, from the Department of Community Services [DOCS] last financial year, instead of an estimated $100,000, which Ms Cherniayeff states is needed to operate the centre effectively. Part of this shortfall is created by continual increases in insurance, which rose by another $1,500 last year alone, putting extra strain on the preschool's limited financial resources. This situation has become so desperate that staff and parents regularly donate their own funds to purchase essential items such as furniture, pens and toys, as resource allocation is not available in the preschool's budget.

The number of enrolments at Kootingal has risen every year, from the initial 23 children in 1997 to the current 67 in 2006. The waiting list in place at the preschool caters for enrolments up to 2008 and there are currently nine children on that list. I share the concerns of staff that the facilities, amenities and equipment are inadequate. They are in desperate need of attention, and increased funding would seem to be the only solution. Parents with children in New South Wales preschools pay the highest fees in Australia, but this State also has the lowest participation rate. Parents can expect to pay anything from $15 to $30 per child per day in New South Wales, while those in Queensland and the Northern Territory pay only $5 to $10.

The Werris Creek Preschool is suffering a downturn in numbers, with low employment levels in the town resulting in few parents able to afford the daily fee. Preschool director Julia Cameron said while the preschool charges $17 a day per child, many families simply cannot afford to pay that rate each day. As a result, they charge a lower fee, with the difference subsidised by the DOCS affordability scheme. However, that funding rarely goes far enough. As participation rates decrease, the preschool has been forced to consider reducing its operating times from five to four days per week. Mrs Cameron said this would be a last resort as they would then face the possibility of having their funding reduced further. This preschool is already struggling to meet its daily demands within the current budget, yet recently had to install a children's bathing facility and refrigerator at a cost of $2,500 to meet the Children's Services Regulations 2004. This was undertaken without any additional Government funding. They also face the possibility of having to replace flooring of an outside play area at a cost of $20,000 to $30,000.

The situation is similarly concerning at Nundle Preschool, but due to very strong community support the centre continues to operate. The Nundle Country Women's Association recently undertook a $100,000 loan to upgrade the building, while the community and school staff raise around $3,000 every year to keep the facility going. Nundle Preschool director Gae Sipple is one of two permanent part-time staff who care for the centre's 15 children two days per week. Mrs Sipple said the preschool's wages expense is $634 per week, offset by DOCS funding of $411, which has not increased since 1989. The maximum permissible school fees revenue is $264 per week, and from this amount a mere $41 is left to maintain an operational budget for the school, which includes costs such as telephone, general administration and consumables. Insurance costs $55 per week. This clearly inadequate budget leaves no money to train staff or replace expensive equipment. The facility relies on parents and generous members of the local community.

I welcome the formation of a Government task force to investigate preschool services across the State, but I urge the task force to complete its inquiry quickly. The findings will be obvious in my opinion: no organisation can continue to deliver services over a prolonged period without increased funding to cover escalating costs. Later this week a number of preschools from the electorate will present me with hundreds of petitions from preschool staff and parents demanding the Government increase funding. With the upcoming budget the State Government has an opportunity to provide much-needed relief for preschools. This is a vitally important sector that looks after our most important asset—our children. I call on the Minister to resolve the funding shortfall as a matter of urgency.