Libs wrong on ABC package, says Gillard

Opposition Leader Malcolm Turnbull's criticism of the federal government's $22
million lifeline to ABC Learning proves he is "out of touch" with working families,
Deputy Prime Minister Julia Gillard says.
Mr Turnbull has questioned the long-term viability of Labor's package, which ensures
the country's largest childcare operator's centres remain open until year's end.
"The reality is an unprofitable business cannot be sustained indefinitely, so there
is clearly a concern about the level of, and the tenure, the extent, of government
support," the opposition leader said Saturday.
But Ms Gillard said those comments proved Mr Turnbull was out of touch.
"Thousands of kids need somewhere to go when their parents go off to work everyday,"
the deputy PM said in a statement.
"Mr Turnbull obviously thinks government should stand back, let the market rip and
have centres close immediately.
"(This) shows how out of touch he is when it comes to the needs of working families."
Ms Gillard demanded Mr Turnbull explain to mums and dads "why he doesn't think the
government should step in to provide some certainty and comfort in this unique
situation".
But the coalition refused to take a backwards step on Sunday.
Opposition finance spokesman Joe Hockey said while it was important to provide
"certainty and stability" for parents "the danger is ... you end up propping up
unprofitable businesses".
More than a million businesses in Australia might be going through a difficult time
in the next 12 months, he said.
"Business collapses. I don't think any government should be in the business of
propping up a business that is failing," Mr Hockey told the Nine Network.
"But I think if you have an industry failure, then you step in."
Mr Hockey said the coalition's policy would not mean parents would be stranded by an
ailing business such as ABC Learning.
"It would mean that we would be focusing on an industry solution and it means that
we would not be propping up a company that has failed."
Nevertheless, the opposition finance spokesman had a bet each way by adding: "Having
said that, let me make it perfectly clear that I understand and support the
government's decision to keep the doors of childcare centres open until Christmas."
ABC Learning is the largest private childcare provider in the country with 120,000
children attending almost 1,100 centres.
Last week it went into voluntary administration and receivership with debts of more
than $1 billion.
Ms Gillard said preliminary data from the receivers indicated around 40 per cent of
the 1,040 childcare centres in Australia "are currently unprofitable".
"It is anticipated that by mid-December, the Australian government will be in a
position to make a further announcement about the future of ABC Learning childcare
centres," she said.