Shoalhaven Family Day Care to be externalised following Council evaluation 

A review of Shoalhaven Family Day Care (FDC) has identified that the service will be provided independently of the Council and yield around $90,000 per year in cost savings. 

Last year, Council evaluated the FDC service as one of its many service reviews being conducted as part of the financial sustainability project, at which time the Council was aiming to explore options to reduce the service’s annual operating deficit, which was $96,000 in the 2023-24 financial year. 

The recent service review considered strategies to grow income through increasing educators, mechanisms to reduce annual operating costs, through reducing Council staff supporting the service and consideration of alternative delivery models for the provision of FDC coordination across the Shoalhaven.

Earlier this week a report presented to the Council meeting outlining that while the service is the largest provider in the Shoalhaven, there have been challenges recruiting the educators required to be cost-neutral. 

“Our financial position requires that we comprehensively examine all Council services through a lens of reducing our substantial operating deficit over time,” Acting CEO James Ruprai said.  

“While any change to a service such as Shoalhaven Family Day Care can be challenging, through the comprehensive review process we have identified an option to work with other providers of Family Day Care, to transition Educators and families to their services” he continued. 

“Reduced government funding opportunities over the past five years has significantly impacted on the ability to operate this service without suffering a financial loss to the Council,” he added.  

Recognising that during the last five years, the service has gone from making a profit in 2019-20, to returning a loss each year of between $68,000 to $96,000, the Council ultimately voted to privatise its FDC Services, a move that has raised significant concerns about the future of childcare accessibility in the region.

The decision is likely to affect hundreds of local families who currently rely on the council-operated FDC option, to result in increased costs for parents and could result in job losses for up to six council staff members.

Critics of the decision point out that the council failed to apply for available federal grants in 2024 that could have supported the service’s continuation.

“This decision represents a significant shift in essential community services,” Stuart Geddes from the United Services Union (USU), which represents the childcare workers at the council, said.

Of particular concern to community advocates is:

• The lack of comprehensive community consultation before the decision
• Expected increases in childcare costs for local families
• Potential loss of jobs despite previous commitments to staff
• The timing of the decision as the federal government implements new childcare sector legislation

Staff members have previously presented comprehensive business cases supporting the retention of council management, highlighting both financial and community benefits.

“Privatising a service like this is short-sighted and does not consider the long-term capacity of the business and potential for growth in a growing industry,” Mr Geddes said. 

“Outsourcing the service to a private provider won’t only drive up costs to local mums and dads, but will also be a false economy. We went through this process seven years ago and it turned out it’s cheaper to keep the service council run.”

“We urge Councillors to keep the service in public hands, our kids are too important to gamble with new management only motivated by profit.”