- ABC books in a mess, says Gillard
- By An Harrison, Canberra
- The Age
- 13/11/2008 Make a Comment
- Contributed by: The Rooster ( 264 articles in 2008 )
THE accounts of failed child-care giant ABC Learning are in such poor state its receivers have had to "start from scratch" in trying to work out what to do with its 1040 centres.
Education Minister Julia Gillard said yesterday that receivers McGrathNicol were working hard to analyse data from some 400 ABC Learning centres which had been identified as unprofitable under ABC's business model, but the records for some centres were so patchy the receivers were having to verify financial details against original documents such as lease agreements, invoices for food and toys and staff pay records.
"The receivers have advised the task force in my department that the quality of ABC Learning data and their information systems are poor," Ms Gillard told Parliament.
The Government has hired insolvency firm PPB to work alongside the receivers as they determine the future of the company's centres, which care for more than 100,000 Australian children.
Ms Gillard said PPB and the receivers were designing a template for compiling information on each of the centres, including costs, revenues and occupancy. They will then check data against the records of individual centres.
"This is clearly a time-consuming task but the work is proceeding and people are working on it hard," she said.
Ms Gillard stepped up her attack on the Coalition over the mess yesterday, accusing the Liberal Party of being "complicit and connected with the circumstances of ABC Learning".
She said shadow health minister Peter Dutton owned a building leased to ABC Learning and had described company founder Eddy Groves as a "friend and supporter."
Mr Dutton said he had run a child-care centre before entering Parliament and had sold it to ABC on entering Parliament. He said the lease of the building to ABC was a "perfectly legitimate, normal commercial arrangement", adding that Mr Groves was a friend and supporter of both sides of politics and had sponsored an ALP state conference in June.
The Rudd Government has committed up to $22 million to keep all ABC Learning centres open until the end of the year.
Speaking at the National Press Club, Treasury Secretary Ken Henry said the money would not be used to bail out shareholders but to give "affected children and affected parents maximal opportunity to find alternative arrangements should that be necessary".
Dr Henry said most of the company's centres were viable operations but a "relatively small" number might have to close their doors.
Ms Gillard will make an announcement about the long-term future of ABC Learning centres next month. Parents and ABC Learning staff can call a government hotline — 180 2003 — or visit mychild.gov.au.
Education Minister Julia Gillard said yesterday that receivers McGrathNicol were working hard to analyse data from some 400 ABC Learning centres which had been identified as unprofitable under ABC's business model, but the records for some centres were so patchy the receivers were having to verify financial details against original documents such as lease agreements, invoices for food and toys and staff pay records.
"The receivers have advised the task force in my department that the quality of ABC Learning data and their information systems are poor," Ms Gillard told Parliament.
The Government has hired insolvency firm PPB to work alongside the receivers as they determine the future of the company's centres, which care for more than 100,000 Australian children.
Ms Gillard said PPB and the receivers were designing a template for compiling information on each of the centres, including costs, revenues and occupancy. They will then check data against the records of individual centres.
"This is clearly a time-consuming task but the work is proceeding and people are working on it hard," she said.
Ms Gillard stepped up her attack on the Coalition over the mess yesterday, accusing the Liberal Party of being "complicit and connected with the circumstances of ABC Learning".
She said shadow health minister Peter Dutton owned a building leased to ABC Learning and had described company founder Eddy Groves as a "friend and supporter."
Mr Dutton said he had run a child-care centre before entering Parliament and had sold it to ABC on entering Parliament. He said the lease of the building to ABC was a "perfectly legitimate, normal commercial arrangement", adding that Mr Groves was a friend and supporter of both sides of politics and had sponsored an ALP state conference in June.
The Rudd Government has committed up to $22 million to keep all ABC Learning centres open until the end of the year.
Speaking at the National Press Club, Treasury Secretary Ken Henry said the money would not be used to bail out shareholders but to give "affected children and affected parents maximal opportunity to find alternative arrangements should that be necessary".
Dr Henry said most of the company's centres were viable operations but a "relatively small" number might have to close their doors.
Ms Gillard will make an announcement about the long-term future of ABC Learning centres next month. Parents and ABC Learning staff can call a government hotline — 180 2003 — or visit mychild.gov.au.
Source: https://www.theage.com.au/national/abc-books-in-a-mess-says-gillard-20081112-5o1o.html
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