Concerns for kindy oversupply

Prices could rise: Childcare body

TOOWOOMBA parents could soon see their childcare bills rise if too many centres are built in the city.

That’s the according to a state industry body, which said it was concerned to learn how many facilities had been approved by Toowoomba Regional Council in the past 12 months.

The council has ticked off or been presented with no less than nine different childcare centres and kindergartens since April last year, and has only knocked back one.

Australian Childcare Alliance Queensland CEO Brent Stokes said child occupancy rates for centres in Toowoomba were about 74 per cent, based on data from last year.

“Our evidence suggests that it (a lower occupancy rate) puts upward pressure on pricing,” he said.

“We’ve got some services that are saying they’re not making their expenses and others that are.

“If you look at occupancy rates in all centres, it is somewhere between 70 and 80 per cent.

“When the occupancies are in those mid-70s, it does put upward pressure on prices.”

Mr Stokes said he wanted to see developers provide a favourable needs assessment with their applications to prove that centre was required for the area.

“ACA is not against development, but any new development needs an independent needs assessment, paid for by the developer, so they can’t influence the outcome,” he said.

“If the services are required, that’s great (but) in Toowoomba, there is such a huge amount of services already available.”

The most recent childcare centre submitted to council was for a small facility in Gowrie Junction, which would include long day care and kindergarten services.

Mr Stokes said centres were not legally allowed to cut corners to save money.