Governments set up plans if ABC Learning fails

The federal and Queensland governments are putting in place contingency plans to protect the childcare sector if industry giant ABC Learning were to collapse.

The federal and Queensland governments are putting in place contingency plans to protect the childcare sector if industry giant ABC Learning were to collapse.

While ABC Learning released a statement last night reassuring parents that “all centres throughout Australia and New Zealand remain open and continue to operate as usual” it appears governments are taking no chances.

Deputy Prime Minister Julia Gillard says the Federal Government is looking at a range of contingency plans in the event that ABC fell over.

“We are working on contingency plans, but I do not want to raise any alarm about this matter,” Gillard told ABC radio.

“We are working through those contingencies but I’m hoping those contingencies will never be needed.”

Queensland Premier Anna Bligh also said she had set up a taskforce to monitor ABC Learning’s plight.

ABC, which parted ways with founder and chief executive Eddy Groves last month, remains in a trading halt pending the relase of its 2007-08 accounts, which have been delayed by concerns held by the company’s auditor Ernst & Young.

ABC said in a statement that any updates relating to the 2008 accounts and the restatement of accounts for the 2006 and 2007 financial years will be communicated through the ASX.

Related stories:

• Why ABC Learning boss Eddy Groves had to go
• Eddy Groves tells: Success has nothing to do with wealth