The Marketisation of Early Childhood Education and Care (ECEC) in Australia: A Structured Response

19 Pages Posted: 2 Jul 2013

See all articles by Susan Newberry

Susan Newberry

The University of Sydney Business School

Deborah Brennan

The University of Sydney - Discipline of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: August 2013

Abstract

The marketisation of early childhood education and care (ECEC) offers opportunities to test assumptions about the benefits of a market framework. In Australia, where marketisation included reshaping, extending, and increasing government subsidies, one major listed company (ABC Learning Limited) emerged to dominate child care. Child care prices increased rapidly to become an election issue, and government subsidies increased. ABC acknowledged its economic dependence on government policy and subsidies. Until its collapse in 2008, ABC was the world's largest listed child care operator, and operating internationally. ABC's structured business model separated child care properties (propco) from child care operations (opco). ABC was the opco and leased the child care properties from propcos. As ABC grew and replicated its structured model to other forms of property including intangible assets, the rising child care prices and government subsidies supported a growing array of other enterprises all seeking profitable operations. This paper explains the structured opco‐propco model, identifies its interaction with accounting and lessons to be learned from marketisation.

Keywords: marketisation, child care, opco‐propco, PPP, government subsidies

Suggested Citation

Newberry, Susan and Brennan, Deborah, The Marketisation of Early Childhood Education and Care (ECEC) in Australia: A Structured Response (August 2013). Financial Accountability & Management, Vol. 29, Issue 3, pp. 227-245, 2013. Available at SSRN: https://ssrn.com/abstract=2288469 or http://dx.doi.org/10.1111/faam.12018

Susan Newberry (Contact Author)

The University of Sydney Business School ( email )

Cnr. of Codrington and Rose Streets
Sydney, NSW 2006
Australia

Deborah Brennan

The University of Sydney - Discipline of Economics ( email )

P.O. Box H58
Australia Square
Sydney, NSW 2006
Australia

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