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The [Australian] federal government has thrown a $22 million lifeline to the nation's largest child-care provider, ABC Learning, allowing it to operate until year's end.
Yesterday's announcement followed emergency discussions with the financially troubled company's receivers, who were called in by banks owed $1 billion after the group put itself in voluntary administration.
About 120,000 children are cared for at ABC Learning centres around the country.
In Tasmania, parents of children attending the centres are already trying to find other places next year, union chief David O'Byrne said.
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Yesterday's Federal Government funding announcement gave staff, centres and families time to think and try to plan a future, union chief David O'Byrne said.
He said that the union was trying to get more details of the Government offer and what the administrators and receivers planned to do.
He urged Premier David Bartlett to fulfil his commitment this week to keep parents and staff informed.
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Federal Education Minister Julia Gillard said the Government wanted to help anxious families and 16,000 workers affected by the company's decision to place itself in voluntary administration.
"The $22 million represents the possible cost of supporting the continued operation of these centres for two months," Ms Gillard said.
A Government task force, set up to monitor the ABC situation, will spend the next two months drafting a contingency plan in case the company collapses.
Ms Gillard said people should not assume ABC Learning centres would close after December 31.
- reprinted from the Examiner