Monday 24 February 2014

Fee gouging !

One of the distractions of modern life is the difficulty of obtaining child care by working Mums returning to the workforce.  Finding places in child care facilities is difficult because demand far exceeds supply - and so many people place their child's name on that dreaded item called " the waiting list ".

To most people, the waiting list is another name for a queue.  Australia uses the queue system whenever a group of people wait for a bus or to obtain movie tickets, and patiently wait their turn until they reach the head of the queue to get service.

Many are now dismayed to find that the child care industry has started to charge a fee - just for the privilege of putting a name on a waiting list.   This fee ranges from place to place, but in the most sought after areas is can be a hundred dollars - and it is not refundable.   It can be a huge burden on families seeking care for more than one child - and who need to list on a number of institutions in the hope of early success.

Pressure is building on the state government to regulate these fees.  There is even a doubt about the legality of charging fees that far exceed the cost of the service involved, as the banks found out to their horror when they charged vast sums for services that cost them mere pennies.

The child care industry has a valid defence in fee imposition.   Many people list with a number of child care centres to increase the odds of success, but few bother to withdraw that application when their search is successful.   As a result, the statistics that apply to child care demand are skewed and this is the information that is used to make government decisions that effect the industry.   Incorrect demand statistics are a disincentive to companies thinking of entering the child care field and building new facilities.

The solution to this problem seems quite simple.   The state government needs to regulate and cap the fee that applies to waiting lists - and make them refundable.   Once a customer's need is satisfied they have every reason to contact the agencies with listing to remove that name - and recover their money.

When it comes to motivation - money is the best incentive !

No comments:

Post a Comment