Council resolves to test market interest in Gatton Child Care Centre

Lockyer Valley Regional Council has resolved to undertake a tender process to test the market for the potential sale of the Gatton Child Care Centre.

At its Ordinary Meeting earlier today, Councillors unanimously approved Council to begin a tender process to determine private sector interest in acquiring the Centre as a ‘going concern’.

CEO Ian Church said the tender process would enable Council to make an informed decision as to whether to sell the Council-owned and operated business.

“This tender process should determine if the Centre could be sold as a going concern with no loss of service and with Council achieving an asset price that meets our legislative obligations of value for money,” he said.

He stressed it would be business as usual at the Centre during this process.
"There will be no adverse changes to enrolments, and staff salaries, wages and other entitlements will continue to accrue and be paid as normal during this time,” he said.

The former Gatton Shire Council established the Centre in 1989 to address an identified need for childcare in the area. Since then, the sector has grown significantly and the region is now serviced by a range of industry-specialised operators.

With a current waitlist and close to full occupancy, the 59-place centre has potential for expansion to meet the region’s growing demand for childcare – something Council was unable to do, Mr Church said.

He said a sale had the potential to benefit working parents, ratepayers and staff.
“A dedicated childcare business could utilise private capital to expand, if beneficial to the business, and be able to respond quickly to any changing needs of the business,” Mr Church said.
“This transition would also enable the Centre to be operated by a private sector entity that specialises in childcare operations without the additional regulatory constraints imposed on public sector entities. It would also allow Council to focus its energy on its core business.”

Staff and families were informed of Council’s intentions last week, and Council is working closely with all parties to keep them regularly updated as the process progresses.

“Our priority remains the children, families and staff at the centre, and we are committed to making any transition to a credible new owner-operator as smooth as possible,” Mr Church said.

The open tender process is expected to commence in early March 2024 and Council aims to have the process completed by 30 June 2024.