| Child-care centres to close without explanation |
THE Federal Government has demanded an explanation from a company with close ties to Eddy Groves that told parents on Thursday it would close 14 child-care centres on December 31.
Neighbourhood Early Learning Centres said it would shut four NSW centres, one in Queensland and nine in Victoria, leaving 200 staff and 1000 families unsure of arrangements for next year.
The national secretary of the Liquor, Hospitality and Miscellaneous Workers Union, Louise Tarrant, said the operating company was "part of the ABC empire that's gone horribly wrong".
Neighbourhood Early Learning Centres, with about 60 child-care operations, is run by Frank Zullo, a former brother-in-law of the ABC Learning founder.
Mr Zullo is the director of another company that was awarded contracts worth millions of dollars a year to oversee the maintenance of ABC centres.
Industry sources said Neighbourhood Early Learning Centres had been created to develop potential new centres for ABC.
The leases of an unknown number of the company's centres were held by ABC Learning. The receiver of ABC last week wrote to Neighbourhood Early Learning Centres terminating the relationship.
Three of the centres closing in NSW are in Tumut, Bateau Bay and Warrimoo. Ms Tarrant said it appeared a fourth centre set to close, in Narrabri, would remain open.
Neighbourhood Early Learning Centres refused to answer the Herald's questions. A receptionist said no one from the company was speaking to the media. Posted on 19 Dec 2008 by APS
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