CHILDCARE NEEDS ASSESSMENT
GLADSTONE QLD 4680
Report prepared by Business Geographics Pty Ltd for:
Impressions Childcare Management
JULY 2014 Business Geographics Pty Ltd ABN 58 598 868 634 165 Baroona Rd, Paddington QLD 4064 PO Box 838, Paddington QLD 4064 Ph: +61 7 3118 5036
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CHILDCARE NEEDS ASSESSMENT
TABLE OF CONTENTS
INTRODUCTION .................................................................................................................................................................. 2 Long Day Care In Australia ................................................................................................................................................................. 2
EXECUTIVE SUMMARY........................................................................................................................................................ 3 GLADSTONE ECONOMIC & CHILDCARE TRENDS ................................................................................................................ 4 SUMMARY OF KEY STATISTICAL INDICATORS .................................................................................................................... 5 MAP OF MAJOR CATCHMENT AREA ................................................................................................................................... 6 POPULATION & DEMOGRAPHICS ....................................................................................................................................... 7 KEY DEMOGRAPHIC INDICATORS ....................................................................................................................................... 8 SUPPLY ANALYSIS ............................................................................................................................................................... 9 SUPPLY TABLE – LONG DAY CARE CENTRES ..................................................................................................................... 10 SUPPLY TABLE – OTHER CHILDCARE SERVICES ................................................................................................................. 11 DEMAND ANALYSIS .......................................................................................................................................................... 12 Children Aged Under 5 .................................................................................................................................................................... 12 Female Labour Force Participation Rate ......................................................................................................................................... 13 Child Care Expenditure .................................................................................................................................................................... 14 Population Growth .......................................................................................................................................................................... 15
DEMAND TABLE ................................................................................................................................................................ 16 NEEDS ASSESSMENT – LONG DAY CARE ........................................................................................................................... 17 APPENDIX 1 ‐ Terms used in this report ........................................................................................................................... 18
IMPORTANT INFORMATION This report represents an assessment of the need for long day care services in the study area only and should not be interpreted as an assessment of the commercial feasibility for centre development, acquisition or disposal. Information and assumptions used in this report are subject to change and should not be interpreted as precise predictions of the demographic future nor of future market conditions. While all due care are has been taken to ensure the accuracy and currency of information provided in this report, it should not be relied upon in isolation for the making of business decisions. Interested parties should undertake independent inquiries and investigations to satisfy themselves that relevant information remains current, comprehensive and correct. Business Geographics Pty Ltd does not accept any responsibility for errors or omissions, nor is it liable for loss, damage or liability arising, directly or indirectly, from errors, omissions, inaccuracies or any misleading or out of date information contained in this report.
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CHILDCARE NEEDS ASSESSMENT
INTRODUCTION This Childcare Needs Assessment has been prepared for Impressions Childcare Management to determine the demand for long day care services in GLADSTONE, Queensland. This report provides a review of existing childcare facilities (supply) in the local catchment area including estimates of occupancy rates and fees for existing centres; estimates of demand for long day care from the resident population; and a demographic profile of the local area. It also provides an analysis of key drivers for childcare and an assessment of the extent to which the existing supply is meeting current levels of demand. This report should be read in conjunction with Appendix 1 which explains the terms and concepts used in the report.
Long Day Care in Australia Long Day Care is a centre‐based form of child care service that provides all day care for children of (typically) working families. Long Day Care centres may be run by private operators, not‐for‐profit organisations, employers and community groups. Most long day care centres are approved child care services that are entitled to receive the Australian Government’s Child Care Benefit on behalf of families. Many long day care services also offer Kindergarten and Pre‐school programs. Long Day Care has become a significant social service as it is seen as both a mechanism to support labour force participation and as an important form of early learning and education. The sector has seen dramatic growth over recent years. Currently, there are over half‐a‐million children attending approved long day care centres in Australia. Approximately 92% of children who attend long day care are under the age of 5. According to the Office of Early Childhood Education & Child Care, at a national level there is sufficient childcare available and supply is largely meeting demand. However, it’s important to note that there are some significant regional variations to this with supply exceeding demand in some areas and demand not being met by existing levels of supply in others. Additionally, the supply of nursery places (for babies and toddlers under the age of two) is typically more restricted in most local markets. This report relies on some statistical benchmarks and assumptions derived from latest Report on Government Services (2014) prepared by the Productivity Commission (Volume B Chapter 3 Early Education & Care). In particular, this includes an estimated national long day care participation rate of 45% for children aged under 5.This benchmark varies from state to state and region to region. In addition, it is assumed that the average attendance rate (the amount of time children who attend long day care spend there) is 27 hours per week.
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EXECUTIVE SUMMARY The major catchment comprises the broader Gladstone region including the nearby towns of Boyne Island/Tannum Sands and Calliope. Gladstone is located approx. 550km north of Brisbane in Central Queensland. It is the hub of a fast‐growing region and its port facilities have seen Gladstone benefit from the huge expansion in LNG projects in Queensland. The population profile of Gladstone is significantly younger than average with a median age of 34 in the major catchment compared to a state median age of 36. The proportion of children aged under 5 (8.36% in 2014 and growing) is higher than the state average (6.88%). Forecast population growth in the major catchment is HIGH with the total population expected to increase by 2.35% pa from 2014 to 2018 (net 4,948 persons). The population of children under 5 in the catchment is forecast to increase at a higher rate of 2.88% p.a. from 2014 to 2018 (net 506 children). At present (2014), there are twelve (12) long day care centres in the Gladstone region supplying a total of 1,018 places to an estimated market of 4,396 children (aged under 5) demanding up to 1,055 places per day. This represents a ratio of 4.3 children per long day care place and estimated average occupancy rates in excess of 100%. Whilst some limited places are available at present for older children, there are virtually no places for children under the age of 2 and the underlying demand for places appears to be exceeding the available supply. Demographically, Gladstone has a high proportion of families and young children aged under 5 and a higher than average female labour force participation rate. As a result, demand for long day care is high. The majority of centres in Gladstone itself have NO VACANCIES and long waiting lists. It’s worth noting that Gladstone has had an UNDERSUPPLY of long day care for a number of years and this seems to be continuing today. In practical terms, the undersupply of places means that not all families will be able to meet their childcare needs locally and may need to utilise alternative forms of care. It’s worth noting that the strongest demand for long day care is in the growing residential areas in the south of the city. That said the surrounding towns of Tannum Sands/Boyne Island and Calliope do appear to have lower occupancy rates than centres in Gladstone itself, however this is due to the recent opening (in April 2014) of the 107‐place Riverstone Rise Early Learning Journey centre. At current forecast rates of population growth, potential demand is expected to continue to grow by up to 121 places by 2018. As a result, it’s estimated that the market needs at least 200 places by 2018 in order address the existing undersupply and meet this forecast growth in demand. In fact, it’s estimated that Gladstone needs at least 150 places immediately to help alleviate the existing underlying unmet demand. An online search has been conducted for development applications submitted to Gladstone Regional Council since 01/01/2013. The following information was found ‐
An application was APPROVED on 04/07/2014 for a 101‐place Childcare Centre at Beezley Street/Victoria Avenue GLEN EDEN QLD 4680 (Ref: DA06‐960/2014). An application has been made on 07/07/2014 for a new childcare centre at Dixon Drive, New Auckland (Kirkwood) (Ref: DA06‐4/2014). No decision has been recorded as yet. Preliminary Approval was granted to a proposed development at Paterson St, West Gladstone (Ref: PA – 658/2012) which is intended to include a child care centre. The current status of this development is not known.
It’s also worth noting that a property at 2 Joyner Close, Glen Eden which was previously approved for and operated as a childcare centre is currently for lease. It is being marketed on www.realcommercial.com.au as the “answer to Gladstone's continuous Childcare shortage”. It is has recently been leased to businesses other than childcare.
NOTE: Information regarding Development Applications or Approvals should not be interpreted as conclusive. This information is sourced online. Its accuracy is not able to be verified by Business Geographics. This information is of course also subject to change. Interested parties may wish to discuss development activity in an area of interest in more detail with the relevant local government authority and/or a consultant town planner.
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CHILDCARE NEEDS ASSESSMENT
GLADSTONE ECONOMIC & CHILDCARE TRENDS Economics and development
Gladstone's primary industries are mining‐related.
Major exports include coal, alumina, aluminium, cement products
Facilities include the Coal exporting terminal, the Boyne Island aluminium smelter, liquified natural gas (LNG).
The Gladstone Region is home to a thriving 21st Century industrial base served by one of Australia’s busiest ports, the Port of Gladstone.
A major industrial cluster, where economic competitiveness is balanced with steadily improving environmental performance, Gladstone’s development potential is underpinned by the 22,000 hectare Gladstone State Development Area, which offers a range of development‐ready sites, established infrastructure and growing possibilities for economic development to drive the region’s sustainable growth.
Continuing investment in the LNG industry, which is expected to play an increasingly important role in global energy markets over coming years, the Gladstone Region’s strong industrial growth looks set to continue.
GLADSTONE is well placed for future growth, having three of the five industries predicted to be boom sectors over the next three decades.
Agribusiness, tourism and gas are at the top of the list ‐ sectors that are growing and thriving in the region with the three LNG facilities coming online, the push for tourism around industry and our location to Heron Island and the Southern Great Barrier Reef, and a growing beef industry, among others.
Child Care
Anecdotal evidence suggests that it has been difficult to find childcare places for all age groups for some time, at least 5 years.
It was reported that this is also the case for family day care with the Salvation Army Family day care waiting list equally as extensive.
Waiting lists for older children were slightly shorter in the Tannum Sands and Boyne Island area due to the recent opening (April2014) of the 107‐place Riverstone Rise Early Learning Journey centre.
Rio Tinto Alcan Community Fund
Rio Tinto Incentive for Family Day care was launched in March 2012
Incentive for 30 new family day care facilities, increasing childcare places in Gladstone creating 120 new childcare places. As of 2014, 12 new family day care educators have opened their homes to children, creating 84 new childcare places. Family day care was identified as the most flexible delivery mechanism to immediately provide 120 new
childcare places in Gladstone. In essence, the Rio Tinto Alcan Community Fund will provide up to $10,000 financial incentive to help individuals establish a family day care service at their home.
Applicant must use the $10,000 incentive for the purpose of establishing a family day care business at home and $5,000 will be paid upon successful application and a further $5,000 is available for associated costs up to 12 months after opening, subject to acceptance of written quotes and/or receipts by Rio Tinto Alcan.
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CHILDCARE NEEDS ASSESSMENT
SUMMARY OF KEY STATISTICAL INDICATORS Table 1 summarises some of the key statistical indicators from the report that describe the long day care market in the study area. It provides a quick overview of key information provided in the report.
Key Statistical Indicators Demand
Notes
49,436
4,396 (8.36%)
Above state average of 6.88%
506 (2.88% pa)
Participation Rate
40%
Daily Demand for Long Day Care (2014)
1,055
12
1,018
173 (20.5%)
one new centre in 2012 and one new centre in 2014
$80
Fee Range of $70 to $90
VIRTUALLY NO VACANCIES
>100%*
Total Population (2014) Children Aged under 5 (%) Population Growth 2014‐2018 (Under 5)
Supply No. of Long Day Care Centres (2014) Supply of Long Day Care Places (2014) Change in Supply 2011 – 2014 (%) Average Daily Fee Vacancies at Existing Centres
Needs Assessment Average Estimated Occupancy Rate (%) Ratio of children per LDC place Assessment of Market Potential Additional Market Need
Development Activity*
4.3 : 1
UNDERSUPPLIED
At least 200 places by 2018
An online search has been conducted for development applications submitted to Gladstone Regional Council since 01/01/2013. A number of development applications/approvals were found including an approval for a centre (101‐places) at Glen Eden and an application for a new childcare centre at New Auckland (Kirkwood).
NOTE: *Information regarding Development Applications or Approvals should not be interpreted as conclusive. This information is sourced online. Its accuracy is not able to be verified by Business Geographics. This information is of course also subject to change. Interested parties may wish to discuss development activity in an area of interest in more detail with the relevant local government authority and/or a consultant town planner.
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MAP OF MAJOR CATCHMENT AREA This map shows the major catchment area for the proposed site shaded in blue and shows the location of existing long day care centres (blue dots). The major catchment (or study area) is the area from which an estimated 80%+ of enrolments at the subject site could be expected to originate from. The definition of Catchment Areas is subjective and will differ from site to site depending on the unique geographic characteristics of each site.
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POPULATION & DEMOGRAPHICS This section provides an overview of the key demographic characteristics of the major catchment area and includes historic and current population estimates and projections from 2011 to 2018. The major catchment comprises the broader Gladstone region including the nearby towns of Boyne Island/Tannum Sands and Calliope. Gladstone is located approx. 550km north of Brisbane in Central Queensland. It is the hub of a fast‐growing region and its port facilities have seen Gladstone benefit from the huge expansion in LNG projects in Queensland. The population profile of Gladstone is significantly younger than average with a median age of 34 in the major catchment compared to a state median age of 36. The proportion of children aged under 5 (8.36% in 2014 and growing) is higher than the state average (6.88%). The table on the following page highlights some key demographic indicators evident in the local catchment area when compared to the state profile. Key findings include –
A higher proportion of children compared to QLD average. More couple families with children. A higher than average proportion of homes owned with a mortgage. Incomes higher than the state averages. Fewer persons born overseas.
Forecast population growth in the major catchment is HIGH with the total population expected to increase by 2.35% pa from 2014 to 2018 (net 4,948 persons). The population of children under 5 in the catchment is forecast to increase at a higher rate of 2.88% p.a. from 2014 to 2018 (net 506 children). The following table shows population forecasts from 2011 – 2018 by age group in the catchment. Population Forecasts 2011 - 2018 Age Group 0‐4 years 5‐14 years 15‐24 years 25‐54 years 55‐64 years 65 years and over Total
2011 No.
2014
2018
Change (14‐18)
4,038 7,537
% 8.17%
No. 4,396
% 8.36%
No. 4,902
% 8.52%
No. total 506
% per annum 2.88%
15.25%
7,698
14.64%
7,943
13.81%
246
0.80%
6,731
13.62%
7,117
13.54%
7,729
13.44%
612
2.15%
22,054
44.61%
23,468
44.64%
25,724
44.73%
2,256
2.40%
5,031
10.18%
5,527
10.51%
6,345
11.03%
818
3.70%
4,045
8.18%
4,360
8.30%
4,871
8.47%
510
2.92%
49,436
100.00%
52,565
100.00%
57,514
100.00%
4,948
2.35%
NOTE: Population projections are not targets. It is important to recognise that projections reflect the outcome of certain assumptions about the future of fertility, mortality and migration – assumptions which may or may not eventuate. The projections should not be interpreted as precise predictions of the demographic future.
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CHILDCARE NEEDS ASSESSMENT
KEY DEMOGRAPHIC INDICATORS The following table provides a summary demographic profile of the major catchment area (compared to state and national benchmarks) based on data from the 2011 ABS census of population and housing. Catchment % Greater than State Benchmark
Catchment % less than State Benchmark
Key Demographic Indicators, 2011 Census
Catchment Person Characteristics
No.
Queensland
Australia
Total Persons (excluding overseas visitors)
49,436
% 100.00%
No.
%
No.
%
4,332,739
100.00%
21,507,717
100.00%
Males
25,605
51.79%
2,148,221
49.58%
10,634,013
49.40%
Females
23,831
48.21%
2,184,518
50.42%
10,873,704
50.60%
0‐4 years
4,038
8.17%
297,893
6.88%
1,421,050
6.61%
5‐14 years
7,537
15.25%
577,971
13.34%
2,722,975
12.66%
15‐24 years
6,731
13.62%
587,762
13.57%
2,866,471
13.33%
25‐54 years
22,054
44.61%
1,799,037
41.52%
8,981,574
41.76%
55‐64 years
5,031
10.18%
501,087
11.57%
2,503,360
11.64%
65 years and older
4,045
8.18%
568,987
13.13%
3,012,289
14.01%
Age Groups
Average Age
36
34
37
Selected Characteristics Performed unpaid childcare (15+)
12,328
24.94%
986,298
28.50%
Married persons (15+)
19,292
39.02%
1,655,245
Country of birth ‐ Australia
39,377
79.65%
3,192,114
Language spoken at home ‐ English only
43,801
88.60%
3,675,957
4,827,808
27.80%
47.90%
8,461,114
48.70%
73.70%
15,017,847
69.80%
84.80%
16,509,291
76.80%
Income (population aged 15 years and over) Average individual income ($/weekly)
$716
$587
Average household income ($/weekly)
$1,955
$1,453
Average family income ($/weekly)
$1,780
$1,235
$577 $1,481 $1,234
Family Characteristics Total families
12,913
1,148,179
5,684,051
Couple families without children
4,698
36.38%
453,102
39.46%
2,150,299
37.83%
Couple families with children
6,438
49.86%
491,200
42.78%
2,534,397
44.59%
One parent families Other families
1,626 151
12.59% 1.17%
184,547 19,330
16.07% 1.68%
901,634 97,721
15.86% 1.72%
Occupied private dwellings
16,313
1,547,304
7,760,323
Owned outright
3,898
23.90%
448,615
28.99%
2,488,149
32.06%
Owned with a mortgage
6,780
41.56%
533,870
34.50%
2,709,433
34.91%
Rented
5,209
31.93%
513,413
33.18%
2,297,458
29.61%
Other tenure type
52
0.32%
14,306
0.92%
70,070
0.90%
Tenure not stated
374
2.29%
37,100
2.40%
195,213
2.52%
Dwelling Characteristics
Source: ABS2011 Census
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SUPPLY ANALYSIS This section provides a review of existing long day care infrastructure in the major catchment area. A table is provided on the following page providing specific details of Licensed Places, Fees and Vacancy Rates at existing centres. This information is sourced directly from centres and its accuracy is dependent on the knowledge of the person supplying this information. The Gladstone region currently (2014) has twelve (12) long day care centres supplying a total of 1,018 licensed places to a market of 4,396 children. This includes eight (8) centres in Gladstone itself and four (4) centres in the surrounding area of Tannum Sands/Boyne Island and Calliope. The city’s largest long day care centre is Port Kids Early Learning Centre which provides care for up to 156 children per day. The smallest centre is the 61‐place Stepping Stones Child Care Centre. There have been two new centres established in Gladstone in recent years (The first since 2005). These include the C&K Clinton Community Child Care Centre which opened its doors in 2012 with 66 places and the 107‐place Riverstone Rise Early Learning Journey centre which opened in April 2014. It’s interesting to note that there are four (4) Goodstart Early Learning Centres in Gladstone supplying a total of 330 places or 32.4% of supply. Daily Fees in the major catchment average $80 per day (or $375 per week for full‐time attendance). This is the full‐fee calculated before any child care benefit is applied. Daily Fees are typically higher for babies and younger children (reflecting higher staffing ratios). They also vary depending on specific inclusions offered by centres such as meals and educational programs. Daily Fees occupy a range from $70 to $90 per day with the highest fee of $88 to $90 reported at the relatively new C&K Clinton Community Child Care Centre. Stepping Stones Childcare Centre reported the lowest fees of $70 per day. A telephone survey of all twelve (12) centres in the major catchment has revealed VERY LIMITED VACANCIES at centres across the catchment. In fact, 6 out of 8 centres in Gladstone itself reported NO VACANCIES at all with the remaining centres having VERY LIMITED VACANCIES on specific days/age groups only. There were virtually no places available for children under the age of two. Occupancy rates appear to be lower in Tannum Sands/Boyne Island and Calliope and this is most likely due to the recent opening of the Riverstone Rise Early Learning Journey centre. Reported vacancy rates suggest that the demand for places is exceeding supply and that the market is UNDERSUPPLIED for long day care. The Gladstone Observer newspaper has been reporting a ‘childcare crisis’ in Gladstone for a number of years and it is apparent that supply has been insufficient to meet the underlying demand for places for some time. It’s interesting to note that Ro Tinto Alcan, a large employer in the city, has stepped in with its ‘Here for Childcare’ program which aims to ease the pressure on the Gladstone childcare sector by providing funding and training to help mothers establish new family day care services. An online search has been conducted for development applications submitted to Gladstone Regional Council since 01/01/2013. The following information was found ‐
An application was APPROVED on 04/07/2014 for a 101‐place Childcare Centre (The Subject Site) at Beezley Street/Victoria Avenue GLEN EDEN QLD 4680 (Ref: DA06‐960/2014). An application has been made on 07/07/2014 for a new childcare centre at Dixon Drive, New Auckland (Kirkwood) (Ref: DA06‐4/2014) approx. 3 – 4 km from the subject site. No decision has been recorded as yet. Preliminary Approval was granted to a proposed development at Paterson St, West Gladstone (Ref: PA – 658/2012) which is intended to include a child care centre. The current status of this development is not known.
It’s also worth noting that a property at 2 Joyner Close, Glen Eden which was previously approved for and operated as a childcare centre is currently for lease. It is being marketed on www.realcommercial.com.au as the “answer to Gladstone's continuous Childcare shortage”. It is has recently been leased to businesses other than childcare. It is unknown if any other applications or approvals exist. Interested parties should undertake their own enquiries. www.businessgeographics.com.au
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SUPPLY TABLE – LONG DAY CARE CENTRES The following table provides details of existing long day care centres in the major catchment area. This list has been compiled by Business Geographics from a range of sources.
Long day care centres in catchment Details Goodstart – Gladstone South (Toolooa St 1 & 2) 123 Toolooa St GLADSTONE QLD 4680 Phone: (07) 4972 8028 Stepping Stones CCC Gladstone 26 Bramston St GLADSTONE QLD 4680 Phone:(07) 4972 3144 Rainbow Valley Early Learning Centre 12 Uniting Place GLADSTONE QLD 4680 Phone: (07) 4979 3544 Goodstart – Kin Kora 79 Sunvalley Rd GLADSTONE QLD 4680 Phone: (07) 4978 4688 Goodstart Gladstone ‐ Beak Street 1 Beak St GLADSTONE QLD 4680 Phone: (07) 4978 4811 Community Kids Clinton Park EEC 18 Ballantyne St GLADSTONE QLD 4680 Phone:(07) 4978 4200 Port City Kids Early Learning Centre 27 Garden St GLADSTONE QLD 4680 Phone:(07) 4972 2344 C&K Clinton Community CCC 2‐4 Harvey Rd CLINTON QLD 4680 Phone:(07) 4978 6294
Private / Community
Licensed Places
Vacancy Rate
Fee Schedule Per Day
Fee Schedule Per Week
Extras – Meals, Nappies, Bus, etc
Not‐for‐Profit Est. 1996
108 (50+58)
None 2
$76.00 ‐ $83.00
$360.00 ‐ $380.00
6.30am – 6.30pm (still trialling a 5am start for extra $13/day OSHC
Private Est. 1993
61
None
$70.00
$335.00
6.45am – 6.15pm
Private Est. 1995
75
None
$73.00 ‐ $77.00
$350.00 ‐ $370.00
Am & pm tea Kindy Program 6.15am – 6.15pm
Not‐for‐Profit Est. 1995
74
None
$75.00 ‐ $78.00 (approx.)
$345.00 ‐ $360.00 (approx.)
6.30am – 6.30pm
Not‐for‐Profit Est. pre‐2006
74
None
$80.00 ‐ $82.00
$360.00 ‐ $369.00
Meals provided 6am – 6pm
$81.00 ‐ $84.00
$385.00 ‐ $400.00
Nappies provided 6am – 6pm
$72.00
$340.00
6am – 6pm
None
Private Est. 1997
74
Private Est. 2005
156
None
Not‐for‐Profit Est. 2012
66
Limited
$88.00 ‐ $90.00
$425.00 ‐ $435.00
7am – 6pm
Star Kids – Calliope 7 Don Cameron Drive, CALLIOPE QLD Phone: 4975 7955
Private Est.2005
75
Limited 2
$80.00
$350.00
Funded Kindy Program 6.15am – 6.15pm
Goodstart–Tannum Sands 2 Parkside St TANNUM SANDS 4680 Phone: (07) 4973 9922
Not‐for‐Profit Est. 1995
74
None 2
$77.00 ‐ $85.00
Boyne Island Childcare & Kindergarten Private 8 Beltana Drive Est. 1995 BOYNE ISLAND 4680 Current Owner 2006 Phone: (07) 4973 7664
74
Limited
$72.00 ‐ $77.00
Riverstone Rise Early Learning Journey 6 Corimba Parade BOYNE ISLAND 4680 Phone: (07) 4899 0602
Private Est. 2014
107
Limited 2
$81‐$83
1,018
$80
TOTALS/AVERAGES
Meals provided. 6.15am – 6pm ½ day option. Am & pm tea & Nappies. $360.00 ‐ Kindy Program $385.00 6am – 6pm OSHC Meals & Nappies Provided $405‐$415 Kindy Program 6am – 6pm $350.00 ‐ $380.00
$375
NOTE: Information provided in the Supply Tables has been collated from state and federal government childcare information registers, Business Geographics databases and telephone surveys of the listed centres. In particular, the Licensed Places, Vacancy Rates and Fees provided are dependent on information supplied to us to by staff at the centres and therefore should not be interpreted as conclusive. They represent the information supplied at a given point in time and their accuracy is subject to the interpretation of the relevant staff member.
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SUPPLY TABLE – OTHER CHILDCARE SERVICES The following tables provide details of family day care and OSHC services in the Gladstone Region. This list has been compiled by Business Geographics from a range of sources.
Family day care services in Gladstone Details
Details
The Salvation Army Gladstone Family Day Care Scheme
Address ‐ 198 Goondoon St, GLADSTONE 4680 QLD Established 2001 No Vacancies $5.00 ‐ $8.50 per hour 27 Bolsover St, ROCKHAMPTON 4700 QLD Major Family Day care provider to RIO Tinto Alcan
Family Day Care Capricornia
C & K Family Day Care
C & K Central 14 Edmondstone St, NEWMARKET 4051 QLD
(Provide services in Gladstone) Education and Care At Home
Floor 1 126 East St, ROCKHAMPTON 4700 QLD Vacancies $7.00 ‐ $10.00 per hour
(Provide services in Gladstone)
OSHC centres servicing Gladstone Details
Provider Licensed & Date Established Places
Gladstone Central State School OSHC 74 Auckland St GLADSTONE 4680 QLD 0412 540 276 Clinton State School OSHC Clinton State School 1 Harvey Rd CLINTON 4680 QLD 0448138438 PCYC Gladstone School Age Care PCYC Hall 56 Yarroon St GLADSTONE 4680 QLD 4972 3122 St John the Baptist OSHC 15 J Hickey Ave CLINTON 4680 QLD 49781799 Star of the Sea OSHC 181 Goondoon St GLADSTONE 4680 QLD 0417614316 Tannum Sands State School OSHC Waratah Cres TANNUM SANDS 4680 QLD 0400185449
TOTALS
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Details
Camp Australia OSHC Est. 2013
35
Before School Care Hours ‐ 6:00am to 8:50am After School Care Hours ‐ 3:00pm to 6:00pm
Helping Hands Network Est. 2013
60
Vacancies Before School Care Hours ‐ 6:30am to 8:40am After School Care Hours ‐ 2:45pm to 6:00pm Before School Care Fees ‐ $14.00 After School Care Fees ‐ $18.00 Before School Care Hours ‐ 6:30am to 9:00am After School Care Hours ‐ 2:45pm to 6:00pm Meals and bus pick‐up from school Vacancies Before School Care Fees ‐ $15.00 After School Care Fees ‐ $18.00 Before School Care Hours ‐ 6:30am to 8:50am After School Care Hours ‐ 3:00pm to 6:00pm Meals provided
PCYC Est. 2007
107
Est. 2003
65
Est. 2005
48
Before School Care Hours ‐ 6:00am to 8:15am After School Care Hours ‐ 3:00pm to 5:45pm
PCYC Est. 2011
45
Before School Care Hours ‐ 6:00am to 8:50am After School Care Hours ‐ 2:30pm to 6:00pm Meals Provided
360
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CHILDCARE NEEDS ASSESSMENT
DEMAND ANALYSIS This section reviews the current estimated level of demand for long day care services in the major catchment and identifies key demand drivers evident in the major catchment area.
Children Aged Under 5 The major catchment area currently (2014) has an estimated population of 4,396 children aged under 5. This represents 8.36% of the total population which is higher than the state average for this age group of 6.88%. The map below shows the concentration of children under the age of 5 by neighbourhood.
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CHILDCARE NEEDS ASSESSMENT
Female Labour Force Participation Rate Another important demand driver for long day care is the female labour force participation rate. One of the main social contributions of long day care is to support labour force participation (particularly amongst women). Areas with existing high levels of female labour force participation tend to have high rates of demand for long day care. The map below highlights above average female labour force participation rates in the major catchment.
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CHILDCARE NEEDS ASSESSMENT
Child Care Expenditure The proportion of income spent on long day care services is another useful indicator of demand and helps to qualify the propensity of households to use long day care. The map below compares neighbourhoods based on the proportion of their income spent on formal childcare services. Each neighbourhood is compared to the average for all neighbourhoods in Australia, which is 100.Green areas have a higher than average expenditure on Child Care. The data shown is derived from the Household Expenditure Survey conducted by the Australian Bureau of Statistics.
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CHILDCARE NEEDS ASSESSMENT
Population Growth Population growth is another important indicator of demand for long day care with growth often representing the establishment of residential neighbourhoods and family formation. The map below shows the average annual population growth rate by neighbourhood since 2011. Green areas have high rates of population growth.
DEMAND TABLE www.businessgeographics.com.au
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CHILDCARE NEEDS ASSESSMENT
The following table details the estimated demand for long day care from the population of children aged under 5 based on state benchmarks for participation and attendance and the specific socio‐demographic characteristics of the major catchment area. The current (2014) estimated daily demand for long day care in the major catchment area is for 1,055 places. This has been estimated based on an assumed Long Day Care Participation Rate of 40% and an Attendance Rate of 3 days per week (60%). It’s worth noting that the participation rate estimate includes a small allowance for the working population that travel to Gladstone from outside the major catchment. Demand is increasing at a rate of approx. 2.88% per annum (in line with under 5 population growth). Based on current trends and estimates, Demand is forecast to increase by approximately 121 places (11.51%) over the next 4 years to 2018.
Historic, Current & Forecast Demand for Long Day Care
2014 (estimate)
2011
2018 (forecast)
Change (2014 ‐ 2018)
No.
%
No.
%
No.
%
No. total
% per annum
Total Population
49,436
100.00%
52,565
100.00%
57,514
100.00%
4,948
2.35%
Children Aged 0 ‐4
4,038
8.17%
4,396
8.36%
4,902
8.52%
506
2.88%
Estimated Participation Rate *
40%
40%
40%
Estimated Number of Children that attend Long Day Care
1,615
1,758
1,961
202
2.88%
Attendance Rate # (Based on 3 days per week)
60%
60%
60%
‐
‐
Estimated Daily Demand for Long Day Care
969
1,055
1,176
121
2.88%
*Estimated Participation Rate – The participation rate is the number of children aged under 5 that attend long day care and is based on a national benchmark of 45%. The figure used for the major catchment is BELOW the average and may be limited due to the limited availability of places which forces parents to explore other options for childcare such as family day care, informal care arrangements (parents/relatives) or remaining out of the workforce. # Attendance Rate – Data from the Office of Early Childhood Education & Child Care shows that the average time that a child spends in long day care is approx. 25 ‐26 hours per week. This rate of attendance has been relatively stable for a number of years. For the purposes of this report, it is assumed that the average attendance rate of children at long day care is 3 days per week or 60% of full‐time. Source: ABS, State &Local Government Population Forecasts & estimates calculated by Business Geographics.
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CHILDCARE NEEDS ASSESSMENT
NEEDS ASSESSMENT – LONG DAY CARE This section provides an assessment of whether there is any unmet demand (undersupply) or oversupply of long day care services within the major catchment area. At present (2014), there are twelve (12) long day care centres in the Gladstone region supplying a total of 1,018 places to an estimated market of 4,396 children (aged under 5) demanding up to 1,055 places per day. This represents a ratio of 4.3 children per long day care place and estimated average occupancy rates in excess of 100%. Whilst some limited places are available at present for older children, there are virtually no places for children under the age of 2 and the underlying demand for places appears to be exceeding the available supply. Demographically, Gladstone has a high proportion of families and young children aged under 5 and a higher than average female labour force participation rate. As a result, demand for long day care is high. The majority of centres in Gladstone itself have NO VACANCIES and long waiting lists. It’s worth noting that Gladstone has had an UNDERSUPPLY of long day care for a number of years and this seems to be continuing today. In practical terms, the undersupply of places means that not all families will be able to meet their childcare needs locally and may need to utilise alternative forms of care. It’s worth noting that the strongest demand for long day care is in the growing residential areas in the south of the city. That said the surrounding towns of Tannum Sands/Boyne Island and Calliope do appear to have lower occupancy rates than centres in Gladstone itself, however this is due to the recent opening (in April 2014) of the 107‐place Riverstone Rise Early Learning Journey centre. At current forecast rates of population growth, potential demand is expected to continue to grow by up to 121 places by 2018. As a result, it’s estimated that the market needs at least 200 places by 2018 in order address the existing undersupply and meet this forecast growth in demand. In fact, it’s estimated that Gladstone needs at least 150 places immediately to help alleviate the existing underlying unmet demand.
Needs Assessment Table
No. %
2014 (estimate) No. %
2018* (forecast) No. %
969
1,055
845
2011#
Estimated Daily Demand for Long Day Care Estimated Daily Supply of Long Day Care Average Estimated Occupancy Rate** Needs Assessment
Change (2014 ‐ 2018) No.
%
1,176
121
11.51%
1,018
1,218
200
19.65%
>100%
>100%
96.55%
UNDERSUPPLY
UNDERSUPPLY
SUPPLY RESTRICTION
*2018 ‐ This allows for population growth to 2018 and assumes an increase in supply of 200 places ** Average Estimated Occupancy Rate across the entire Catchment. Average Occupancy Rates over 85% indicate some supply restriction, whilst rates below 75% suggest some oversupply. 80% is considered to be balanced. #2011 Supply estimate prior to the opening of C&K Clinton Community CCC (66 places in 2012) and Riverstone Rise ELC (107 places in 2014). www.businessgeographics.com.au
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CHILDCARE NEEDS ASSESSMENT
APPENDIX 1 -Terms used in this report Attendance Rate Data from the Report on Government Services (2014) prepared by the Productivity Commission (Volume B Chapter 3 Early Education & Care) reveals that the average time that a child spends in long day care is approximately 27 hours per week (out of a typical 50 hour week). This rate of attendance has been relatively stable for a number of years. For the purposes of this report, it is assumed that average attendance rate of children at long day care is 30 hours or 3 days per week or 60% of full‐time. It’s also worth noting that attendance is not consistent throughout the year as children tend to enter and leave care at different points of the year, depending on the family’s circumstances. The number of children that uselong day care across a given year is therefore greater than the number using care at any point in time.
Major Catchment Area The Major Catchment Area used in this report is the expected catchment area for the subject site. In excess of 80% of enrolments are expected to originate from within this Catchment Area. The boundary of a relevant Catchment Area is assessed by taking into account the unique geographic characteristics of each site. Research conducted by Business Geographics reveals that a 2km – 3km catchment is typical in a metropolitan market, whilst slightly larger catchments are found in regional areas. Unless otherwise stated, the demographic statistics provided in this report relate to the defined major catchment area.
Balanced Market A BALANCED Market is where current levels of supply are MEETING current estimated levels of demand. There are long day care places available within the local area for parents that need care for their children. At the same time, the majority of centres will have solid occupancy rates and be achieving benchmark returns. A Balanced Market is typically evidenced by an average estimated occupancy rate close to 80%, a ratio of children (aged under 5) per long day care place of between 3:1 and 4:1 (in metropolitan markets ‐ higher in regional markets) and reports of LIMITED VACANCIES at existing centres.
Estimated Average Occupancy Rate This figure represents a statistical estimate of the occupancy level at all existing centres in the catchment area. It is calculated by dividing the total estimated daily demand by the observed daily supply of places. The Office of Early Childhood Education & Child Care collects data on vacancies for long day care centres on a quarterly basis. Trend data for the past two years shows average occupancy rates nationally at between 75% and 80%. For the purposes of this report, Average Occupancy Rates over 85% indicate RESTRICTED SUPPLY, while more than 100% indicates an UNDERSUPPLY. Rates below 75% suggest a tendency to some oversupply while rates less than70% indicate an OVERSUPPLY. An estimated average occupancy rate of 80% tends to indicate a BALANCED market.
Oversupplied Market An OVERSUPPLIED market is where current levels of supply are EXCEEDING current estimated levels of demand. Some, if not all centres, will have difficulty achieving benchmark returns. Occupancy rates are lower than the benchmark – typically
