Council-run child-care centres are the latest group facing an uncertain future during the Covid-19 pandemic, according to Local Government NSW (LGNSW).
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With council staff ineligible for the JobKeeper payments, there is concern these facilities may have to shut up for good.
Childcare and early education centres with ABNs have been granted access to the JobKeeper package for staff - but most council-run facilities do not have ABNs.
The government's new free fee initiative to give parents free care is based on those centres also receiving the JobKeeper payments.
While Tamworth's two centres are still operational, council says more information is needed to address future viability.
LGNSW president Linda Scott said the Prime Minister must reverse the decision to deny JobKeeper payments to councils.
"Without it, we are looking at the closure of council-run childcare centres," she explained.
Without [JobKeeper payment], we are looking at the closure of council-run childcare centres
- Linda Scott
Tamworth Regional Council Manager Cultural and Community Services Kay Delahunt said their aim is continue to run the Year Round Care Service from its two centres, but were waiting to hear more.
The East Tamworth centre in Tamworth Public School, and South Tamworth centre at West Tamworth Public School, are running on "significantly reduced numbers".
"We are continuing to plan for Vacation Care during the upcoming school holidays, however there are many unknowns at the moment," Ms Delahunt explained.
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"We are waiting to hear from LGNSW about what the situation is for Year Round Care.
"Our aim is to be here for parents who continue to work, especially those providing essential services."
The clarity will help ease minds of staff in their Year Round Care, including one full time, five permanent part-time and about 20 casual educators.
Both the NSW Education Minister Sarah Mitchell and the Federal Education Minister Dan Tehan's offices were approached by the Leader for comment.
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