A MEDOWIE day care centre operated by Port Stephens Council could be outsourced leading to a $325,000 payout in staff redundancies and entitlements - according to a council report.
But the council's community and recreation manager Steve Bernasconi said redundancies were unlikely as there were no plans to close the centre and any final decision would be made by the council. The proposal to find an "alternative organisation" to manage the Medowie Children's Centre came out of the council's children's services sustainability review. The review revealed the centre has been averaging a loss of about $65,000 a year with a peak loss of about $170,000 in 2011/12. The review stated that because the centre was operated by the council it had additional local government overheads that private and community providers did not have to cover.
As a result of the overheads, the fees at the centre have increased and occupancy has dropped.
"Council cannot deliver the service at a market competitive price and there are alternative providers in the immediate area with a lower fee,' the council report stated. If the review is adopted at the next council meeting the centre will continue to remain open and during the next 12 months the council will consider other provider options including private providers.
"The recommendation being presented to the council is that we investigate other management models for Medowie Children's Centre. This does not mean closing the centre," Mr Bernasconi said.
Mr Bernasconi said those who work and use the centre had been continually updated about the proposal.
