The education of hundreds of preschoolers in Otago may be in jeopardy as reports surface that child care operator ABC Learning Centres Ltd is on the brink of financial collapse.
The Australian-based company is the world's largest child care operator, with 104 centres in New Zealand, seven of which are based in Otago.
The New Zealand Educational Institute (NZEI), the union representing early childhood education and care workers, is seeking urgent talks with the Government about the situation to ensure the centres remain open if a receivership eventuates.
National secretary Paul Goulter said the company had 161 services, or licences, in New Zealand at June 30, and each could have a maximum of 50 children.
A centre could have more than one service.
The seven Otago ABC centres are in Mosgiel, Oamaru, Arrowtown, Balclutha and Queenstown.
Local managers of these centres declined to comment.
Australian media reported ABC Learning might go into receivership as it faced large losses and the possible restatement of prior earnings.
Australia's deputy prime minister Julia Gillard said the federal government was closely monitoring developments, AAP reported.
ABC Learning said it was continuing to discuss its future with banks and the Australian Government.
Some of its sales come from government subsidies.
"All parties appreciate that the operation of ABC child care centres is a major issue for communities throughout the country," the statement said.
Mr Goulter said the company was the biggest operator in New Zealand and there was no obvious buyer for the business.
"Our position is clear that this company is too big to fail and ABC needs to be far more transparent," he said.
"We are trying to ascertain what the Government here is thinking of doing about it."
The company has grown rapidly and has units in the United Kingdom and the United States as well as Australia and New Zealand.
