There has been great excitement as the childcare sector continued to mature in 2004. However, in some areas a level of anxiety has set in amid fears over increased competition, particularly from Neighbourhood Nurseries. The ongoing issue of staff recruitment and retention has been further compounded by the sheer volume of new provision that has been created.
In my view, while the outlook for 2005 appears very positive, the sector can no longer be viewed through rose-tinted glasses. Many nurseries are coming under increasing operational pressures due to competition from subsidised nurseries.
Few would criticise the objectives and ethos of subsidised nurseries. But a number of subsidised nurseries will not survive after receipt of their third year of revenue funding, and I have concerns about how many private nurseries severely affected by the subsidised nurseries will be able to weather the storm.
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