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Childcare Bill

My Lords, I thank the Minister for his reply and noble Baronesses for their support. The Minister says that things are good in the PVI sector. On the Government’s own figures, only 24 per cent of PVI providers are making a surplus. If we turn that the other way round, 76 per cent of them are making a loss. That is a timebomb waiting to go off. Childcare centres can be set up without proper business plans or appraisal. They are given a huge amount of grant up-front from the New Opportunities Fund that is not available to them later. The PVI sector is seriously concerned. One leader in the market, a lifelong Labour voter, said to me, ““Trish, the sector is going bust. If the Government want the private and voluntary sector out of childcare, they should say so””. Such providers are not made to feel any better when they read that Margaret Hodge said that if nurseries do not become children’s centres, they will die. It is not about the Government having the PVI sector working where they want them to; it is about proper partnership. The Government should look at the 163,000 spare places, many of them in good, high quality settings, before they consider building brand spanking new buildings. I have to say that it would be much easier to achieve a strong and constructive partnership if the amendment were accepted. Therefore, I would like to test the will of the House. On Question, Whether the said amendment (No. 9) shall be agreed to? Their Lordships divided: Contents, 148*; Not-Contents, 147. [* See col. 73 for Lord Chancellor’s explanation and decision on Amendment No. 9.] [Amendments Nos. 10 and 11 not moved.]