Childcare feels the pinch

Long waiting lists at many childcare centres have evaporated as economic times have bitten and parents are being mindful with their money.

A big increase in new centres is also contributing to more spaces being available, particularly in the big cities, according to a string of centre owners, who say the situation is in stark contrast with last year's long waitlists.

Kidicorp owner Wayne Wright, who has about 100 centres nationwide under numerous brands including Topkids and Mainly Kids, said waitlists had substantially changed due to the recessionary bite and people being more careful with their discretionary income.

"Cases of people putting kids in for discretionary reasons, like socialisation or having time off, have evaporated because there's no discretionary income," he said.

He had opened about 15 new centres in the past year, adding another 1200 places nationwide. Places were available at many, including 27 at Manukau Edukids and 54 at the Henderson branch.

He believed there was a trend for parents to keep their babies at home for longer, probably due to the Government's increased maternity provisions and the higher cost of care.

Demand was high for over-2s, probably due to the Government's 20 free hours early childcare scheme.

However, Wright said he was unable to get enough staff in areas such as Te Kuiti, and if he could get more workers he could open more places in high-demand areas.

Kindercare Learning Centres managing director Glennie Oborn - whose company runs 35 centres in Auckland, Hamilton, Wellington and Christchurch - said they had "significant vacancies". She knew many rival centres in the same position.

"Waitlists have come down significantly," she said.

She said a columnist earlier in the year reported childcare centres were "recession-proof" but this was untrue.

Even boutique childcare centres such as Stepping Stones in Mt Eden reported a shift in demand.

Centre owner Fiona Young said some parents could get their children in within a few months, while in the past the waitlist had been long.

"People are cutting back financially. Quite a few of our mums don't work so they used us for time out. But now things are a bit tighter and time out is more of a luxury," she said.

She said about this time of the year there was usually a rush of calls for places for next year but the phone had not been running hot like in the past.

Dr Sarah Farquhar, chief executive of the Early Childhood Council, said the early childcare sector had seen significant growth in the number of places available in recent years to meet increasing demand and cater to the baby boom. Enrolments had increased by 20 per cent between 2004 and last year.

There are now about 2000 licensed centres nationwide where parents can pay between nothing (20 free hours scheme) or up to about $100 a day.

Breezing right in

Assistant accountant Rene Narayan says it was a breeze to find childcare for her daughter Jade, who turned 1 on Thursday.

She visited four centres in South Auckland about five months ago and all but one were able to offer Jade a place for three days a week.

"I approached them a few months before I wanted to go back to work because I was told by friends that there were usually long waiting lists and some people just couldn't get in," she says. "But that wasn't the case."

The mother of one says all the centres charged about $55 a day for children under 2 but she chose Edukids Manukau on Great South Rd because the staff were extra friendly, it provided meals and had extended opening hours.

Narayan says Jade enjoys interacting with other children, music time and puzzles and "loves the sandpit and anything messy".