An independent review into Council’s funding of the Hohnes Road Playhouse in Eltham found Nillumbik ratepayers’ money is being used to subsidise the underutilised service. A Nillumbik Shire news release say the enrolements are made up of 75 per cent of children from neighbouring councils.

Council is continuing to work with the playhouse committee look for alternative ways to continue operating its service without being subsidised by Nillumbik ratepayers.

Nillumbik Shire Council Mayor Peter Clarke said while the group was an example of parents working well together, the model had to change to become self-sufficient like all other early childhood groups.

“At the time of the review 38 children used the facility, about 10 of which lived in the shire. Residents expect Council to spend money wisely and I think ratepayers will make up their own mind if $50,000 per year is well spent catering for 10 of our children when Council has its own run facilities that could cater for them,” Cr Clarke said.

“Council is certainly not shutting down this service. We are saying the group will need to look at a model that is not reliant on our ratepayers to continue to operate.”

The review found that the centre was underutilised and had no funding agreement to demonstrate accountability or value for ratepayers’ money.

“Council will continue to support the centre until the end of January 2018 to ensure parents and children have time to secure spots in other nearby facilities if they are unable to change their model,” Cr Clarke said.

“Council remains concerned that the Hohnes Road facility is unable to achieve compliance with current childcare building standards.”