Nursery World - In My View: Losing out to profit motive

Purnima Tanuku's 'Profit or loss?' (13 September) makes some good points about government funding and the private sector, but unfortunately not her suggestion that 'profit' be replaced with 'surplus'. The dictionary defines surplus as, 'an amount left over when requirements have been met'. This is what the public perceive as profit, where funds spent on 'staff training, investment in resources...' and so on have already been included in budgeting and expenditure and therefore are not part of 'profit'.

I cannot agree that 'for nurseries a profit is ethical'. Both the public sector and third sector deliver services where, using Ms Tanuku's definition, all 'profit' goes back into services, without the need for moral justification.

More government funding to the PVI sector would inevitably lead to the destruction of the small business model she promotes. The corporate sector has held off investing heavily in this sector precisely because of the precarious nature of profit. However, the guarantee of sustained funding will give a green light to larger providers to swallow up smaller innovative and community-based settings.

For staff, the future doesn't appear attractive. The current system of underfunding means significant numbers of workers on very low pay, with limited training opportunities. Larger providers might improve chances for career development, but the history of private companies in the public services is not one of bounty below director level.

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